If You Are Confused About the Concept of “Positioning”

(First published in Modern Weekly, Business version, Brand Thinking)

The author is an experienced brand consultant, who has many

years’ experience in brand planning, marketing strategies and

integration of communication planning and implementation.

Once worked as senior manager in multi-national and local

companies in marketing consulting and integrating

communications fields, experienced in strategic planning. He

formerly worked for CNC and was responsible for brand

management.

Providing brand strategies, communication strategies and

implementation and training service for many international and

local clients. The brands include: FAW-Volkswagen, Jetta Cars,

263 Internet Communications, Dangdang Website, Aucma Air-

conditioner, FAW Toyota, Tour in Sichuan, CNC, LG, Beijing Yanli

Food, and more.

He constantly ponders and develops professional settlement

methods in marketing, branding and communication fields, etc.

Lots of articles have been published in professional media such

as International Advertising, AD PANORAMA, Advertising Pointer,

China Marketing Communication Website (EMKT) and so on.

You are welcome to discuss your ideas and express your

opinions with the author.

Tel: 13901385424 E-mail: lei.sun@revobranding.com

The Surface Meanings of “Positioning”

“This health care product lost the market share because it didn’t find the correct

position and failed to win the consumers’ favor.”

“Working in the office, you should know your position clearly to win the praise of

your colleagues and get a promotion.”

“This company positioned itself to be a third-party hotel which only provides top

grade services and thus got remarkable profits over time.”

The definition of “positioning” is accepted and used widely. However, if we do a

sample survey of business managers and marketing personnel, and people working

in market consulting services and the advertising industry for their understanding of

"positioning ", I believe you will get a variety of answers. It seems that even many

professional people, just simply accepted and memorized the term "positioning", and

use it in some specific situations! Few people truly consider "positioning" as a tool

and how to put it in to practice.

If "positioning" is indeed effective, at least we need to understand the concept,

master the methods, and put theories into practice. We can not just purely discuss

about what "positioning" is and treat it as a fashionable term to enrich our vocabulary.

Now, let’s look into "positioning".

Different “positioning”

Advertising Age, an authoritative advertising magazine in the United States,

published Positioning Era in 1972 written by Al Ries and Jack Trout, which declared

the birth of “positioning”.

Al Ries and Jack Trout thought that "positioning" is a method of occupying a market

position in the minds of the target audiences. Therefore, they use the present

continuous tense "Positioning" to express the process. Any country, company,

organization, individual, product or service could use this method to “occupy” a

position in the minds of consumers.

The "positioning" that Al Ries and Jack Trout mentioned actually refers to in-

depth study of the target audience from the perspective of the audience themselves

in order to choose information to distribute effectively and guarantee a means for

consistent communications. This will create a method which impresses consumers

and gets them memorize the company in a certain way. Using common language to

express these ideas we can name it: the “what to say” approach.

The principle of positioning brought forward a new era. With this concept widely

known and accepted by the mass, marketing experts also tried to connect this

principle with the existing marketing theory systems. Thus, we have the classic "S-T-

P" steps, S stands for segmentation; T for targeting and P for positioning which is

something that occupies a certain place in the minds of the consumers with its

unique designs in supplies. (Philip Kolter, Marketing Management 10th edition).

Please note that "positioning" here has surpassed its original meaning, it is not just a

means of communication, but also holds meaning of “unique design in supply." In

other words, the meaning of "positioning" lies in how to design the products, how to

price them and what special services should be provided. Obviously, providing

uniqueness in supply has actually become the key work of marketing! Therefore,

"positioning" changed from a means of communication to the core point of marketing.

Marketing experts have completely accepted the term "positioning" and admits the

positive influence of adding "positioning" to Marketing Theories, and thus, its

meaning have been enriched. Frankly speaking, from the perspective of marketing

experts, "positioning" is not just matter of "what we should say"; it has become "what

we should sell".

When marketing experts promote the "S-T-P" method, “strategic positioning"

becomes the focus of discussion. Michael Porter's On Competition said that: The

essence of the business strategy is "positioning." In his book, he pointed out:

Enterprises can position themselves based on the types of specific products. Just as

Galanz's strategy has focused on the production and development of microwave

ovens; enterprises can also position themselves based on all the needs or most

needs of specific customers or as how IKEA positioned itself by providing a complete

series of household products to young people, who care mainly about price, like to

change styles all the time, and do not need services.

After determining a "positioning" strategy, a set of carefully selected activities

can be carried out accordingly to strengthen the uniqueness value to their

consumers. Take the Southwest Airlines for example, its’ "positioning" strategy is to

provide serve- specific air routes and low-cost and convenient services, in this way, it

can reduce boarding time, forgo providing any unnecessary VIP cabin services and

only purchase Boeing 737 aircraft in order to enhance the efficiency of maintenance

and strengthen its competitive advantages. These simplified activities are carried out

based on the strategic "positioning" plan, and has helped to continuously consolidate

their market "positioning", so that other airlines can not compete with them at all.

From the perspective of Michael Porte, "positioning" has got even a richer

meaning. The "positioning" of enterprises is “what we should do” and this is the

essence of business management strategy and also the origin of competitive

advantages.

