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Introduction
''What we have here is a failure to communicate." How often have you heard that bromide?
"Failure to communicate" is the single, most common, most universal reason given for
problems that develop. Business problems, government problems, labor problems, marriage
problems. If only people took the time to communicate their feelings, to explain their
reasons, the assumption is that many of the problems of the world would somehow
disappear. People seem to believe any problem can be solved if only the parties sit down and
talk.
Unlikely.
Today, communication itself is the problem. We have become the world's first
overcommunicated society. Each year, we send more and receive less.
Positioning Defined
Positioning starts with a product. A piece of merchandise, a service, a company, an
institution, or even a person. Perhaps yourself. 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.
A newer definition: "How you differentiate yourself in the mind of your prospect." So it's
incorrect to call the concept "product positioning." As if you were doing something to the
product itself. Not that positioning doesn't involve change. It does. But changes made in the
name, the price and the package are really not changes in the product at all. They're basically
cosmetic changes done for the purpose of securing a worthwhile position in the prospect's
mind.
Positioning is also the first body of thought that comes to grips with the problems of getting
heard in our overcommunicated society.
Positioning has changed the way the advertising game is being played today. "We're the
third largest-selling coffee in America," say the Sanka radio commercials. The third largest?
Whatever happened to those good old advertising words like "first" and "best" and "finest"?
Well, the good old advertising days are gone forever and so are the words. Today you find
comparatives, not superlatives.
"Avis is only No. 2 in rent-a-cars, so why go with us? We try harder." "Seven-Up: the uncola."
What Positioning Is All About
How did a hard-sell concept like positioning become so popular in a business noted for its
creativity? In truth, the past decade might well be characterized as a "return to reality."
White knights and black eye patches gave way to such positioning concepts as Lite Beer's
"Everything you've always wanted in a great beer. And less." Poetic? Yes. Artful? Yes. But
also a straightforward, clearly defined explanation of the basic positioning premise. To be
successful today, you must touch base with reality. And the reality that really counts is what's
already in the prospect's mind. To be creative, to create something that doesn't already exist
in the mind, is becoming more and more difficult. If not impossible. The basic approach of
positioning is not to create something new and different. But to manipulate what's already
up there in the mind. To retie the connections that already
Positioning of a Leader
Companies like Avis and Seven-Up found viable alternative positions to marketing leaders.
But most companies don't want to be an also-ran, successful or not. They want to be a leader
like Hertz or Coke. So how do you get to be the leader? Actually it's quite simple. You just
get there firstest with the mostest. Establishing Leadership History shows that the first
brand into the brain, on the average, gets twice the long-term market share of the No. 2 brand
and twice again as much as the No. 3 brand. And the relationships are not easily changed.
These are the leading brands in 25 different categories in the year 1923. By the turn of the
century, 77 years later, only three brands had lost their leadership. (Eveready, Manhattan,
Palmolive.) This is the power of being a leader. Leadership alone is your most effective
marketing strategy.
The Failures of Leaders
Coca-Cola is a gigantic company compared to Dr. Pepper. Yet when Coke introduced a
competitive product, Mr. Pibb, even the immense resources of the Atlanta giant couldn't put
much of a dent in Dr. Pepper's sales. Mr. Pibb remains a poor second. For every six bottles of
Dr. Pepper sold, Coca-Cola manages to sell only one bottle of Mr. Pibb. IBM is much bigger
than Xerox and has awesome resources of technology, manpower and money.
Strategies for Maintaining Leadership
Leaders can do anything they want to. Short-term, leaders are almost invulnerable.
Momentum alone carries them along. (Old wrestling expression: You can't get pinned when
you're on top.) Leaders should use their short-term flexibility to assure themselves of a
stable long-term future. As a matter of fact, the marketing leader is usually the one who
moves the ladder into the mind with his or her brand nailed to the one and only rung. Once
there, what should leaders do and not do?
What Not to Do
As long as a company owns the position, there's no point in running ads that scream, "We're
No. 1."Much better is to enhance the product category in the prospect's mind. Notice IBM
advertising usually ignores competition and sells the value of computers. All computers, not
just the company's types. Why isn't it a good idea to run advertising that says, "We're No.
1"? The reason is pyschological. Either the prospect knows you are No. 1 and wonders why
you are so insecure that you have to say so. Or the prospect doesn't know you are No. 1. If
not, why not?
The real thing." This classic Coca-Cola advertising campaign is a strategy that can work for
any leader. The essential ingredient in securing the leadership position is getting into the
mind first. The essential ingredient in keeping that position is reinforcing the original
concept. The standard by which all others are judged. In contrast, everything else is an
imitation of "the real thing." This is not the same as saying "We're No. 1." The largest brand
could be the largest seller because it has a lower price, it is available in more outlets, etc. But
"the real thing," like a first love, will always occupy a special place in the prospect's mind.
"We invented the product." A powerful motivating force behind Xerox copiers. Polaroid
cameras. Zippo lighters