Positioning Strategy
Own a word or concept in the prospect's mind to cut through the noise of an overcommunicated society.
Positioning is not about what you do to a product — it is about what you do to the mind of the prospect. In an overcommunicated society where the average person is bombarded with thousands of marketing messages daily, the mind screens out and rejects most information. The only defense is to oversimplify your message and focus on owning a single word or concept in the prospect's mind. The essence of positioning thinking is 'outside-in' — you accept the perceptions that already exist in the mind as reality, then restructure those perceptions to create the position you desire. Truth is irrelevant; what matters are perceptions. A brand name becomes a surrogate for the generic category it leads. Positioning requires selecting one specific concept to hang your hat on: Volvo owns 'safety,' FedEx owns 'overnight,' Crest owns 'cavities.' To succeed, a company must create a position that takes into consideration not only its own strengths and weaknesses, but those of its competitors as well. The strongest position is when your brand name becomes the generic — Kleenex for tissue, Band-Aid for bandages, Xerox for copying.
- Positioning is not what you do to a product — it is what you do to the mind of the prospect
- Truth is irrelevant; what matters are the perceptions that exist in the mind
- In an overcommunicated society, you must oversimplify your message to cut through
- Accept perceptions as reality and restructure them to create the position you desire (outside-in thinking)
- The most powerful position is when your brand name becomes the generic word for the category
- You can only own one word or concept in the prospect's mind — trying to own two dilutes both
- The mind works by ear, not by eye — every successful positioning program is verbally oriented
- A position must take into account not only your strengths but your competitors' positions
- Look Inside the Mind of the ProspectThe first step in any positioning program is to look inside the mind of the prospect, not inside the product. Understand what perceptions, associations, and brand ladders already exist in the prospect's mind for your category. You are not looking for truth about your product — you are looking for what the prospect already believes.Pro tipAsk prospects what brands come to mind for your category. Their spontaneous answers reveal the mental ladder you must work with, not against.WarningNever start with your product's features or your company's internal view. Inside-out thinking is the number one cause of positioning failure.
- Identify the Open Position (Cherchez le Creneau)Find the hole in the mind — an unoccupied position that you can own. This requires the ability to think in reverse, to go against the grain. Explore creneaus based on size, price, gender, time of day, distribution, or user type. If everyone else is going east, look for your creneau by going west.Pro tipThe best creneaus are near the center of the spectrum, not at the edge. Volkswagen found the 'small car' position when everyone was thinking big. Sony found 'small TV.' Look for what nobody else is claiming.WarningThe technology trap is the most dangerous: having a great technical achievement but no open position in the mind. You cannot create a position that doesn't relate to what is already in the prospect's mind.
- Select the One Word to OwnSelect the single most important concept you want to own in the prospect's mind. This is the most difficult part of positioning but also the most critical. Your brand name should become a surrogate for this concept — when people think of the concept, they think of your brand, and vice versa.Pro tipThe brand name is the hook that hangs the brand on the product ladder in the prospect's mind. Choose a name that tells the prospect what your major product benefit is — names like DieHard, Head & Shoulders, Intensive Care.WarningTrying to own two words is the beginning of failure. Chevrolet tried to mean everything — economy, luxury, sporty, family — and lost its leadership to Ford.
- Craft the Oversimplified MessageSharpen your message until it is a single, clear, memorable idea. The mind rejects complexity. Your positioning statement must be so simple it feels almost reductive, but that is precisely why it works. Use the name itself, a short tagline, or a verbal concept that sticks.Pro tipThe mind works by ear, not by eye. Every successful positioning program is a verbally oriented program: 'Think Small,' 'Avis is No. 2,' 'The Uncola.' Visuals should drive the verbal idea into the mind, not replace it.WarningConfusion is the enemy; simplicity is the holy grail. Positioning may require you to oversimplify your communications — so be it. There is no other way.
- Maintain Consistency Over TimePositioning is a long-term proposition. Once you establish your position, defend it relentlessly. Resist the temptation to change, extend, or dilute it. The power of positioning compounds over time as the word becomes more firmly associated with your brand in the prospect's mind.Pro tipName decisions made today may not bear fruit until many years in the future. Think of positioning as a long-term investment in mental real estate — the longer you hold it, the more valuable it becomes.WarningIt is bad enough when someone tries to take your position away. It is tragic when you do it to yourself through line extensions, name changes, or repositioning away from your strength.
In the 1960s, every American car company was building bigger, flashier cars. Volkswagen, a small German automaker, faced the challenge of selling an oddly-shaped, small car in a market obsessed with size. Instead of trying to compete on the same terms, they embraced the open 'small car' creneau with the campaign 'Think Small' — nailing down the small position in the prospect's mind with just two words.
Crest toothpaste focused relentlessly on cavity prevention as its single positioning concept while competitors tried to own multiple benefits — whitening, fresh breath, tartar control. By refusing to dilute its message, Crest made its brand name synonymous with fighting cavities.
Rather than extending a single brand name across laundry detergent variations, Procter & Gamble created separate brands each with a unique position. Tide was positioned to make clothes 'white,' Cheer to make them 'whiter than white,' and Bold to make them 'bright.' Each brand occupied a unique niche in the prospect's mind.
Al Ries and Jack Trout developed the concept of positioning in a series of articles for Advertising Age in 1972, then expanded it into their landmark 1981 book. They observed that traditional advertising focused on product features and creative messaging, but in the new era of media saturation, the real battle was not in the marketplace but in the mind of the prospect. They coined the term 'outside-in thinking' to describe the paradigm shift from focusing on product truth to focusing on prospect perception.