There are three different levels of application of "positioning". They are

enterprise strategy level, marketing level and communication level respectively (see

picture 1). Confusion often occurs because of the definitions of these three levels of

"positioning" are actually different, but all of them are wide-spread and accepted.

When we are able to examine "positioning" from different levels, then we can confirm

in which level to use "positioning" correctly so that we can avoid confusion about its

definition.

Graphic I

What to say “positioning” in the communication level

What to sell “positioning” in the marketing level

What to do “positioning” in the enterprise strategy level

It is worth mentioning that the three levels of "positioning" don’t contradict each

other, on the contrary, the unification of the three levels can form a strong

competitive advantage.

For example, Volvo focuses on producing safe cars, the "positioning" of which is

in the enterprise level and also in marketing level, this is consistently shown in the

process of their communications. So in the minds of consumers, Volvo occupies a

market position of “safety”.

The ideal state of the three levels of "positioning" is a united one. Southwest

Airlines, IKEA and Harley Motorcycles are some of the best examples of unity among

the three levels of positioning. Strategic "positioning" is the core and direction of

business management, so as to determine the direction of the products and services

development, and further establish its unique position in the minds of target

consumers through communications. We can see that such enterprises are strong

powers in their markets.

“Positioning” and Brands

Clients often need an advertising company to provide “positioning” services for a

certain brands. However, because Al Ries and Jack Trout didn’t attempt to construct

a theoretical system, nor there is clear definition about the relationship between

"branding" and "positioning". Therefore, the following situations are likely to occur:

the clients who believe in the “positioning” theory claim that they need brand

“positioning” for their shampoo products, for instance, but actually, they do not know

what kind of materials concerning the brand the advertising company will submit.

Proceeding from the view of business, the advertising company is willing to provide

this service for the client, yet due to lack of theoretical basis and standards, clients

can not actually identify the quality of the proposal submitted by the advertising

company. The two sides will not be able to have in-depth negotiations or revisions on

the proposal.

We should change this situation by creating a clear definition; otherwise this

problem will seriously affect daily work progress and market results for many

enterprises. Like the invention of the light bulb is based on the discovery of electricity,

the "positioning" of a brand comes from the unity between "positioning" and

"branding", it is closest to Al Ries and Jack’s classic theory on “positioning”--the

“positioning” of communication, which is the first of the three levels of “positioning” in

theory and practice mentioned above.

"Branding" is the general awareness of consumers on specific organizations,

products, services, and the differences among them (Please refer to my article If You

Are Confused About the Concept of “Branding”, and Graphic II in this article to

familiarize yourself with the concept of branding). "Positioning" is the process of

occupying a position in consumers’ minds. Therefore, we can consider "branding" as

a result, and "positioning" as an approach.

Graphic II

Distinguished-What the brand represents?

Entity-What the brand stands for?

Awareness-to who the brand is meaningful for?

Giving “positioning” to a “brand” is to rebuild consumers’ awareness through the

means of communication, which is actually a process of “establishing a position” or

“adjusting the present position”. When this is completed, in the minds of consumers,

a brand will be established or the awareness about a certain symbol has

fundamentally changed.

If "positioning" is an approach, then from the perspective of overall brand

management, what is the relevance of “positioning” itself? We know that the core

means of brand management is to establish the "symbol system" in the minds of

target consumers which is, in fact, to manage the communications and the

differences mentioned in the materials provided to further manage the awareness of

the target consumers. For this aspect of brand management a relatively complete

methodology system exists; David Aaker’s “brand recognition system." In this

system, as a process, brand management is divided into four steps:

Graphic III

1. Establishing brand awareness

2. Brand positioning

3. Communication

4. Following and checking the effects of communication activities and continue to

improve them.

In these four steps, the main task of brand “positioning” is to have the brand

recognition content and brand value orientation communications initiatively

communicate with the target consumers.

Perhaps we can use people’s thoughts as an example to help us understand

David Aaker’s insightful view. View points of Brand recognition is how a man sees

himself, brand positioning is how this person describes himself and brand awareness

is how others look at this person.

It is very simple; the essence of brand management is to combine other people’s

opinions about you and your own opinion about yourself through various means.

Brand positioning, however, is to let others remember your methods in this complex

and saturated competitive environment (Graphic IV shows the relationship among

brand identification, positioning and awareness).

Identification Positioning Awareness

Certain name Knowing

Certain code Understanding

Certain image Experience

...... ......

Conclusion

This article aims to dissipate the fog of the concept and directly reveal the core

concept.

Many people are confused about “positioning”, the reason is that the concept of

“positioning” originated only from communication, but it has been further developed

to the following three levels: strategy, marketing and communication.

Many people are confused about the relationship between “branding” and

“positioning” as well, it is because they confuse “branding” itself with brand

development and management measures.

The problem that we are facing is not the lack of theories, but actually having too

many theories on this topic. Let’s learn how to distinguish and select proper theories,

not only select them but truly, systemically and creatively devote ourselves to

implementing the theories we believe in. If these things are accomplished it will be

more likely for enterprises and individuals to continuously achieve success in the

more and more mature and fierce market competition in China as well as the global

market.