Positioning - Reading Notes PDF

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Ries, A., & Trout, J. (2001). Positioning: The Battle for Your Mind. New York, NY: McGraw-Hill....

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Ries, A., & Trout, J. (2001). Positioning: The Battle for Your Mind. New York, NY: McGraw-Hill. Central Theme The fundamentals of marketing have and will always remain the same (e.g. customer satisfaction, building the brand, loyalty, etc.), while the tactics have narrowed. One such tactic is positioning, in which “is an organized system for finding a window in the mind. It is based on the concept that communication can only take place at the right time and under the right circumstances” (Ries & Trout, 2001). In other words, positioning relies solely on reality. The reality is this: what is already set in the consumer’s mind? Al Ries and Jack Trout inform us that positioning is the key tactic within marketing communication (2001). Creativity is simply not enough to engage the customer. Rather, creativity complicates and overcrowds the mind, resulting in utmost dissatisfaction or complete dismissal of the brand. This falls along the same lines as advertising – it doesn’t work. In order to thrive successfully as a brand, the focus must align on the consumer rather than the product. Consumers are no longer intrigued by a product’s new features; more than one brand follow the same route. Some marketers are mistaken to think that consumers will deeply analyze and evaluate their company’s new product the first time around. Rather than choosing this new product, a consumer will choose the one that is positioned in their mind as being either the “first”, “best”, “only”, etc. To recognize a brand’s position in the market, Ries and Trout urge brands to know and accept the position of their competitors (2001). With the use of a ladder as the authors’ main analogy, the brands that are placed on the top rung cannot be easily taken down. Brands beneath that rung must accept this truth and, instead, bring in a new ladder. Direct competition for the “first” position is pointless. Other brands will eventually lose its edge and market share unless it chooses to accept and roll with their “second” position. After recognizing the position that is set on the prospect’s mind, the brand must look into what position they want to own. With this, the brand’s strengths need to be reflected and projected. As stated by Ries and Trout, “the power of the organization is derived from the power of the product, the position that the product owns in the prospect’s mind” (2001). This is said to encourage organizations to create multibrands rather than extend their product line with the same brand. The lesson here is to acknowledge and obtain the brand’s position in the minds of their customers without changing it altogether. Complicating the brand with more products will end in failure. Ries and Trout also argued that me-too companies are doomed from the start due to their persistence in competing with the first company. Again, it’s not about the product. Trying to become “better” is a failing marketing tactic. So, how is positioning possible? Simply, think cherchez le creneau: “look for the hole” (2001). Take the opposite position and own it. Look into what hasn’t been done and own it. In essence, positioning is the narrow tactic that must always be considered when marketing. While it’s not easy to utilize this tactic (unless, of course, the brand is already recognized as being the first), it’s how companies can survive in today’s highly competitive product-consumption era. Critical Analysis Having read about various marketing tactics, Ries and Trout honestly hit the nail with the positioning concept. Positioning is about recognizing what your brand is and how that brand is seen in the eyes of the customer. When Ries and Trout mentioned that no one really forgets their “first”, I absolutely agreed. Being second just means that you’re the first loser. A frame of reference from my life is reflecting back to my first cookie, that being Nabisco Oreo. At five years old, Oreos were my delicious obsession. It fact, the cookie is positioned as being “America’s favorite cookie”. That’s how I’ve always known it and will always see it. Oreos are notoriously known for their creamy white filling in between two chocolate wafers. Oreos are even positioned to be the preferred cookie to dunk into a glass a milk. While Oreo is one of Nabisco’s successful brands, they have often missed the mark with their product extension. It seems that every month a new flavor of Oreo cookies hits the market. Not all have been favorable among consumers though. However, establishing some flavors as “limited edition” has done well in increasing the value of the Oreo brand. Moving along, we’ll look into the argument that a new product is in need of a new name and, metaphorically, a new ladder. I agree with this. If a particular product has an entirely new purpose, then why attach the household name? A new brand will give the product a competitive edge, as well as a fresh start to build its own prominence. However, I do understand why household names are used. If the brand was successful for that one product, then it’s bound to work for the next product, right? Wrong. Extending products with words such as “plus”, “extra”, “light” and numerical digits just leaves a shadow behind the actual product that sits on its rightful position. To highlight, “line-extension names are forgettable because they have no independent position in the mind” (2001). One example that captures the failure of a brand extending their product line is Colgate. Colgate, immediately, we think of toothpaste. Toothpaste, in turn, strikes up the following words: cleanliness, fresh, mint, and perfect smile. Nowhere does the mention of food come up. Well, that’s where Colgate tried to direct themselves. In

