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Introduction
We are in the over communicated society. And the only defence a person has in
our over communicated society is an oversimplified mind. Communication itself
is the communication problem. The best approach to take in our over
communicated society is the oversimplified society.
The product era: - in early fifties, It was a time when advertising people
focused their attention on products features and customer benefits.
The image era: - Next phase was image, Successful company found that
reputation or image is more important in selling a product than any specific
product feature.
The positioning era: - Today advertisement entering into a new era and
creativity no longer the key to success. To succeed in our overcommunicated
society , a company must create a position in the prospect mind , a position that
takes into consideration not only a company own strengths and weaknesses , but
those of the competitors as well.
An inadequate container: Human mind reject information which does not match
its prior knowledge or experience to work with. In our overcommunicated society
the human mind is a totally inadequate container.
The product ladder: -to cope with product explosion, people have learned to
rank products ad brands in the mind.
The “against” position: - in today’s marketplace the competitor’s position is
just as important as your own.
The can do sprit refuses to die:- anything is possible if only you try hard enough.
But no matter how hard we tried, no matter how many soldiers and how much
money we poured in, the problem could not be solved by and outside force.
Position of a leader
Establishing leadership
The failures of leaders: when are leader in particular category and you move
into a new category where already an existing category leader or you are the
second player in that category then failure will be natural. E.g IBM moves into
Xerox.
The instability of equality: It’s true that in sum categories the two leading
brands run neck and neck. What equally true is that these categories are
inherently unstable? Sooner and later, you can expect one brand to get the
upper hand and open a lead which eventually will reach a stable 5 to 3 or 2 to 1
ratio.
What not to do: there is no point advertise that is obvious “we are no 1”.
What to do:”The real thing”, the essential ingredient in keeping that position is
reinforcing the original concept.
“Covering all bets”: -Leaders should do the opposite. They should cover all bets.
Power from the product: This is classical mistake made by the leader. The
illusion is that the power of the product is derived from the power of the
organisation. It’s just the reverse. The power of the organisation derived from the
power of the product.
Positioning of a follower
• Why products fail: it’s is not enough to be better than competitor. You
must introduce your product before someone else has a chance to
established leadership.
• Cherchez ie creneau: to find cherchez, you must have the ability to
think in reverse, to go against the grain. If everyone else is going to east,
see you can find your cherchez by going west. A strategy that worked for
Cristhoper Columbus will work for you.
• The size creneau: Volkswagen ad “Think Small”, two simple words, this
headline did two things at once. It’s sated the Volkswagen position, and it
challenged the prospects assumption that bigger is necessary better.
• The high price creneau: BMW reason behind the success is high price
product. Price is an advantage if you are the first in the category to
establish the high price cherchez.
• The low price creneau: Opposite of high price would be low price. Like
Walmart. Keep in mind that low price is always good creneau for low level
involvement products.
• Other effective creneaus: Sex is one: Malboro if cigarettes company for
women. Age, time, distribution, and possession is others positioning
strategy.
Creating your own creneau : - to remove a new idea or product into the mind,
you have first move an old one out.
• Reposition aspirin
• Reposition American Vodkas
• Reposition Pringle’s
How to choose a name: A name should not go over the edge. That is becomes so
close to the product itself than it become a generic, a general name for all
products of its class rather than a trade name for a specific brand.
Inside-out thinking: Line extension look from the point of view of company
Outside-in thinking: Line extension look from the point of view of the prospect.
• Short-term advantages
• Long-term disadvantages
Rules that will tell you when to use the house name and when not to
1. Expected volume: potential winner should not bear the house name.
Small volume producers should.
2. Competition: In a vacuum, the brand should not bear the house name. In
a crowed field it should.
3. Advertisement support: Big-budget brands should not bear the house
name. Small budget brands should.
4. Significance: Breakthrough products should not bear the house name.
Commodity product such as chemicals should.
5. Distribution: Off the shelf items should not bear the house name. Items
sold by reps should.
Positioning a product
People suffer from the same disease as products. They try to be all things to all
people.
What is your own position in life? Can you sum your position in single concept?
“I am the best lawyer in Dallas” is a positioning that can be achieved with some
talent, some luck and a lot of strategy? And the first step to isolate the concept
that you are going to use to establish that long-term position. It’s is not easy. But
reward can be great.
Make mistakes: Anything worth doing is worthwhile doing lousy. On the other
hand, if it is worthwhile doing and wait until you can do it perfectly, if you
procrastinate, you run the risk of not doing it. Ever.
Make sure your name is right: adopt any name you want as long as you are not
trying to defraud or deceptive.
The ambitious, intelligent person secret of success is to keep your nose to the
grindstone, do your job better than the next person, and fame and fortune will
come your way, right?
But in the current reality the truth is: the road to fame and fortune is rarely found
within yourself. The only sure way to success is to find yourself a horse to ride. It
may be difficult for an ego to accept, but success in life is based more on what
others can do for you than on what you can do for yourself.
Don’t forget that your experience with yesterday-type products can blind you to
opportunities in totally different product areas. And especially services.
And when you change your jobs and join tomorrow-type companies, don’t just
ask how much they are going to pay you today. Also ask how much theyare likely
to pay you tomorrow.
Ask yourself the same questions about your boss as you asked yourself about
your company.
Always try to work for smartest, brightest, most competent person you can find.
There are two types of individuals comes and looking for jobs. One is inordinately
proud of his or her specialty. He or she will often say, “You people really need me
around here. You are weak in my specialty”. The other type says just opposite.
“You are strong in my specialty. You do a terrific job, and I want to work with the
best”
The third horse to ride is an idea: Victor Hogo quote” nothing not all the
armies of the world, can stop and idea whose time has come.” An idea can take
you to the top faster than anything else. But sometimes expect too much of an
idea. They want one that is not just only great, but one that everyone else thinks
is great too. There are no such ideas. If you wait until as idea is ready to be
accepted, it’s too late. Someone else will have pre-empted it. Never be afraid of
conflict.
The third horse to ride is faith: The most important of getting outside of
yourself, of finding your fortune on the outside, is illustrated by the story of a
man who was a failure most of his life.
His name was Ray Kroc , and he was a lot older than most people and failure to
boot when he net two brothers who change his life.
For the brothers had an idea, but no faith. So they sold their idea as well as their
name to Ray Kroc for relatively few dollars.
Ray kroc become one of the riches people in the America. Worth hundreds of
millions of dollars.
The brothers? They were the McDonald brothers, and every time you eat one of
their hamburgers, remember it was the vision, courage , and persistence of the
outsider who made the McDonald’s chain a success. Not two gays named
McDonald.