What We're Reading: Positioning
By McKinley Siegfried
Are things more complicated now than they were in 1970? Does the consumer behave differently? Have the rules of marketing changed?
Our office recently read Positioning by Al Ries and Jack Trout, and one of the most prominent topics of conversation, and debate, was whether or not positioning was easier when the book was written. There’s no doubt that the market today is more saturated, things move quicker, attention spans are shorter. But do people really behave that differently? I’m going to argue no. Fundamentally, people haven’t changed. We want and buy the same things we always have: necessities, comforts, and entertainment. What has changed, is why we choose the brands we buy from.
First, and foremost, we have a lot of choices now! Trout and Reis continuously argue the benefits of being first to market. According to the authors, there’s no better position than first. Today, it’s pretty hard to be first to market with a product. And often times category creation is an expensive endeavor in educating the market. You’re almost always better off improving upon someone else’s invention. Success isn’t determined by who did it first; it’s determined by who did it better. The over communicated, consumer driven world we live in today offers more and more choices in every category. Not only do you have to decide that you want a smartphone, you have to decide which smartphone you want. And so marketing, in return, has transitioned from selling the product, to selling the company.
In the Trout and Ries era of positioning, “the power of the organization [was] derived from the power of the product, the position that the product owns in the prospects mind,” (pg 48). Today I would argue the opposite is true. People buy products from brands they like and trust. The power of the product is derived from the power of the organization. To quote Simon Sinek, ”people don’t buy what you do, they buy why you do it.” Communicating from the inside out, with a clear understanding of your purpose, your corporate DNA, and your “why” will attract people who believe what you believe. And those people will choose your products over your competitors because they can relate to your “why.”
Take Apple for example. If they were to put the product first, their messaging would sound like this: “We make great computers. They’re beautifully designed, simple to use and user friendly. Want to buy one?” Not terrible, but let’s compare it to inside out messaging: “In everything we do, we challenge the status quo. We believe in thinking different. The way we challenge the status quo is by making our products beautifully designed, simple to use, and user friendly. We just happen to make great computers. Want to buy one?”-Simon Sinek. Apple goes from selling computers, to selling creativity, rebellion, and simplicity. With so many companies vying for consumer attention, the best way to differentiate is not by product, but by purpose. Resonance and authenticity are the new differentiators.
Positioning is arguably even more important in today’s over saturated market than it was in the 70s. There are more choices than ever and technological innovations make for a constantly changing market. Products that are relevant, even groundbreaking, one day could be replaced by “The Next Big Thing” overnight. Relying on the power of the product limits a company’s ability to adjust to changing environments. Positioning a company’s purpose, on the other hand, allows for flexibility and innovation that can stand the test of time and tech advancements. Netflix is a great example of a company leveraging its “why” to allow it to continuously reinvent its “what.” Netflix’s vision is to be “the best global entertainment distribution service.” Not explicitly mentioning the product allows for the product to change in order to serve the company’s vision, regardless of technological advancements and market trends. Netflix’s position as the best entertainment distribution service allows the company to remain relevant and innovative, while being genuine and authentic. From sending customers DVDs directly to their house, to creating some of the best shows on television, the Netflix strategy is guided by its vision and its position is solidified.
Positioning matters. Today more than ever before. Trout and Ries revolutionized an industry when they wrote Positioning. Andy Cunningham took it one step further with Get to Aha!, a book she considers to be Positioning 2.0. Where once we, as marketers, focused on products, we now focus on purpose; but just as humans haven’t fundamentally changed, neither has positioning. It is, and always has been, a critical first step in marketing and business strategy as a whole. The best brands have clearly defined positions: they understand their unique role and relevance and effectively communicate it to their target audience. Positioning today isn’t about winning a place in the prospect’s mind, it’s about winning a place in their hearts with a strong “why.”