If You Are Confused About the Concept of “Positioning”
(First published in Modern Weekly, Business version, Brand Thinking)
The author is an experienced brand consultant, who has many
years’ experience in brand planning, marketing strategies and
integration of communication planning and implementation.
Once worked as senior manager in multi-national and local
companies in marketing consulting and integrating
communications fields, experienced in strategic planning. He
formerly worked for CNC and was responsible for brand
management.
Providing brand strategies, communication strategies and
implementation and training service for many international and
local clients. The brands include: FAW-Volkswagen, Jetta Cars,
263 Internet Communications, Dangdang Website, Aucma Air-
conditioner, FAW Toyota, Tour in Sichuan, CNC, LG, Beijing Yanli
Food, and more.
He constantly ponders and develops professional settlement
methods in marketing, branding and communication fields, etc.
Lots of articles have been published in professional media such
as International Advertising, AD PANORAMA, Advertising Pointer,
China Marketing Communication Website (EMKT) and so on.
You are welcome to discuss your ideas and express your
opinions with the author.
Tel: 13901385424 E-mail: [email protected]
The Surface Meanings of “Positioning”
“This health care product lost the market share because it didn’t find the correct
position and failed to win the consumers’ favor.”
“Working in the office, you should know your position clearly to win the praise of
your colleagues and get a promotion.”
“This company positioned itself to be a third-party hotel which only provides top
grade services and thus got remarkable profits over time.”
The definition of “positioning” is accepted and used widely. However, if we do a
sample survey of business managers and marketing personnel, and people working
in market consulting services and the advertising industry for their understanding of
"positioning ", I believe you will get a variety of answers. It seems that even many
professional people, just simply accepted and memorized the term "positioning", and
use it in some specific situations! Few people truly consider "positioning" as a tool
and how to put it in to practice.
If "positioning" is indeed effective, at least we need to understand the concept,
master the methods, and put theories into practice. We can not just purely discuss
about what "positioning" is and treat it as a fashionable term to enrich our vocabulary.
Now, let’s look into "positioning".
Different “positioning”
Advertising Age, an authoritative advertising magazine in the United States,
published Positioning Era in 1972 written by Al Ries and Jack Trout, which declared
the birth of “positioning”.
Al Ries and Jack Trout thought that "positioning" is a method of occupying a market
position in the minds of the target audiences. Therefore, they use the present
continuous tense "Positioning" to express the process. Any country, company,
organization, individual, product or service could use this method to “occupy” a
position in the minds of consumers.
The "positioning" that Al Ries and Jack Trout mentioned actually refers to in-
depth study of the target audience from the perspective of the audience themselves
in order to choose information to distribute effectively and guarantee a means for
consistent communications. This will create a method which impresses consumers
and gets them memorize the company in a certain way. Using common language to
express these ideas we can name it: the “what to say” approach.
The principle of positioning brought forward a new era. With this concept widely
known and accepted by the mass, marketing experts also tried to connect this
principle with the existing marketing theory systems. Thus, we have the classic "S-T-
P" steps, S stands for segmentation; T for targeting and P for positioning which is
something that occupies a certain place in the minds of the consumers with its
unique designs in supplies. (Philip Kolter, Marketing Management 10th edition).
Please note that "positioning" here has surpassed its original meaning, it is not just a
means of communication, but also holds meaning of “unique design in supply." In
other words, the meaning of "positioning" lies in how to design the products, how to
price them and what special services should be provided. Obviously, providing
uniqueness in supply has actually become the key work of marketing! Therefore,
"positioning" changed from a means of communication to the core point of marketing.
Marketing experts have completely accepted the term "positioning" and admits the
positive influence of adding "positioning" to Marketing Theories, and thus, its
meaning have been enriched. Frankly speaking, from the perspective of marketing
experts, "positioning" is not just matter of "what we should say"; it has become "what
we should sell".
When marketing experts promote the "S-T-P" method, “strategic positioning"
becomes the focus of discussion. Michael Porter's On Competition said that: The
essence of the business strategy is "positioning." In his book, he pointed out:
Enterprises can position themselves based on the types of specific products. Just as
Galanz's strategy has focused on the production and development of microwave
ovens; enterprises can also position themselves based on all the needs or most
needs of specific customers or as how IKEA positioned itself by providing a complete
series of household products to young people, who care mainly about price, like to
change styles all the time, and do not need services.
After determining a "positioning" strategy, a set of carefully selected activities
can be carried out accordingly to strengthen the uniqueness value to their
consumers. Take the Southwest Airlines for example, its’ "positioning" strategy is to
provide serve- specific air routes and low-cost and convenient services, in this way, it
can reduce boarding time, forgo providing any unnecessary VIP cabin services and
only purchase Boeing 737 aircraft in order to enhance the efficiency of maintenance
and strengthen its competitive advantages. These simplified activities are carried out
based on the strategic "positioning" plan, and has helped to continuously consolidate
their market "positioning", so that other airlines can not compete with them at all.
From the perspective of Michael Porte, "positioning" has got even a richer
meaning. The "positioning" of enterprises is “what we should do” and this is the
essence of business management strategy and also the origin of competitive
advantages.
