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October 10, 2005
Taking a Position on Positioning
I had a phone call this week from a prospective Client that made me want to briefly discuss something that's really important. Basic Marketing 101 important. You see, this isn't the first time I've had this conversation with smart, competent people that should really know better.
Me: "...So what’s your competitive position?"
Marketing Director: "We provide personal service, and are extremely flexible."
Me: "How's that position you in your marketspace?"
Marketing Director: "What do you mean exactly?" (Said in a tone that found it surprising that I didn't know what they meant. Doesn't EVERYONE know what positioning is?).
Me: "Well" says I, "To take a position, you should be positioned against something; for you, that would be your competition. In short, how does your position of service and flexibility differentiate you from your competition in the eyes of your customers? To put it another way, what do you do different, or better, than them?"
Marketing Director: "Well, we're much more flexible than them on products x and y, and our service is really great. But on products a, b, c and d, they really do a better job. Is that what you mean?"
Me: "Not exactly..."
I won't belabor the point. Suffice to say that a re-read of Jack Trout's book Positioning: the Battle for Your Mind might not be a bad idea for this firm. The fact is, the importance of differentiation - and positioning firms and products based on these points - is still misunderstood by many companies that rely on messages and strategies that don’t enable them to stand out in the marketplace because they’re making claims or “positioning” themselves on top of, or underneath, their competition.
Companies stand out by claiming (or creating) a space they can defend, and let the world (their customers) know that they own it. Yes, it must be relevant, believable and all that. And you may need to own different positions for different segments, products or divisions. That’s OK. After all, that what marketers do, right? It’s called marketing strategy, 101.
Posted by MCorp. at 10.10.2005 12:31 | Permalink