book.chapter Understanding positioning basics

Positioning in the realm of marketing is fundamentally about the perception of a product or service in the mind of a potential customer or client. It is not about the actions taken on the product itself, but rather about influencing the prospect's mind through changes in the product's name, price, packaging, or other elements to secure a valuable position. The primary objective of positioning is not to invent something entirely new and different, but to meaningfully connect your product or service to the pre-existing mental perceptions of prospective customers. It's about tapping into the already established notions and associations they hold. Contrary to popular belief, the battles between competing products in marketing do not play out in the open marketplace. Instead, they are won or lost in a singular, crucial location: the minds of potential customers. Every individual is bombarded daily with an overwhelming amount of communication through various channels such as newspapers, television, emails, the internet, books, magazines, and letters. To manage this deluge, people become selective about what they choose to engage with. They filter out what they deem valueless and focus their attention solely on what they consider to be of worth. This filtering process is highly selective. Individuals generally accept new information that aligns with their existing perceptions and reject anything that contradicts them. In essence, they see only what they want to see and disregard the rest. When it comes to products, people typically recognize only one or two brands in most categories. They may be familiar with more products in areas related to their professional expertise or personal interests, but for general, low-value categories, their brand awareness is usually limited. In general, people tend to remember certain types of information, such as who was first in a particular field, who or what is the largest or the market leader. These mental classifications are used productively in positioning. Instead of pretending competitors do not exist, positioning considers how to relate a new brand to those already established in the prospect's mind. Positioning suggests that new brands, products, and services should be selectively compared to existing ones in a way that creates a clear, concise, and sustainable competitive advantage. In some cases, it may even be beneficial to position a new product or brand against what it is not, rather than what it is. For instance, early automobiles were marketed as "horseless carriages," positioning them against a familiar concept. Similarly, "lead-free" gasoline was positioned against gasoline with lead additives, and off-track betting was positioned against betting at racetracks. Positioning does not concern itself with the sending end of advertising and marketing materials, such as the structure of ads or the use of images. Instead, it focuses on the receiving end of the communication process: the mental perceptions of the prospect and what they will think when they encounter your advertising materials. In today's business environment, positioning is of paramount importance. Advertising strategy has evolved through several historical eras, including the product era, the image era, and the positioning era. To succeed in the positioning era, companies must establish a unique and sustainable position in the prospect's mind, one that allows them to become well-known. Effective positioning strategies consider the established positions of competitors in the prospect's mind as well as the company's own strengths and weaknesses. The most successful companies are those that are first to carve out a new position in the prospect's mind. Key thoughts to consider include the idea that in politics, perception is reality, and that conventional wisdom, such as fighting fire with fire, may not always be the best approach. Instead, it's about using the right tools and strategies for the situation at hand. Success does not always come to the fastest or the strongest, but it is often the most prudent bet.