1982, Colgate introduced ready-to-go Colgate Kitchen Entrees. Was the brand trying to promote healthy personal hygiene and eating? If so, it was obviously a huge failure. The two positions just cannot be tied together. The only connection the entrees have to the toothpaste is for one to brush their teeth a fter they consumed their entrée. I could only imagine what ran through the consumer’s minds: “does it taste minty?”, “do we brush our teeth with this instead of the paste?”, or “do I wash my meal down with mouthwash?” Just thinking about toothpaste and food in the same realm grosses me out. Again, as Ries and Trout successfully argued, a popular brand’s name is not to be used for new products. Line extension only works in some cases, but not all. Companies must think twice before delving into that route. Understand that positioning is about thinking in reverse. The company has to prioritize the customer, not themselves. It leads to the argument that changing the minds of consumers is a dangerous call. Ries and Trout are right. It all falls back to the philosophy that “the customer is always right” and, quite frankly, that’s how it should be. After all, a company exists because consumers choose to utilize their buying power towards their products. In a world fueled with endless information (through the Internet, publications, news coverage, etc.), the prospect’s mind is prone to filter some things that are considered new and unrelatable. While changing one’s mind seems nearly impossible, there are ways to establish a position in their minds. Some were mentioned beforehand, but let’s not dismiss one of the most important positioning strategies: create a new ladder and obtain the top position. I, too, agree with this argument. The fierce competition today may seem like there’s not enough positions to claim, but if marketers are alert and aware of their company’s brand, then there will always be a position. Each brand is unique, that’s why most are still in existence today. What they lack, though, is their own understanding of who they are. Brands must showcase integrity and admit who they are. This goes hand-in-hand with customer loyalty as well. Products who know their position and deliver their promise establish stronger customer relationships and, eventually, loyalty. Moving along, Ries and Trout’s revelation of “look for the hole” strategy is genius. While this may seem like an outlet for creativity to flow, it’s not. Simply what this strategy encourages is for brands to counteract their position and build from there. I don’t mean to complete make a 360 degree turn, but more so look into other possible venues that is sleek, different, and fresh. Main Takeaways Acknowledging that this book is a classic, the positioning concept is still applied to this day. The main takeaways are the following: (1) creativity is dead, (2) competing for a position is pointless, (3) customer relationships and value is built through positioning, and (4) repositioning. Now, as brutal and ironic as it sounds, creativity in marketing is failing. Yes, marketing has thrived from new ideas to try to win customers, but now it’s all becoming cliché. Immediately, I think back to the Mtn Dew Kickstart Puppy Monkey Baby Super Bowl advertisement and how discontent I was. It was just too…weird. Something completely out of the ordinary that didn’t even make sense or emotionally attach to me whatsoever. Creative, yes. Successful, no on my terms. In brief, not all forms of creativity are considered vile. Oh, no. It does belong in the realm of marketing, but it shouldn’t be the main strategy. In reality, we live in a positioning world. Speaking of which, in this positioning world, brands that compete to obtain the “first” or “best” position are bound for failure. Having to endlessly compete with your competitor strongly showcases the brand’s insecurities with its given position. If a brand has a certain position, own it! It’s expensive to even try to compete with the brand that is already up and running as the “first” or the “best”. Marketers can best apply this knowledge by reconsidering and appreciating its current position. Yes, a little direct competition is interesting to view for all (e.g. McDonald’s vs. Burger King), but it eventually gets boring and superficial. Positioning can be both the first and the last. To explain this further, as the first, a product is aware of its position and can, therefore, further establish its brand and keep its position. This can be seen as first because when one knows where they stand, they just want to continue advancing. As for last, this gives the company (usually the “second” ones) a chance to deeply reflect and identify their position. In a way, it’s their opportunity to enter into the market and embrace their position. With this, the main takeaway of positioning allows companies to increase their brand value and strengthen their relationship with customers. These, in essence, are the goals of positioning. As mentioned before, the job of marketing is to address the customer, not so much the product. While many marketing tools have been used to meet the needs and wants of consumers, it takes positioning to get behind the psyche of the consumers. The way a prospect may position a certain brand speaks various volumes and invites marketers to understand questions like: “why are we positioned as such?”, “what can we do to leave a positive position?”, “what exactly is our position?” and so on. Ries and Trout have thoroughly described the who and whys of positioning. They did so by showcasing various companies that have either been successful or unsuccessful (not overall, just in some elements). While most of the book stated that position solely comes from the mind of consumers, there is an outlet to face competition: repositioning (“look for a hole”). The latter, overall, is the last main takeaway: repositioning. One way to do this, and is so greatly said, is that “you must say something about your competitor’s

product that causes the prospect to change his or her mind, not about your product, but about the competitor’s product” (2001). This strategy works because, it gives the company a chance to compete without directly competing. It seems more clean and edgy. This is where our market is heading towards: repositioning. Marketers can apply this by analyzing their customer’s behavior towards their product. This, in some sense, gives a small start towards figuring out the brand’s position. This, and all the other takeaways aforementioned are what Ries and Trout have successfully contributed to the marketing platform. It’s prime that today’s marketers recognize, use, and respect positioning for what it is and for what it is set to be…a legendary marketing tactic....