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Pos'it'ion'ing(verb) "Positioning starts with a product. But positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect." (Al Ries and Jack Trout, Positioning the Battle for Your Mind.)When most of us hear "Tide", we get an image about something that "Gets the Dirt Out". When we are standing in the grocery aisle, we remember that image as we compare brands and select one for our grocery cart. The importance of strategic brand positioning for consumer products is well recognized. But what about for "techy" products or services? Is brand positioning important or even possible? The bottom line: strategic brand positioning is critical to technical businesses whether the company sells to consumers, provides technical services, or sells to other businesses. Building brand equity leads to greater market share and increased profitability.
If you look at the wireless communications industry you may think positioning means inventing a catchy new name, such as Verizon or Cingular, then rolling it out with a hundred million dollar advertising campaign. In reality, a brand name is only one component of effective positioning, and a massive marketing budget is not always necessary.
There are three steps to positioning:
Step 1: Define the target customer. Segmenting the market in the volatile technology sector is not always easy, but it is critical to understand the customers' needs and to group customers based on their common needs. Cingular Wireless has defined and targeted a segment of their market that makes an emotional purchase rather than one based on technical performance features.
Step 2: Know the competitor. It's important to analyze both the competitors' offerings and their positioning so you consciously decide whether to create a new position in the customer's mind or to battle head-to-head for the same position with another company. Unless you have a substantial competitive advantage, the latter strategy is almost always more costly.
Step 3: Describe the unique benefit you offer.
Unique is a key word here because there are some benefits that all competitors in your field offer, and you don't want to build your position around one of those attributes. For example, name a wireless company that offers a flat fee for a set amount of minutes. This once-unique offer has become so common that all the ads and commercials tend to merge with no brand standing out from the rest.
If you have several unique benefits you need to rank them in importance to your target customer. Federal Express, for example, has held a leadership position in its industry for many years because it guarantees next day delivery. This guarantee is more important to the overnight delivery business customers than low prices.
Writing a Positioning Statement
A positioning statement is the foundation for the company's advertising and promotional campaigns; it should not be confused with an advertising slogan. A company must first define its message by developing a positioning statement. Only then should the company develop catchy phrases to communicate that message. The positioning statement must remain constant even if the slogans change.
Positioning statements are usually built around the following attributes:
Price- Our prices are unbeatable.
Quality - Only the finest ingredients are used in our pasta.
Convenience - Our technical support people are available 24/7.
Customize - "Have it Your Way" at Burger King.
Proprietary Technology - Our patented formula will improve your health.
Performance Features - We have the highest speed connections in our region.
Relationships - The software used by investment professionals.
Every marketing tactic can either support or contradict the positioning statement. The brand name, logo and advertising give the position high visibility. The brand name, Cingular, is a play on the word "singular." Their animated logo resembles a person. Both support a position of individuality and self-expression, as does Cingular's memorable advertisement showing football players doing ballet. Verizon is a blend between "veritas" which connotes reliability and "horizon" to signify unlimited possibilities. Their position is as a dependable leader, embodied by their spokesman, James Earl Jones, an honest, loyal, father figure. Other elements that influence positioning include pricing, packaging, supplemental services, strategic partners, and distribution channels.
With the vast quantity of information assaulting people on a daily basis, to be remembered a company must create a distinctive position in a customer's mind. In your race to the top, follow these steps and create brand positioning for your company, and then ensure that every marketing decision is consistent with your positioning.
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