POSITIONING

WARFARE IN THE CUSTOMERS MIND

One of the major concepts in strategic marketing is that of positioning. It is also one of the most poorly understood areas of marketing and strategy in general.

According to Al Ries and Jack Trout, the two marketing gurus from the US who popularized the concept in their classic book – POSITIONING: The Battle for Your Mind, positioning is:

'Positioning is not something you do to a product. Positioning is what you do to the mind of the prospect. That is, you position a product in the mind of the prospect.'

In their updated 20 th anniversary edition, Ries and Trout redefine positioning as:

'How you differentiate yourself in the mind of the prospect.''

There are two key concepts to take from these definitions. Firstly, positioning is a process by which you create an image in the mind of the customer for your organization, brand, or product. Secondly, this image is used to create a meaningful difference that distinguishes you from your competition. Here are some well known examples:

• Volvo – safety

• Coke – the real thing

• Pepsi – new generation

• Dell – the most customer focused organization in the world

• Fed Ex – overnight delivery

Once you own a position in the mind of the customer it can be a powerful means of setting you apart. It can also be very difficult for competitors to match.

There are some crucial caveats to consider. The positioning appeal must be supported by the product itself. For example, Volvo differentiated itself by focusing on safety and reinforced this with such innovations as SIPS (side impact protection system). No matter how clever or innovative the positioning approach, it won't last long if target customers perceive the image to be untruthful.

According to marketing professor Philip Kotler in his book Marketing Management, there are other conditions that should be met if the act of differentiation is going to be successful:     

• Important – it is valuable to target customers

• Distinctive – different from competitors

• Superior – provides superior benefit

• Communicable – easy to understand

• Preemptive – not easily copied, first

• Affordable – to buyers

• Profitable – for the company to introduce

Done right, good competitive positioning can be a valuable weapon in the warfare of marketing and business.