There are three different levels of application of "positioning". They are
enterprise strategy level, marketing level and communication level respectively (see
picture 1). Confusion often occurs because of the definitions of these three levels of
"positioning" are actually different, but all of them are wide-spread and accepted.
When we are able to examine "positioning" from different levels, then we can confirm
in which level to use "positioning" correctly so that we can avoid confusion about its
definition.
Graphic I
What to say “positioning” in the communication level
What to sell “positioning” in the marketing level
What to do “positioning” in the enterprise strategy level
It is worth mentioning that the three levels of "positioning" don’t contradict each
other, on the contrary, the unification of the three levels can form a strong
competitive advantage.
For example, Volvo focuses on producing safe cars, the "positioning" of which is
in the enterprise level and also in marketing level, this is consistently shown in the
process of their communications. So in the minds of consumers, Volvo occupies a
market position of “safety”.
The ideal state of the three levels of "positioning" is a united one. Southwest
Airlines, IKEA and Harley Motorcycles are some of the best examples of unity among
the three levels of positioning. Strategic "positioning" is the core and direction of
business management, so as to determine the direction of the products and services
development, and further establish its unique position in the minds of target
consumers through communications. We can see that such enterprises are strong
powers in their markets.
“Positioning” and Brands
Clients often need an advertising company to provide “positioning” services for a
certain brands. However, because Al Ries and Jack Trout didn’t attempt to construct
a theoretical system, nor there is clear definition about the relationship between
"branding" and "positioning". Therefore, the following situations are likely to occur:
the clients who believe in the “positioning” theory claim that they need brand
“positioning” for their shampoo products, for instance, but actually, they do not know
what kind of materials concerning the brand the advertising company will submit.
Proceeding from the view of business, the advertising company is willing to provide
this service for the client, yet due to lack of theoretical basis and standards, clients
can not actually identify the quality of the proposal submitted by the advertising
company. The two sides will not be able to have in-depth negotiations or revisions on
the proposal.
We should change this situation by creating a clear definition; otherwise this
problem will seriously affect daily work progress and market results for many
enterprises. Like the invention of the light bulb is based on the discovery of electricity,
the "positioning" of a brand comes from the unity between "positioning" and
"branding", it is closest to Al Ries and Jack’s classic theory on “positioning”--the
“positioning” of communication, which is the first of the three levels of “positioning” in
theory and practice mentioned above.
"Branding" is the general awareness of consumers on specific organizations,
products, services, and the differences among them (Please refer to my article If You
Are Confused About the Concept of “Branding”, and Graphic II in this article to
familiarize yourself with the concept of branding). "Positioning" is the process of
occupying a position in consumers’ minds. Therefore, we can consider "branding" as
a result, and "positioning" as an approach.
Graphic II
Distinguished-What the brand represents?
Entity-What the brand stands for?
Awareness-to who the brand is meaningful for?
Giving “positioning” to a “brand” is to rebuild consumers’ awareness through the
means of communication, which is actually a process of “establishing a position” or
“adjusting the present position”. When this is completed, in the minds of consumers,
a brand will be established or the awareness about a certain symbol has
fundamentally changed.
If "positioning" is an approach, then from the perspective of overall brand
management, what is the relevance of “positioning” itself? We know that the core
means of brand management is to establish the "symbol system" in the minds of
target consumers which is, in fact, to manage the communications and the
differences mentioned in the materials provided to further manage the awareness of
the target consumers. For this aspect of brand management a relatively complete
methodology system exists; David Aaker’s “brand recognition system." In this
system, as a process, brand management is divided into four steps:
Graphic III
1. Establishing brand awareness
2. Brand positioning
3. Communication
4. Following and checking the effects of communication activities and continue to
improve them.
In these four steps, the main task of brand “positioning” is to have the brand
recognition content and brand value orientation communications initiatively
communicate with the target consumers.
Perhaps we can use people’s thoughts as an example to help us understand
David Aaker’s insightful view. View points of Brand recognition is how a man sees
himself, brand positioning is how this person describes himself and brand awareness
is how others look at this person.
It is very simple; the essence of brand management is to combine other people’s
opinions about you and your own opinion about yourself through various means.
Brand positioning, however, is to let others remember your methods in this complex
and saturated competitive environment (Graphic IV shows the relationship among
brand identification, positioning and awareness).
Identification Positioning Awareness
Certain name Knowing
Certain code Understanding
Certain image Experience
...... ......
Conclusion
This article aims to dissipate the fog of the concept and directly reveal the core
concept.
Many people are confused about “positioning”, the reason is that the concept of
“positioning” originated only from communication, but it has been further developed
to the following three levels: strategy, marketing and communication.
Many people are confused about the relationship between “branding” and
“positioning” as well, it is because they confuse “branding” itself with brand
development and management measures.
The problem that we are facing is not the lack of theories, but actually having too
many theories on this topic. Let’s learn how to distinguish and select proper theories,
not only select them but truly, systemically and creatively devote ourselves to
implementing the theories we believe in. If these things are accomplished it will be
more likely for enterprises and individuals to continuously achieve success in the
more and more mature and fierce market competition in China as well as the global
market.
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