The New Positioning

1. Minds are limited: Focus on simplicity and clarity

In an overcommunicated environment, people are selective as to the information they will accept.

Information overload is real. The human mind is bombarded with an unprecedented amount of information daily. More information has been produced in the last 30 years than in the previous 5000 years. This overload has significant implications for marketing and communication strategies.

Simplicity is key. To effectively communicate in this environment, messages must be simple and clear. The mind can only hold about seven "chunks" of information in short-term memory. This "Rule of Seven" applies to brand recall as well – the eighth brand in a category is often forgotten.

Selective retention matters. People tend to remember information that aligns with their pre-existing interests and attitudes. This selective retention means that marketing messages must be tailored to resonate with the target audience's existing beliefs and preferences.

2. Positioning is about owning a word in the mind

Positioning is simply concentrating on an idea—or even a word—that defines the company in the minds of consumers.

Own a word in the mind. Effective positioning is about claiming ownership of a single word or concept in the consumer's mind. This word should be simple, clear, and directly related to your product or service.

Examples of successful positioning:

• Volvo: Safety
• FedEx: Overnight
• Domino's: Home delivery

Differentiation is crucial. In a crowded marketplace, owning a unique position is essential for standing out. This position should be based on a key benefit or attribute that sets your brand apart from competitors.

3. Repositioning is crucial in a changing market

Repositioning is a must when customer attitudes have changed, technology has overtaken existing products, and products have strayed away from the consumer's long-standing perception of them.

Markets evolve constantly. Consumer attitudes, technologies, and competitive landscapes are in constant flux. Brands that fail to adapt risk becoming irrelevant or obsolete.

Repositioning examples:

• Pork: "The Other White Meat" (adapting to health-conscious consumers)
• Apple: From computers to consumer electronics
• Old Spice: From older men's cologne to young men's body spray

Timing is critical. Successful repositioning requires careful timing and execution. It often involves balancing the need to maintain existing customers while attracting new ones.

4. The power of a good name in marketing

The single most important marketing decision you can make is what to name the product.

Names are assets. A good name can be a company's most valuable asset, often worth more than all other assets combined. It's the hook that hangs the brand on the product ladder in the prospect's mind.

Characteristics of effective names:

• Easy to remember and pronounce
• Relates to the product benefit or category
• Pleasing to the ear
• Avoids negative connotations in different languages

Avoid initials and numbers. Names using real or invented words are about 40% easier to remember than alphabet-soup names or numbers.

5. PR plants the seed, advertising harvests the crop

PR first, advertising second.

Third-party credibility. Public relations provides the validity of third-party endorsements, which is crucial for establishing credibility and trust. This is especially important for new or unknown products and companies.

Cost-effective exposure. PR can generate significant exposure at a fraction of the cost of advertising. A well-placed news story can have more impact than multiple advertisements.

Sequence matters. Ideally, PR should precede advertising efforts. PR can create awareness and interest, which advertising can then reinforce and expand upon.

6. Research can be misleading: Trust your instincts

A flood of data should never be allowed to wash away your common sense, and your own feeling for the market.

Data overload. In today's information-rich environment, the problem is often too much data rather than too little. The challenge is filtering out the noise to focus on significant insights.

Limitations of research:

• Focus groups can be misleading
• Test markets can be skewed by unforeseen events
• Stated attitudes don't always predict behavior

Balance data and intuition. While research is valuable, it should not override common sense and market intuition. The most successful marketers combine data-driven insights with their own judgment and experience.

7. Sound trumps visuals in communication

The ear is faster than the eye.

Auditory advantage. The mind processes spoken words faster than written ones. Auditory information is retained longer in short-term memory compared to visual information.

Implications for marketing:

• Radio and podcast ads can be highly effective
• TV commercials should prioritize audio messaging
• Print ads should focus on headlines and simple, memorable copy

Memorable sounds. Jingles, slogans, and distinctive voice-overs can create lasting brand associations in consumers' minds.

8. Avoid line extensions: Focus on your core strength

The more variations you attach to the brand, the more the mind loses focus.

The line extension trap. Many companies try to leverage their brand equity by extending into new product categories. However, this often dilutes the brand's core identity and confuses consumers.

Examples of failed line extensions:

• Chevrolet: From affordable family car to everything for everyone
• Xerox: From copiers to computers
• Bic: From pens to disposable underwear

Focus on core competency. Successful brands typically maintain a strong focus on their core product or category. This allows them to own a clear position in the consumer's mind.

9. The first step is naming your category

Companies don't create categories. Users do.

Category definition is crucial. Before positioning a product, it's essential to clearly define its category. This helps consumers understand what the product is and how it fits into their lives.

User-centric approach. While companies may try to create new categories, ultimately it's the users who determine how products are categorized and perceived.

Examples of successful category naming:

• Personal computer
• Sports utility vehicle (SUV)
• Energy drink

10. Beware of the six positioning pitfalls

Don't be afraid to embrace the obvious.

Common positioning mistakes:

1. Overlooking the obvious
2. Focusing too much on the future
3. Being too cute or clever
4. Ignoring the competition
5. Trying to be all things to all people
6. Changing positions too frequently

Consistency is key. Successful positioning requires long-term commitment and consistency. Frequent changes can confuse consumers and erode brand equity.

Simplicity wins. Often, the most effective positioning strategies are simple and straightforward. Don't overcomplicate your message in an attempt to be clever or comprehensive.

Last updated: July 29, 2024