About this Author
Al Ries, a renowned marketing strategist, chairs Ries & Ries Focusing Consultants. The late Jack Trout, a marketing pioneer, led Trout & Partners.
2001
Business & Money
Management & Leadership
10:07 Min
Conclusion
7 Key Points
Conclusion
In a crowded market, strategic positioning is crucial for success. Understanding consumer perceptions, leveraging competitors' weaknesses, and optimizing your unique advantages are key to carving out a distinct space in consumers' minds and achieving long-term growth.
Abstract
Positioning isn't just about standing out; it's about owning a space in consumers' minds. Be the first to establish your niche, redefine competition, and optimize your brand name, like Coca-Cola's "The Real Thing." Understanding consumer desires and leveraging strengths are key. In a crowded market, simplicity and clarity are vital. Whether it's a product, company, or personal brand, strategic positioning is essential for long-term success. This classic marketing guide by Al Ries and Jack Trout remains relevant today, offering timeless strategies despite its historical context.
Key Points
Summary
The Significance of Positioning in Various Aspects of Life
Positioning is like finding the perfect spot for your message to stick in a customer's mind. It's super important in a world where everyone's talking at once. You want your company to carve out a special place in the customer's brain. This isn't just about showing off your strengths; it's also about sizing up your competition To stand out and be the go-to choice for customers. If you can't be first in their minds, no worries. You just need to figure out how to be just as good or better than whoever is.
Positioning isn't just for ads. It's a big deal in everything from business to personal stuff, like politics or even your love life. In a world overflowing with info, people mentally rank things. For instance, when it comes to renting cars, most folks would put Hertz at the top, followed by Avis, then National. So, before you can make your mark, you gotta know where you stand in someone's mind.
Focus on establishing the brand in consumers' minds is futile.
Being the first brand to occupy consumers' minds is crucial for success. While some marketing experts credit strategies for the achievements of brands like Kodak, IBM, and Coca-Cola, they often overlook the significance of being the pioneer.
In certain industries, there are two leading brands in fierce competition. However, this rivalry doesn't last forever. Eventually, one emerges victorious, dominating the market for years. Initially, leaders seem unbeatable due to their momentum. However, their real concern lies in the future “ where will they stand in five or 10 years? The key is to leverage short-term advantages for long-term stability.
But what works for the leader may not work for the follower. Developing a strategy when you're not the first or the best can be challenging. Followers typically strive to surpass the leader's products while operating on a smaller budget. However, this approach seldom yields positive results in the long run.
Identify the consumer's gap, then offer your product to fill it.
The French say, "Cherchez le creneau," meaning "look for the hole." This means finding the gap in the market and filling it with your product to succeed. To do this, you need to think differently and go against the norm.
To succeed, find the gap in the market. This means thinking differently:
Look for what people want but isn't available yet. That's better than fighting for space in crowded markets.
Target Your Market
Marlboro was the first major cigarette brand to target men, while Virginia Slims was the first to target women.
But sometimes, the obvious isn't the best choice for selling to a specific gender. Revlon didn't go for a soft, girly image with its perfume named "Charlie" and ads featuring women in pantsuits. Surprisingly, Charlie became the world's top-selling perfume brand.
Packaging and distributing products differently can carve out new niches. Take L™eggs pantyhose, for example. They were the first to come in a plastic egg, and also the first to hit supermarket shelves.
Remember, it's about filling the gaps in consumers' minds, not just catering to everyone. Trying to appeal to everyone doesn't work anymore. In today's crowded market, only products and services cleverly positioned to fit specific niches will succeed.
Strategize by leveraging competitors' weaknesses through effective positioning.
When you can't find a 'niche' or don't want to look for one, you can still succeed by getting into the consumer's head by repositioning your competition. This means changing how people see your rivals. Once you do that, it's easier to sell your own idea or product because there's space for something new.
Tylenol did this when it took on aspirin and became the top painkiller brand. Stolichnaya did it too, by saying it was the only vodka made in Russia. Sometimes, this repositioning feels like a battle; you might see ads that put down the competition. But if you can show that your brand is better than the others already in people's minds, you can come out on top.
Consider product positioning when naming.
In today's competitive market, the name of a product is crucial for grabbing consumers' attention. Unlike in the past, where fewer products crowded the shelves, now the name plays a key role in standing out. This means old naming strategies might not work anymore.
Names should highlight the main benefits of the product, like Head & Shoulders shampoo or Close-up toothpaste. Essentially, the name should communicate what makes the product special right from the start.
Names can become outdated, giving competitors a chance to swoop in. For example, Esquire magazine was named when gentlemen used to call themselves John J. Smith, Esq. But then Playboy magazine took over. Everyone knows what a playboy is and what he likes. But who can tell you what an esquire is and what he likes today? When you launch a new product, give it a fresh name, something unfamiliar. You're breaking new ground and your product needs to stand out.
Optimize your current position for maximum advantage.
In the world of business, positioning is key. It's all about shaping how people see a company. Just like products and services, companies also vie for the best spot in people's minds. When you buy stock, you're investing in that company's position - now and later. The stronger the company's position, the more people are willing to pay for its stock.
It's not just businesses, though. Everyone and everything does it - countries, religions, social groups, you name it. Think of Jamaica, pitching itself as "The Hawaii of the Caribbean" to attract tourists.
And here's the thing: you can do it too, for yourself or your career. Whether it's your brand or your own business, the strategy is the same. It's all about how you present yourself to the world. Understand the importance of words, including names, slogans, and descriptions.
Strengthen your stance is vital for ongoing achievement.
Coca-Cola grabbed the top spot by being the first to stick in people's minds. To stay there, they keep reminding us they're "The Real Thing." It's not just about saying "We're Number One!" They go further, calling out competitors as mere imitations. This makes consumers see them as the genuine article, like a first love, and everyone else as just wannabes. Other companies like Xerox, Polaroid, and Zippo did the same thing, making themselves the ultimate standard.
When you're not already on top but have something unique to offer, use this tactic to carve out your own space. Take Nyquil, for example. It was the first nighttime cold remedy, and it's ruled that niche ever since.
Craft Effective Position
But when you're expanding your brand, be careful. Your name can only stretch so far before it snaps. Don't push it into unrelated areas, or it could blow up in your face. Even if two things are owned by the same company, like a food brand and auto parts, give them separate names. It's safer that way.
Positioning research helps understand what potential customers want. By knowing this, you can make a strategy and convince your bosses.
Position thinking is not like common sense. It says to start with what customers already like about your product and build on that. Even if there's just one good thing, focus on it. This is your "creneau" - what sets you apart in the customer's mind.
For instance, if your only advantage over competitors is your convenient location, use that in your marketing. Forget the rest and be the top choice for convenience. With these tactics, you can carve out the position you want for your business, service, or product.
Share: