Positioning:TheBattleforYourMindAlRies

JackTrout

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Dedicatedtothesecondbestadvertisingagencyinthewholeworld.

Whoevertheymightbe.

Contents

Introduction

“Positioning”isthefirstbodyofthoughttocometogripswiththeproblemsofcommunicatinginanovercommunicatedsocietyChapter1.WhatPositioningIsAllAboutManypeoplemisunderstandtheroleofcommunicationinbusinessandpoliticstoday.Inourovercommunicatedsociety,verylittlecommunicationactuallytakesplace.Rather,acompanymustcreatea“position”intheprospect’smind.Apositionthattakesintoconsiderationnotonlyacompany’sownstrengthsandweaknesses,butthoseofitscompetitorsaswellChapter2.TheAssaultontheMindTherearejusttoomanycompanies,toomanyproducts,toomuchmarketingnoise.Theper-capitaconsumptionofadvertisinginAmericais$376peryearChapter3.GettingIntotheMindTheeasywaytogetintoaperson’smindistobefirst.Ifyoucan’tbefirst,thenyoumustfindawaytopositionyourselfagainsttheproduct,thepolitician,thepersonwhodidgettherefirstChapter4.ThoseLittleLaddersinYourHeadTocopewithourovercommunicatedsociety,peoplehavelearnedtorankproductsonmentalladders.Intherent-a-carfield,forexample,mostpeopleputHertzonthetoprung,Avisonthesecondrung,andNationalonthethird.Beforeyoucanpositionanything,youmustknowwhereitisontheproductladderinthemindChapter5.YouCan’tGetTherefromHereAcompetitorhasnohopeofgoinghead-to-headagainstthepositionIBMhasestablishedincomputers.ManycompanieshaveignoredthisbasicpositioningprincipleandhavesufferedtheconsequencesChapter6.PositioningofaLeaderTobealeaderyouhavetobefirsttogetintothemindoftheprospect—andthenfollowthestrategiesforstayingthereChapter7.PositioningofaFollowerWhatworksforaleaderdoesn’tnecessarilyworkforafollower.Analso-ranmustfinda“creneau”orholeinthemindnotoccupiedbysomeoneelseChapter8.RepositioningtheCompetitionIfthereareno“creneaus”left,youhavetocreateonebyrepositioningthecompetition.Tylenol,forexample,repositionedaspirinChapter9.ThePoweroftheName

Themostimportantmarketingdecisionyoucanmakeiswhattonametheproduct.ThenamealonehasenormouspowerinanovercommunicatedsocietyChapter10.TheNo-NameTrapCompanieswithlong,complexnameshavetriedtoshortenthembyusinginitials.Thisstrategyseldomworks

Chapter11.TheFree-RideTrapCanasecondproductgetafreerideontheadvertisingcoattailsofawell-knownbrand?InthecaseofproductslikeLifeSaversgum,theanswerisnoChapter12.TheLine-ExtensionTrapLineextensionhasbecomethemarketingsicknessofthepastdecade.Whyitseldomworks

Chapter13.WhenLinaExtensionCanWorkTherearecases,however,ofsuccessfullineextension(GE,forexample.)AdiscussionofwhentousethehousenameandwhentouseanewnameChapter14.PositioningaCompany:XeroxXeroxownsthecopierposition.ButasXeroxmovesintotheofficeautomationfield,howshouldthecompanybepositioned?

Chapter15.PositioningaCountry:BelgiumTheanswertotheproblemsofanationalairlinelikeSabenaBelgiumWorldAirlinesistopositionthecountry,nottheairlineChapter16.PositioninganIsland:Jamaica“Sandandsurf”hasbecomeavisualclichéforallCaribbeanislands.Howdoyouestablishauniquepositionforoneofthem?

Chapter17.PositioningaProduct:MilkDudsHowaproductwithasmallbudgetcangetintothemindbypositioningitselfasthelong-lastingalternativetothecandybarChapter18.PositioningaService:MailgramWhyatotallynewservicehastobepositionedagainsttheold

Chapter19.PositioningaLongIslandBankHowabanksuccessfullystruckbackwhenitsterritorywasinvadedbyitsgiantneighborsfromtheBigCity

Chapter20.PositioningaNewJerseyBankOneofthebestwaystoestablishapositionistofindaweaknessinyour

Oneofthebestwaystoestablishapositionistofindaweaknessinyourcompetitor’s

Chapter21.Positioningaskiresort:StoweHowanoutsideexpertcanaddcredibilitytoapositioningclaim

Chapter22.PositioningtheCatholicChurchEveninstitutionscanbenefitfrompositioningchinking.AnoutlineofthelogicalstepsthatcouldbetakentopositiontheRomanCatholicChurchChapter23.PositioningYourselfandYourCareerYoucanbenefitbyusingpositioningstrategytoadvanceyourowncareer.Keyprinciple:Don’ttrytodoeverythingyourself.FindahorsetorideChapter24.PositioningYourBusinessTogetstartedonapositioningprogram,therearesixquestionsyoucanaskyourself

Chapter25.PlayingthePositioningGameTobesuccessfulatpositioning,youhavetohavetherightmentalattitude.Youhavetobecomeanoutside-inthinkerratherthananinside-outthinker.Thisrequirespatience,courage,andstrengthofcharacterIndex

NewForewordtotheMarketingClassic

Foryears,allofusinmarketingtaughtourstudentstobuildamarketingplanaroundthe“fourPs”—Product,Price,Place,andPromotion.

IbegantorealizesomeyearsagothatimportantstepsneededtoprecedethefourPs.AllgoodmarketingplanningmuststartwithR,Research,beforeanyofthePscanbeset.

Researchreveals,amongotherthings,thatcustomersdiffergreatlyintheirneeds,perceptions,andpreferences.Therefore,customersmustbeclassifiedintoS,Segments.

Mostcompaniescannotserveallsegments.Acompanymustchoosethesegmentthattheycanserveatasuperiorlevel.ThisisT,Targeting.

Nowthereisonemorestepbefore4Pplanningcantakeplace.ThatisP,Positioning.ThisistherevolutionaryconceptthatAlRiesandJackTroutintroducedintheirnowclassicbook,Positioning.

PositioningisarevolutionaryideapreciselybecauseitcutsacrosstheotherfourPs.ItinformseachofthePsandaddsconsistencytothem.Eversincethe1972seriesofAdvertisingAgearticlesonthesubjectbythetwoauthorsofthisbook,thedisciplineofmarketinghasneverbeenthesame.

Positioningcanaffecttheproduct.Volvo’sconsciousdecisiontobuildsafetyfeaturesintoitsproductsetupthehugelysuccessful“safety”positionfortheVolvobrand.Intheprocess,asmallcompanyfromSwedenbecameoneoftheworld’smostpowerfulautomobilebrands.(AndcommandedabigpricewhenthecompanywasboughtbyFord.)

Positioningcanaffectthepriceoftheproduct.Häagen-Dazs’sconsciousdecisiontointroduceamoreexpensivelineoficecreamsetupthe“premium”icecreampositionforthebrandandmadeHäagen-Dazsoneoftheenduringmarketingsuccessesofthepastseveraldecades.(WhatHäagen-Dazsdidatthehighend,brandslikeWal-MartandSouthwestAirlinesdidatthelowend.)

Positioningcanaffecttheplacetheproductissold.Hanes,theleadingdepartmentstorebrandofpantyhose,developedapantyhoseproductspecificallyforsupermarketdistribution.ThebrandwascalledL’eggsanditwaspackagedinaneggshapedcontainer.The“supermarket”pantyhosepositionmadetheL’eggsbrandanenormoussuccessandultimatelythelargest-sellingpantyhosebrandinthecountry.

Positioningcanaffectthepromotionoftheproduct.LittleCaesarsbecameapowerfulpizzabrandbyelevatingits“twoforthepriceofone”promotionintoa

powerfulpizzabrandbyelevatingits“twoforthepriceofone”promotionintoapositioningstrategy.Their“pizza,pizza”refrainbecameoneofthemostmemorableadvertisingprogramseverrunandmadetheLittleCaesarsbrandintothefastest-growingpizzachain.

Then,ofcourse,LittleCaesarsdroppedtheir“two-for-one”strategyandsalesfellapart,aneventthatdemonstratesnotonlythepowerofpositioning,butalsothedifficultyofchangingone’spositionafteritisestablished.

Marketingisnotastaticdiscipline.Marketingisaconstantlychangingdisciplineandpositioningisoneofthoserevolutionarychangesthatkeepsthemarketingfieldalive,interesting,exciting,andfascinating.

WhenyoureadthisseminalbookonthesubjectIthinkyouwillfindthatpositioningisnotonlyaliveandwelltoday,butalsoapowerfultoolforcreatingandmaintainingrealdifferentiationinthemarketplace.

PhilipKotler,Ph.D.KelloggGraduateSchoolofManagement

NorthwesternUniversity

Introduction

“Whatwehavehereisafailuretocommunicate.”Howoftenhaveyouheardthatbromide?“Failuretocommunicate”isthe

single,mostcommon,mostuniversalreasonpeoplegivefortheirproblems.Businessproblems,governmentproblems,laborproblems,marriage

problems.Ifonlypeopletookthetimetocommunicatetheirfeelings,toexplaintheir

reasons,theassumptionisthatmanyoftheproblemsoftheworldwouldsomehowdisappear.Peopleseemtobelieveanyproblemcanbesolvedifonlythepartiessitdownandtalk.

Unlikely.Today,communicationitselfistheproblem.Wehavebecometheworld’s

firstovercommunicatedsociety.Eachyear,wesendmoreandreceiveless.

AnewapproachtocommunicationThisbookhasbeenwrittenaboutanewapproachtocommunicationcalledpositioning.Andmostoftheexamplesarefromthemostdifficultofallformsofcommunication—advertising.Aformofcommunicationthat,fromthepointofviewoftherecipient,isheldinlowesteem.Advertisingis,forthemostpart,unwantedandunliked.Insomecases,advertisingisthoroughlydetested.

Tomanyintellectuals,advertisingissellingyoursoultocorporateAmerica—asubjectnotworthyofseriousstudy.

Inspiteofitsreputation,orperhapsbecauseofit,thefieldofadvertisingisasuperbtestinggroundfortheoriesofcommunication.Ifitworksinadvertising,mostlikelyitwillworkinpolitics,religion,oranyotheractivitythatrequiresmasscommunication.

Sotheexamplesinthisbookcouldjustaswellhavebeentakenfromthefieldofpolitics,war,business,oreventhescienceofchasingtheoppositesex.Oranyformofhumanactivitywhichinvolvesinfluencingthemindsofotherpeople.Whetheryouwanttopromoteacar,acola,acomputer,acandidate,oryourowncareer.

Positioningisaconceptthathaschangedthenatureofadvertising,aconceptsosimple,peoplehavedifficultyunderstandinghowpowerfulitis.

Everysuccessfulpoliticianpracticespositioning.SodoProcter&GambleandJohnson&Johnson.

andJohnson&Johnson.

PositioningdefinedPositioningstartswithaproduct.Apieceofmerchandise,aservice,acompany,aninstitution,orevenaperson.Perhapsyourself.

Butpositioningisnotwhatyoudotoaproduct.Positioningiswhatyoudotothemindoftheprospect.Thatis,youpositiontheproductinthemindoftheprospect.

Soit’sincorrecttocalltheconcept“productpositioning.”You’renotreallydoingsomethingtotheproductitself.

Notthatpositioningdoesn’tinvolvechange.Itoftendoes.Butchangesmadeinthename,theprice,andthepackagearereallynotchangesintheproductatall.They’rebasicallycosmeticchangesdoneforthepurposeofsecuringaworthwhilepositionintheprospect’smind.

Positioningisthefirstbodyofthoughtthatcomestogripswiththedifficultproblemofgettingheardinourovercommunicatedsociety.

HowpositioninggotstartedIfonewordcanbesaidtohavemarkedthecourseofadvertisinginthepastdecade,thewordis“positioning.”

Positioninghasbecomeabuzzwordamongadvertising,sales,andmarketingpeople.NotonlyinAmerica,butaroundtheworld.Teachers,politicians,andeditorialwritersareusingtheword.

Mostpeoplethinkpositioninggotstartedin1972whenwewroteaseriesofarticlesentitled“ThePositioningEra”forthetradepaperAdvertisingAge.

Sincethen,wehavegivenmorethan1000speechesonpositioningtoadvertisinggroupsin21differentcountriesaroundtheworld.Andwehavegivenawaymorethan150,000copiesofour“littleorangebooklet”whichreprintstheAdvertisingAgearticles.

Positioninghaschangedthewaytheadvertisinggameisbeingplayedtoday.“We’rethethirdlargest-sellingcoffeeinAmerica,”saytheSankaradio

commercials.Thethirdlargest?Whateverhappenedtothosegoodoldadvertisingwords

like“first”and“best”and“finest”?Well,thegoodoldadvertisingdaysaregoneforeverandsoarethewords.

Todayyoufindcomparatives,notsuperlatives.“AvisisonlyNo.2inrent-a-cars,sowhygowithus?Wetryharder.”“Seven-Up:theuncola.”

“Seven-Up:theuncola.”AlongMadisonAvenue,thesearecalledpositioningslogans.Andthe

advertisingpeoplewhowritethemspendtheirtimeandresearchmoneylookingforpositions,orholes,inthemarketplace.

ButpositioninghasstirredupinterestwellbeyondMadisonAvenue.Withgoodreason.

Anyonecanusepositioningstrategytogetaheadinthegameoflife.Andlookatitthisway:Ifyoudon’tunderstandandusetheprinciples,yourcompetitorsundoubtedlywill.

1Whatpositioningisallabout

Howdidahard-sellconceptlikepositioningbecomesopopularinabusinessnotedforitscreativity?

Intruth,thepastdecademightwellbecharacterizedasa“returntoreality.”Whiteknightsandblackeyepatchesgavewaytosuchpositioningconceptsas“LiteBeerfromMiller.Everythingyoualwayswantedinabeer.Andless.”

Poetic?Yes.Artful?Yes.Butalsoastraightforward,clearlydefinedexplanationofthebasicpositioningpremise.

Tobesuccessfultoday,youmusttouchbasewithreality.Andtheonlyrealitythatcountsiswhat’salreadyintheprospect’smind.

Tobecreative,tocreatesomethingthatdoesn’talreadyexistinthemind,isbecomingmoreandmoredifficult.Ifnotimpossible.

Thebasicapproachofpositioningisnottocreatesomethingnewanddifferent,buttomanipulatewhat’salreadyupthereinthemind,toretietheconnectionsthatalreadyexist.

Today’smarketplaceisnolongerresponsivetothestrategiesthatworkedinthepast.Therearejusttoomanyproducts,toomanycompanies,andtoomuchmarketingnoise.

Thequestionmostfrequentlyaskedbypositioningskepticsis,“Why?”Whydoweneedanewapproachtoadvertisingandmarketing?

TheovercommunicatedsocietyTheansweristhatwehavebecomeanovercommunicatedsociety.Theper-capitaconsumptionofadvertisinginAmericatodayis$376.62ayear.(Thatcompareswith$16.87intherestoftheworld.)Ifyouspend$1millionayearonadvertising,youarebombardingtheaverageconsumerwithlessthanahalfcentofadvertising,spreadoutover365days—aconsumeralreadyexposedto$376.61½worthofotheradvertising.

Inourovercommunicatedsociety,totalkaboutthe“impact”ofyouradvertisingistoseriouslyoverstatethepotentialeffectivenessofyourmessage.Advertisingisnotasledgehammer.It’smorelikealightfog,averylightfogthatenvelopsyourprospects.

Inthecommunicationjungleoutthere,theonlyhopetoscorebigistobeselective,toconcentrateonnarrowtargets,topracticesegmentation.Inaword,

selective,toconcentrateonnarrowtargets,topracticesegmentation.Inaword,“positioning.”

Themind,asadefenseagainstthevolumeoftoday’scommunications,screensandrejectsmuchoftheinformationofferedit.Ingeneral,themindacceptsonlythatwhichmatchespriorknowledgeorexperience.

Millionsofdollarshavebeenwastedtryingtochangemindswithadvertising.Onceamindismadeup,it’salmostimpossibletochangeit.Certainlynotwithaweakforcelikeadvertising.“Don’tconfusemewiththefacts,mymind’smadeup.”That’sawayoflifeformostpeople.

Theaveragepersonwillsitstillwhenbeingtoldsomethingwhichheorsheknowsnothingabout.(Whichiswhy“news”isaneffectiveadvertisingapproach.)Buttheaveragepersoncannottoleratebeingtoldheorsheiswrong.Mind-changingistheroadtoadvertisingdisaster.

TheoversimplifiedmindTheonlydefenseapersonhasinourovercommunicatedsocietyisanoversimplifiedmind.

Notunlesstheyrepealthelawofnaturethatgivesusonly24hoursinadaywilltheyfindawaytostuffmoreintothemind.

Theaveragemindisalreadyadrippingspongethatcanonlysoakupmoreinformationattheexpenseofwhat’salreadythere.Yetwecontinuetopourmoreinformationintothatsupersaturatedspongeandaredisappointedwhenourmessagesfailtogetthrough.

Advertising,ofcourse,isonlythetipofthecommunicationiceberg.Wecommunicatewitheachotherinawidevarietyofbewilderingways.Andinageometricallyincreasingvolume.

Themediummaynotbethemessage,butitdoesseriouslyaffectthemessage.Insteadofatransmissionsystem,themediumactslikeafilter.Onlyatinyfractionoftheoriginalmaterialendsupinthemindofthereceiver.

Furthermore,whatwereceiveisinfluencedbythenatureofourovercommunicatedsociety.“Glitteringgeneralities”havebecomeawayoflifeinourovercommunicatedsociety.Weoversimplifybecausethat’stheonlywaytocope.

Technically,wearecapableofincreasingthevolumeofcommunicationatleasttenfold.We’reexperimentingwithdirecttelevisionbroadcastingfromsatellites.Everyhomewouldhave100channelsorsotochoosefrom.

NorthAmericanPhilipshasjustintroduceda3½-inchcompactdiscthatholds600megabytesofdata,morethanenoughtostoretheentire

EncyclopaediaBritannica.Terrific.Butwhoisworkingonacompactdiscforthemind?Whoistrying

tohelptheprospectcopewithcomplexitythatsooverwhelmsthemindthattheaveragereactiontothewealthofinformationtodayistotightentheintakevalve?Toacceptlessandlessofwhatissofreelyavailable?Communicationitselfisthecommunicationproblem.

TheoversimplifiedmessageThebestapproachtotakeinourovercommunicatedsocietyistheoversimplifiedmessage.

Incommunication,asinarchitecture,lessismore.Youhavetosharpenyourmessagetocutintothemind.Youhavetojettisontheambiguities,simplifythemessage,andthensimplifyitsomemoreifyouwanttomakealong-lastingimpression.

Peoplewhodependoncommunicationfortheirlivelihoodknowthenecessityofoversimplification.

Let’ssayyouaremeetingwithapoliticianwhomyouaretryingtogetelected.Inthefirst5minutes,you’lllearnmoreaboutyourpoliticalproductthantheaveragevoterisgoingtolearnaboutthatpersoninthenext5years.

Sincesolittlematerialaboutyourcandidateisevergoingtogetintothemindofthevoter,yourjobisreallynota“communication”projectintheordinarymeaningoftheword.

It’saselectionproject.Youhavetoselectthematerialthathasthebestchanceofgettingthrough.

Theenemythatiskeepingyourmessagesfromhittingpaydirtisthevolumeofcommunication.Onlywhenyouappreciatethenatureoftheproblemcanyouunderstandthesolution.

Whenyouwanttocommunicatetheadvantagesofapoliticalcandidateoraproductorevenyourself,youmustturnthingsinsideout.

Youlookforthesolutiontoyourproblemnotinsidetheproduct,noteveninsideyourownmind.

Youlookforthesolutiontoyourprobleminsidetheprospect’smind.Inotherwords,sincesolittleofyourmessageisgoingtogetthrough

anyway,youignorethesendingsideandconcentrateonthereceivingend.Youconcentrateontheperceptionsoftheprospect.Nottherealityoftheproduct.

“Inpolitics,”saidJohnLindsay,“theperceptionisthereality.”So,too,inadvertising,inbusiness,andinlife.

Butwhatabouttruth?Whataboutthefactsofthesituation?

Butwhatabouttruth?Whataboutthefactsofthesituation?Whatistruth?Whatisobjectivereality?Everyhumanbeingseemstobelieve

intuitivelythatheorshealoneholdsthekeytouniversaltruth.Whenwetalkabouttruth,whattrutharewetalkingabout?Theviewfromtheinsideortheviewfromtheoutside?

Itdoesmakeadifference.Inthewordsofanotherera,“Thecustomerisalwaysright.”Andbyextension,thesellerorcommunicatorisalwayswrong.

Itmaybecynicaltoacceptthepremisethatthesenderiswrongandthereceiverisright.Butyoureallyhavenootherchoice.Notifyouwanttogetyourmessageacceptedbyanotherhumanmind.

Besides,who’stosaythattheviewfromtheinsidelookingoutisanymoreaccuratethantheviewfromtheoutsidelookingin?

Byturningtheprocessaround,byfocusingontheprospectratherthantheproduct,yousimplifytheselectionprocess.Youalsolearnprinciplesandconceptsthatcangreatlyincreaseyourcommunicationeffectiveness.

2Theassaultonthemind

Asanationwehavefalleninlovewiththeconceptof“communication.”(Insomegradeschools“showandtell”isnowbeingcalled“communication.”)Wedon’talwaysappreciatethedamagebeingdonebyourovercommunicatedsociety.

Incommunication,moreisless.Ourextravagantuseofcommunicationtosolveahostofbusinessandsocialproblemshassojammedourchannelsthatonlyatinyfractionofallmessagesactuallygetsthrough.Andnotnecessarilythemostimportantoneseither.

ThetransmissiontrafficjamTakeadvertising,forexample.Withonly6percentoftheworld’spopulation,Americaconsumes57percentoftheworld’sadvertising.(Andyouthoughtouruseofenergywasextravagant.Actually,weconsumeonly33percentoftheworld’senergy.)

Advertising,ofcourse,isonlyasmallchannelinthecommunicationriver.Takebooks.Eachyearsome30,000booksarepublishedinAmerica.Every

yearanother30,000.Whichdoesn’tsoundlikealotuntilyourealizeitwouldtake17yearsofreading24hoursadayjusttofinishoneyear’soutput.

Whocankeepup?Takenewspapers.EachyearAmericannewspapersusemorethan10million

tonsofnewsprint.Whichmeansthattheaveragepersonconsumes94poundsofnewsprintayear.

There’ssomequestionwhethertheaveragepersoncandigestallthisinformation.TheSundayeditionofalargemetropolitannewspaperlikeTheNewYorkTimesweighsabout4½poundsandcontainssome500,000words.Toreaditall,atanaveragereadingspeedof300wordsperminute,wouldtakealmost28hours.NotonlywouldyourSundaybeshot,butalsoagoodpartoftherestoftheweektoo.

Howmuchisgettingthrough?Taketelevision.Amediumbarely35yearsold.Apowerfulandpervasive

medium,televisiondidn’treplaceradioornewspapersormagazines.Eachofthethreeoldermediaisbiggerandstrongerthaniteverwas.

Televisionisanadditivemedium.Andtheamountofcommunicationaddedbytelevisionisawesome.

Ninety-eightpercentofallAmericanhomeshaveatleastonetelevisionset.(Athirdhavetwoormore.)

Ninety-sixpercentofalltelevisionhouseholdscanreceivefourormoreTVstations.(Athirdcanreceivetenormore.)

TheaverageAmericanfamilywatchestelevisionmorethan7hoursaday.(Morethan51hoursaweek.)

Likemotionpictures,theTVpictureisreallyastillpicturewhichchanges30timesasecond.WhichmeanstheaverageAmericanfamilyisexposedtosome750,000televisionpicturesaday.

Notonlyarewebeingpicturedtodeath,wearebeingpaperedtodeath.TakethatXeroxmachinedownthehall.Americanbusinessprocesses1.4trillionpiecesofpaperayear.That’s5.6billioneveryworkingday.

DownthehallsatthePentagon,copymachinescrankout350,000pagesadayfordistributionthroughouttheDefenseDepartment.Equalto1000good-sizednovels.

“WorldWarIIwillend,”saidFieldMarshalMontgomery,“whenthewarringnationsrunoutofpaper.”

Takepackaging.An8-ouncepackageofTotalbreakfastcerealcontains1268wordsofcopyonthebox.Plusanofferforafreebookletonnutrition.(Whichcontainsanother3200words.)

Theassaultonthemindtakesplaceinmanydifferentways.TheU.S.Congresspassessome500lawsayear(that’sbadenough),butregulatoryagenciespromulgatesome10,000newrulesandregulationsinthesameamountoftime.

Andtheregulatoryagenciesarenotstingywiththeirwordseither.Considerthis:TheLord’sPrayercontains56words;theGettysburgAddress,266;theTenCommandments,297;theDeclarationofIndependence,300;andarecentU.S.governmentordersettingthepriceofcabbage,26,911.

Atthestatelevel,over250,000billsareintroducedeachyear.And25,000passthelegislaturestodisappearintothelabyrinthsofthelaw.

Ignoranceofthelawisnoexcuse.Ignoranceofthelawmakersapparentlyis.Ourlegislatorscontinuetopassthousandsoflawsthatyoucan’tpossiblykeeptrackof.Andevenifyoucould,youcouldn’tpossiblyrememberhowalawmightdifferfromoneofour50statestoanother.

Whoreads,sees,orlistenstoallthisoutpouringofcommunication?There’satrafficjamontheturnpikesofthemind.Enginesareoverheating.

There’satrafficjamontheturnpikesofthemind.Enginesareoverheating.Tempersarerising.

GeorgeBush,TedKennedy,andChevroletHowmuchdoyouknowaboutGeorgeBush?Mostpeopleknowjustthreethings:(1)He’sgood-looking.(2)He’sfromTexas.(3)He’sVicePresidentoftheUnitedStates.

Notmuchforapersonwho’sbeeninpublicserviceforagoodpartofhisadultlife.YetthatmightbejustenoughtomakeMr.BushPresidentoftheUnitedStatesin1988.

Actuallytherearemanypeoplewhodon’tknowMr.Bushaswellasyoumightthink.APeoplemagazinepollshowedthat44percentofsupermarketshoppersdidn’tknowwhoGeorgeBushwas,eventhoughhehadbeenVicePresidentfor4years.

Ontheotherhand,93percentoftheconsumersrecognizedMr.Clean,thegenieonthebottleoftheProcter&Gamblecleanerofthesamename.TheyrecognizedMr.Clean,eventhoughhehadn’tbeenseenontelevisionin10years,whichshowsthepowerofadvertisingtoregisterasimplemessage.

WhatdoyouknowaboutTedKennedy?ProbablyalotmorethanyouknowaboutGeorgeBush.AndprobablyenoughtokeephimfrombeingthenextPresidentoftheUnitedStates.

Atbest,communicationinanovercommunicatedsocietyisdifficult.Yetyouareoftenbetteroffifcommunicationdoesn’ttakeplace.Atleastuntilyouarereadytopositionyourselfforthelongterm.Younevergetasecondchancetomakeafirstimpression.

Whatdothefollowingnamesmeantoyou:Camaro,Cavalier,Celebrity,Chevette,Citation,Corvette,andMonteCarlo?

Automobilemodelnames,right?WouldyoubesurprisedtolearnthattheseareallChevroletmodels?

Chevroletisoneofthemostheavilyadvertisedproductsintheworld.Inarecentyear,GeneralMotorsspentmorethan$178milliontopromoteChevroletintheUnitedStates.That’s$487,000aday,$20,000anhour.

WhatdoyouknowaboutChevrolet?AboutChevroletengines,transmissions,tires?Abouttheseats,upholstery,steering?

Behonest.HowmanyChevroletmodelsareyoufamiliarwith?Anddoyouknowthedifferencesbetweenthem?Confusing,isn’tit?

Theonlyanswertotheproblemsofanovercommunicatedsocietyisthepositioninganswer.Tocutthroughthetrafficjamintheprospect’smind,youmustuseMadisonAvenuetechniques.

mustuseMadisonAvenuetechniques.NearlyhalfthejobsintheUnitedStatescanbeclassifiedasinformation

occupations.Moreandmorepeoplearetryingtocopewiththeproblemsofourovercommunicatedsociety.

Whetheryouhaveaninformationjobornot,youcanbenefitfromlearningthelessonsofMadisonAvenue.Athomeandintheoffice.

ThemediaexplosionAnotherreasonourmessageskeepgettinglostisthenumberofmediawehaveinventedtoserveourcommunicationneeds.

Thereistelevision.Commercial,cable,andpay.There’sradio.AMandFM.There’soutdoor.Postersandbillboards.Therearenewspapers.Morning,evening,daily,weekly,andSunday.Therearemagazines.Massmagazines,classmagazines,enthusiast

magazines,businessmagazines,trademagazines.And,ofcourse,buses,trucks,streetcars,subways,andtaxicabs.Generally

speaking,anythingthatmovestodayiscarryinga“messagefromoursponsor.”EventhehumanbodyhasbecomeawalkingbillboardforAdidas,Gucci,

Benetton,andGloriaVanderbilt.Takeadvertisingagain.JustafterWorldWarII,thepercapitaconsumptionof

advertisingintheUnitedStateswasabout$25ayear.Todayit’s15timesasmuch.(Inflationaccountsforpartofthisincrease,butvolumeisalsoupsubstantially.)

Doyouknow15timesasmuchabouttheproductsyoubuy?Youmaybeexposedtomuchmoreadvertising,butyourmindcan’tabsorbanymorethanitusedto.There’safinitelimittohowmuchyoucantakein,andadvertising,evenat$25ayear,wasalreadywayoverthelimit.That1-quartcontainerthatsitsontopofyourneckcanholdjustsomuch.

At$376perperson,theaverageAmericanconsumerisalreadyexposedtotwiceasmuchadvertisingperyearastheaverageCanadian.FourtimesasmuchastheaverageEnglishperson.AndfivetimesasmuchastheaverageFrenchperson.

Whilenoonedoubtstheadvertiser’sfinancialabilitytodishitout,there’ssomequestionabouttheconsumer’smentalabilitytotakeitallin.

Eachday,thousandsofadvertisingmessagescompeteforashareoftheprospect’smind.Andmakenomistakeaboutit,themindisthebattleground.Between6inchesofgraymatteriswheretheadvertisingwartakesplace.Andthebattleisrough,withnoholdsbarredandnoquartergiven.

thebattleisrough,withnoholdsbarredandnoquartergiven.Advertisingisabrutalbusinesswheremistakescanbecostly.Butoutofthe

advertisingwars,principleshavebeendevelopedtohelpyoucopewithourovercommunicatedsociety.

TheproductexplosionAnotherreasonourmessageskeepgettinglostisthenumberofproductswehaveinventedtotakecareofourphysicalandmentalneeds.

Takefoodforexample.TheaveragesupermarketintheUnitedStateshassome12,000individualproductsorbrandsondisplay.Fortheconsumer,there’snoreliefinsight.Infact,theproductexplosioncouldgetworse.InEuropetheyarebuildingsuper-supermarkets(calledhypermarkets)withroomforseveraltimesasmanyproducts.BiggsinCincinnati,thefirsthypermarketinAmerica,stocks60,000products.

Thepackaged-goodsindustryobviouslyexpectstheproliferationtocontinue.Thosescratchmarksonthesideofmostgroceryboxes,theUniversalProductCode,represent10digits.(Yoursocialsecuritynumberhasonly9.Andthesystemisdesignedtohandlemorethan200millionpeople.)

Andthissamesituationholdsintheindustrialfield.TheThomasRegister,forexample,lists80,000companies.Thereare292manufacturersofcentrifugalpumps,326buildersofelectroniccontrols,totaketwocategoriesatrandom.

TherearehalfamillionactivetrademarksregisteredattheU.S.PatentOffice.And25,000newonesgetaddedeveryyear.(Hundredsofthousandsofproductsaresoldwithouttrademarkstoo.)

Inatypicalyear,the1500companieslistedontheNewYorkStockExchangeintroducemorethan5000“significant”newproducts.Andpresumablyalotmorethanthatwereinsignificant.NottomentionthemillionsofproductsandservicesmarketedbyAmerica’s5millionothercorporations.

Takedrugs.Therearesome100,000prescriptiondrugsontheU.S.market.Whilemanyofthesearespecializedandusedalmostexclusivelybymedicalspecialists,thegeneralpractitionerstillhasaherculeanjobtokeepinformedaboutthemultitudeofdrugproductsavailable.

Herculean?No,it’sanimpossiblejob.EvenHerculeshimselfcouldnothavekeptupwithmorethanasmallfractionofthesedrugs.Toexpectmoreistobetotallyignorantofthefinitecapacityofeventhemostbrilliantmind.

Andhowdoestheaveragepersoncopewiththeproductandmediaexplosions?Notverywell.Studiesonthesensitivityofthehumanbrainhaveestablishedtheexistenceofaphenomenoncalled“sensoryoverload.”

Scientistshavediscoveredthatapersoniscapableofreceivingonlyalimitedamountofsensation.Beyondacertainpoint,thebraingoesblankandrefusestofunctionnormally.(Dentistshavebeentoyingwithsomeofthesediscoveries.Earphonesareplacedonthepatient,andthesoundlevelisturnedupuntilthesensationofpainnolongerisfelt.)

TheadvertisingexplosionIronically,astheeffectivenessofadvertisinggoesdown,theuseofitgoesup.Notjustinvolume,butinthenumberofusers.

Doctors,lawyers,dentists,accountantsaredippingtheirtoesintotheadvertisingpool.Eveninstitutionslikechurches,hospitals,andgovernmenthavebeguntoadvertise.(InarecentyeartheU.S.governmentspent$228,857,200onadvertising.)

Professionalpeopleusedtoconsideradvertisingbeneaththeirdignity.Butascompetitionheatsup,lawyers,dentists,optometrists,accountants,andarchitectsarestartingtopromotethemselves.

Cleveland-basedHyattLegalServicesisspending$4.5millionayearontelevisionadvertising.Jacoby&Meyersisanotherbiglegaladvertiser.

Advertisingislikelytostartsooninthemedicalprofessionforasimplereason:Ourovercommunicatedsocietyisintheprocessofbecominganovermedicatedonetoo.AstudyfortheDepartmentofHealthandHumanServicespredictsasurplusofabout70,000doctorsby1990.

Howwilltheseexcessdoctorsfindpatientstopracticeon?Byadvertising,ofcourse.

Buttheprofessionalswhoareopposedtoadvertisingsayitdowngradestheirprofession.Anditdoes.Toadvertiseeffectivelytoday,youhavetogetoffyourpedestalandputyoureartotheground.Youhavetogetonthesamewavelengthastheprospect.

3Gettingintothemind

Inourovercommunicatedsociety,theparadoxisthatnothingismoreimportantthancommunication.Withcommunicationgoingforyou,anythingispossible.Withoutit,nothingispossible.Nomatterhowtalentedandambitiousyoumaybe.

What’scalledluckisusuallyanoutgrowthofsuccessfulcommunication.Sayingtherightthingstotherightpersonattherighttime.FindingwhattheNASApeopleinHoustoncallawindowinspace.

Positioningisanorganizedsystemforfindingawindowinthemind.Itisbasedontheconceptthatcommunicationcanonlytakeplaceattherighttimeandundertherightcircumstances.

TheeasywayintothemindTheeasywaytogetintoaperson’smindistobefirst.Youcandemonstratethevalidityofthisprinciplebyaskingyourselfafewsimplequestions.

What’sthenameofthefirstpersontoflysoloacrosstheNorthAtlantic?CharlesLindbergh,right?

Now,what’sthenameofthesecondpersontoflysoloacrosstheNorthAtlantic?

Notsoeasytoanswer,isit?What’sthenameofthefirstpersontowalkonthemoon?NeilArmstrong,of

course.What’sthenameofthesecond?What’sthenameofthehighestmountainintheworld?MountEverestinthe

Himalayas,right?What’sthenameofthesecondhighestmountainintheworld?What’sthenameofthefirstpersonyouevermadelovewith?What’sthenameofthesecond?Thefirstperson,thefirstmountain,thefirstcompanytooccupytheposition

inthemindisgoingtobeawfullyhardtodislodge.Kodakinphotography,Kleenexintissue,Xeroxinplainpapercopiers,Hertz

inrent-a-cars,Cocaincola,Generalinelectric.Thefirstthingyouneedto“fixyourmessageindeliblyinthemind”isnota

messageatall.It’samind.Aninnocentmind.Amindthathasnotbeen

messageatall.It’samind.Aninnocentmind.Amindthathasnotbeenburnishedbysomeoneelse’sbrand.

What’strueinbusinessistrueinnaturetoo.“Imprinting”isthetermanimalbiologistsusetodescribethefirstencounter

betweenanewbornanimalanditsnaturalmother.Ittakesonlyafewsecondstofixindeliblyinthememoryoftheyounganimaltheidentityofitsparent.

Youmightthinkallduckslookalike,butevenaday-oldducklingwillalwaysrecognizeitsmother,nomatterhowmuchyoumixuptheflock.

Well,that’snotquitetrue.Iftheimprintingprocessisinterruptedbythesubstitutionofadogorcatorevenahumanbeing,theducklingwilltreatthesubstituteasitsnaturalmother.Nomatterhowdifferentthecreaturelooks.

Fallinginloveisasimilarphenomenon.Whilepeoplearemoreselectivethanducks,they’renotnearlyasselectiveasyoumightthink.

Whatcountsmostisreceptivity.Twopeoplemustmeetinasituationinwhichbotharereceptivetotheidea.Bothmusthaveopenwindows.Thatis,neitherisdeeplyinlovewithsomeoneelse.

Marriage,asahumaninstitution,dependsontheconceptoffirstbeingbetterthanbest.Andsodoesbusiness.

Ifyouwanttobesuccessfulinloveorinbusiness,youmustappreciatetheimportanceofgettingintothemindfirst.

Youbuildbrandloyaltyinasupermarketthesamewayyoubuildmateloyaltyinamarriage.Yougettherefirstandthenbecarefulnottogivethemareasontoswitch.

ThehardwayintothemindAndwhatifyournameisnotCharlesorNeilorKleenexorHertz?Whatifsomeoneelsegotintoyourprospect’smindfirst?

Thehardwaytogetintoaperson’smindissecond.Secondisnowhere.What’sthelargest-sellingbookeverpublished?(Alsothefirstbookever

printedwithmovabletype?)TheBible,ofcourse.Andthesecondlargest-sellingbookeverpublished?Whoknows?NewYorkisthelargestcargoportintheUnitedStates.Butwhichoneis

second?WouldyoubelieveHamptonRoads,Virginia?It’strue.WhowasthesecondpersontoflysoloacrosstheNorthAtlantic?(Amelia

EarhartwasnotthesecondpersontoflytheNorthAtlanticsolo,althoughshewasthefirstwomantodoit.Nowthen,whowasthesecondwoman?)Ifyoudidn’tgetintothemindofyourprospectfirst(personally,politically,orcorporately),thenyouhaveapositioningproblem.

corporately),thenyouhaveapositioningproblem.Inaphysicalcontest,theoddsfavorthefastesthorse,thestrongestteam,the

bestplayer.“Theraceisn’talwaystotheswift,northebattletothestrong,”saidDamonRunyan,“butthat’sthewaytobet.”

Notsoinamentalcontest.Inamentalbattletheoddsfavorthefirstperson,thefirstproduct,thefirstpoliticiantogetintothemindoftheprospect.

Inadvertising,thefirstproducttoestablishthepositionhasanenormousadvantage.Xerox,Polaroid,BubbleYum,tonameafewmoreexamples.

Inadvertising,it’sbesttohavethebestproductinyourparticularfield.Butit’sevenbettertobefirst.

Lovemightbewonderfulthesecondtimearound,butnobodycareswhothesecondpersontoflysoloacrosstheNorthAtlanticwas.Evenifthatpersonwasabetterpilot.

TherearepositioningstrategiestodealwiththeproblemofbeingNo.2orNo.3orevenNo.203.(SeeChapter8,“Repositioningthecompetition.”)Butfirstmakesureyoucan’tfindsomethingtobefirstin.It’sbettertobeabigfishinasmallpond(andthenincreasethesizeofthepond)thantobeasmallfishinabigpond.

AdvertisinglearnsthelessonTheadvertisingindustryislearningtheLindberghlessonthehardway.

Withthemagicofmoneyandenoughbrightpeople,somecompaniesfeelthatanymarketingprogramshouldsucceed.

Thewreckageisstillwashinguponthebeach.DuPont’sCorfam,Gablinger’sbeer,theConvair880,Votetoothpaste,HandyAndycleaner.

Theworldwillneverbethesameagain,andneitherwilltheadvertisingbusiness.

Notthatalotofcompanieshaven’ttried.Everydrugstoreandsupermarketisfilledwithshelfaftershelfof“halfsuccessful”brands.Themanufacturersoftheseme-tooproductsclingtothehopethattheycandevelopabrilliantadvertisingcampaignwhichwilllifttheiroffspringintothewinner’scircle.

Meanwhile,theyhangintherewithcoupons,deals,pointof-purchasedisplays.Butprofitsarehardtocomeby,andthat“brilliant”advertisingcampaign,evenifitcomes,doesn’teverseemtoturnthebrandaround.Nowondermanagementpeopleturnskepticalwhenthesubjectofadvertisingcomesup.

It’senoughtodriveanadvertisingpersonintothesofticecreambusiness.Thechaosinthemarketplaceisareflectionofthefactthatadvertisingjust

doesn’tworkthewayitusedto.Butoldtraditionalwaysofdoingthingsdie

doesn’tworkthewayitusedto.Butoldtraditionalwaysofdoingthingsdiehard.“There’snoreasonwhyadvertisingcan’tdothejob,”saythedefendersofthestatusquo,“aslongastheproductisgood,theplanissound,andthecommercialsarecreative.”

Buttheyoverlookonebig,loudreason.Themarketplaceitself.Thenoiseleveltodayisfartoohigh.

Messagespreparedintheold,traditionalwayshavenohopeofbeingsuccessfulintoday’sovercommunicatedsociety.

Tounderstandhowwegottowherewearetoday,itmightbehelpfultotakeaquicklookatrecentcommunicationhistory.

TheproducteraBackinthefifties,advertisingwasintheproductera.Inalotofways,thesewerethegoodolddayswhenthe“bettermousetrap”andsomemoneytopromoteitwereallyouneeded.

Itwasatimewhenadvertisingpeoplefocusedtheirattentiononproductfeaturesandcustomerbenefits.Theylookedfor,asRosserReevescalledit,the“UniqueSellingProposition.”

Butinthelatefifties,technologystartedtorearitsuglyhead.Itbecamemoreandmoredifficulttoestablishthat“USP.”

Theendoftheproducteracamewithanavalancheofme-tooproductsthatdescendedonthemarket.Your“bettermousetrap”wasquicklyfollowedbytwomorejustlikeit.Bothclaimingtobebetterthanthefirstone.

Competitionwasfierceandnotalwayshonest.Itgotsobadthatoneproductmanagerwasoverheardtosay,“Wouldn’tyouknowit.Lastyearwehadnothingtosay,soweput‘newandimproved’onthepackage.Thisyeartheresearchpeoplecameupwitharealimprovement,andwedon’tknowwhattosay.”

TheimageeraThenextphasewastheimageera.Successfulcompaniesfoundthatreputation,orimage,wasmoreimportantinsellingaproductthananyspecificproductfeature.

ThearchitectoftheimageerawasDavidOgilvy.Ashesaidinhisfamousspeechonthesubject,“Everyadvertisementisalong-terminvestmentintheimageofabrand.”AndheprovedthevalidityofhisideaswithprogramsforHathawayshirts,Rolls-Royce,Schweppes,andothers.

Butjustastheme-tooproductskilledtheproductera,theme-toocompanies

Butjustastheme-tooproductskilledtheproductera,theme-toocompanieskilledtheimageera.Aseverycompanytriedtoestablishareputationforitself,thenoiselevelbecamesohighthatrelativelyfewcompaniessucceeded.

Andoftheonesthatmadeit,mostdiditprimarilywithspectaculartechnicalachievements,notspectacularadvertising.XeroxandPolaroid,tonametwo.

ThepositioningeraTodayithasbecomeobviousthatadvertisingisenteringanewera—anerawherecreativityisnolongerthekeytosuccess.

Thefunandgamesofthesixtiesandseventieshavegivenwaytotheharshrealitiesoftheeighties.

Tosucceedinourovercommunicatedsociety,acompanymustcreateapositionintheprospect’smind,apositionthattakesintoconsiderationnotonlyacompany’sownstrengthsandweaknesses,butthoseofitscompetitorsaswell.

Advertisingisenteringanerawherestrategyisking.Inthepositioningera,it’snotenoughtoinventordiscoversomething.Itmaynotevenbenecessary.Youmust,however,befirsttogetintotheprospect’smind.

IBMdidn’tinventthecomputer.Sperry-Randdid.ButIBMwasthefirstcompanytobuildacomputerpositioninthemindoftheprospect.

WhatAmerigodiscoveredTheSperry-RandofthefifteenthcenturywasChristopherColumbus.

Aseveryschoolchildknows,themanwhodiscoveredAmericawaspoorlyrewardedforhisefforts.ChristopherColumbusmadethemistakeoflookingforgoldandkeepinghismouthshut.

AmerigoVespuccididn’t.TheIBMofthefifteenthcentury,Amerigowas5yearsbehindChristopher.Buthedidtwothingsright.

First,hepositionedtheNewWorldasaseparatecontinent,totallydistinctfromAsia.Thiscausedarevolutioninthegeographyofhisday.

Second,hewroteextensivelyofhisdiscoveriesandtheories.Especiallysignificantarethefivelettersofhisthirdvoyage.One(MundusNovus)wastranslatedinto40differentlanguagesovera25-yearperiod.

Beforehedied,SpaingrantedhimCastiliancitizenshipandgavehimamajorstatepost.

Asaresult,theEuropeanscreditedAmerigoVespucciwiththediscoveryofAmericaandnamedtheplaceafterhim.

ChristopherColumbusdiedinjail.

WhatMichelobdiscoveredThegreatcopywritersofyesterday,whohavegonetothebigadagencyinthesky,woulddiealloveragainiftheysawsomeofthecampaignscurrentlyrunning.

Takebeeradvertising,forexample.Inthepastabeercopywriterlookedcloselyattheproducttofindacopyplatform.Andheorshefoundproductfeatureslike“real-draft”Pielsand“cold-brewed”Ballantine.

Andevenfurtherbackabeercopywritersearchedforjusttherightwordstopaintapictureofquality,taste,andappetiteappeal.

“Justakissofthehops.”“Fromthelandofskybluewaters.”Today,however,poetryinadvertisingisasdeadaspoetryinpoetry.Oneofthebiggestadvertisingsuccessesofrecenttimesisthecampaignfor

Michelob.Thebrandwaslaunchedwithacampaignthatisaspoeticasastopsign.Andjustaseffective.

“FirstclassisMichelob”positionedthebrandasapremium-pricedAmerican-madebeer.Inafewyears,Michelobbecameoneofthelargest-sellingbeersintheUnitedStates.Atpremiumpricestoo.

WasMichelobthefirstpremium-priceddomesticbeer?No,ofcoursenot.ButMichelobwasthefirsttobuildthepositioninthebeer-drinker’smind.

WhatMillerdiscoveredNoticehowthepoetryintheoldSchlitzbeersloganhidesthepositioning.

“Realgustoinagreat,lightbeer.”DidanyoneoutthereintheneighborhoodbarandgrillbelievethatSchlitz

wasanylighterthanBudweiserorPabst?No,theSchlitzsloganmadeasmuchsensetotheJoeSixpacksofthisworldasthelyricsinanItalianopera.

ButoverattheMillerBrewingCompany,theyapparentlyaskedthemselveswhatwouldhappeniftheyreallypositionedabeerasalightbeer.

SoMillerintroduced“Lite”beer.Andtherestishistory.Arunawaysuccessthatspawnedahostofme-toobrands.Including,ironically,SchlitzLight.(Presumablytobepromotedas:“Realgustoinagreat,light,lightbeer.”)Formanypeopleorproductstoday,oneroadwaytosuccessistolookatwhatyourcompetitorsaredoingandthensubtractthepoetryorcreativitywhichhasbecomeabarriertogettingthemessageintothemind.Withapurifiedandsimplifiedmessage,youcanthenpenetratetheprospect’smind.

Forexample,there’sanimportedbeerwhosepositioningstrategyissocrystal-clearthatthoseold-timebeercopywritersprobablywouldn’tevenaccept

crystal-clearthatthoseold-timebeercopywritersprobablywouldn’tevenacceptitasadvertising.

“You’vetastedtheGermanbeerthat’sthemostpopularinAmerica.NowtastetheGermanbeerthat’sthemostpopularinGermany.”ThisishowBeck’sbeereffectivelypositioneditselfagainstLowenbrau.

AdvertisinglikethismadeBeck’sbeerpopularinAmericatoo.Saleskeptgoingupyearafteryear.Lowenbrau,ontheotherhand,gaveupthestruggleandbecameadomesticbrand.

StrangethingshavebeenhappeninginAmericanadvertising.It’sbecominglesspoetic—andmoreeffective.

4Thoselittleladdersinyourhead

Tobetterunderstandwhatyourmessageisupagainst,let’stakeacloserlookattheultimateobjectiveofallcommunication:thehumanmind.

Likethememorybankofacomputer,themindhasaslotorpositionforeachbitofinformationithaschosentoretain.Inoperation,themindisalotlikeacomputer.

Butthereisoneimportantdifference.Acomputerhastoacceptwhatyouputintoit.Theminddoesnot.Infact,it’squitetheopposite.

Themindrejectsnewinformationthatdoesn’t“compute.”Itacceptsonlythatnewinformationwhichmatchesitscurrentstateofmind.Itfiltersouteverythingelse.

YouseewhatyouexpecttoseeTakeanytwoabstractdrawings.WritethenameSchwartzononeandthenamePicassoontheother.Thenasksomeoneforanopinion.Youseewhatyouexpecttosee.

Asktwopeopleofoppositepersuasion,say,aDemocratandaRepublican,toreadanarticleonacontroversialsubject.Thenaskeachoneifthearticlechangedhisorheropinion.

You’llfindthattheDemocratgetsoutofthearticlefactstosupportonepointofview.TheRepublicangetsoutofthesamearticlefactstosupporttheoppositepointofview.Verylittlemindchangingtakesplace.Youseewhatyouexpecttosee.

PourabottleofGallointoanempty50-year-oldbottleofFrenchBurgundy.Thencarefullydecantaglassinfrontofafriendandaskforanopinion.

Youtastewhatyouexpecttotaste.BlindtastetestingsofchampagnehaveoftenrankedinexpensiveCalifornia

brandsaboveFrenchones.Withthelabelson,thisisunlikelytohappen.Youtastewhatyouexpecttotaste.Wereitnotso,therewouldbenoroleforadvertisingatall.Weretheaverage

consumerrationalinsteadofemotional,therewouldbenoadvertising.Atleastnotasweknowittoday.

Oneprimeobjectiveofalladvertisingistoheightenexpectations.Tocreatetheillusionthattheproductorservicewillperformthemiraclesyouexpect.And

theillusionthattheproductorservicewillperformthemiraclesyouexpect.Andpresto,that’sexactlywhattheadvertisingdoes.

Butcreatetheoppositeexpectationandtheproductisintrouble.TheintroductoryadvertisingforGablinger’sbeercreatedafeelingthatbecauseitwasadietproduct,itwouldtastebad.

Andsureenough,theadvertisingworked!Peopletrieditandwereeasilyconvincedthatitdidtastebad.Youtastewhatyouexpecttotaste.

AninadequatecontainerNotonlydoesthehumanmindrejectinformationwhichdoesnotmatchitspriorknowledgeorexperience,itdoesn’thavemuchpriorknowledgeorexperiencetoworkwith.

Inourovercommunicatedsociety,thehumanmindisatotallyinadequatecontainer.

AccordingtoHarvardpsychologistDr.GeorgeA.Miller,theaveragehumanmindcannotdealwithmorethansevenunitsatatime.Whichiswhysevenisapopularnumberforliststhathavetoberemembered.Seven-digitphonenumbers,theSevenWondersoftheWorld,seven-cardstud,SnowWhiteandtheSevenDwarfs.

Asksomeonetonameallthebrandsheorsheremembersinagivenproductcategory.Rarelywillanyonenamemorethanseven.Andthat’sforahigh-interestcategory.Forlow-interestproducts,theaverageconsumercanusuallynamenomorethanoneortwobrands.

TrylistingalltenoftheTenCommandments.Ifthat’stoodifficult,howaboutthesevendangersignalsofcancer?OrthefourhorsemenoftheApocalypse?

Inonenewspapersurvey,80outof100Americanscouldn’tnameasinglememberofthePresident’sCabinet.

Ifourmentalstoragebowlistoosmalltohandlequestionslikethese,howintheworldarewegoingtokeeptrackinourmindofallthosebrandnameswhichhavebeenmultiplyinglikerabbitsovertheyears?

ThirtyyearsagothesixleadingcigarettecompaniesbetweenthemofferedtheAmericansmoker17differentbrands.Todaytheysellmorethan175.(Avendingmachinebuilttoholdallthesebrandswouldhavetobe30feetlong.)“Modelitus”hasstruckeveryindustry,fromautomobilestobeertozoomlenses.Detroitcurrentlysells290differentmodelsinabewilderingvarietyofstylesandsizes.Caravelle,Capri,Cimarron,Camaro,Calais,Cutlass.Let’ssee,isitaChevroletCaravelleoraPlymouthCaravelle?Thepublicisconfused.

Tocopewithcomplexity,peoplehavelearnedtosimplifyeverything.

Tocopewithcomplexity,peoplehavelearnedtosimplifyeverything.Whenaskedtodescribeanoffspring’sintellectualprogress,apersondoesn’t

usuallyquotevocabularystatistics,readingcomprehension,mathematicalability,etc.“He’sinseventhgrade”isatypicalreply.

Thisrankingofpeople,objects,andbrandsisnotonlyaconvenientmethodoforganizingthingsbutalsoanabsolutenecessitytokeepfrombeingoverwhelmedbythecomplexitiesoflife.

TheproductladderTocopewiththeproductexplosion,peoplehavelearnedtorankproductsandbrandsinthemind.Perhapsthiscanbestbevisualizedbyimaginingaseriesofladdersinthemind.Oneachstepisabrandname.Andeachdifferentladderrepresentsadifferentproductcategory.

Someladdershavemanysteps.(Sevenismany.)Othershavefew,ifany.Acompetitorthatwantstoincreaseitsshareofthebusinessmusteither

dislodgethebrandabove(ataskthatisusuallyimpossible)orsomehowrelateitsbrandtotheothercompany’sposition.

Yettoomanycompaniesembarkonmarketingandadvertisingprogramsasifthecompetitor’spositiondidnotexist.Theyadvertisetheirproductsinavacuumandaredisappointedwhentheirmessagesfailtogetthrough.

Movinguptheladderinthemindcanbeextremelydifficultifthebrandsabovehaveastrongfootholdandnoleverageorpositioningstrategyisapplied.

Anadvertiserwhowantstointroduceanewproductcategorymustcarryinanewladder.This,too,isdifficult,especiallyifthenewcategoryisnotpositionedagainsttheoldone.Themindhasnoroomforwhat’snewanddifferentunlessit’srelatedtotheold.

That’swhyifyouhaveatrulynewproduct,it’softenbettertotelltheprospectwhattheproductisnot,ratherthanwhatitis.

Thefirstautomobile,forexample,wascalleda“horseless”carriage,anamewhichallowedthepublictopositiontheconceptagainsttheexistingmodeoftransportation.

Wordslike“off-track”betting,“lead-free”gasoline,and“sugar-free”sodaareallexamplesofhownewconceptscanbestbepositionedagainsttheold.

The“against”positionIntoday’smarketplacethecompetitor’spositionisjustasimportantasyourown.Sometimesmoreimportant.Anearlysuccessinthepositioningerawasthe

famousAviscampaign.TheAviscampaignwillgodowninmarketinghistoryasaclassicexampleof

establishingthe“against”position.InthecaseofAvis,thiswasapositionagainsttheleader.

“AvisisonlyNo.2inrent-a-cars,sowhygowithus?Wetryharder.”For13yearsinarow,Avislostmoney.Thentheyadmittedthattheywere

No.2andAvisstartedtomakemoney.ThefirstyearAvismade$1.2million.Thesecondyear,$2.6million.The

thirdyear,$5million.ThenthecompanywassoldtoITT.Aviswasabletomakesubstantialgainsbecausetheyrecognizedtheposition

ofHertzanddidn’ttrytoattackthemhead-on.TobetterunderstandwhytheAvisprogramwassosuccessful,let’slookinto

themindoftheprospectandimaginewecanseeaproductladdermarked“rent-a-cars.”

Oneachrungoftheproductladderisabrandname.Hertzontop.Avisonthesecondrung.Nationalonthethird.

ManymarketingpeoplehavemisreadtheAvisstory.Theyassumethecompanywassuccessfulbecauseittriedharder.

Notatall.AviswassuccessfulbecauseitrelateditselftoHertz.(Iftryingharderwerethesecretofsuccess,HaroldStassenwouldhavebeenPresidentmanytimesover.)Asanindicationofhowfartheadvertisingbusinesshascomeinitsacceptanceofcomparativeads,Timemagazineoriginallyrejectedthe“Wetryharder”lineasbeingtoocompetitivewithHertz.OthermagazinesfollowedtheTimelead.

Sotheaccountexecutivepanickedandagreedtochangethelineto“Wetrydamnedhard.”(Acursewordpresumablybeinglessoffensivethanacomparativeword.)OnlyaftertheadwascanceleddidTimechangeitsmindandagreetoaccepttheoriginalversion.(Theaccountexecutivewasfired.)

Establishingthe“against”positionisaclassicpositioningmaneuver.Ifacompanyisn’tthefirst,thenithastobethefirsttooccupytheNo.2position.It’snotaneasytask.

Butitcanbedone.WhatAvisisdoinginrent-a-cars,BurgerKingisdoinginfastfoods,andPepsiisdoingincolas.

The“uncola”positionAnotherclassicpositioningstrategyistowormyourwayontoaladderownedbysomeoneelse.As7-Updid.ThebrillianceofthisideacanonlybeappreciatedwhenyoucomprehendtheenormousshareofmindenjoyedbyCoke

appreciatedwhenyoucomprehendtheenormousshareofmindenjoyedbyCokeandPepsi.AlmosttwooutofeverythreesoftdrinksconsumedintheUnitedStatesarecoladrinks.

Bylinkingtheproducttowhatwasalreadyinthemindoftheprospect,the“uncola”positionestablished7-Upasanalternativetoacoladrink.(Thethreerungsonthecolaladdermightbevisualizedas:One,Coke.Two,Pepsi,Andthree,7-Up.)Toprovetheuniversalityofpositioningconcepts,McCormickCommunicationstookbeautiful-musicradiostationWLKW,analso-ranintheProvidence(RhodeIsland)market,andmadeitnumberone.Theirtheme:WLKW,theunrockstation.

Tofindauniqueposition,youmustignoreconventionallogic.Conventionallogicsaysyoufindyourconceptinsideyourselforinsidetheproduct.

Nottrue.Whatyoumustdoislookinsidetheprospect’smind.Youwon’tfindan“uncola”ideainsidea7-Upcan.Youfinditinsidethe

coladrinker’shead.

TheF.W.M.T.S.trapMorethananythingelse,successfulpositioningrequiresconsistency.Youmustkeepatityearafteryear.

Yetafteracompanyhasexecutedabrilliantpositioningcoup,toooftenitfallsintowhatwecalltheF.W.M.T.S.trap:“Forgotwhatmadethemsuccessful.”

ShortlyafterthecompanywassoldtoITT,AvisdecideditwasnolongersatisfiedwithbeingNo.2.Soitranadssaying,“AvisisgoingtobeNo.1.”

That’sadvertisingyouraspirations.Wrongpsychologically.Andwrongstrategically.

AviswasnotdestinedtobeNo.1unlessitcouldfindaweaknessinHertztoexploit.

Furthermore,theoldcampaignnotonlyrelatedNo.2AvistoNo.1Hertzontheproductladderintheprospect’smind,butalsocapitalizedonthenaturalsympathypeoplehavefortheunderdog.

Thenewcampaignwasjustconventionalbrag-and-boastadvertising.Behonest.Inthelast20years,Avishasrunmanydifferentadvertising

campaigns:“ThewizardofAvis.”“Youdon’thavetorunthroughairports.”Butwhatisthesinglethemethatleapsintoyourmindwhensomeone

mentionsAvis?Ofcourse,“AvisisonlyNo.2,etc.”YetAvisinthelastfewyearshas

consistentlyignoredtheonlyconceptitreallyownsinthemind.SomedaywhenNationalRent-A-CarpassesAvisinsales,Aviswillappreciatethevalueofthe

NationalRent-A-CarpassesAvisinsales,AviswillappreciatethevalueoftheNo.2conceptitlost.

Ifyouwanttobesuccessfultoday,youcan’tignorethecompetitor’sposition.Norcanyouwalkawayfromyourown.IntheimmortalwordsofJoanDidion,“Playitasitlays.”

5Youcan’tgettherefromhere

There’sanoldstoryaboutatravelerwhoaskedafarmerfordirectionstoanearbytown.

Thefarmerreplied,“Well,yougodowntheroadforamile,turnleftatthefork.No,thatwon’twork.”

“Youturnaroundanddriveforhalfamiletillyouhitastopsign,thenturnright,”thefarmercontinued.“No,thatwon’tworkeither.”Afteralongpause,thefarmerlookedattheconfusedtravelerandsaid,“Youknowwhat,son,youcan’tgettherefromhere!”

Thatjusthappenstobethefateofmanypeople,politicians,andproductstoday.Theyhappentobeinapositionwhere“theycan’tgettherefromhere.”

AvisisnotgoingtobeNo.1.Wishingwon’tmakeitso.Andneitherwillmassiveamountsofadvertising.

The“cando”spiritrefusestodieInmanywaysourcountry’sVietnamexperiencewasatypicalexampleofAmerican“cando”spirit.Anythingispossibleifonlyyoutryhardenough.Butnomatterhowhardwetried,nomatterhowmanysoldiersandhowmuchmoneywepouredin,theproblemcouldnotbesolvedbyanoutsideforce.

Wecouldn’tgettherefromhere.InspiteofhundredsofVietnamexamplestothecontrary,weliveina“can

do”environment.Yetmanythingsarenotpossible,nomatterhowhardyoutry.Takethe55-year-oldexecutivevicepresidentwhoisnevergoingtogetthe

topjob.Whenthechiefexecutiveretiresinafewyearsatage65,theboardappointsa48-year-oldsuccessor.

The55-year-oldisoutofphaseforthepresident’sjob.Tohaveachanceforpromotion,heorshemustbeatleastadecadeyoungerthanthecurrentholder.

Inthebattleforthemind,thesamethingoftenhappenstotheproductthat’soutofphase.

Todayacompanycanhaveagreatproduct,agreatsalesforce,agreatadvertisingcampaignandstillfailmiserablyifithappenstobeinapositioninwhich“youcan’tgettherefromhere.”Nomatterhowmanymillionsitispreparedtospend.

AndthebestexampleiswhathappenedtoRCAinthecomputerbusiness.

AndthebestexampleiswhathappenedtoRCAinthecomputerbusiness.

ThehandwritingonthewallIn1969wewroteanarticleforIndustrialMarketingmagazineusingRCAasoneoftheprimeexamples.Entitled“PositioningIsaGamePeoplePlayinToday’sMe-TooMarketplace,”thearticlepullednopunches.Itnamednamesandmadepredictions,allbasedontherulesofagamecalledpositioning.(Itwasthefirsttimeanyonehadusedtheword“positioning”todescribetheprocessofcopingwiththementalpositionthatalarger,moreestablishedcompetitoroccupies.)Oneprediction,inparticular,turnedouttobestrikinglyaccurate.Asfarasthecomputerindustrywasconcerned,wewrote,“Acompanyhasnohopetomakeprogresshead-onagainstthepositionthatIBMhasestablished.”

Theoperativeword,ofcourse,was“head-on.”Andwhileit’spossibletocompetesuccessfullywithamarketleader(thearticlesuggestedseveralapproaches),therulesofpositioningsayitcan’tbedone“head-on.”

Backin1969thisraisedafeweyebrows.Whowerewetosaythatapowerful,multibillion-dollarcompanylikeRCAcouldn’tfindhappinessinthecomputerbusinessifitsodesired?

Soas1970rolledaround,itwasfullspeedaheadatRCA.Theincrediblestorywastoldinthepagesofthebusinesspress.

“RCAfiresabroadsideatNo.1,”saidtheheadlineofanarticleintheSeptember19,1970,issueofBusinessWeek.

“RCAgoeshead-to-headwithIBM,”saidtheheadlineofanewsitemintheOctober1970issueofFortune.

“RCAcomputerpushishead-onslashatIBM,”saidtheheadlineofastoryintheOctober26,1970,issueofAdvertisingAge.

Andjusttomakesuretherewasnomistakingthecompany’sintentions,RobertW.Sarnoff,chairmanandpresident,madeapredictionthatbytheendof1970,RCAwouldbeina“firmNo.2position”inthecomputerindustry.Pointingoutthathiscompanyhadalreadyinvested“farmoretodevelopastrongpositioninthecomputerindustrythanwehaveeverputintoanypreviousbusinessventure,”includingcolorTV,Mr.Sarnoffsaidthatthegoalhadbeendevelopmentofasolidprofitpositionintheearlyseventies.

The“cando”spiritdiesLessthanayearlater,therooffellin.“The$250milliondisasterthathitRCA,”saidtheheadlineofastoryintheSeptember25,1971,issueofBusinessWeek.

That’salotofdough.Someonefiguredoutthatifyoutookthatmuchmoney

That’salotofdough.Someonefiguredoutthatifyoutookthatmuchmoneyinone-hundred-dollarbillsandputitonthesidewalkinRockefellerCenter,thestackwouldgorightpastBobSarnoff’swindowonthe53rdflooroftheRCABuilding.

Thosewerebadtimesforcomputermanufacturers.InMay1970,afteryearsofunprofitablecomputeroperations,GeneralElectricthrewinthespongebysellingthemesstoHoneywell.

Withtwomajorcomputermanufacturersfoldingonerightafteranother,theurgetosay“Itoldyouso”wasirresistible.Solaterintheyear1971,wecamebackwith“PositioningRevisited:WhyDidn’tGEandRCAListen?”(ThearticleappearedintheNovember1971issueofIndustrialMarketing.)

HowdoyouadvertiseandmarketagainstacompanylikeIBM?Thetwopositioningarticlesmadesomesuggestions.

HowtogoagainstanIBMThecomputerbusinesshasoftenbeenreferredtoas“SnowWhiteandtheSevenDwarfs.”SnowWhitehasestablishedapositionunrivaledinthehistoryofmarketing.

IBMhas70percentofthemainframecomputerbusinessvs.lessthan10percentforthelargestofthedwarfs.

HowdoyougoagainstacompanywithapositionlikeIBM?Well,firstyouhavetorecognizeit.Thenyoudon’tdothethingthattoo

manypeopleinthecomputerfieldtrytodo.ActlikeIBM.Acompanyhasnohopetomakeprogresshead-onagainstthepositionthat

IBMhasestablished.Andhistory,sofar,hasprovedthistobetrue.Thesmallcompaniesinthefieldprobablyrecognizethis.Butthebig

companiesseemtothinktheycantaketheirstrongpositionsagainstIBM.Well,asoneunhappyexecutivewasheardtosay,“Therejustisn’tenoughmoneyintheworld.”Youcan’tgettherefromhere.

“Fightfirewithfire”istheoldcliché.ButasthelateHowardGossageusedtosay,“That’ssilly.Youfightfirewithwater.”

AbetterstrategyforIBM’scompetitorswouldbetotakeadvantageofwhateverpositionstheyalreadyowninthemindsoftheirprospectsandthenrelatethemtoanewpositionincomputers.Forexample,howshouldRCAhavepositioneditscomputerline?

Our1969articlemadeasuggestion:“RCAisaleaderincommunications.Iftheypositionedacomputerlinethatrelatedtotheirbusinessincommunications,theycouldtakeadvantageoftheirownposition.Eventhoughtheywouldbe

ignoringagreatdealofbusiness,theywouldbeestablishingastrongbeachhead.”

TakeGeneralElectric,acompanythatisabiguserofcomputers.Timesharingwasthebigtechnologicaltopicoftheday.IfGEhadconcentratedontime-sharingcomputers,theytoomighthavesucceededinthecomputerfield.(Actually,theonlycomputeroperationGeneralElectricdidn’tselltoHoneywellwastheirtime-sharingnetwork,whichremainsprofitabletothisday.)TakeNCR,acompanywithastrongpositionincashregisters.

NCRhasmadegreatprogressinthecomputerbusinessbyconcentratingitseffortsonretaildataentrysystems.Computerizedcashregisters,ifyouwill.

Wherethesituationishopeless,however,theeffortinfindingavalidpositionisprobablywasted.Muchbettertoconcentrateonotherareasofacompany’sbusiness.AsCharlieBrownsaid,“Noproblemistoobigtorunawayfrom.”

Intruth,outrightfailureisoftenpreferabletomediocresuccess.Analso-rancaneasilybetemptedtothinkthattheanswertotheproblemis

tryingharder.Acompanystuckwithalosingpositionisnotgoingtobenefitmuchfromhardwork.

Theproblemisnotwhat,butwhen,Theextraeffort,ifitisgoingtobeofmuchhelp,shouldbeappliedearlytoestablishthepreciouspostureofproductleadership.

Withit,everythingispossible.Withoutit,thegoingisgoingtoberoughindeed.(AstheEskimoremarked,theleaddogistheonlyonewhoenjoysachangeofview.)

SmithandJonesatGeneralElectricOneexamplemighthelpillustratetheprinciple.TwogentlemenhadtheireyesonthetopjobatGeneralElectric.OnewasnamedSmith.TheotherwasnamedJones.

Smithwasyourtypical“cando”corporateexecutive.Sowhenhewasgiventhecomputeroperationtorun,heacceptedtheassignmentwithrelish.

Jones,ontheotherhand,wasrealistic.HeknewthatGEhadn’tgottenintothecomputerbusinessearlyenoughtodominateit.Atthislatestageofthegame,itwasgoingtocostthecompanytoomuchtocatchuptoIBM.Ifitevercould.

AfterSmithfailedtoturnthecomputerbusinessaround,Jonesgotachancetoparticipate.HerecommendedthatGeneralElectricgetoutofthecomputerbusiness,whichiteventuallydidbysellingtheoperationtoHoneywell.

That’sonereasonwhyReginaldH.Joneswoundupaschiefexecutiveofthe

That’sonereasonwhyReginaldH.JoneswoundupaschiefexecutiveoftheGeneralElectricCompany.AndJ.StanfordSmithwoundupatInternationalPaper.

Inanutshell,thehierarchyinthecomputerbusinessisduplicatedinalmosteveryotherindustry.Invariably,everyindustryhasastrongleader(IBMincomputers,Xeroxincopiers,andGeneralMotorsinautomobiles)andahostofalso-rans.

Ifonecanunderstandtheroleofpositioninginthecomputerindustry,thenonecantransferthisknowledgetoalmostanyothersituation.

Whatworksforcomputerswillalsoworkforcarsandforcolas.Orviceversa.

6Positioningofaleader

CompanieslikeAvisandSeven-Upfoundviablealternativepositionstomarketingleaders.

Butmostcompaniesdon’twanttobeanalso-ran,successfulornot.TheywanttobealeaderlikeHertzorCoke.

Sohowdoyougettobetheleader?Actuallyit’squitesimple.RememberCharlesLindberghandNeilArmstrong?

Youjustgettherefirstestwiththemostest.

EstablishingleadershipHistoryshowsthatthefirstbrandintothebrain,ontheaverage,getstwicethelong-termmarketshareoftheNo.2brandandtwiceagainasmuchastheNo.3brand.Andtherelationshipsarenoteasilychanged.

Theleaderbrandincategoryaftercategoryoutsellsthenumbertwobrandbyawidemargin.HertzoutsellsAvis,GeneralMotorsoutsellsFord,GoodyearoutsellsFirestone,McDonald’soutsellsBurgerKing,GeneralElectricoutsellsWestinghouse.

Manymarketingexpertsoverlooktheenormousadvantagesofbeingfirst.ToooftentheyattributesuccesseslikeKodakandIBMandCoketo“marketingacumen.”

ThefailuresofleadersYetwhentheshoeisontheotherfoot,whenamarketingleaderisn’tfirstinanewcategory,thenewproductisusuallyanalso-ran.

Coca-ColaisagiganticcompanycomparedwithDr.Pepper.YetwhenCokeintroducedacompetitiveproduct,Mr.Pibb,eventheimmenseresourcesoftheAtlantagiantcouldn’tputmuchofadentinDr.Pepper’ssales.Mr.Pibbremainsapoorsecond.

IBMisamuchbiggercompanythanXeroxandhasawesomeresourcesoftechnology,workforce,andmoney.YetwhathappenedwhenIBMintroducedalineofcopierscompetitivewiththoseofXerox?

Notmuch.XeroxstillhasashareofthecopiermarketseveraltimesthatofIBM.

AndsupposedlyKodakwasgoingtocreamPolaroidwhentheRochester

AndsupposedlyKodakwasgoingtocreamPolaroidwhentheRochestercolossusgotintotheinstantcamerabusiness.Farfromit.Kodakmanagedtotakeonlyasmallshare,attheexpenseofasubstantiallossinitsconventionalcamerabusiness.

Almostalltheadvantagesaccruetotheleader.Intheabsenceofanystrongreasonstothecontrary,consumerswillprobablyselectthesamebrandfortheirnextpurchaseastheyselectedfortheirlastpurchase.Storesaremorelikelytostocktheleadingbrands.

Thelarger,moresuccessfulcompaniesusuallyhavethefirstpickofoutstandingcollegegraduates.Infact,theyusuallyattractmoreandbetteremployees.

Atalmosteverystepoftheway,theleadingbrandhastheadvantage.Onanairplaneflight,forexample,theairlinewilloftenstockonebrandof

cola,onebrandofgingerale,onebrandofbeer,etc.Onyournextflight,seeifthethreebrandsaren’tCoke,CanadaDry,and

Budweiser,thethreeleadingbrandsofcola,gingerale,andbeer.

TheinstabilityofequalityIt’struethatinsomecategoriesthetwoleadingbrandsrunneckandneck.

What’sequallytrueisthatthesecategoriesareinherentlyunstable.Soonerorlater,youcanexpectonebrandtogettheupperhandandopenaleadwhicheventuallywillreachastable5to3or2to1ratio.

Consumersarelikechickens.Theyaremuchmorecomfortablewithapeckingorderthateverybodyknowsaboutandaccepts.

HertzandAvis.HarvardandYale.McDonald’sandBurgerKing.Whentwobrandsareclose,oneortheotherislikelytogettheupperhand

andthendominatethemarketforyearstocome.Between1925and1930,forexample,FordandChevroletwerelockedina

head-to-headbattle.ThenChevrolettooktheleadin1931.Inthemodelyearssince,includingdislocationscausedbydepressionand

wars,ChevrolethaslosttheleadonlyfourtimestoFord.Thetimeforextraeffortisclearlywhenthesituationisindoubt.When

neithersidehasaclearcutsuperiority.Winningthebattleforsalesleadershipinasingleyearwilloftenclinchthevictoryfordecadestocome.

Ittakes110percentofratedpowerforajettogetitswheelsofftheground.Yetwhenitreaches30,000feet,thepilotcanthrottlebackto70percentof

Yetwhenitreaches30,000feet,thepilotcanthrottlebackto70percentofpowerandstillcruiseat600milesperhour.

StrategiesformaintainingleadershipQuestion:Wheredoesthe800-poundgorillasleep?Answer:Anywherehewantsto.

Leaderscandoanythingtheywantto.Short-term,leadersarealmostinvulnerable.Momentumalonecarriesthemalong.(Oldwrestlingexpression:Youcan’tgetpinnedwhenyou’reontop.)

ForGeneralMotors,Procter&Gamble,andtheleadersofthisworld,theworriesareneveraboutthisyearornext.Theirworriesarelong-term.What’sgoingtohappen5yearsfromnow?10yearsfromnow?

Leadersshouldusetheirshort-termflexibilitytoassurethemselvesofastablelong-termfuture.Asamatteroffact,themarketingleaderisusuallytheonewhomovestheladderintothemindwithhisorherbrandnailedtotheoneandonlyrung.Oncethere,whatshouldleadersdoandnotdo?

WhatnottodoAslongasacompanyownstheposition,there’snopointinrunningadvertisementsthatrepeattheobvious.“We’reNo.1”isatypicalexample.

Muchbetteristoenhancetheproductcategoryintheprospect’smind.IBM’sadvertisingusuallyignorescompetitionandsellsthevalueofcomputers.Allcomputers,notjustthecompany’stypes.

Whyisn’titagoodideatorunadvertisingthatsays,“We’reNo.1”?Thereasonispsychological.EithertheprospectknowsyouareNo.1and

wonderswhyyouaresoinsecurethatyouhavetosayso.Ortheprospectdoesn’tknowyouareNo.1.Ifnot,whynot?

Maybeyouhavedefinedyourleadershipinyourowntermsandnottheprospect’sterms.Unfortunately,thatjustwon’twork.

Youcan’tbuildaleadershippositiononyourownterms.“Thebest-sellingunder-$1000high-fidelitysystemeastoftheMississippi.”

Youhavetobuildaleadershippositionintheprospect’sterms.

Whattodo“Therealthing.”ThisclassicCoca-Colaadvertisingcampaignisastrategythatcanworkforanyleader.

Theessentialingredientinsecuringtheleadershippositionisgettingintothemindfirst.Theessentialingredientinkeepingthatpositionisreinforcingthe

mindfirst.Theessentialingredientinkeepingthatpositionisreinforcingtheoriginalconcept.Coca-Colaisthestandardbywhichallothersarejudged.Incontrast,everythingelseisanimitationof“therealthing.”

Thisisnotthesameassaying“We’reNo.1.”Thelargestbrandcouldbethelargestsellerbecauseithasalowerprice,itisavailableinmoreoutlets,etc.

But“therealthing,”likeafirstlove,willalwaysoccupyaspecialplaceintheprospect’smind.

“Weinventedtheproduct.”ApowerfulmotivatingforcebehindXeroxcopiers.Polaroidcameras.Zippolighters.

CoveringallbetsUnfortunately,leadersoftenreadtheirownadvertisingsoavidlytheyendupthinkingtheycandonowrong.Sowhenacompetitorintroducesanewproductoranewfeature,thetendencyistopooh-poohthedevelopment.

Leadersshoulddotheopposite.Theyshouldcoverallbets.Thismeansaleadershouldswallowhisorherprideandadopteverynewproductdevelopmentassoonasitshowssignsofpromise.

GeneralMotorsspent$50milliontocovertheWankelenginewhenitwasofferedtotheautomotiveindustry.Moneydownthedrain?Notnecessarily.

GeneralMotorsprobablylooksonthe$50millionspenttobuyaWankellicenseascheapinsurancetoprotectan$84billion-a-yearbusiness.

SupposetheWankelhadbecometheautomotiveengineofthefuture.AndFordorChryslerhadbeenthefirsttobuytherights.WherewouldGeneralMotorsbenow?

RightwhereKodakand3Mareinofficecopiers.Whenthesetwoleadersincoated-papercopiershadachancetocoverbybuyingrightstoCarlson’sxerographyprocess,theydeclined.

“Nobodywouldpay5centsforaplain-papercopywhentheycouldgetacoated-papercopyforacentandahalf.”Logicalenough.Buttheessenceofcoveringisprotectionagainsttheunexpected.

Andtheunexpecteddidhappen.HaloidtookachanceontheCarlsonpatents,andtodaythecompany(successivelyHaloidXeroxandthenXerox)isa$9billiongiant.Biggerthan3MandonlyastepbehindKodak.FortunecallstheXerox914plain-papercopier“probablythesinglemostprofitableproductevermanufacturedintheUnitedStates.”

AndwhatdidXeroxdoforanencore?Almostnothing.Thespectacularsuccessofthe914wasfollowedbyone

failureafteranother.Mostnotablyincomputers.

failureafteranother.Mostnotablyincomputers.

Powerfromtheproduct“Onlywhenourofficecopyingsuccesshasbeenrepeated,notonce,butseveraltimes,”saidtheXeroxchairmanearlyoninthecompany’sdiversificationgame,“canwefairlyreachtheconclusionthatthisorganizationhasthekindofpowerthatcanberelieduponagainandagain.”

Thisistheclassicmistakemadebytheleader.Theillusionthatthepoweroftheproductisderivedfromthepoweroftheorganization.

It’sjustthereverse.Thepoweroftheorganizationisderivedfromthepoweroftheproduct,thepositionthattheproductownsintheprospect’smind.

Coca-Colahaspower.TheCoca-ColaCompanyismerelyareflectionofthatpower.

Outsidethecolafield,theCoca-ColaCompanyhastoearnitspowerthehardway—eitherbygettingintothemindfirst,byestablishingastrongalternativeposition,orbyrepositioningtheleader.

SoCoca-Cola’sMr.PibbrunsapoorsecondtoDr.Pepper,andallthepoweroftheCoca-ColaCompanycan’tdomuchaboutit.

So,too,withXerox.ThepowerisinthepositionthatXeroxownsinthemind.Xeroxmeanscopier.Xeroxownsthecopierpositionbecauseitgotintothemindfirstandthenexploitedthatcopierpositionbyamassivemarketingprogram.

Butincomputers,officeduplicators,wordprocessors,andotherproducts,Xeroxstartsatgroundzero.Xeroxhasobviouslytriedtoduplicateitscopiersuccessinotherfields.Butithasapparentlyforgottenoneessentialelementofthe914program.Itwasthefirsttoflytheplain-papercopierocean.

CoveringwithmultibrandsMostleadersshouldcovercompetitivemovesbyintroducinganotherbrand.Thisistheclassic“multibrand”strategyofProcter&Gamble.

Itmaybeamisnomertocallitamultibrandstrategy.Ratherit’sasingle-positionstrategy.

Eachbrandisuniquelypositionedtooccupyacertainlocationinthemindoftheprospect.Whentimeschange,whennewproductscomeandgo,noeffortismadetochangetheposition.Ratheranewproductisintroducedtoreflectchangingtechnologiesandchangingtastes.

Inotherwords,Procter&Gamblerecognizestheenormousdifficultyofmovinganestablishedposition.Whenyouhaveonealreadyestablished,whychangeit?Itmaybecheaperandmoreeffectiveinthelongruntointroducea

changeit?Itmaybecheaperandmoreeffectiveinthelongruntointroduceanewproduct.Evenifyoueventuallyhavetokilloffanold,establishedname.

Ivorywasasoap.Itstillis.Whenheavy-dutylaundrydetergentsbecameavailable,thepressurewasprobablyontointroduceIvoryDetergent.ButthiswouldhavemeantchangingthepositionofIvoryintheprospect’smind.

AmuchbettersolutionwasTide.Nowthenewdetergentconcepthadanewnametomatch.AndTidebecameanenormoussuccess.

AndwhenProcter&Gambleintroducedadishwasherdetergent,theydidn’tcallitDishwasherTide.TheycalleditCascade.

EachleadingProcter&Gamblebrandhasitsownseparateidentity:Joy,Crest,Head&Shoulders,Sure,Bounty,Pampers,Comet,Charmin,andDuncanHines.NotaPlus,Ultra,orSuperinthelot.

Soamultibrandstrategyisreallyasingle-positionstrategy.Onewithoutchange.Ivoryhasbeengoingstrongfor99years.

CoveringwithabroadernameWhatdethronesaleader,ofcourse,ischange.

TheNewYorkCentralRailroadwasnotonlytheleadingrailroadinthetwenties,itwasalsothebluestofblue-chipstocks.Severalmergerslater,thePennCentral(asitiscalledtoday)isananemicrelicwithscarcelyatraceofitsformerglory.

AmericanAirlines,ontheotherhand,isflyinghigh.ThecoveringmovefortheNewYorkCentral,ofcourse,wouldhavebeento

openanairlinedivisionatanearlystageinthegame.“What?Youwantustostartanairlinetotakebusinessawayfromour

railroad?Overmydeadbodywewill.”Thepurecoveringmoveisoftendifficulttosellinternally.Management

oftenseesthenewproductorserviceasacompetitorratherthanasanopportunity.

Sometimesanamechangewillhelpbridgethegapfromoneeratothenext.Bybroadeningthename,youcanallowthecompanytomakethementaltransition.SalesManagementchangeditsnametoSales&MarketingManagementto

encompassthefast-growingfunctionofmarketing.Atsomepointinthefuturethepublicationcoulddroptheothershoeandchangeagain.ToMarketingManagement.

FromHaloidtoHaloidXeroxtoXeroxisthegeneralpattern.Youknow,ofcourse,howtheKodakCompanygotitsname.FromEastman

Youknow,ofcourse,howtheKodakCompanygotitsname.FromEastmantoEastmanKodaktoKodak,right?

Well,theyhaven’tdroppedtheothershoeyet.SotheofficialnameisstilltheEastmanKodakCompany.

TheDirectMailAssociationchangeditsnameanumberofyearsagotoDirectMail-MarketingAssociation—arecognitionofthefactthatmailwasonlyoneofthewaysforacompanytododirectmarketing.

Sorecentlytheychangedagain,totheDirectMarketingAssociation.WhileaNewYorkCentralTransportationCompanymightnothavebeena

successeither,thereisplentyofevidencetoindicatethatpeopletakenamesveryliterally.(EasternAirlines,forexample.)

Governmentagenciesareusuallyverygoodatthegameofbroadeningthename.TheDepartmentofHousingandUrbanDevelopment,forexample.(ItusedtobetheHousingandHomeFinanceAgency.)Bybroadeningthename,agovernmentagencycanenlargeitsscopeofoperations,increaseitsstaff,andnaturallyjustifyalargerbudget.

Oddlyenough,oneagencythatmissedabetwastheFederalTradeCommission.AbroadernamewouldbeConsumerProtectionAgency,anamethatwouldalsotakeadvantageofacurrenthottopic.

Leaderscanalsobenefitbybroadeningtherangeofapplicationsfortheirproducts.Arm&Hammerhasdoneagoodjobinpromotingtheuseofbakingsodaintherefrigerator.

TheFloridaCitrusCommissionpromotesorangejuice,thelargest-sellingfruitdrink,forlunchsnacks,withmeals,etc.“Itisn’tjustforbreakfastanymore,”saythecommercials.BusinessWeek,theleadingbusinessmagazine,hassuccessfullypromoted

itselfasagoodpublicationforconsumeradvertising.Todayroughly40percentofitsadvertisingvolumeisinconsumerproducts.

Leadershipisnottheendofapositioningprogram.It’sonlythestart.Leadersareinthebestpositiontoexploitopportunitiesastheyarise.

Leadersshouldconstantlyusethepoweroftheirleadershiptokeepfaraheadofthecompetition.

7Positioningofafollower

Whatworksforaleaderdoesn’tnecessarilyworkforafollower.Leaderscanoftencoveracompetitivemoveandretaintheirleadership.

Butfollowersarenotinthesamepositiontobenefitfromacoveringstrategy.Whenafollowercopiesaleader,it’snotcoveringatall.It’sbetterdescribedasame-tooresponse.(Usuallyphrasedmorediplomaticallyas“keepingintunewiththetimes.”)

WhyproductsfailMostproductsfailtoachievereasonablesalesgoalsbecausetheaccentison“better”ratherthan“speed.”Thatis,theNo.2companythinkstheroadtosuccessistointroduceame-tooproduct,onlybetter.

It’snotenoughtobebetterthanthecompetitor.Youmustintroduceyourproductbeforesomeoneelsehasachancetoestablishleadership.Withamoremassiveadvertisingandpromotionlaunch.Andabettername.(Moreonthispointlater.)

Yettheoppositenormallyoccurs.Theme-toocompanywastesvaluabletimeonimprovingtheproduct.Thenthelaunchismadewithasmalleradvertisingbudgetthantheleader’s.Andthenthenewproductisgiventhehousename,becausethat’stheeasywaytoensureaquickshareofmarket.Alldeadlytrapsinourovercommunicatedsociety.

Howdoyoufindanopenpositionintheprospect’smind?

CherchezlecreneauTheFrenchhaveamarketingexpressionthatsumsupthisstrategyratherneatly.

Cherchezlecreneau.“Lookforthehole.”Cherchezlecreneauandthenfillit.Thatadvicegoesagainstthe“biggerandbetter”philosophyingrainedinto

theAmericanspirit.AnothertypicallyAmericanattitudemakespositioningthinkingdifficult.

Eversincechildhood,wehavebeentaughttothinkinacertainway.“Thepowerofpositivethinking,”NormanVincentPealecalledit.An

attitudewhichmaysellalotofbooksbutwhichcandestroyaperson’sabilitytofindacreneau.

findacreneau.Tofindacreneau,youmusthavetheabilitytothinkinreverse,togoagainst

thegrain.Ifeveryoneelseisgoingeast,seeifyoucanfindyourcreneaubygoingwest.AstrategythatworkedforChristopherColumbuscanalsoworkforyou.

Let’sexploresomestrategiesforfindingcreneaus.

ThesizecreneauForyears,Detroitautomakerswereonalonger,lowerkick.Eachmodelyear,carsbecamemorestreamlined,betterlooking.

EntertheVolkswagenBeetle.Short,fat,andugly.TheconventionalwaytopromotetheBeetlewouldhavebeentominimize

theweaknessesandmaximizethestrengths.“Let’sgetafashionphotographerwhocanmakethecarlookbetterthanitis.

Thenwe’llplayupthereliabilityangle,”isyourordinarystrategy.Butthecreneauwassize.ThemosteffectiveadVolkswageneverranwasthe

onewhichstatedthepositionclearlyandunequivocally.“Thinksmall.”Withtwosimplewords,thisheadlinedidtwothingsatonce.Itstatedthe

Volkswagenposition,anditchallengedtheprospect’sassumptionthatbiggerisnecessarilybetter.

Theeffectivenessofthisapproach,ofcourse,dependsontheexistenceofanopencreneauintheprospect’smind.Notthatthereweren’tothersmallcarsonthemarketatthetimetheBeetlewasintroduced.Therewere,butnooneelsehadpreemptedthesmall-carposition.

Integratedcircuitsandotherelectronicdevicesmakethe“small-size”creneautechnicallyfeasibleinmanyproductcategories.Onlytimewilltellwhichcompanieswillbeabletocapitalizeonelectronicstobuildvaluablepositionsbasedonminiaturization.

Theoppositepresentsopportunitiestoo.Thereareopportunitiestobuildpositionsinprojectiontelevisionsetsandotherproductsbasedonlargesize.

Thehigh-pricecreneauTheclassicexampleisMichelob.ThepeopleatAnheuser-Buschfoundanuntappedmarketforapremium-priceddomesticbeer.AndtheymovedintothemindwiththeMichelobname.

High-pricecreneausseemtobeopeningupinmanyproductcategories.Asourthrowawaysocietyseestheurgentneedforconversation,there’sanew

ourthrowawaysocietyseestheurgentneedforconversation,there’sanewappreciationofaqualityproductdesignedtolast.

Whichisonereasonbehindthesuccessof$40,000automobilesliketheBMW635-CSand$50,000carsliketheMercedes-Benz500-SEL.

AndS.T.Dupont(nicename)lightersat,astheadssay,“$1500anddown.”Priceisanadvantage,especiallyifyou’rethefirstinthecategorytoestablish

thehigh-pricecreneau.Somebrandsbasealmosttheirentireproductmessageonthehigh-price

concept.“ThereisonlyoneJoy,thecostliestperfumeintheworld.”“WhyyoushouldinvestinaPiaget,theworld’smostexpensivewatch.”Highpriceiseffectivenotonlyforluxuryitemslikecars,perfume,and

watches,butalsomundaneproductslikeWhitney’sYogurtandOrvilleRedenbacher’sGourmetPoppingCorn.

Mobil1syntheticenginelubricantat$3.95aquartisanotherexample.Eventraditionallow-pricedproductslikeflour,sugar,andsaltrepresentpositioningopportunities.

Toooften,however,greedgetsconfusedwithpositioningthinking.Charginghighpricesisnotthewaytogetrich.Beingthefirstto(1)establishthehigh-priceposition(2)withavalidproductstory(3)inacategorywhereconsumersarereceptivetoahigh-pricedbrandisthesecretofsuccess.Otherwise,yourhighpricejustdrivesprospectivecustomersaway.

Furthermore,theplacetoestablishthehighpriceisintheads,notinthestore.Theprice(highorlow)isasmuchafeatureoftheproductasanythingelse.

Ifyoudoyourpositioningjobright,thereshouldbenopricesurprisesinthestore.Youradsdon’thavetoquoteexactprices,althoughsometimesthat’sagoodthingtodo.Whattheyshoulddo,however,istoclearlypositionyourbrandinaparticularpricecategory.

Thelow-pricecreneauInsteadofhighprice,theoppositedirectioncanalsobeaprofitabletacktotake.

Inevaluatingpriceasapossiblecreneau,keepinmindthatthelow-pricecreneauisoftenagoodchoicefornewproductslikefacsimileequipmentandvideotapeplayers.Productscustomersbelievetheyaretakingachanceon.(Ifthethingdoesn’tworkright,I’mnotoutthatmuchmoney.)

Thehigh-pricecreneauisoftenagoodchoiceforold,establishedproductslikeautomobiles,watches,andtelevisionsets.Especiallythoseproductsfor

likeautomobiles,watches,andtelevisionsets.Especiallythoseproductsforwhichcustomersarenothappywithexistingrepairservices.

Therecentintroductionofgeneric(“noname”)foodbrandsisanattempttoexploitthelow-pricecreneauinthesupermarket.(Althoughretaileremphasisonsalesandlowpricesovertheyearshaveprettymuchwipedouttheopportunitiesinthatdirection.)

Whenyoucombineallthreepricestrategies(high,standard,andlow),younormallyhaveastrongmarketingapproach.AsAnheuser-BuschhasdonewithMichelob,Budweiser,andBusch(theirlow-pricedbeer).

Theweakestbrand,ofcourse,isBuschbecauseofthepoornameandlackofastrongpositioningconcept.Whywouldtheowneroftheplaceputhisnameonlyonhislowest-pricedproduct?

Abetternameforalow-pricedbeerisOldMilwaukee,whichleadsitscategoryinsales.

OthereffectivecreneausSexisone.Marlborowasthefirstnationalbrandtoestablishamasculinepositionincigarettes,onereasonwhyPhillipMorris’sMarlborobrandhasclimbedsteadilyinsales.Fromfifthplaceinsalestofirstplaceina10-yearperiod.

Timingiscritical.In1973LorillardtriedtointroduceitsownmasculinebrandcalledLuke.Thenamewasterrific,thepackagingwasgreat,theadvertisingwasbrilliant.“FromKankakeetoKokomoalongcomesLukemovin’freeandslow.”

Theonlythingwrongwasthetiming.About20yearstoolate.Lukereallywasmovin’slow,soLorillardkilledhim.

Inpositioningaproduct,there’snosubstituteforgettingtherefirst.WhatmasculinitydidforMarlboro,femininitydidforVirginiaSlims,a

brandthatcarvedoutasubstantialsharewiththeoppositeapproach.ButEve,ame-toobrandthatalsotriedthefeminineapproach,wasafailure.Evewastoolate.

Whenyouusesextosegmentaproductcategoryandestablishaposition,theobviousapproachisn’talwaysthebest.

Takeperfume,forexample.You’dthinkthatthemoredelicateandfemininethebrand,themoresuccessfulitwouldbe.Sowhat’sthelargest-sellingbrandofperfumeintheworld?

No,it’snotArpegeorChanelNo.5.It’sRevlon’sCharlie.Thefirstbrandtotryamasculinenamecompletewithpantsuitads.

Theknockoffbrand,“JustCallMeMaxi,”wasnotonlypoorlydonebut

Theknockoffbrand,“JustCallMeMaxi,”wasnotonlypoorlydonebutreportedlycostthepresidentofMaxFactorhisjob.

TheCharliesuccessstoryillustratestheparadoxofestablishedproductcategorieslikeperfume.Thebulkofthebusinessisinonedirection(femininebrandnames),buttheopportunityliesintheopposite(amasculinebrandname).

Ageisanotherpositioningstrategytouse.Geritoltonicisagoodexampleofasuccessfulproductaimedatolderfolks.

Aimtoothpasteisagoodexampleofaproductaimedatchildren.Aimhascarvedout10percentofthetoothpastemarket.Atremendousaccomplishmentinamarketdominatedbytwopowerfulbrands,CrestandColgate.

Timeofdayisalsoapotentialpositioningpossibility.Nyquil,thefirstnight-timecoldremedy,isoneexample.

Distributionisanotherpossibility.L’eggswasthefirsthosierybrandtobedistributedinsupermarketsandmassmerchandiseoutlets.L’eggsnowistheleadingbrand,withsalesinthehundredsofmillions.

Anotherpossibilityistheheavy-userposition.“Theonebeertohavewhenyou’rehavingmorethanone”positionedSchaeferasthebrandfortheheavybeerdrinker.

ThefactorycreneauOnecommonmistakeinlookingforcreneausisfillingaholeinthefactoryratherthanoneinthemind.

Ford’sEdselistheclassicexample.InthelaughterthatfollowedthedemiseofpoorEdsel,mostpeoplemissedthepoint.

Inessence,theFordpeoplegotswitchedaround.TheEdselwasabeautifulcaseofinternalpositioningtofillaholebetweenFordandMercuryontheonehandandLincolnontheotherhand.

Goodstrategyinsidethefactory.Badstrategyoutsidewheretherewassimplynopositionforthiscarinacategoryalreadyclutteredwithheavilychromed,medium-pricedcars.

IftheEdselhadbeentaggeda“high-performance”carandpresentedinasleektwo-door,bucket-seatformandgivenanametomatch,noonewouldhavelaughed.Itcouldhaveoccupiedapositionthatnooneelseowned,andtheendingofthestorymighthavebeendifferent.

Another“fill-the-factory”mistakewastheNationalObserver,thefirstnationalweeklynewspaper.

DowJones,theObserver’sproudparent,alsopublishesTheWallStreetJournal,butonly5daysaweek.Voilà,youcanhearsomebodysay.Let’sfill

thefactorywithaweeklynewspaper.Thatway,wegetfreeuseofthoseexpensiveJournalpresses.

Butwherewastheholeintheprospect’smind?HeorshecouldalreadysubscribetoTime,Newsweek,U.S.News&WorldReport,andothernewsmagazines.

Aah,yousay.ButtheNationalObserverisaweeklynewspaper,notamagazine.Butthat’splayingsemanticgames.Prospectsdidn’tdifferentiatebetweenthetwo.

ThetechnologytrapEvenagreattechnicalachievementofaresearchlaboratorywillfailifthereisnocreneauinthemind.

In1971Brown-FormanDistillerslaunchedFrost8/80,thefirst“dry,whitewhisky.”

Frost8/80shouldhavebeenabigsuccess.Therewasabigholethere.Therewasnootherdry,whitewhisky.AsBrown-FormanpresidentWilliamF.Lucassaid,“Itwasgreetedwithgreatapplausebyourpeopleandagnashingofteethbyourcompetitors.”

Yetlessthan2yearslater,Frost8/80wasdead.Amultimillion-dollarfailure.Volumehadtotaledjust100,000cases,one-thirdofthecompany’sprojections.

Whatwentwrong?Lookatthepositioningclaimfromtheprospect’spointofview.

Thefirstwhitewhisky?Nottrue.Thereareatleastfourothers.Theirnamesaregin,vodka,rum,andtequila.

Asamatteroffact,Frost8/80adsencouragedtheprospecttolookatthenewwhiskyasasubstituteforotherdistilledspirits.Accordingtotheads,Frost8/80couldbeusedlikevodkaorgininmartinis,likescotchorbourboninmanhattansandwhiskysours.

Don’ttrytotricktheprospect.Advertisingisnotadebate.It’saseduction.Theprospectwon’tsitstillforthefinerpointsofverballogic.Asthe

politiciansaid,“Ifitlookslikeaduckandwalkslikeaduck,Isayit’saduck.”

TheeverybodytrapSomemarketingpeoplerejectthe“cherchezlecreneau”concept.Theydon’twanttobetieddowntoaspecificpositionbecausetheybelieveitlimitstheirsales.Ortheiropportunities.

Theywanttobeallthingstoallpeople.Yearsago,whentherewerealotfewerbrandsandalotlessadvertising,it

Yearsago,whentherewerealotfewerbrandsandalotlessadvertising,itmadesensetotrytoappealtoeverybody.

Inpoliticsitusedtobesuicideforapoliticiantotakeastrongpositiononanything.Don’tsteponanybody’stoes.

Buttodayintheproductarenaandinthepoliticalarena,youhavetohaveaposition.Therearetoomanycompetitorsoutthere.Youcan’twinbynotmakingenemies,bybeingeverythingtoeverybody.

Towinintoday’scompetitiveenvironment,youhavetogooutandmakefriends,carveoutaspecificnicheinthemarket.Evenifyouloseafewdoingso.

Todaytheeverybodytrapmaykeepyouafloatifyou’realreadyinofficeoralreadyownasubstantialshareofmarket.Butit’sdeadlyifyouwanttobuildapositionfromnowhere.

8Repositioningthecompetition

Therecomesatimewhenyoucan’tfindacreneau.Withhundredsofvariationsineachproductcategoryonthemarket,thechancesoffindinganopenholetodayareveryslim.

Forexample,takeyouraveragesupermarket,with12,000differentproductsorbrandsondisplay.Thatmeansayoungpersonhastosortoutandcatalog12,000differentnamesinhisorherhead.

Whenyouconsiderthattheaveragecollegegraduatehasaspeakingvocabularyofonly8000words,youcanseetheproblem.

Thekidspends4yearsinauniversityandendsup4000wordsdown.

CreatingyourowncreneauWithaplethoraofproductsineverycategory,howdoesacompanyuseadvertisingtoblastitswayintothemind?Thebasicunderlyingmarketingstrategyhasgottobe“repositionthecompetition.”

Becausetherearesofewcreneaustofill,acompanymustcreateonebyrepositioningthecompetitorsthatoccupythepositionsinthemind.

Inotherwords,tomoveanewideaorproductintothemind,youmustfirstmoveanoldoneout.

“Theworldisround,”saidChristopherColumbus.“No,it’snot,”saidthepublic,“it’sflat.”

Toconvincethepublicotherwise,fifteenthcenturyscientistsfirsthadtoprovethattheworldwasn’tflat.Oneoftheirmoreconvincingargumentswasthefactthatsailorsatseawerefirstabletoobservethetopsofthemastsofanapproachingship,thenthesails,thenthehull.Iftheworldwereflat,theywouldseethewholeshipatonce.

Allthemathematicalargumentsintheworldweren’taseffectiveasasimpleobservationthepubliccouldverifythemselves.

Onceanoldideaisoverturned,sellingthenewideaisoftenludicrouslysimple.Asamatteroffact,peoplewilloftenactivelysearchforanewideatofillthevoid.

Neverbeafraidtoconflicteither.Thecruxofarepositioningprogramisundercuttinganexistingconcept,product,orperson.

Conflict,evenpersonalconflict,canbuildareputationovernight.Where

Conflict,evenpersonalconflict,canbuildareputationovernight.WherewouldSamErvinhavebeenwithoutRichardNixon?

Forthatmatter,wherewouldRichardNixonhavebeenwithoutAlgerHiss?AndRalphNadergotfamousnotbysayinganythingaboutRalphNaderbut

bygoingoutandattackingtheworld’slargestcorporationsingle-handedly.Peopleliketowatchthebubbleburst.

RepositioningaspirinTylenolwentoutandbursttheaspirinbubble.

“Forthemillionswhoshouldnottakeaspirin,”saidTylenol’sads.“Ifyourstomachiseasilyupset…oryouhaveanulcer…oryousufferfromasthma,allergies,oriron-deficiencyanemia,itwouldmakegoodsensetocheckwithyourdoctorbeforeyoutakeaspirin.

“Aspirincanirritatethestomachlining,”continuedtheTylenolad,“triggerasthmaticorallergicreactions,causesmallamountsofhiddengastrointestinalbleeding.

“Fortunately,thereisTylenol…”Sixtywordsofcopybeforeanymentionoftheadvertiser’sproduct.SalesofTylenolacetaminophentookoff.TodayTylenolistheNo.1brandof

analgesic.AheadofAnacin.AheadofBayer.AheadofBufferin.AheadofExcedrin.Asimplebuteffectiverepositioningstrategydidthejob.

Againstaninstitutionlikeaspirin.Amazing.

RepositioningLenoxForarepositioningstrategytowork,youmustsaysomethingaboutyourcompetitor’sproductthatcausestheprospecttochangehisorhermind,notaboutyourproduct,butaboutthecompetitor’sproduct.

“RoyalDoulton.ThechinaofStoke-on-Trent,Englandvs.Lenox.ThechinaofPomona,NewJersey.”

NotehowRoyalDoultonisrepositioningLenoxchina,aproductthatmanybuyersthoughtwasanimportedone.(Lenox.SoundsEnglish,doesn’tit?)RoyalDoultoncreditsa6percentgaininmarketsharetothisoneadvertisement.

ThelateHowardGossageusedtosaythattheobjectiveofyouradvertisingshouldnotbetocommunicatewithyourconsumersandprospectsatall,buttoterrorizeyourcompetition’scopywriters,andthere’ssometruthinthat.

RepositioningAmericanvodkas“MostAmericanvodkasseemRussian,”saidtheads.Andthecaptionssaid:

“MostAmericanvodkasseemRussian,”saidtheads.Andthecaptionssaid:“Samovar:MadeinSchenley,Pennsylvania.Smirnoff:MadeinHartford,Connecticut.Wolfschmidt:MadeinLawrenceburg,Indiana.

“Stolichnayaisdifferent.ItisRussian,”continuedthead.Andthebottleislabeled,“MadeinLeningrad,Russia.”

Stolichnayasalesbegantosoarasaresult.Needlesstosay.Butwhytheneedtodisparagethecompetition?Couldn’tPepsiCo,the

importersoftheStolichnayabrand,havesimplyadvertiseditasthe“Russianvodka?”

Theycouldhave,ofcourse.Butthatpresumesadegreeofproductinterestonthepartofthevodkabuyerthatjustdoesn’texist.

Howmanytimeshaveyoupickedupabottleofliquorandreadthelabeltofindoutwhereitwasmade?Furthermore,thenamesthemselves(Samovar,Smirnoff,Wolfschmidt,Popov,Nikolai)implyaRussianorigin.It’sthislatterfactoralonethatwasresponsibleformuchofStolichnaya’sastoundingsuccess.

Peopleliketoseethehighandmightyexposed.NotehowothervodkaadsplayintoStolichnaya’shands.

ItwastheGoldenAgeofRussia.Yetinthistimewhenlegendslived,theCzarstoodlikeagiantamongmen.Hecouldbendanironbaronhisbareknee.Crushasilverrublewithhisfist.Andhadathirstforlifelikenoothermanalive.AndhisdrinkwasGenuineVodka.WolfschmidtVodka.

ThenthereaderturnsthepagetofindtheStolichnayaad,whereheseesthatWolfschmidtismadeinLawrenceburg,Indiana.

AlongcomesAfghanistanandsuddenlyStolichnayaisintrouble.Butonlytemporarily.Afterafewmonths,thestormblewoverandStolichnayacamebackbiggerthanever.

RepositioningPringle’sWhathappenedtoPringle’spotatochips?Introducedwitha$15millionfanfarefromProcter&Gamble,the“new-fangled”potatochipsrapidlygobbledup18percentofthemarket.

Thentheold-fangledbrandslikeBorden’sWisestruckbackwithaclassicrepositioningstrategy.

Theyreadthetwolabelsontelevision.“InWise,youfind:Potatoes.Vegetableoil.Salt.InPringle’s,youfind:Dehydratedpotatoes.Mono-anddiglycerides.Ascorbicacid.Butylatedhydroxy-anisole.”

SalesofPringle’scametumblingdown.Fromarespectable18percentofthe

SalesofPringle’scametumblingdown.Fromarespectable18percentofthepotatochipmarketto10percent.AfarcryfromP&G’sgoalof25percent.

Oddlyenough,researchisolatedanotherproblem.ThemostcommoncomplaintagainstPringle’sisthatthey“tastelikecardboard.”

It’sexactlywhatyoumightexpectfromaconsumerexposedtowordslike“diglycerides”and“butylatedhydroxy-anisole.”Taste,estheticorgustatory,isinthemind.Youreyesseewhatyouexpecttosee.Yourtonguereactsthewayyouexpectittoreact.

Ifyouwereforcedtodrinkabeakerofdihydrogenoxide,yourresponsewouldprobablybenegative.Ifyouaskedforaglassofwater,youmightenjoyit.

That’sright.There’snodifferenceonthepalate.Thedifferenceisinthebrain.

RecentlytheCincinnatigiantchangeditsstrategy.Pringle’swouldbecomean“allnatural”product.

Butthedamagehadalreadybeendone.Inpoliticsorpackagedgoods,theruleisoncealoser,alwaysaloser.ItwouldbeashardtobringPringle’sbackastobringJimmyCarterback.

Insomesmallcornerofthebrainisapenaltyboxmarked“loser.”Onceyourproductissentthere,thegameisover.

Gobacktosquareoneandstartalloveragain.Withanewproductandanewgame.

Ofallcompanies,Procter&Gambleshouldhaveknownthepowerofrepositioning.AndshouldhavetakenstepsinadvancetoprotectPringle’s.

RepositioningListerineOneofP&G’smostpowerfulprogramsistheoneforScopemouthwash.P&GusedtwowordstorepositionListerine,theKingofHalitosisHill.

“Medicinebreath.”ThesetwowordswereenoughtotorpedoListerine’shighlysuccessful“the

tasteyouhate,twiceaday”theme.TheScopeattackcarvedafewsharepointsoutofmarketleaderListerineand

firmlyestablishedScopeinsecondplace.TheListerine/Scopebattlecausedtheusualcasualties.MicrinandBinaca

folded.Lavorissawitsmarketsharewitheraway.Butlet’sfaceit.Scopehasnotbecomethemarketsuccessitshouldbe,based

ontheory.Why?Lookatthenameagain.

Why?Lookatthenameagain.Scope?ItsoundslikeaboardgamefromParkerBrothers.Notlikeagood-

tastingmouthwashthatwillmakeyouabighitwiththeoppositesex.IfScopehadbeengivenanamelikeClose-Uptoothpaste,itcouldhaveparlayeditsbrilliantrepositioningstrategywithsalessuccesstomatch.

Repositioningvs.comparativeadsThesuccessoftheTylenol,Scope,RoyalDoulton,andotherrepositioningprogramshasspawnedahostofsimilaradvertising.Toooften,however,thesecopycatcampaignshavemissedtheessenceofrepositioningstrategy.

“We’rebetterthanourcompetitors”isn’trepositioning.It’scomparativeadvertisingandnotveryeffective.There’sapsychologicalflawintheadvertiser’sreasoningwhichtheprospectisquicktodetect.“Ifyourbrandissogood,howcomeit’snottheleader?”

Alookatcomparativeadssuggestswhymostofthemaren’teffective.Theyfailtorepositionthecompetition.

Rather,theyusethecompetitorasabenchmarkfortheirownbrand.Thentheytellthereaderorviewerhowmuchbettertheyare.Which,ofcourse,isexactlywhattheprospectexpectstheadvertisertosay.

“BanismoreeffectivethanRightGuard,Secret,Sure,ArridExtraDry,Mitchum,Soft&Dry,BodyAll,andDial,”saidarecentBanad.Thereaderlooksatanadlikethisandasks,“Whatelseisnew?”

Isrepositioninglegal?Ifdisparagementwereillegal,everypoliticianwouldbeinjail.(Andmanyhusbandsandwiveswouldbeindeeptroubletoo.)Actually,theFederalTradeCommissiondeservesmuchofthecreditformakingrepositioningadspossible—atleastontelevision.

In1964theNationalBroadcastingCompanydroppeditsbanoncomparativeadvertising.Butnothingmuchhappened.Commercialsareexpensivetoproduce,afewadvertiserswantedtoproducetwoversions.OnetorunonNBCandonetorunontheothertwonetworks.

Soin1972theFTCproddedtheAmericanBroadcastingCompanyandtheColumbiaBroadcastingSystemtoallowcommercialsthatnamedrivalbrands.

In1974theAmericanAssociationofAdvertisingAgenciesissuednewcomparativeadguidelineswhichrepresentedacompleteturnaroundfrompreviouspolicy.Traditionally,the4A’shaddiscouragedtheuseofcomparativeadsbyitsmemberagencies.

In1975theIndependentBroadcastingAuthority,whichcontrolsradioandtelevisioninBritain,gavethegreenlightfor“knocking”adsintheU.K.

Sorepositioninghasbeen“legal”foratleastadecade.

Isrepositioningethical?Inthepastadvertisingwaspreparedinisolation.Thatis,youstudiedtheproductanditsfeatures,andthenyoupreparedadvertisingwhichcommunicatedtoyourcustomersandprospectsthebenefitsofthosefeatures.Itdidn’tmakemuchdifferencewhetherthecompetitionofferedthosefeaturesornot.

Inthetraditionalapproach,youignoredcompetitionandmadeeveryclaimseemlikeapreemptiveclaim.Mentioningacompetitiveproduct,forexample,wasconsiderednotonlybadtastebutpoorstrategyaswell.

Inthepositioningera,however,therulesarereversed.Toestablishaposition,youmustoftennotonlynamecompetitivenamesbutalsoignoremostoftheoldadvertisingrulesaswell.

Incategoryaftercategory,theprospectalreadyknowsthebenefitsofusingtheproduct.Toclimbonhisorherproductladder,youmustrelateyourbrandtothebrandsalreadyintheprospect’smind.

Yetrepositioningprograms,eventhougheffective,havestirredupahostofcomplaints.Manyadvertisingpeopledeploretheuseofsuchtactics.

Anold-timeadvertisingmanputitthisway.“Timeshavechanged.Nolongerareadvertiserscontenttohuckstertheirownwaresontheirownmerits.Theirthemenowishowmuchbettertheirproductisthananyother.Itisadeplorablesituation,withTVastheworstoffender,wherecompetitiveproductsarepicturedanddenigratedbeforetheeyesofmillions.Thereshouldbesomekindofregulationtorestrictthattypeofunethicalmarketing.”

“Comparativeadvertisingisnotagainstthelaw,”saidthechairmanofatop10agency,“norshoulditbe.Buttopracticeitaswedotodaymakesamockeryofpretensionstocultureandrefinementanddecentcorporatebehavior.”

Youcan’thaveitbothways.Ifyouwantcultureandrefinement,youproduceoperas.Ifyouwanttomakemoney,youproducemovies.

Cultureandrefinementmaybeadmirablequalities,butnotinadvertising.Issocietysickwhenpeoplearereadytobelievetheworstaboutaproductor

person,butbalkaboutbelievingthebest?Arenewspaperswrongtoputthebadnewsonthefrontpageandthegood

newsinthebackalongwiththesocietycolumns?(Iftheyprintanyatall.)Thecommunicationindustryislikegossip.Itfeedsonthebadnews,notthegood.

Itmaynotbeyourideaofthewaythingsshouldbe.Itjusthappenstobethe

Itmaynotbeyourideaofthewaythingsshouldbe.Itjusthappenstobethewaythingsare.

Tobesuccessfulinthisovercommunicatedsocietyofours,youhavetoplaythegamebytherulesthatsocietysets.Notyourown.

Don’tbediscouraged.Alittledisparagementmaybepreferableinthelongruntoalotofconventional“bragandboast.”

Donehonestlyandfairly,itkeepsthecompetitionontheirtoes.

9Thepowerofthename

Thenameisthehookthathangsthebrandontheproductladderintheprospect’smind.Inthepositioningera,thesinglemostimportantmarketingdecisionyoucanmakeiswhattonametheproduct.

Shakespearewaswrong.Arosebyanyothernamewouldnotsmellassweet.Notonlydoyouseewhatyouwanttosee,youalsosmellwhatyouwanttosmell.Whichiswhythesinglemostimportantdecisioninthemarketingofperfumeisthenameyoudecidetoputonthebrand.

Would“Alfred”havesoldaswellas“Charlie?”Don’tbetonit.AndHogIslandintheCaribbeanwasgoingnowhereuntiltheychangedthe

nametoParadiseIsland.

HowtochooseanameDon’tlooktothepastforguidanceandpickthenameofaFrenchracingcardriver(Chevrolet)orthedaughterofyourParisrepresentative(Mercedes).

Whatworkedinthepastwon’tnecessarilyworknoworinthefuture.Inthepastwhentherewerefewerproducts,whenthevolumeofcommunicationwaslower,thenamewasn’tnearlyasimportant.

Today,however,alazy,say-nothingnameisn’tgoodenoughtocutintothemind.Whatyoumustlookforisanamethatbeginsthepositioningprocess,anamethattellstheprospectwhattheproduct’smajorbenefitis.

LikeHead&Shouldersshampoo,IntensiveCareskinlotion,andClose-Uptoothpaste.

OrlikeDieHardforalonger-lastingbattery.Shake’nBakeforanewwaytocookchicken.Edgeforashavingcreamthatletsyoushavecloser.

Anameshouldnotgo“overtheedge,”though.Thatis,becomesoclosetotheproductitselfthatitbecomesgeneric,ageneralnameforallproductsofitsclassratherthanatradenameforaspecificbrand.

“LitebeerfromMiller”isatypicalproductnamethatwentovertheline.SonowwehaveSchlitzLight,CoorsLight,BudLight,andahostofotherlightbeers.Thepublicandthepressquicklycorruptedthenameto“MillerLite,”andsoMillerlostitsrighttoexclusiveuseof“light”oritsphoneticequivalentasatrademarkforbeer.

Foryearstocome,trademarkattorneyswillbeusingLiteasanexampleof

Foryearstocome,trademarkattorneyswillbeusingLiteasanexampleofthedangerofusingdescriptivewordsastrademarks.(LawyerslovecoinednameslikeKodakandXerox.)Choosinganameislikedrivingaracingcar.Towin,youhavetotakechances.Youhavetoselectnamesthatarealmost,butnotquite,generic.Ifonceinawhileyougooffthetrackintogenericterritory,sobeit.Noworldchampiondriverhasmadeittothetopwithoutspinningoutafewtimes.

Astrong,generic-like,descriptivenamewillblockyourme-toocompetitorsfrommusclingtheirwayintoyourterritory.Agoodnameisthebestinsuranceforlong-termsuccess.Peopleisabrilliantnameforthegossip-columnmagazine.It’sarunawaysuccess.Theme-toocopy,Usmagazine,isintrouble.

HownottochooseanameOntheotherhand.TimeisnotasgoodanameforanewsweeklyasthemoregenericNewsweek.Timewasthefirstintothenewsweeklypoolandisanobvioussuccess.But

Newsweekisn’tfarbehind.(Asamatteroffact,NewsweeksellsmorepagesofadvertisingeachyearthandoesTime.)

ManypeoplethinkTimeisagreatnameforamagazine.Andinaway,itis.Short,catchy,memorable.Butit’salsosubtleandtricky.(Timecouldbeatrademagazineforthewatchindustry.)Fortuneisanothernamecutoutofthesamecloth.(Fortunecouldbeamagazineforstockbrokers,commoditytraders,orgamblers.It’snotclear.)BusinessWeekisamuchbettername.Alsoamoresuccessfulmagazine.

Namesalsogetoutofdate,openingupcreneausforalertcompetitors.Esquirewasagreatnameforamagazinefortheyoung-man-about-town.

Whenyoung-men-about-townusedtosigntheirnamesJohnJ.Smith,Esq.ButEsquirelostitsleadershiptoPlayboy.Everybodyknowswhataplayboyisandwhathe’sinterestedin.Girls,right?Butwhat’sanesquire?Andwhat’sheinterestedin?

Formanyyears,Yachtinghasbeentheleadingpublicationinthemarinefield.Buttodayhowmanyesquiresownyachts?SoeveryyearSailMagazinekeepsgettingcloserinsalestoYachting.

Whenvirtuallyalladvertisingwasinnewspapersandmagazines,Printer’sInkwasagoodnameforamagazinedirectedtotheadvertisingfield.Buttodayradioandtelevisionarejustasimportantasprint.SoPrinter’sInkisdeadandAdvertisingAgereignssupreme.

OneofthestrongestpublicationsintheworldtodayisTheWallStreet

Journal.Ithasnorealcompetitors.ButTheWallStreetJournalisaweaknameforadailybusinessnewspaper.Thenameimpliesanarrow,financialorientation.Butthepublicationcoversbusinessgenerally.

Ofsuchobservationsareopportunitiesfashioned.Engineersandscientistsinlovewiththeirowncreationsareresponsiblefor

someofthereallybadnames.NameslikeXD-12,forexample.(Presumablystandingfor“experimentaldesignnumber12.”)Theseareinsidejokesthathavenomeaninginthemindoftheprospect.

TakeMennenE,forexample.Peopleareliteralandtheytakethingsliterally.MennenEdeodorantwasdoomedtofailureinspiteofa$10millionadvertisinglaunch.Thetroublewasthenameonthecan.Theintroductoryadevenadmittedthattheideawasalittleunusual.“VitaminE,incredibly,isadeodorant.”

Itisincredible.Thatis,unlesstheywereappealingtopeoplewhowantthestrongest,best-fed,healthiestarmpitsinthecountry.MennenEdidn’tlastverylong.

AndwhataboutBreckOneandColgate100?Brandnameslikethesearemeaningless.

Withmarginaldifferencesinmanyproductcategories,abetternamecanmeanmillionsofdollarsdifferenceinsales.

WhentouseacoinednameWhatabouttheobvioussuccessofcompanieswithcoinednameslikeCoca-Cola,Kodak,andXerox?

Oneofthethingsthatmakespositioningthinkingdifficultformanypeopleisthefailuretounderstandtheroleoftiming.

Thefirstcompanyintothemindwithanewproductornewideaisgoingtobecomefamous.WhetherthenameisLindberghorSmithorRumplestiltskin.

Coca-Colawasfirstwithacoladrink.Kodakwasfirstwithlow-costphotography.Xeroxwasfirstwiththeplain-papercopier.

Taketheword“Coke.”BecauseofthesuccessofCoca-Cola,thenicknameCokehasacquiredwhatthesemanticistscallasecondarymeaning.

Wouldyounameasoftdrinkafterthewordfor“theresidueofcoalburnedintheabsenceofair”?Orthestreetnameforanarcoticcocaine?

SostrongisthesecondarymeaningofthewordCokethattheCoca-ColaCompanyhasnothingtofearfromthesenegativeconnotations.

ButchoosingacoinednamelikeKeds,Kleenex,andKotexforanewproductisdangerous,tosaytheleast.Onlywhenyouarefirstinthemindwithan

absolutelynewproductthatmillionsofpeoplearecertaintowantcanyouaffordtheluxuryofamean-nothingname.

Then,ofcourse,anynamewouldwork.Sostickwithcommondescriptivewords(Spray’nWash)andavoidthe

coinedwords(Qyx).Asaguide,thefivemostcommoninitiallettersareS,C,P,A,andT.The

fiveleastcommonareX,Z,Y,Q,andK.OneoutofeightEnglishwordsstartswithanS.Oneoutof3000startswithanX.

NegativenamescanbepositiveTechnologycontinuestocreatenewandimprovedproducts.Yettheyoftenarescarredatbirthwithsecond-classimitationnames.

Takemargarine,forexample.Eventhoughtheproducthasbeenaroundfordecades,itisstillperceivedasimitationbutter.(It’snotnicetofoolMotherNature.)Abetterchoiceofnameatthebeginningwouldhavehelped.Whatshouldmargarinehavebeencalled?Why“soybutter,”ofcourse—anameinthepeanutbuttertradition.

Thepsychologicalproblemwithanamelike“margarine”isthatitisdeceptive.Ithidestheoriginoftheproduct.

Everyoneknowsthatbutterismadefrommilk.Butwhat’smargarinemadefrom?Becausetheoriginoftheproductishidden,theprospectassumestheremustbesomethingbasicallywrongwithmargarine.

BringingtheproductoutoftheclosetThefirststepinovercomingnegativereactionsistobringtheproductoutofthecloset.Todeliberatelypolarizethesituationbyusinganegativenamelikesoybutter.

Oncethisisdone,itallowsthedevelopmentofalong-termprogramtoselltheadvantagesofsoybuttervs.cowbutter.Anessentialingredientofsuchaprogramis“prideoforigin”whichthesoynameconnotes.

ThesameprincipleisinvolvedintheshiftfromcoloredtoNegrotoblack.“Negro”isamargarinename,foreverrelatingNegroestosecond-class

citizenship.“Colored”doesn’tsufficientlypolarizethesituation.Theimplicationis,thelesscoloredthebetter.

“Black”isamuchbetterchoice.Itallowsthedevelopmentof“prideofblackness,”anessentialfirststeptolong-termequality.(Youmightprefertobewhite,butIprefertobeblack.)Innamingpeopleorproducts,youshouldnotletyourcompetitorsunfairlypreemptwordsthatyouneedtodescribeyourown

yourcompetitorsunfairlypreemptwordsthatyouneedtodescribeyourownproducts.Likebutterinthecaseofmargarine.Orlikesugarinthecaseofcornsyrup.

Anumberofyearsago,scientistsfoundawaytomakesweetenersoutofcornstarch.Result:productscalleddextrose,cornsyrup,andhigh-fructosecornsyrup.

Withnameslike“high-fructosecornsyrup,”it’snowonderthateveninthetradetheproductswereconsideredimitationorsecond-classincomparisonwithsucroseor“realsugar.”SoCornProducts,oneofthemajorsuppliersofcornsyrups,decidedtocallitssweeteners“cornsugars.”Thismoveallowedthecompanytoputcornonanequalfootingwithcaneandbeet.

“Considerallthreetypesofsugar,”saytheads.“Cane,beet,andcorn.”MarketingpeopleshouldknowthattheFederalTradeCommissionisthe

keeperofthegenericsformanyindustries.ButtheFTCcanbepersuaded.“Ifwecan’tcallitsugar,canweputcornsyrupinasoftdrinkandcalltheproduct‘sugar-free’?”

Special-interestgroupsrecognizethepowerofagoodname.The“RighttoLife”movementand“fairtrade”lawsaretwoexamples.

Andwhatsenatororrepresentativewoulddareopposeabillcalledthe“CleanAirAct?”

Inworkingagainstanestablishedconceptlike“fairtrade,”it’simportantnottotrytorenamethecompetition.Allyoucauseisconfusionamongyouraudience.

Tocounterthewidespreadconsumeracceptanceoffairtradelaws,theoppositiontriedtocallit“pricemaintenance”legislation.Itwasmany,manyyearsbeforefairtradelawswererepealedbythemanystatesthathadenactedthem.

Abettertacticistoturnthenamearound.Thatistorepositiontheconceptbyusingthesamewordstoturnthemeaninginsideout.“Fairtothetrade,butunfairtotheconsumer”isanexampleofthistactic.

Evenbetteristorenametheoppositionbeforethepowerfulnametakesroot.“Pricemanitenance”wouldprobablyhaveworkedasablockingstrategy,butonlyearlyinthegame.Anotherexampleoftheimportanceofbeingfirst.

DavidandMichaelandHubertandElmerInspiteofthecommonbeliefthatit’s“onlyaname,”thereisagrowingbodyofevidencethataperson’snameplaysasignificantroleinthegameoflife.

Twopsychologyprofessors,Dr.HerbertHarariandDr.JohnW.McDavid,weretryingtofindoutwhyelementaryschoolstudentsmadefunofclassmates

weretryingtofindoutwhyelementaryschoolstudentsmadefunofclassmateswithunusualnames.

Sotheyexperimentedwithdifferentnamesattributedtocompositionssupposedlywrittenbyfourthandfifthgraders.Twosetsofnames,inparticular,illustratetheprinciple.

Thereweretwopopularnames(DavidandMichael)andtwounpopularnames(HubertandElmer)onsomeofthecompositions.Eachcompositionwasgiventoadifferentgroupofelementaryschoolteacherstograde.(Theteachersthatparticipatedintheexperimenthadnoreasontobelievetheyweren’tgradingordinaryschoolpapers.)WouldyoubelievethatcompositionsbearingthenamesofDavidandMichaelaveragedalettergradehigherthanthesamecompositionsattributedtoElmerandHubert?“Teachersknowfrompastexperience,”saytheprofessors,“thataHubertoranElmerisgenerallyaloser.”

Whataboutfamouspeoplewithoddfirstnames?HubertHumphreyandAdlaiStevenson,forexample.BothloserstomenwiththepopularnamesofRichardandDwight.

WhatifRichardHumphreyhadrunagainstHubertNixon?WouldAmericahaveelectedaHubertNixon?

Jimmy,Jerry,Richard,Lyndon,John,Dwight,Harry,Franklin.NotsinceHerberthavewehada“loser”nameintheWhiteHouse.

AndwhodidHerbertHooverbeatin1928?Anothermanwithalosername,Alfred.

In1932,whenHerbertranagainsta“winner”namelikeFranklin,helost.Andhelostbig.

WhatwouldyouexpectfromsomeonenamedEdsel?EdselwasalosernamebeforeFordintroducedtheEdselcar.Andthenamecontributedtothemarketingdisaster.

TakeCyrilandJohn.AccordingtopsychologistDavidSheppard,peoplewhodon’tknowanyonewiththesenamesneverthelessexpectaCyriltobesneakyandaJohntobetrustworthy.

Youseewhatyouexpecttosee.Andabadorinappropriatenamesetsupachainreactionthatonlyservestoconfirmyourinitialunfavorableopinion.

Elmerisaloser.See,he’snotdoingthatjobverywell.Itoldyou,Elmerisaloser.

Atruestory.AnaccountofficerataNewYorkbankwasnamedYoungJ.Boozer.Oncewhenacustomeraskedtospeakto“YoungBoozer,”hewastoldbytheswitchboardoperator,“Wehavealotofthemaroundhere.Whichonedoyouwanttotalkto?”

HubertandElmerintheskyThenameisthefirstpointofcontactbetweenthemessageandthemind.

It’snotthegoodnessorbadnessofthenameinanestheticsensethatdeterminestheeffectivenessofthemessage.It’stheappropriatenessofthename.

Taketheairlineindustry,forexample.ThefourlargestdomesticcarriersareUnited,American,Deltaand…

Well,doyouknowthenameofthe“secondlargestpassengercarrierofalltheairlinesinthefreeworld,”touseoneoftheairline’sadvertisingslogans?

That’sright.EasternAirlines.Likeallairlines,Easternhashaditsupsanddowns.Unfortunately,more

downsthanups.Amongthefourlargestdomesticairlines,Easternconsistentlyranksfourthonpassengersurveys.

Why?Easternhasaregionalnamethatputsitinadifferentcategoryintheprospect’smindthanbignationwidenameslikeAmericanandUnited.

ThenameEasternputstheairlineinthesamecategorywithPiedmont,Ozark,andSouthern.

Youseewhatyouexpecttosee.ThepassengerwhohasabadexperienceonAmericanorUnitedsays,“Itwasjustoneofthosethings.”Anexceptiontothegoodserviceheorshewasexpecting.

ThepassengerwhohasabadexperienceonEasternsays,“It’sthatEasternAirlinesagain.”Acontinuationofthebadserviceheorshewasexpecting.

It’snotthatEasternhasn’ttried.Anumberofyearsago,Easternbroughtinsomebig-leaguemarketingpeopleandpulledoutthethrottle.Easternwasamongthefirstto“painttheplanes,”“improvethefood,”and“dressuptheflightattendants”inanefforttoimproveitsreputation.

AndEasternhasn’tbeenbashfulwhenitcomestospendingmoney.Yearafteryear,ithasoneofthebiggestadvertisingbudgetsintheindustry.Inarecentyear,Easternspentmorethan$70milliononadvertising.

Forallthemoney,whatdoyouthinkofEastern?Wheredoyouthinktheyfly?UpanddowntheEastCoast,toNewYork,Boston,Philadelphia,Washington,Miami,right?

Well,EasternalsogoestoSt.Louis,NewOrleans,Atlanta,Denver,LosAngeles,Seattle,Acapulco,MexicoCity.

Youcan’thang“thewingsofman”onaregionalname.Whenprospectsaregivenachoice,theyaregoingtopreferthenationalairline,nottheregionalone.

Theairline’sproblemistypicalofthedifficultypeoplehaveinseparatingrealityfromperception.ManyexperiencedmarketingpeoplelookattheEastern

realityfromperception.ManyexperiencedmarketingpeoplelookattheEasternsituationandsay,“It’snotthenamethatgetsEasternintotrouble.It’sthepoorservice,thefood,thebaggagehandling,thesurlyflightattendants.”Theperceptionisthereality.

WhatdoyouthinkofPiedmontAirlines?HowaboutOzarkAirlines?AndwhataboutAllegheny?

Allegheny,ofcourse,hasthrowninthetowelandbecomeUSAir.EvenNorthCentralandSoutherngaveupandmergedtobecomeRepublicAirlines.Bothairlinesaredoingquitewell.

TheAkrontwinsAnothercommonnameproblemisrepresentedbytwocompaniesheadquarteredinAkron,Ohio.

Whatdoesacompanydowhenitsname(Goodrich)issimilartothenameofalargercompanyinthesamefield(Goodyear)?

Goodrichhasproblems.ResearchindicatesthattheycouldreinventthewheelandGoodyearwouldgetmostofthecredit.

Notsurprisingly,B.F.Goodrichrecognizestheproblem.Thisishowtheyexpresseditanumberofyearsagoinanadvertisement:

ThecurseofBenjaminFranklinGoodrich.Hisname.It’soneoffate’scruelaccidentsthatourbiggestcompetitor’snameturnsouttobealmostidenticaltoourfounder’s.Goodyear.Goodrich.Awfullyconfusing.

Atthebottomofthead,itsays:“IfyouwantGoodrich,you’lljusthavetorememberGoodrich.”

Inotherwords,it’snotGoodrich’sproblematall.It’syourproblem.B.F.Goodrichwasthefirstdomesticcompanytomarketsteel-beltedradial-

plytiresintheUnitedStates.Yetseveralyearslaterwhentirebuyerswereaskedwhichcompanymakessteel-beltedradials,56percentnamedGoodyear,whichdidn’tmakethemforthedomesticmarket.Only47percentsaidGoodrich,whichdid.

AstheysayinAkron,“Goodrichinventsit.Firestonedevelopsit.Goodyearsellsit.”

EveryyearGoodyearincreasesitslead.TodayitoutsellsGoodrich3to1.Sotherichgetricher.Fairenough.

Butwhatisoddisthattheloser’sadvertisingcontinuestogetallthepublicity.“We’retheotherguys”gotalotoffavorableattentioninthepress.Butnotalotoffavorableattentionfromthetire-buyingpublic.Itsnamealone

notalotoffavorableattentionfromthetire-buyingpublic.ItsnamealoneforevercondemnsGoodrichtoeatthedustofitsbiggercompetitor.

TheToledotripletsIftheAkrontwinsseemconfusing,considerthepredicamentoftheToledotriplets.Owens-Illinois,Owens-CorningFiberglasandLibbey-Owens-Ford.

Thesearenotsmalloutfitseither.Owens-Illinoisisa$3.5billioncompany.Owens-CorningFiberglasisa$3billioncompany.AndLibbey-Owens-Fordisa$1.75billioncompany.

LookattheconfusionproblemfromthepointofviewofOwens-CorningFiberglas.

Owens,ofcourse,isusuallyconnectedwithIllinois.Owens-IllinoisisalargercompanywithastrongerclaimtotheOwensname.

AndCorningisusuallylinkedwithglass.InnearbyCorning,NewYork,istheCorningGlassWorks,a$1.7billioncompany.IthassucceededinfirmlylinkingtheCorningnametotheglassconcept.

Sowhat’sleftforOwens-CorningFiberglas?Fiberglas.Whichisprobablywhythecompanyrunsadsthatsay“Owens-Corningis

Fiberglas.”Inotherwords,ifyouwantFiberglas,you’lljusthavetorememberOwens-Corning.

ItwouldbealoteasierifthecompanychangeditsnametotheFiberglasCorporation.Thenifyouwantfiberglass(withalowercase“f”),allyouhavetorememberisFiberglas(withanuppercase“F”).Thisstepwouldhelpfocustheattentiononthecompany’sprimaryobjective,toturnfiberglassfromagenericnamebackintoabrandname.

WhatshouldyoudoifyournameisHubertorElmerorEasternorGoodrichorOwens-CorningFiberglas?Changeit.

Butnamechangingisrare,inspiteofthelogic.Mostcompaniesareconvincedtheyhavetoomuchequityintheirpresentname.“Ourcustomersandemployeeswouldneveracceptanewname.”

WhataboutOlinandMobilandUniroyalandXerox?AndhowaboutExxonCorporation?ItwasonlyafewyearsagothatExxonchangeditsnamefrom.…

Well,doyouevenrememberwhatExxon’soldnamewas?No,itwasn’tEssoanditwasn’tHumbleOilorEnjay,althoughthecompanydidusethesenamesinitsmarketingoperations.

TheoldnameofExxonCorporationwasStandardOilofNewJersey.Amazingwhatafewyearsandafewdollarscando.

Amazingwhatafewyearsandafewdollarscando.Thereisonlynegativeequityinabadname.Whenthenameisbad,things

tendtogetworse.Whenthenameisgood,thingstendtogetbetter.

ContinentalconfusionDoyouknowthedifferencebetweena$4.6billioncompanycalledTheContinentalGroup,Inc.,anda$4billioncompanycalledTheContinentalCorporation?NottoomanypeopledountiltheyfindoutthatTheContinentalGroupistheworld’slargestmakerofcansandContinentalCorporationisthebiginsurancecompany.

“Ah,yes.ContinentalCanandContinentalInsurance.NowIknowthecompaniesyoumeant.”Whywouldacompanydrop“can”and“insurance”infavorofthe

anonymityof“group”and“corporation”?Theobviousansweristhatthesetwocompaniessellmorethancansandinsurance.

Butisitpossibletobuildanidentityonanothingname?Unlikely,especiallywhenyouconsidertheexistenceofothercompanieswithclaimsontheContinentalname.ThereisContinentalOil,ContinentalTelephone,ContinentalGrain,andContinentalIllinoisCorp.(Allbilliondollarcompanies,bytheway.)Orhowaboutthesecretarywhosebosssays,“GetmeContinentalonthephone.”InManhattanalone,thereare235listingsinthetelephonedirectorystartingwithContinental.

10Theno-nametrap

“I’mgoingtoL.A.,”thecorporateexecutivewillsay.“AndthenIhavetomakeatriptoNewYork.”WhyisLosAngelesoftencalledL.A.,butNewYorkisseldomcalledN.Y.?

“IworkedforGEforacoupleofyearsandthenwenttoWesternUnion.”WhyisGeneralElectricoftencalledGE,butWesternUnionisseldomcalledWU?

GeneralMotorsisoftenGM,AmericanMotorsisoftenAM,butFordMotorisalmostneverFM.

PhoneticshorthandTheprincipleatworkhereisphoneticshorthand.

Ra-di-oCor-po-ra-tionofA-mer-i-cais12syllableslong.NowondermostpeopleuseR-C-A,threesyllableslong.

Gen-er-alE-lec-tricissixsyllableslong,somostpeopleuseG-E,twosyllables.

Gen-er-alMo-torsisoftenGM.A-mer-i-canMo-torsisoftenAM.ButFordMo-torisalmostneverreferredtoasFM.ThesinglesyllableFordsaysitall.

Butwherethere’snophoneticadvantage,mostpeoplewon’tuseinitials.NewYorkandN.Y.arebothtwosyllableslong.SowhiletheinitialsN.Y.areoftenwritten,theyareseldomspoken.

LosAn-ge-lesisfoursyllableslong,soL.A.isfrequentlyused.Note,too,thatSanFrancis-co,afour-syllableword,isseldomshortenedto“S.F.”Why?There’saperfectlygoodtwosyllableword(Frisco)touseashorthandforSanFrancisco.Whichiswhypeoplesay“Jer-sey”forNewJerseyinsteadof“N.J.”

Whentheyhaveachoiceofawordorasetofinitials,bothequalinphoneticlength,peoplewillinvariablyusetheword,nottheinitials.

Phoneticlengthcansometimesfoolyou.TheinitialsWUlookalotshorterthanthenameWesternUnion.Butphoneticallytheyareexactlythesamelength.Dou-ble-UU.WesternUn-ion.(ExceptforW,everyotherEnglishlanguageletterisjustonesyllable.)

Whilecustomersrefertocompaniesphonetically,thecompaniestheytalkabouthaveadifferentwayoflookingatthemselves.Companiesarevisuallyoriented.Theygotoalotoftroublemakingsurethenameslookrightwithout

oriented.Theygotoalotoftroublemakingsurethenameslookrightwithoutconsideringhowitsounds.

VisualshorthandBusinesspeoplealsofallintothesametrap.Thefirstthingtogoisthegivenname.WhenyoungEdmundGeraldBrownstartsuptheexecutiveladderatGeneralManufacturingCorporation,heinstantlybecomesE.G.BrownfromGMConinternallettersandmemos.

Buttobewellknown,you’vegottoavoidusinginitials—afactknownbymostpoliticians.WhichiswhyE.M.KennedyandJ.E.CarterbillthemselvesasTedKennedyandJimmyCarter.

Asamatteroffact,thenewwaveofpoliticiansdon’tuseeithermiddlenamesorinitials.JackKemp,GaryHart,BillBradley,GeorgeBush,RonaldReagan.

WhataboutFDRandJFK?Theironyofthesituationisthatonceyougettothetop,onceyouarewellknown,theninitialscanbeusedwithoutambiguity.FranklinDelanoRooseveltandJohnFitzgeraldKennedycoulduseinitialsonlyaftertheybecamefamous.Notbefore.

Thenextthingtogoisthenameofthecompany.Whatstartsoutasvisualshorthandtoconservepaperandtypingtimeendsupasthemonogramofsuccess.

IBM,AT&T,GE,3M.SometimesitseemsthatmembershipintheFortune500dependsuponhavingareadilyrecognizedsetofinitials.Themonikerthattellstheworldyouhavemadeit.

Sotoday,wehavesuchmonikersasAMInternational,AMAX,AMF,AMP,BOC,CBIIndustries,CFIndustries,CPCInternational,EG&G,FMC,GAF,ICIndustries,ITT,LTV,MEI,NCR,NLIndustries,NVF,PPGIndustries,SCM,TRW,andVF.

Thesearenottwo-bitcompanies.AllarecurrentlyonFortune’slistofthe500largestindustrialcompanies.Thesmallestcompanyonthelist,AMInternational,hadsalesof$598millioninarecentyearandmorethan10,000employees.(YoumightrecognizethemastheformerAddressographMultigraphCorp.)

IfyouselectthecompanynextupinsizefromeveryinitialcompanyontheFortune500list,youwillfindthefollowing:AlleghenyInternational,AmericanMotors,Amstar,Bristol-Myers,Celanese,CluettPeabody,ConsolidatedFoods,DataGeneral,Gannett,Hartmarx,H.J.Heinz,Hewlett-Packard,InspirationResources,LeverBrothers,LouisianaLand&Exploration,Mohasco,NationalCooperativeRefineryAssociation,NorthAmericanPhilips,Procter&Gamble,

CooperativeRefineryAssociation,NorthAmericanPhilips,Procter&Gamble,G.D.Searle,WeirtonSteel,andWestmorelandCoal.

Whichlistofcompaniesisbetterknown?Thenamecompanies,ofcourse.SomeoftheinitialcompanieslikeITTandNCRarewellknown,tobesure.

ButlikeFDRandJFK,thesecompanieswerewellknownbeforetheydroppedtheirnamesinfavorofinitials.

Whichcompaniesarelikelytogrowfaster?Again,thenamecompanies.Totestthispoint,weconductedasurveyofboth“name”and“initial”

companiesusingaBusinessWeeksubscriberlist.Theresultsshowthevalueofaname.

Theaverageawarenessofthe“initial”companieswas49percent.Theaverageawarenessofamatchedgroupof“name”companieswas68percent,19percentagepointshigher.

Whatdrivesbigcompaniesintocommittingcorporatesuicide?Foronething,thetopexecutiveshaveseenthecompany’sinitialsoninternalmemosforsolongtheyjustnaturallyassumethateverybodyknowsgoodoldVF.Then,too,theymisreadthereasonsforthesuccessofcompanieslikeIBMandGE.

NoshortcutstosuccessAcompanymustbeextremelywellknownbeforeitcanuseinitialssuccessfully.Apparentlytheuseoftheinitials“GE”triggersthewords“GeneralElectric”insidethebrain.

Invariably,peoplemustknowthenamefirstbeforetheywillrespondtoinitials.TheFederalBureauofInvestigationandtheInternalRevenueServiceareextremelywellknown.SowerespondinstantlytoFBIandIRS.

ButHUDisnotrecognizednearlysoquickly.Why?Becausemostpeopledon’tknowtheDepartmentofHousingandUrbanDevelopment.SoifHUDwantstobecomebetterknown,thedepartmentmustfirstmakethenameHousingandUrbanDevelopmentbetterknown.TakingashortcutbyusingonlytheinitialsHUDwon’thelpverymuch.

Similarly,GeneralAniline&Filmwasnotaverywellknowncompany.WhentheychangedtheirnametoGAF,theymadecertainthattheywerenevergoingtobecomeverywellknown.NowthatGAFhaslegallychangeditsnametoinitials,presumablythere’snowaytoexposetheprospecttotheoriginalname.

Yetalphabetsoupseemstobeonthecorporatemenuofmanycompaniestoday.Theyfailtothinkthroughtheprocessofpositioningthemselvesinthemind.Sotheyfallvictimtothefadoftheday.

And,noquestionaboutit,today’sfadis“initialitus.”LookatRCA.EveryoneknowsthatRCAstandsforRadioCorporationofAmerica.Sothecompanycouldusetheinitialstotriggerthe“RadioCorporationofAmerica”wordsburieddeepinsidethemind.

ButnowthatRCAislegallyRCA,whatwillhappennext?Nothing.Atleastinthenextdecadeorso.Thewordsarealreadyburiedinthemindsofmillionsofpeople.Andthey’llstaythereindefinitely.

Butwhataboutthenextgenerationofprospects?Whatwilltheythinkwhentheyseethosestrangeinitials,RCA?

RomanCatholicArchdiocese?Positioningislikethegameoflife.Along-termproposition.Namedecisions

madetodaymaynotbearfruituntilmany,manyyearsinthefuture.

ThemindworksbyearTheprimaryreasonnameselectionerrorsaresocommonisthatexecutivesliveinanoceanofpaper.Letters,memos,reports.SwimmingintheXeroxsea,it’seasytoforgetthatthemindworksaurally.Toutteraword,wefirsttranslatethelettersintosounds.Whichiswhybeginnersmovetheirlipswhentheyread.

Whenyouwereachild,youfirstlearnedtospeakandthentoread.Andyoulearnedtoreadslowlyandlaboriouslybysayingthewordsoutloudasyouforcedyourmindtoconnectthewrittenwordwiththeauralsoundstoredinthebrain.

Bycomparison,learningtospeakrequiresmuchlesseffortthanlearningtoread.Westoresoundsdirectlyandthenplaythembackinvariouscombinationsasourmentaldexterityimproves.

Asyougrowup,youlearntotranslatewrittenwordsintotheaurallanguageneededbythebrainsorapidlythatyouareunawarethetranslationprocessistakingplace.

Thenyoureadinthepaperthat80percentoflearningtakesplacethroughtheeyes.Ofcourseitdoes.Butreadingisonlyaportionofthelearningprocess.Muchlearningoccursfromvisualclueswhichdonotinvolvereadingintheconventionalsenseatall.Aswhenyoulearntheemotionalstateofanotherpersonby“reading”bodyclues.

Whenwordsareread,theyarenotunderstooduntilthevisual/verbaltranslatorinyourbraintakesovertomakeauralsenseoutofwhatyouhaveseen.

Inthesameway,amusicianlearnstoreadmusicandhearthesoundinhisorherhead,justasifsomeonewereactuallyplayingthetuneonaninstrument.

herhead,justasifsomeonewereactuallyplayingthetuneonaninstrument.Trytomemorizeapoemwithoutreadingitoutloud.It’sfareasierto

memorizewrittenmaterialifwereinforcetheauralcomponent,theworkinglanguageofthebrain.

Whichiswhynotonlynamesbutalsoheadlines,slogans,andthemesshouldbeexaminedfortheirauralqualities.Evenifyouplantousetheminprintedmaterialonly.

DidyouthinkthatHubertandElmerwerebadnames?Ifso,youmusthavetranslatedtheprintedwordsintotheirauralequivalents.BecauseHubertandElmerdon’tlookbad.Theyjustsoundbad.

Inaway,it’sashamethattheprintmedia(newspapers,magazines,outdooradvertising)camefirstandradiosecond.Radioisreallytheprimalmedia.Andprintisthehigher-levelabstraction.

Messageswould“soundbetter”inprintiftheyweredesignedforradiofirst.Yetweusuallydothereverse.Weworkfirstinprintandtheninthebroadcastmedia.

NameobsolescenceAnotherreasoncompaniesdroptheirnamesforinitialsistheobsolescenceofthenameitself.RCAsellsalotofthingsbesidesradios.

AndhowaboutUnitedShoeMachinery?Thecompanyhadbecomeaconglomerate.Furthermore,thedomesticshoemachinerymarketwasdryingupasimportscontinuallyincreasedtheirshare.Whattodo?Theytooktheeasywayout.UnitedShoeMachinerychangeditsnametoUSMCorporation.Andlivedanonymouslyeverafter.

Smith-Corona-Marchantisanothercompanywhichhaslostitscorporateidentity.Theresultofmergers,Smithneverdidmakecoronasormarchants.SoitdecidedtoshortenthenametoSCMCorporation.

Presumably,bothSCMandUSMmadethechangetoescapetheobsoleteidentityofthepast.Yetthefactisthattheexactoppositeoccurred.

Themindcan’trememberUSMwithoutdredgingUnitedShoeMachineryfromitsubconscious.

AtleastRCA,USM,andSCMhadphoneticshorthandgoingforthem.Withoutit,thedifficultiesaregreater.Much,muchgreater.WhenCornProductsCompanychangeditsnametoCPCInternational,itfoundlittlerecognitionoftheCPCname.TheinitialsCPCarenotphoneticallyshorterthanCornProducts.Botharethreesyllableslong,sotheCPCinitialswereseldomuseduntilthenamechangewasmade.AskpeopleinthebusinessiftheyarefamiliarwithCPCInternational.Seeiftheydon’tsay,“Oh,youmeanCornProducts

CPCInternational.Seeiftheydon’tsay,“Oh,youmeanCornProductsCompany?”

Inourinitial-happysociety,thefirstquestionthemindnormallyasksitselfis,“Whatdothoseinitialsstandfor?”

ThemindseesthelettersAT&Tandsays,“Ah,AmericanTelephone&Telegraph.”

ButwhatreplydoesthemindgetwhenitseesTRW?Obviously,thereareafairnumberofpeoplewhoremembertheThompsonRamoWooldridgeCorporation.AndTRWisa$6billioncompany,soitgetsalotofpressanddoesalotofadvertising.ButwouldthoseadvertisingdollarsworkharderifTRWhada“name”nameinsteadofaninitialname?

Somecompaniesputsetsofinitialsinseries.HowabouttryingtoremembertheD-M-ECorporation,asubsidiaryofVSICorporation?

We’renottryingtosuggestthatcompaniesshouldn’tchangetheirnames.Quitethecontrary.Nothingremainsthesameforverylong.Timeschange.Productsbecomeobsolete.Marketscomeandgo.Andmergersareoftennecessary.Sothetimecomeswhenacompanymustchangeitsname.

U.S.Rubberwasaworldwidecorporationthatmarketedmanyproductsnotmadeofrubber.EatonYale&Townewastheresultofamergerthatproducedabigcompanywithacomplicatedname.Socony-MobilwassaddledwithafirstnamethatoriginallystoodforStandardOilCompanyofNewYork.

Allofthesenameshavebeenchangedforsoundmarketingreasons.Thetraditional“foot-in-the-past”approachcouldhaveproducedUSRCorporation,EY&TCompany,andSMInc.Threemarketingmonstrosities.

Instead,“forgettingthepast”createdthreenewmoderncorporateidentities—Uniroyal,Eaton,andMobil.Themarketingstrengthsofthesenamesspeakforthemselves.Thesecompaniessuccessfullyforgotthepastandpositionedthemselvesagainstthefuture.

TheconfusionbetweencauseandeffectInspiteofthedrawbacks,companiesareluredtoinitialslikemothstoacandle.ThesuccessoftheIBMsofthisworldseemstobeproofthatinitialsareeffective.It’stheclassicconfusionbetweencauseandeffect.

InternationalBusinessMachinesbecamesorichandfamous(thecause)thateveryoneknewwhatcompanyyouweretalkingaboutwhenyouuseditsinitials(theeffect).

Whenyoutrytoreversetheprocedure,itdoesn’twork.Youcan’tusetheinitialsofacompanythatisonlymodestlysuccessful(thecause)andthenexpectittobecomerichandfamous(theeffect).

expectittobecomerichandfamous(theeffect).It’sliketryingtobecomerichandfamousbybuyinglimousinesand

corporatejets.First,youhavetobecomesuccessfulinordertohavethemoneytobuythefringebenefits.

Insomeways,therushtoadoptinitialsrepresentsadesiretolookacceptedevenatthecostofalossincommunications.Italsorepresentsthecopycatthinkingprevalentinsomemanagementcircles.ThesuccessofIBMencouragedwordprocessingcompetitorslikeCPTandNBItouseinitialsintheirnames.

ThesuccessofAT&TencouragedMCItoalsomarkettheirlongdistanceservicewithaninitialname.

Andlookatthecontrastingnamestrategiesoftwodifferentairlines.PanA-mer-i-canAirlines(sevensyllables)hasaphoneticallylongname.So

theyshortenedittoPanAm,twosyllables.MuchbetterthantheinitialsPAA,whichwouldbedifficulttoremember.

TransWorldAirlines(foursyllables)isactuallyphoneticallyshorterthantheT-Dou-ble-U-Atheyareusing,Butisn’tTWAwellknown?Yes,itis,thanksto$70millionworthofadvertisingayear.

AlthoughTWAspendsaboutasmuchonadvertisingasitslargerAmericanandUnitedcompetitors,surveysshowthatTWAhashalfthepassengerpreferenceoftheothertwo.TheinefficiencyoftheinitialsTWAisonereason.

WhatnameshouldTransWorldAirlinesuse?“TransWorld,”ofcourse.Onlytwosyllableslong,TransWorldisshortand

graphic.

AcronymsandphonedirectoriesSomecompaniesarelucky.Theirinitials,eitherbydesignorbyaccident,formacronyms.Forexample:Fiat(FederationInternationaleAutomobilesTorino)andSabena(SociétéAnonymeBelged’ExploitationdelaNavigationAèrienne).

Oftenorganizationswillselectcarefullynamesthatformmeaningfulacronyms.Twoexamples:CARE(CommitteeforAidandRehabilitationinEurope)andMADD(MothersAgainstDrunkDrivers).

Othercompaniesaren’tsolucky.WhenGeneralAniline&FilmchangeditsnametoGAF,itchosetooverlookthefactthattheacronymsoundslike“clumsyerror.”GAFisagaffeinmorewaysthanone.

Theotherthingpeopletendtoforgetwhentheypickanameistheproblemoffindingitinthetelephonedirectory.Sinceyouseldomlookupyourownnameinaphonebook,youmightnotrealizehowharditistolocate.

TakeMCI,forexample.IntheManhattantelephonedirectory,youmightexpecttofindMCIsomewherebetweenMcHughandMcKensie.Butofcourse,

expecttofindMCIsomewherebetweenMcHughandMcKensie.Butofcourse,it’snotthere.MCITelecommunicationsis48pagesawaywhereithastocompetewithsevenothercompaniesthatincorporateMCIintheirnames.(Followingstandardrulesofalphabetizingalistofnames,thephonecompanyputsallinitialnamesupfront.)

TakeUSMCorporation,forexample.IntheManhattantelephonedirectory,therearesevenpagesoflistingsstartingwith“US.”SoyououghttobeabletofindUSMsomewherebetweenUSLuggage&LeatherProductsandUSNews&WorldReport.

But,ofcourse,it’snotthere.ThoseUSlistingsstandfor“UnitedStates,”asinUnitedStatesLuggage.TheUSinUSMdoesn’tstandforanything.Soagainthenamegoesupfrontwiththerestofthe“pure”initialcompanies.

Manycompaniesaresaddledwithobsoletenamesthroughnofaultoftheirown.Butbeforeyouthrowawayanameinfavorofmeaninglessinitials,seeifyoucanfindanother“name”thatwilldothejobyouwantdone.

Withagoodname,yourpositioningjobisgoingtobealoteasier.

11Thefree-ridetrap

TakeaproductcalledAlka-SeltzerPlus.Let’sseeifwecanvisualizehowAlka-SeltzerPlusmighthavegottenitsname.

AbunchoftheboysaresittingaroundaconferencetabletryingtonameanewcoldremedydesignedtocompetewithDristanandContac.

“Ihaveit,”saysHarry.“Let’scallitAlka-SeltzerPlus.Thatwaywecantakeadvantageofthe$20millionayearwe’realreadyspendingontheAlka-Seltzername.”

“Goodthinking,Harry,”andanothermoney-savingideaisinstantlyaccepted,asmostmoney-savingideasusuallyare.

Butloandbehold,insteadofeatingintotheDristanandContacmarket,thenewproductturnsaroundandeatsintotheAlka-Seltzermarket.

EverysooftenthemakersofAlka-SeltzerPlusredesignthelabel.The“Alka-Seltzer”getssmallerandsmaller,andthe“Plus”getsbiggerandbigger.

AbetternamefortheproductwouldhavebeenBromo-SeltzerPlus.Thatwaytheycouldhavetakenbusinessawayfromthecompetition.

TheconglomerationofthecorporationIntheproducteralifewassimpler.Eachcompanyspecializedinasingleline.Thenametolditall.

StandardOil,U.S.Steel,U.S.Rubber,UnitedAirlines,PennsylvaniaRailroad.

Buttechnologicalprogresscreatedopportunities.Socompaniesstartedbranchingintonewfields.

Entertheconglomerate.Thecompanythatspecializesinnothing.Bydevelopmentoracquisition,theconglomerateispreparedtoenteranyfieldinwhichitthinksitcanmakeabuck.

TakeGeneralElectric.GEmakeseverythingfromjetenginestonuclearpowerplantstoplastics.

RCAisinsatellitecommunications,solid-stateelectronics,andrent-a-cars.Manypeoplepooh-poohtheconglomerate.Companiesshould“sticktotheir

knitting,”theysay.Butconglomerateshaveprovidedthecapitaltosustainvigorouscompetitioninthemarketplace.Ifitweren’tfortheconglomerates,wewouldbeanationofsemimonopolies.

wouldbeanationofsemimonopolies.Takecopiers,forexample.Xerox,thepioneerintheplain-paperfield,now

facescompetitionfromthecomputermanufacturer(IBM),fromaphotocompany(Kodak),andfromapostage-metercompany(PitneyBowes).

Evenwhenconglomeratesgrowbyacquisition(RCA’spurchaseofHertz,ITT’spurchaseofAvis),theyprovidethemoneyneededtosustaingrowthandcompetition.

Otherwise,whentheoriginalfoundersretiredordied,thetaxbitewouldleavethecompanytooweaktodefenditsturf.

Thetypicallifecycleofacorporationstartswithanentrepreneurwithanidea.Ifsuccessful,youcancountontwothings,deathandtaxes,toensurethattheoperationwillendupaspartofaconglomerate.

TwodifferentstrategiesBecausecompaniesgrowbytwodifferentstrategies(internaldevelopmentorexternalacquisition),twodifferent“name”strategiesevolved.Corporateegosdictatethestrategies.

Whenacompanydevelopsaproductinternally,itusuallyputsthecorporatenameontheproduct.Forexample,GeneralElectriccomputers.

Whenthecompanydevelopsaproductbyexternalacquisition,itusuallykeepstheexistingname.RCAkepttheHertzname.ITTkepttheAvisname.

Butnotalways.WhenSperry-Randdevelopedacomputerlineinternally,theycalledthe

productUnivac.WhenXeroxwentintocomputersbyexternalacquisition,theychangedthenamefromScientificDataSystemstoXeroxDataSystems.

Corporateegosaside,whenshouldacompanyusethehousenameandwhenshouldtheyselectanewname?(Youcan’treallydisregardcorporateegos.TrytellingGeneralElectricnottoputtheGEnameonanewproductandyou’llbegintoappreciatetheenormityofthecorporateegoproblem.)OnereasonwhytheprinciplesofnameselectionremainsoelusiveistheCharlesLindberghsyndrome.

Ifyougetintothemindfirst,anynameisgoingtowork.Ifyoudidn’tgettherefirst,thenyouareflirtingwithdisasterifyoudon’t

selectanappropriatename.

DivideandconquerToillustratetheadvantagesofseparatenamesratherthanhousenames,comparethestrategiesofProcter&GamblewiththoseofColgate-Palmolive.

thestrategiesofProcter&GamblewiththoseofColgate-Palmolive.You’llfindmanyhousenamesintheColgate-Palmoliveline.Tonameafew:

Colgatetoothpaste,Colgatetoothbrushes,PalmoliveRapidShave,Palmolivedishwashingliquid,Palmolivesoap.

Youwon’tfindanyhousenamesintheProcter&Gamblelineup.Procter&Gamblecarefullypositionseachproductsothatitoccupiesauniquenicheinthemind.Forexample:Tidemakesclothes“white.”Cheermakesthem“whiterthanwhite.”AndBoldmakesthem“bright.”

WithfewerbrandsProcter&GambledoestwiceasmuchbusinessandmakesfivetimesasmuchprofitasColgate-Palmolive.

Whileit’sfashionableonMadisonAvenuethesedaystopooh-poohProcter&Gambleadvertising,it’sinterestingtonotethatProcter&GamblemakesmoremoneyeveryyearthanallofAmerica’s6000advertisingagenciescombined.

AnewproductneedsanewnameWhenareallynewproductcomesalong,it’salmostalwaysamistaketohangawell-knownnameonit.

Thereasonisobvious.Awell-knownnamegotwellknownbecauseitstoodforsomething.Itoccupiesapositionintheprospect’smind.Areallywell-knownnamesitsonthetoprungofasharplydefinedladder.

Thenewproduct,ifit’sgoingtobesuccessful,isgoingtorequireanewladder.Newladder,newname.It’sassimpleasthat.

Yetthepressurestogowiththewell-knownnameareenormous.“Awell-knownnamehasbuilt-inacceptance.Ourcustomersandprospectsknowusandourcompany,andtheywillbemorelikelytoacceptournewproductifwehaveournameonit.”Thelogicoflineextensionisoverwhelmingandsometimesverydifficulttorefute.

Yethistoryhasdestroyedthisillusion.Xeroxspentalmostabilliondollarsforaprofitablecomputercompanywith

aperfectlygoodname,ScientificDataSystems.ThenwhatdidXeroxdo?Ofcourse,theychangedthenameofthecompanyfromScientificDataSystemstoXeroxDataSystems.

Why?ObviouslybecauseXeroxwasthebetterandmorewidelyknownname.Andnotonlybetterknown,butXeroxhadamarketingmystique.AcorporateCinderella,Xeroxcoulddonowrong.

Theteeter-totterprinciple

Whenyoulookintotheprospect’smind,youcanseewhatwentwrong.It’stheteeter-totterprinciple.Onenamecan’tstandfortwodistinctly

differentproducts.Whenonegoesup,theothergoesdown.Xeroxmeanscopier,notcomputer.(Ifyouaskedyoursecretarytogetyoua

Xeroxcopy,you’dbeupsetifyougotareelofmagtape.)EvenXeroxknewthis.“ThisXeroxmachinecan’tmakeacopy,”saidtheheadlineofoneoftheircomputerads.

YouknewthatanyXeroxmachinethatcouldn’tmakeacopywasheadedfortrouble.WhenXeroxfoldeditscomputeroperations,itwroteoffanadditional$84.4million.

What’saHeinz?Itusedtomeanpickles.Heinzownedthepicklepositionandgotthelargestshare.

ThenthecompanymadeHeinzmeanketchup.Verysuccessfullytoo.HeinzisnowtheNo.1brandofketchup.

Butwhathappenedtotheothersideoftheteeter-totter?Why,ofcourse,HeinzlostitspickleleadershiptoVlasic.

Tobesuccessful,XeroxwouldhavehadtomakeXeroxmeancomputers.DoesthismakesenseforacompanylikeXeroxthatownsthecopier

position?Acompanythatgetsmostofitsvolumefromcopiers?Xeroxismorethananame.It’saposition.LikeKleenex,Hertz,andCadillac,

Xeroxrepresentsapositionofenormouslong-termvalue.It’sbadenoughwhensomeonetriestotakeyourpositionaway.It’stragic

whenyoudoittoyourself.

AnonymityisaresourceOnereasonwhycompanieskeeplookingforafreerideisthattheyunderestimatethevalueofanonymity.

Inpolitics,inmarketing,inlife,anonymityisaresource,easilysquanderedbytoomuchpublicity.

“Youcan’tbeatsomebodywithanobody,”goestheoldpoliticalsaying.Buttodayyoucan.

Therapidriseofa“nobody”likeGaryHartisproofthatpoliticsisadifferentgametoday.Theoldmaximsarenolongervalid.

RichardNixonmaybethebest-knownpoliticalnameintheworld.Butalmostanynobodycouldbeathim.

Publicityislikeeating.Nothingkillstheappetitequiteasmuchasaheartymeal.Andnothingkillsthepublicitypotentialofaproductorapersonquiteasmuchasacoverstoryinanationalmagazine.

muchasacoverstoryinanationalmagazine.Themediaareconstantlylookingforthenewanddifferent,thefreshyoung

face.Indealingwithmedia,youmustconserveyouranonymityuntilyouareready

tospendit.Andthenwhenyouspendit,spenditbig.Alwayskeepinginmindthattheobjectiveisnotpublicityorcommunicationforitsownsake,butpublicitytoachieveapositionintheprospect’smind.

Anunknowncompanywithanunknownproducthasmuchmoretogainfrompublicitythanawell-knowncompanywithanestablishedproduct.

“Inthefutureeveryonewillbefamousfor15minutes,”AndyWarholoncepredicted.

Whenyour15minutesarrive,makethemostofeverysecond.

12Theline-extensiontrap

Whenthemarketinghistoryofthepastdecadeiswritten,thesinglemostsignificanttrendwillhavetobelineextension.Thatis,takingthenameofanestablishedproductandusingitonanewone.(Thefree-ridetrapcarriedtoitsultimateconclusion.)Dialsoap,Dialdeodorant.

LifeSaverscandy.LifeSaversgum.Kleenextissue.Kleenextowels.Lineextensionhassweptthroughtheadvertisingandmarketingcommunity

likeShermanthroughGeorgia.Andforsomeverysoundreasons.Logicisonthesideoflineextension.Argumentsofeconomics.Trade

acceptance.Consumeracceptance.Loweradvertisingcosts.Increasedincome.Thecorporateimage.

lnside-outthinkingLogicisonthesideoflineextension.Truth,unfortunately,isnot.

Lineextensionisaresultofclear,hard-headed,inside-outthinkingthatgoessomethinglikethis:

“WemakeDialsoap,agreatproductthatgetsthebiggestshareofthebar-soapmarket.WhenourcustomersseeDialdeodorant,they’llknowitcomesfromthemakersofthegreatDialsoap.”

“Furthermore,”andthisistheclincher,“Dialisadeodorantsoap.Ourcustomerswillexpectustoproduceahigh-qualityunderarmdeodorant.”Inshort,DialsoapcustomerswillbuyDialdeodorants.

Notice,however,howtherationalechangeswhenthelineextensionisinthesamecategory.

Bayer“invented”aspirinandmarketedtheleadingbrandofanalgesicformanyyears.ThepeopleatBayercouldn’tfailtonoticetheprogressmadebythe“anti-aspirin”approachusedbyTylenol.

SoBayerintroducedanacetaminophenproductcalled“Bayernonaspirinpainreliever.”PresumablypeoplewhohadbeenbuyingTylenolandotheracetaminophenproductswouldnowswitchbacktoBayer,theleadingnameinheadacheremedies.

Butneitherstrategyworked.Dialhasalargeshareofthesoapmarketandaverysmallshareofthe

Dialhasalargeshareofthesoapmarketandaverysmallshareofthedeodorantmarket.

AndBayernonaspirinnevergotmorethanatinyshareoftheacetaminophenmarket.

Outside-inthinkingLet’slookatlineextensionfromthepointofviewoftheprospectandworkbackward.

BothDialandBayerholdstrongpositionsinsidetheprospect’smind.Butwhatdoesitmeantoownapositioninthemind?Simplythis:Thebrand

namebecomesasurrogateorsubstituteforthegenericname.“WhereistheBayer?”“HandmetheDial.”Thestrongertheposition,themoreoftenthissubstitutiontakesplace.Some

brandsaresostrongtheyarepracticallygeneric.Fiberglas,Formica,Jell-O,Kleenex,Band-Aid,Sanka.“Generic”brandnamesare,ofcourse,closetotheedge,sotheyhavetobehandledcarefullyorUncleSamwilltakeyourgoodiesaway.

Fromacommunicationpointofview,thegenericbrandnameisveryefficient.Onewordservesinplaceoftwo.Whenyouhaveagenericbrandname,youcanaffordtoignorethebrandandpromotethecategory.

“Coffeekeepsyouawake?DrinkSanka.”“Serveyourfamilylow-calorieJell-Oinsteadofcakeorpie.”Fromtheprospect’spointofview,lineextensionworksagainstthegeneric

brandposition.Itblursthesharpfocusofthebrandinthemind.Nolongercantheprospectsay“Bayer”ifheorshewantsaspirin.Or“Dial”forsoap.

Inasense,lineextensioneducatestheprospecttothefactthatBayerisnothingbutabrandname.ItdestroystheillusionthatBayerisasuperiorformofaspirin.OrthatDialisdeodorantsoapratherthanjustabrandnameforadeodorantsoap.

JCPenneyvs.DieHardWhatactuallygetsdrivenintothemindisnottheproductatallbutthe“name”oftheproduct,whichtheprospectusesasahooktohangattributeson.

SoifthenameoftheautomobilebatteryistheDieHardandSearstellsyouthatitwilllast48months,youhaveahook(DieHard)tohangthelong-lastingideaon.

ButifthenameofthebatteryistheJCPenneybatteryandtheretailertells

ButifthenameofthebatteryistheJCPenneybatteryandtheretailertellsyouitneverneedswater,youhaveaveryweakhook(JCPenney)tohangthisfeatureon.

Inaphysicalsense,thenameisalsolikethepointofaknife.Itopensupthemindtoletthemessagepenetrate.Withtherightname,theproductfillsthecreneauandstaysthere.

SowhywouldJCPenneycallittheJCPenneybattery?PresumablytherewereothercommunicativewordslikeDieHardavailable.

It’seasytoseewhyifyouapply“inside-out”thinking.“We’retheJCPenneycompany.We’rehighlyrespectedamongallkindsofbuyersincludingbatterybuyers.We’llputourownnameontheproductsothateveryonewillinstantlyknowwhomadeitandthatit’sanexceptionallygoodproduct.”

Thentheclincher.“WiththeJCPenneynameonthebattery,theprospectwillknowwheretobuyit.”

“Terrificthinking,J.C.”Andanotherlogicalinside-outdecisionismade.Butwhenthetablesareturned,thenamemakesnosensebecausethemindof

theprospectisorganizeddifferently.Theprospectthinksintermsofproducts.Itshouldcomeasnosurprisethatintermsofbrandpreference(thebattery

ladderinthemindoftheprospect)theDieHardsitsonthetoprungandJCPenneyiswaydowntheline.

Butdoesn’tabigretailerlikeJCPenneysellalotofbatteries?Ofcourse,butaseveryoneknows,manyproductswiththewrongnamearesold“inspiteof”ratherthan“becauseof.”

Ontheotherhand,doesn’ttheprospecthavedifficultyrememberingthattheDieHardbatterycanonlybeboughtatSears?Yes,itisaproblemforSearsandnoteveryonewhomightwanttobuytheDieHardwillbeabletomaketheconnection.Butit’sbettertoestablishapositionintheprospect’smindfirstandthenworryabouthowtoestablisharetailconnectionlater.

Inpositioning,theshortestdistancebetweentwopointsisnotnecessarilythebeststrategy.Theobviousnameisn’talwaysthebestname.

Inside-outthinkingisthebiggestbarriertosuccess.Outside-inthinkingisthebestaid.

TwowaysoflookingatthenameTheconsumerandthemanufacturerseethingsintotallydifferentways.

WouldyoubelievethattothefolksdowninAtlanta,Coca-Colaisnotasoftdrink?Tothemanufacturer,Coca-Colaisacompany,abrandname,an

institution,andagreatplacetowork.Buttotheconsumer,Coca-Colaisasweet,dark,carbonatedbeverage.

What’sintheglassisCoke.It’snotacoladrinkmanufacturedbyacompanycalledCoca-Cola.

ThetabletsinabottleofaspirinareBayer.NotaspirinmanufacturedbyacompanycalledBayer.(Thecompanyname,ofcourse,isSterlingDrug,notBayer.SoBayernonaspirincouldjustaslogicallyhavebeencalledSterlingnonaspirin.)Thegreatstrengthofagenericbrandnameisthiscloseidentificationwiththeproductitself.Intheconsumer’smind,Bayerisaspirinandeveryotheraspirinbrandbecomes“imitationBayer.”

TheCoca-Colaslogan,“Therealthing,”capitalizesonthetendencyoftheprospecttoputthefirstproductintothemindonapedestalandtotreattheme-tooproductsassomehowinferiortotheoriginal.

IfCokeorKleenexorBayerisnotavailableorifotherbrandsarecheapenough,thentheprospectmightbuysomethingelse.ButBayerwouldstillownastrongpositioninthemind.

Butnoticewhathappenswhenthesamecustomerisaskedtobuyaproductcalled“Bayernonaspirin.”IfBayerisaspirin,howcanBayeralsobenonaspirin?

Bayertimed-releaseaspirin,Bayerdecongestantcoldtablets,Bayernonaspirinpainreliever.EachextensionoftheBayerlineundercutsthebrand’saspirinposition.

Asyoumightexpect,Bayer’stotalshareoftheanalgesicmarketkeepsfalling.

What’saProtein21?Perhapstheclassicexampleoftheline-extensiontrapiswhathappenedtoProtein21shampoo.

AnumberofyearsagotheMennencompanyintroducedacombinationshampoo/conditionercalledProtein21,whichrapidlycarvedouta13percentshareoftheshampoomarket.

ThenMennenhittheline-extensionlure.Inrapidsuccession,thecompanyintroducedProtein21hairsprayinregularandextrahold,scentedandunscented.AlsoProtein21conditioner(intwoformulas)andProtein21concentrate.Andtomakesureyoucan’trememberwhattoputonyourhair,MennenalsomarketsProtein29.Formen.

NowonderProtein21’sshareoftheshampoomarkethasfallenfrom13percentto2percent.Andthedeclineisboundtocontinue.

percentto2percent.Andthedeclineisboundtocontinue.Butasincredibleasitmayseem,lineextensionscontinuetosweepthe

packagedgoodsfield.

What’saScott?TakethepositionofScottinpaperproducts.Scotthasthelion’sshareofthebillion-dollarmarketfortowels,napkins,toilettissues,andotherconsumerpaperproducts.ButScottwasweakwheretheythoughttheywerestrong.

ScotTowels,ScotTissue,Scotties,Scotkins,evenBabyScottdiapers.AllofthesenamesunderminetheScottfoundation.ThemoreproductshungontheScottname,thelessmeaningthenamehastotheaverageconsumer.

TakeScotTissue,forexample.ScotTissuewastheNo.1brandinthetoilet-tissuemarket.ThenMr.WhippleandhistissuesqueezersatProcter&Gamblemovedin.NowScotTissueissecondtoCharmin.

InScott’scase,alargeshareofmarketdidn’tmeantheyownedtheposition.Moreimportantisalargeshareofmind.Theconsumercouldwrite“Charmin,Kleenex,Bounty,andPampers”onashoppinglistandwe’dknowexactlywhatproductsheorshewasgoingtoget.“Scott”onashoppinglisthasnomeaning.

Theactualbrandnamesaren’tmuchhelpeither.Whichbrand,forexample,isengineeredforthenose,ScottiesorScotTissue?

Inpositioningterms,thenameScottexistsinlimbo.Itisn’tfirmlyensconcedonanyproductladder.

Scotthasbeguntoseetheerrorofitsways.Vivapapertowels,aScottbrand,isawinner.SoisGottonellebathroomtissue.

What’saLifeSaver?LifeSaversgumisanotherexampleoflineextensionthatwentnowhere.

Again,thelogicisonthesideoflineextension.InanarticleinTheNewYorkTimes,LifeSavers’executivevicepresidentexplainedthestrategy:“Iamconvincedthatonewaytoimprovetheoddsisbytransferringanexistingstrongnametoanewproductrequiringsimilarattributes.”

ThenheexplainstheattributesofLifeSaverscandy:“OurconsumerdialogueindicatesthattheLifeSaversbrandnameconveysmorethanmerelythecandywiththehole.Italsomeansexcellenceinflavor,outstandingvalue,anddependablequality.”

Notexactly.Howmanypeoplewouldhavesaid“LifeSavers”ifyouaskedthem,“Whatbrandmeansexcellenceinflavor,outstandingvalue,anddependablequality?”None.

Nowwhatifyouaskthem“What’sthenameofthecandywiththehole?”

Nowwhatifyouaskthem“What’sthenameofthecandywiththehole?”Mostpeoplewouldsay“LifeSavers.”SowhathappenedtoLifeSaversgum?Theproductnevergotmorethana

fewpercentofthemarket.Oneofthosebrandsyouwon’tseeanymorebecauseitwasquietlykilled.

Asthetelevisioncommercialsusedtosay,“It’sagreatproduct,butwhere’sthehole?”

Thehole,ofcourse,isnotintheproductatall.It’sinthemarketingstrategy.Ironically,LifeSavers,Inc.hasabigsuccessinthegumfield.Thebubble

gumfield.No,itwasn’tLifeSaversbubblegum.It’sBubbleYum.Thefirstbrandofsoftbubblegum.(Theadvantageof

beingfirstplustheadvantageofnotusingaline-extensionname.)BubbleYumisarunawaysuccess.SalesalreadyexceedthoseofLifeSaverscandy.

NotonlyisBubbleYumthelargest-sellingbrandofbubblegum,it’slikelytobecomethelargest-sellingbrandofchewinggumofanytype.

What’sanEveready?Manycompaniesfindthemselvesinroughwaterwhennewtechnologiesrocktheirboats.

Eveready,aproductofUnionCarbide,dominatedthebatterymarketwhenflashlightsweretheprincipalapplication.Thencamethetransistorandwithitahostofnewproductsincludingtaperecordersandmorepowerfulradios.And,ofcourse,thelonger-lastingalkalinebatteries.

P.R.MallorysawtheopportunityandintroducedtheDuracellalkalinebatteryinadistinctiveblackandgoldcase.

ThefolksatUnionCarbidepooh-poohedtheideaofanewname.“We’vealreadygotthebestnameinthebatterybusiness,”theysaid.

Buttohedgetheirbets,theUnionCarbidepeoplecopiedtheDuracellblackandgoldcolorscheme.Andgavethewords“alkalinepowercell”moreprominencethantheEvereadytrademark.

TheDuracellbatteryjustsaysDuracellinboldtype.Itdoesn’tneedtosay“alkalinepowercell”becauseDuracellmeansalkalinepowercell.

This,ofcourse,istheessenceofpositioning.Tomakeyourbrandnamestandforthegeneric.Sotheprospectfreelyusesthebrandnameforthegeneric.

FinallytheUnionCarbidepeoplegaveupanddecidedtocopytheDuracellapproach.TheEvereadyalkalinepowercellbecametheEnergizerwhichfinallyisgivingDuracellarunforitsmoney.

isgivingDuracellarunforitsmoney.Lineextensionseemssointuitivelyrightthatcompanyaftercompanyfalls

intothetrap.Examplesarenothardtofind.They’reasagaofopportunitiesmissed.

The100-mmdudWhat’sthenameofthefirstextra-long,100-mmcigarette?

Benson&Hedges,right?It’sthebest-knownandlargest-selling100-mmbrand.

“ThedisadvantagesofBenson&Hedges”launchedthebrandandburnedthenameintothemindofthecigarettesmokers.

Benson&Hedgesbecameknownasthefirst,theoriginal,theinventorofthe100-mmconcept.

But,ofcourse,itwasn’t.Thefirst100-mmcigarettewasPallMallGold,butPallMallfellintotheline-extensiontrap.

ThenBenson&Hedgesmovedinandpreemptedthelong-cigaretteposition.You’dthinkthemissedopportunityrepresentedbyPallMallGoldwould

havediscouragedthem.Butitdidn’t.Aswesaid,thelogicinfavoroflineextensionis

overwhelming.SonowwehavePallMallMenthol,PallMallExtraMild,andPallMall

Light100s.TheconfusionhasdetractedfromsalesofthebasicPallMallbrand.TakePallMallMenthol,forexample.Again,thelogicisunassailabletothe

manufacturer.“MentholcigaretteslikeKoolandSalemaregettingalargerandlargershareofthemarket.…Ifwehadamentholbrand,wecouldcaptureashareofthatgrowingmarket.”

IntroducingPallMallMenthol.Whichneverachievedmorethan7percentofthevolumeofKool.

In1964PallMallwastheNo.1cigarettebrandintheUnitedStates.In1965PallMallline-extendedforthefirsttime.Theyalsofelltosecond

placeinsales.Everyyearsince,PallMall’sshareoftheAmericancigarettemarkethasdeclined.

From14.4percentin1964to3.8percenttoday.Line-extensionlogicincigarettesshouldworktwoways.Sinceregular

brandsrepresentalargeshareofthemarket,wouldyouintroduceaKoolnonmenthol?

Ofcoursenot.Koolwastheoriginalmentholcigarette.Koolmeansmenthol.

LikeBayermeansaspirin.Todayawell-stockedtobaccoshopwillcarrywellover100differentbrands

(includinglineextensions)outofanindustrythatproducesintheneighborhoodof1.75brands.Itbogglesthemind.

Naturally,thetwoleadingbrands,MarlboroandWinston,havelongsinceline-extendedthelights,100-mm,andmenthol.Soaccordingtothetheory,canyouexpecttoseetheMarlboroandWinstonbrandsfollowinPallMall’ssteps?Perhaps.Butinthelandoftheblind,theone-eyedmanisking.

Whatbrandsarelefttochallengetheleaders?Almostallmajorcigarettebrandshavebeenline-extendedtodeath.

ConfusionincornoilsWhat’sthenameofthefirstcorn-oilmargarine?

Fleischmann’sistheleadingbrandofcorn-oilmargarineandthebiggestseller.

Butthefirstcorn-oilmargarinewasMazola.Aclassicexampleoflogicleadingyouastray.

Mazolawasthenameoftheleadingbrandofliquidcornoil.Whatmorelogicalchoiceforacorn-oilmargarinethanMazola?Mazolacornoil.Mazolacorn-oilmargarine.Andtherestishistory.

Fleischmann’sistheNo.1brandtoday.Oddlyenough,Fleischmann’smargarine,ifyouwanttogettechnical,isa

line-extendedname.RememberFleischmann’syeast?FortunatelyforFleischmann’s,fewpeopledobecausefewpeoplebaketheirownbreadtoday.

AndthenthereisFleischmann’sgin,vodka,andwhisky,alsofromthesamecompany.Theconfusionfactorisminimizedbecauseofthementaldistancebetweenaliquorproductandamargarine.(WhoreallybelievesthatCadillacdogfoodismadebyGeneralMotors?)

Thecoffee-cupcaperAnothermissedopportunitytookplaceinthefreeze-driedcoffeefield.TodayTaster’sChoiceistheleadingbrandandthelargestseller.

Butwhatwasthenameofthefirstfreeze-driedcoffee?Maxim.Sowhyisn’tMaximtheNo.1brand?It’sastoryofintrigueandcouragethatmightbeworthtellinginmoredetail.

WithitsMaxwellHousebrand,GeneralFoodsownedthecoffeemarket.Thecompanygotthelargestshareandmadethemostmoney.Thenitinventedanewprocesscalled“freeze-driedinstant.”

processcalled“freeze-driedinstant.”OnthesurfacethisseemedtobeawayforGeneralFoodstoincreaseits

shareofthecoffeemarket.Orwasit?GeneralFoods’openingmovewasgoodnewsforcompetition.Byusingthe

nameMaxim,aspinoffoftheMaxwellHousename,thecompanyinstantlybecamevulnerable.(Maxim,Maxwell,getit?Mostpeopledidn’t.)Maximisameaninglesswordthatdoesn’tconnoteabenefit.

TheNestlécounterattackwasnamedTaster’sChoice.Notonlywasthestrategicchoiceofthenamesuperb,butNestlé’sadvertisingwasjustaboutperfect.

“Tasteslikegroundroast,”saidtheTaster’sChoiceads,relatingthefreeze-driedcoffeebrandtothestandardofexcellence,ground-roastedcoffee.

Taster’sChoiceisthebigwinnerinthecoffee-cupcaper.InspiteofthefactthatGeneralFoodsinventedthefreeze-driedcategoryandwasfirstonthescene,Taster’sChoiceoutsellsMaxim2to1.

Thefickle-fingersaffairAnothermissedopportunityisknowninhandlotioncirclesas“thefickle-fingersaffair.”ThestorystartswithJergens,theNo.1brandwiththedominantshareofmarket.

First,thecompanyintroducedJergensExtraDry,acreamlikeproductinaneraofliquidlikelotions.JergensExtraDrywasreallyasignificantinnovationsmotheredbythesimilarityofnames.Theprospectdidn’trecognizethedifference.

Butthecompetitiondid.Chesebrough-Pond’sintroducedIntensiveCare.Nowforthefirsttime,the

newcreamlikelotionhadanamewhichpositionedtheproductclearlyintheconsumer’smind.Andtheproducttookoff.

Ofcourse,whenJergensrealizedwhatwashappening,theycounteredwithabrandcalledDirectAid.

ButitwastheoldstoryoftoolittleandtoolatebecausethemarketingvictorywenttoIntensiveCare.TodayIntensiveCareistheNo.1brand.ItoutsellsJergens,JergensExtraDry,andDirectAidcombined.

Butisn’tthebrandreallycalled“VaselineIntensiveCare,”aline-extendedname?

True,butcustomerscalltheproductIntensiveCare,notVaseline.InthemindoftheprospectVaselineispetroleumjelly;IntensiveCareisahandlotion.

oftheprospectVaselineispetroleumjelly;IntensiveCareisahandlotion.

ReverselineextensionWhilelineextensionisusuallyamistake,thereversecanwork.Reverselineextensioniscalled“broadeningthebase.”OneofthebestexamplesisJohnson’sbabyshampoo.

Bypromotingthemildnessoftheproducttotheadultmarket,thecompanyhasmadeJohnson’sbabyshampoooneoftheleadingbrandsofadultshampoo.

Noticethecharacteristicsofthisbroadening-the-basestrategy.Sameproduct,samepackage,samelabel.Onlytheapplicationhaschanged.

IfJohnson&Johnsonhadline-extendedtheproductandintroducedJohnson’sadultshampoo,theproductwouldnothavebeennearlyassuccessful.

AnotherexampleofbroadeningthebaseisBlueNun,awhitewinebeingpromotedasequallygoodwithmeatcoursesaswithfish.

Butaren’ttheseexamplesofthe“everybodytrap”?Notexactly.Johnson’sbabyshampooisthefirstandonlybabyshampoobeingpromotedasanadultproducttoo.AndBlueNunistheonlywhitewinebeingadvertisedasgoodwithmeataswellasfish.

Ifotherbrandstriedthesameapproach,theywouldn’tbenearlyassuccessfulasthesetwo.

AndthenthereisArm&Hammarbakingsoda,beingpromotedasgoodforrefrigeratorsanddrains.Verysuccessfullytoo.Butwhathappenedwhenthesamecompanyline-extendedwithArm&Hammer,thebakingsodadeodorant?

Verylittle.AsPhyllisDillersays,“Itonlyworksifyou’restandingintherefrigerator.”

13Whenlineextensioncanwork

Lineextensionispopular.Nodoubtaboutit.Atonepointintime,professionalbaseball,football,basketball,andtennis

teamsintheNewYorkCityareawereknownastheMets,Jets,Nets,andSets.Thecity’soff-trackbettingofficesputuppostersfeaturingtheNewYork

Bets.Ifthecityhadagymteam,presumablytheywouldbecalledtheNewYorkSweats.

Whystopthere?AstreetgangcouldbetheNewYorkGhetts.Cityplanners,theNewYorkDebts.

Fortunatelyforone’ssanity,thetrendseemstobeintheotherdirection.ThetennisteamchangeditsnamefromtheNewYorkSetstotheNewYorkApples.

Short-termadvantagesOneofthereasonsforthecontinuingpopularityoflineextensionisthatintheshortterm,lineextensionhassomeadvantages.

Let’ssaytherewasgoingtobeaprofessionalswimmingteaminNewYork.“HerecometheWets”mightbeatypicalnewspaperheadlineannouncingtheevent.Withoneword,“Wets,”weknowit’s(1)aprofessionalsportsteam,(2)locatedinthemetropolitanNewYorkarea,and(3)involvedinsomekindofwatersport.

Butthat’sonlyintheshortterm.Astheoriginalannouncementfadesinthemind,confusionsetsin.

IstherereallyaswimmingteamcalledtheWets?OrhaveIconfusedthemwithabasketballteamcalledtheNets?OrwasIthinkingaboutatennisteamcalledtheSets?Nowlet’ssee,theNetschangedtheirnametotheApples.OrwasittheSetsthatchangedtheirnametotheApples?

Becausetheline-extensionnameisrelatedtotheoriginalname,itachievesaninstantflashofunderstanding.“Ah,yes,DietCoca-Cola.”

Italsogeneratesaninstantflashofsales.WhenAlka-SeltzerannouncesanewproductlikeAlka-SeltzerPlus,everybodystocksuponit.Consumersaren’tnecessarilybuyingit,butretailersare.

Sotheearlysalesfigureslookgood.(Tobook$1millionworthofbusiness,youonlyhavetosell$35worthtoeverysupermarket.)Businesslooksgreatthefirst6monthsasyoufillthepipelines.Butwhenthereordersdon’tcomein,all

first6monthsasyoufillthepipelines.Butwhenthereordersdon’tcomein,allofasuddenthingsturndark.

Long-termdisadvantagesAftertheinitialrecognitionofaline-extensionbrand,theprospectisneverquitesurethereissuchaproduct.

SchlitzLight,PallMallExtraMild,JergensExtraDry.Brandnamesliketheseslideinto(andoutof)themindeffortlessly.Theyrequirealmostnomentalworkonthepartoftheprospect.

Easycome,easygo.Line-extensionnamesareforgettablebecausetheyhavenoindependentpositioninthemind.Theyaresatellitestotheoriginalbrandname.Theironlycontributionistoblurthepositionoccupiedbytheoriginalname.Oftenwithcatastrophicresults.

Waybackinthethirties,theRalstonPurinaCompanywasrunningradiocommercialsfor“Ralston1,2,3.”OnewasShreddedRalston.TwowasRegularRalston.ThreewasInstantRalston.

One,two,three,they’reallgone.AndthelegendaryDavidOgilvybrokehispencilwritingadvertisements

combiningRinsoWhitewithRinsoBlue.SaraLeetriedtogetintothefrozendinnerfieldwithproductslikeSaraLee

Chicken&NoodlesAuGratinandSaraLeeBeef&PepperStew.SaraLeeownsthedessertposition.Nobodydoesn’tlikeSaraLee,butthere

werealotofpeopleouttherewhodidn’tlikethechicken&noodlesaugratin.Anddidn’tbuyit.EspeciallywiththenameSaraLeeonit.

SothekitchensofSaraLeecameinoutofthefrozenentreefield.Afterdroppingsome$8millionontheproject.

Almosteverybodyhastriedlineextension.SaturdayReviewMagazinetriedtopublishinfourdifferentflavors—TheArts,Science,Education,TheSociety.A$17millionloss.

LeviStraussandBrownShoetriedtolaunch,wouldyoubelieve,“Levi’sforFeet.”Leviis,byfar,themarketleaderinjeans,butthistimetheybootedit.

ThenthereisAvisflowers,Zenithwatches,OldGrand-Dadtobacco,Bicpantyhose,Kleenexdiapers.

AlsoPierreCardinwine.Inbothredandwhite,ofcourse.AndChanelforMen.

“Two”seemstobeapopularline-extensionconcept.WehaveAlka-2,Dial2,Sominex2,aswellasJaws2.(Almostneverhasamotionpicturesequelgeneratedasmuchbusinessastheoriginal.)Evenadvertisingagencieshave

generatedasmuchbusinessastheoriginal.)Evenadvertisingagencieshavejumpedintotwos.Ogilvy&Mather2,DoyleDaneBernbach2,N.W.Ayer2,andGrey2,tonameafewtwos.

ButthemostshockingannouncementofallcamefromProctor&Gamble.Afterdecadesofresistingtheline-extensionfad,P&Gspent$50milliontointroduceLiquidTide.“WeexpectLiquidTidetobetheNo.1liquid,”saidaP&Gspokesperson.

ButLiquidTideisunlikelytotoppletheindustryleader,Wisk.Furthermore,thenewproductissuretocannibalizeTidepowder.

Theshopping-listtestTheclassictestforlineextensionistheshoppinglist.

Justlistthebrandsyouwanttobuyonapieceofpaperandsendyourspousetothesupermarket:Kleenex,Bayer,andDial.

That’seasyenough.MosthusbandsorwiveswouldcomebackwithKleenextissue,Bayeraspirin,andDialsoap.

LineextensionslikeKleenextowels,Bayernon-aspirin,andDialantiperspirantshavenotdestroyedthebrands’originalpositions.Yet.Butgivethemenoughtimetohangthemselves.

Howaboutthislist:Heinz,Scott,Kraft.WillyourspousebringbackHeinzpicklesorketchup(orperhapsbaby

food)?Scotttissueortowels?Kraftcheese,mayonnaise,orsaladdressing?Theconfusioncausedwhenonenamestandsformorethanoneproductis

slowlybutsurelysappingthestrengthofbrandslikeScottandKraft.Likeastarthat’soverexpanded,thebrandeventuallybecomesaburned-out

hulk.Anenormousmarketingwhiteelephant.Whatmakeslineextensionsoinsidiousisthatthediseasetakesmanyyearstoexactitstoll.Manyyearsofslow,debilitatingexistence.

TakeKraft.Afamousnamewhichsuffersfromterminallineextension.What’saKraft?It’severythingandyetit’snothing.Inalmostnocategories

istheKraftbrandnumberone.Inmayonnaise,KraftissecondtoHellmann’s.Insaladdressing,KraftissecondtoWishbone.

WhereKraftcohastheleadingbrandinacategory,theydon’tcallitKraft.Increamcheese,it’sPhiladelphia,notKraft.Inicecream,it’sSealtest,notKraft.Inmargarine,it’sParkay,notKraft.WhereisthestrengthoftheKraftname?It’stoodiffuse.Kraftmeans

everythingandnothing.Lineextensionisaweakness,notastrength.Whataboutcheese?SurelyKraftisastrongnameincheese.Anditis.

Whataboutcheese?SurelyKraftisastrongnameincheese.Anditis.“America,”saytheads,“spellscheeseK-R-A-F-T.”Terriblespellingand

terriblestrategy.Marketingislikehorseracing.Thewinninghorseisnotnecessarilyagood

horse.Italldependsontheabilityofthehorsesintherace.Inaclaimingrace,thewinneristhebestoftheworst.Inastakesrace,thebestisthebest.

Krafthasbeensuccessfulincheese.Now,namealltheothercheesebrandsyouknow.

Kraftisawinnerinaclaimingrace.Wheretherearenobrandsorweakbrands,youcanline-extend.Butassoon

asstrongcompetitionarrives,you’reintrouble.

ThebartendertestInadditiontotheshoppinglisttest,there’sthebartendertest.Whatdoyougetwhenyouorderthebrandbyname?

“J&Bontherocks”shouldgetyouscotch.“ABeefeatermartini”shouldarrivewithgin.And“abottleofDomPerignon”willdefinitelygetyouchampagne.

Whatabout“Cuttyontherocks”?You’llgetscotch,ofcourse,butwillyougetCuttySarkorthemoreexpensive12-year-oldCutty12?

Cutty12isatypicalexampleoftwistedthinking.Combineawell-knownname(Cutty)withadescriptiveadjective(12).Verylogicalfromthepointofviewofthedistillery.Butwhataboutthepointofviewofthedrinker?

Whenyouorder“Chivasontherocks,”youleteveryoneknowyouwantthebest.ChivasRegal.

TogetCutty12,youcan’tjustsay“Cutty.”Andwhenyouaddthe“12,”you’reneverquitesurewhetherthebartenderheardyouor,justasimportant,whetherthepeoplearoundyouheardthe“12.”

NordoesthepromotionofCutty12helptheoriginalCuttySarkbrand.It’saconstantremindertotheCuttySarkdrinkerthatheorsheisdrinkingalower-qualityproduct.

Cutty12gotintotheballgameafterChivasRegal,soweshouldn’thaveexpectedmuch.Buttherewasa12-year-oldbrandofscotchintheU.S.marketwellbeforeChivas.

JohnnieWalkerBlackLabel.Today,ofcourse,ChivasRegaloutsellsJohnnieWalkerBlackLabelbya

considerablemargin.“GivemeaJohnnieWalkerwithasplash,bartender.”

“GivemeaJohnnieWalkerwithasplash,bartender.”“BlackLabelorRedLabel,sir?”“Aaaaaaaaaaah…thehellwithit.MakeitaChivas.”Cutty12andJohnnieWalkerBlackLabelarestep-upexamplesofline

extension.Theyusuallyresultinanemicsalesatthehigher-pricedend.(Whowantstopaypremiumpricesforalow-pricename?)

What’saPackard?Thestep-downproblemisjustthereverse.Step-downproductsareofteninstantlysuccessful.Thehangovercomeslater.

BeforeWorldWarIIPackardwasthepremierAmericanautomobile.MoresoeventhanCadillac,itwasastatussymbolesteemedallovertheworld.

HeadsofstateboughtarmoredPackards.OnewasmadeforFranklinRoosevelt.LikeRolls-Royce,Packardloftilydeclinedtheannualmodel-changepolicyoflessermakers.Theypositionedthemselvesabovethepack.

Theninthemiddlethirties,Packardintroducedtheirfirststep-downmodel,therelativelyinexpensivePackardClipper.

ThePackardClipperwasthemostsuccessfulcarPackardeverbuilt.Saleswereterrific,butitkilledthecompany.(Ormoreprecisely,itkilledPackard’sprestigeposition,whichinturnkilledthecompany.)Packarddriftedalonguntil1954whenStudebakerabsorbedthecompany.Theendoftheroadcameyearslater.

What’saCadillac?WhatdoyouknowaboutCadillac?Howlongisit?Whatcolorsdoesitcomein?What’sthehorsepoweroftheengine?Whatoptionsareavailable?

Totheaverageautomobileprospect,GeneralMotorshassucceededincommunicatingalmostnothingaboutCadillac.Exceptitspositionasthetop-of-the-line,domesticluxuryautomobile.

ButevenGeneralMotorssometimesforgetsthatforeveryproducttherearetwopointsofview.Andmostline-extensionmistakesaremadebecausethemarketerdidnotappreciatethisfact.

What’saCadillac?Thismightsurpriseyou,butfromGeneralMotors’pointofview,aCadillacisnotanautomobileatall.It’sadivision.Asamatteroffact,it’soneofGM’smostprofitabledivisions.

Butfromthebuyer’spointofview,Cadillacisabigluxurycar.Youcanseetheproblem.

Becauseofthegasolinesituation,Cadillacisworried.Sotomaintainthat

Becauseofthegasolinesituation,Cadillacisworried.Sotomaintainthatprofitability,GeneralMotorshasintroducedasmallCadillac,theCimarron.Butinthelong-termamini-Cadillacconflictswiththebig-carpositionthatCadillacownsinthemind.

SotheprospectlooksattheCimarronandasks,“Isitorisn’titaCadillac?”Long-term,theCimarrongetsinthewayofthemosteffectiveanswertothe

challengeofsmallerluxurycarslikeMercedesandBMW.Toestablishasmallluxurybrand,GeneralMotorsneedsaseparatehigh-pricenameandaseparatedealerorganization.

What’saChevrolet?Forautomobilesaswellasotherproducts,youcanaskyourselfthatage-oldquestionandyou’llknowifyouhaveapositioningproblem.

Whatisit?Forexample,what’saChevrolet?It’sacarthat’sfallenintotheeverybody

trap.Bytryingtoappealtoeverybody,aproductwindsupappealingtonobody.What’saChevrolet?We’lltellyouwhataChevroletis.It’sabig,small,

cheap,expensivecar.O.K.,howcomeChevyisstillNo.1?Howcometheyhaven’tlosttheir

leadershiptoFord?Towhichwereply,“What’saFord?”Sameproblem.Fordisalsoabig,

small,cheap,expensivecar.Fordhasanotherproblem.NotonlyisFordanautomobilebrand.Fordisalso

acompany.AFordFordmightbeallright,butthereisarealproblemforthecompanyin

sellingFordMercurysorFordLincolns.(OnereasonwhytheFordMotorCompanyhasalwayshadahardtimesellinghigher-pricedcars.)

What’saVolkswagen?Aline-extensiontragedyusuallymovestoitsinevitableconclusioninthreeacts.

ActOneisthebigsuccess,thebigbreakthrough.Usuallytheresultoffindingawide-opencreneauandthenexploitingitbrilliantly.

Volkswagoninventedthesmall-carpositionandmovedrapidlytoexploitthebreakthrough.“Thinksmall,”perhapsthemostfamoussingleadvertisementeverrun,statedthepositioninnouncertainterms.

Veryquickly,theVolkswagenBeetleestablishedanexceptionallystrongpositionintheautomotivemarket.Likemostclassicsuccessstories,Volkswagenbecamemorethanabrandnameforaproduct.

Volkswagenbecamemorethanabrandnameforaproduct.“IdriveaVolkswagen”saysmorethanwhomadetheautomobiletheperson

owns.“IdriveaVolkswagen”sayssomethingabouttheowner’swayoflife.Ano-nonsense,practicalperson,self-confidentabouthisorherstatusinlife.Asimple,functionalpieceoftransportationequipment.

TheVolkswagenownerisareversesnob.Heorshelovestoputdownthecarbuyerwholovestoimpresstheneighbors.“The1970Volkswagenwillstayuglylonger”expressesthisattitudeperfectly.

ActTwoisfueledbygreedandvisionsofunendingsuccesses.SoVolkswagenextendsVolkswagenreliabilityandqualitytobigger,moreexpensivecars.Tobusesandjeep-typevehicles.

ActThreeisthedenouement.Isitpossiblethateightmodelswon’tsellaswellasone?It’snotonlypossible,ithappened.

Fromfirstplaceinimportedcars,Volkswagenfelltofourth.BehindToyota,Datson,andHonda.AndjustbarelyaheadofMazdaandSubaru.

Thepatternofearlysuccessfollowedbylineextensionfollowedbydisillusionmentisfairlycommon.Afterall,youcan’texpectcompanieslikeScottandVolkswagentorestontheirlaurels.You’dexpectthemtofindnewfieldstoconquer.Sohowdotheygoaboutfindingthem?Onewayisobvious.Theydevelopanewconceptoranewproductwithanewpositionandanewnametomatch.

AnameisarubberbandItwillstretch,butnotbeyondacertainpoint.Furthermore,themoreyoustretchaname,theweakeritbecomes.(Justtheoppositeofwhatyoumightexpect.)Howfarshouldyoustretchaname?Thisisaneconomicscallasmuchasajudgmentcall.

Let’ssayyouhavealineofcannedvegetables.Doyouhaveabrandnameforpeas,anotherforcorn,andstillathirdforstringbeans?Probablynot.Economically,itwouldn’tmakesense.

SoDelMonteisprobablyrighttousethesamebrandnameonitslineofcannedfruitsandvegetables.Butnoticewhathappenswhenacompetitorzeroesinonasingleproduct.TheDolelineofcannedpineapple.

Dolevs.DelMonteinpineappleisnocontest.Dolewinseverytime.SowhatdoesDoledonext?ItputstheDolenameonfreshbananas.The

Dolebanana.Let’ssayDoleissuccessfulinmakingDolemeanbananas.Sowhathappens

topineapple?It’stheteeter-totterprinciplewithbananasononesideandpineappleontheother.

pineappleontheother.Butcan’tDoledowhatDelMontedid?Becomeafull-linesupplierofcanned

andfreshfoodproducts?Sure,butonlyattheexpenseofsacrificingitsvaluablepineapplefranchise.

Andwiththeaddeddisadvantageofbeingthelasttoline-extend.

RulesoftheroadWecalllineextensiona“trap,”notamistake.Lineextensioncanworkif.…

Butit’sabigif.Ifyourcompetitorsarefoolish.Ifyourvolumeissmall.Ifyouhavenocompetitors.Ifyoudon’texpecttobuildapositionintheprospect’smind.Ifyoudon’tdoanyadvertising.

Thetruthis,manyproductsaresold,fewarepositioned.Thatis,thecustomerwillpickupacanofpeaswithouthavingagoing-in

preference,orposition,forabrandofpeas.Inthiscase,anywell-knownbrandnameisgoingtodobetterthananyunknownname.

Andifyouworkforacompanywiththousandsofsmall-volumeproducts(3Misatypicalexample),youobviouslycannothaveanewnameforeveryone.

Soweoffersomerulesoftheroadthatwilltellyouwhentousethehousenameandwhennotto.

1.Expectedvolume.Potentialwinnersshouldnotbearthehousename.Small-volumeproductsshould.

2.Competition.Inavacuum,thebrandshouldnotbearthehousename.Inacrowdedfield,itshould.

3.Advertisingsupport.Big-budgetbrandsshouldnotbearthehousename.Small-budgetbrandsshould.

4.Significance.Breakthroughproductsshouldnotbearthehousename.Commodityproductssuchaschemicalsshould.

5.Distribution.Off-the-shelfitemsshouldnotbearthehousename.Itemssoldbysalesrepsshould.

14Positioningacompany:Xerox

Youcanpositionanything.Aperson,aproduct,apolitician.Evenacompany.Whywouldanyonewanttopositionacompany?Whobuysacompany?And

whywouldacompanywanttosellitself?Towhom?(Toprotectthemselvesagainstunfriendlytakeovers,mostcompanieswouldliketobeinvisible.)

ThebuyingendsellingofcompaniesActually,alotofbuyingandsellingofcompaniesisgoingon.Onlyit’scalleddifferentnames.

Whenanewemployeeacceptsajob,heorshe“buys”thecompany.(Withitsrecruitingprograms,acompanyisactuallysellingitself.)

Whowouldyouratherworkfor,GeneralElectricortheSchenectadyElectricalWorks?

Everyyearcompaniesacrossthecountrycompetefortopgraduatesatthenation’sleadinguniversities.Whodoyouthinkgetsthecreamofthecrop?

That’sright.Thecompaniesthatoccupythebestpositionsinthemindsoftheprospectiveemployee.TheGeneralElectrics,theProcter&Gambles.

Andwheninvestorsbuyashareofstock,whattheyarereallypayingforisapieceofthatcompany’sposition,nowandinthefuture.

Howmuchapersoniswillingtopayforthatstock(sixorsixtytimesearnings)dependsonthestrengthofthatpositioninthebuyer’smind.

Positioningacompanyeffectivelyhaslotsofadvantagesifyouhappentobeanofficerordirectorofthatcorporation.It’snoteasy,though.

ThenameproblemagainFirstofall,thename.Especiallythename.WouldyoubelievethatPullmandoesn’thappentobemuchofafactorintherailroadcarbusinessanymore?

AndthatbusrevenuesrepresentonlyasmallpartofGreyhound’stotalsales.BothPullmanandGreyhoundhavechangeddrastically.Yetthewaytheyare

perceivedbythepublichasscarcelychangedatall.Theirnameshavelockedthemtotheirpastreputations.

Yettheyhavetried.EspeciallyGreyhound,whichhasspentmillionsofdollarstellingthefinancialcommunitythatitis“morethanabuscompany.”

dollarstellingthefinancialcommunitythatitis“morethanabuscompany.”Butaslongasthosebuseswiththelongslimdogsonthesidegozippingup

anddowntheinterstatehighways,thecorporateadvertisingisanexpensivemistake.IfGreyhoundwantstobemorethanabuscompany,itneedsanewname.A“morethanabuscompany”name.

Butevenwiththerightname,thecorporatepositioningjobisn’tdone.Yourcompany’snameoughttostandforsomethingwithinyourindustry.

StandingforsomethingConsiderFord.EveryoneknowsthatFordisanautomobilecompany.ButwhatkindofcarisaFord?

Fordcan’tbuildacorporatepositiononaspecifickindofcar,becauseitbuildstheminalltypesandallsizes,includingtrucks.(Whetheritshouldornotisanothermatter.)Sothepositioningquestionboilsdowntosomequalitytobefoundacrosstheboardinallvehicles.

Thecompanyhassettledon“innovation”asthekeyattributeinavehiclefromFord.Result:the“Fordhasabetteridea”campaign.

Notbad,butmanycorporateprogramssettleonamundaneandhackneyedapproach.Ofwhichthemostmundaneandhackneyed,perhaps,isonebasedonpeople.

“Ourpeopleareourgreatestresource.”“Gulfpeople:Meetingthechallenge.”“Grumman:We’reproudofthemanyproductswemake.We’reprouderof

thepeoplewhomakethem.”Aretherenodifferencesinqualitybetweenthepeopleinonecompanyand

thoseinanother?Ofcoursethereare.Butit’squiteanothermattertobuildapositionbasedon

betterpeople.Mostpeoplethinkthatthebigger,moresuccessfulcompanieshavethebetter

people.Andthesmaller,lesssuccessfulcompanieshavetheleftovers.Soifyourcompanyoccupiesthetoprungoftheproductladderinthe

prospect’smind,youcanbesurethattheprospectwillalsothinkthatyourcompanyhasthebestpeople.

Ifyou’renotontopandyoutelltheprospectyouhavethebetterpeople.…Well,that’soneofthoseinconsistenciesthatdoesn’tusuallygetresolvedinyourfavor.

IfFordreallyhasthebetterideas,whydoesn’titusetheminthemarketplacetoovertakeGeneralMotorsinsteadofusingtheminitsadvertisingtoimpressthepublic?

thepublic?Thisisnotaquestionoffact.(Fordcouldhavethebetterideasandstillbein

secondplace.)Thisisjustaquestionthatspringsupintheprospect’smind.Andyouradvertising,tobesuccessful,mustanswerthisquestion.

DiversificationisnottheanswerNextto“people,”themostcommoncorporatepositioningthemeis“diversification.”Companieswanttobecomeknownasdiversifiedmanufacturersofawiderangeofhigh-qualityproducts.

Butdiversificationisnoteffectiveasacorporateadvertisingapproach.Asamatteroffact,thetwoconceptsofpositioninganddiversificationarepolesapart.

It’safactoflifethatstrongpositionsintheprospect’smindarebuiltonmajorachievements.Notonbroadproductlines.

GeneralElectricisknownastheworld’slargestelectricalmanufacturer.Notasadiversifiedmakerofindustrial,transportation,chemical,andapplianceproducts.

EventhroughGeneralElectricmakesthousandsofconsumerandindustrialproducts,mostofitssuccessfulproductshavebeenelectricalones.Mostofitsunsuccessfuloneshavebeennonelectricalproducts.Computersbeingatypicalexample.

GeneralMotorsisknownastheworld’slargestbuilderofautomobiles.Notasadiversifiedmakerofindustrial,transportation,andapplianceproducts.

IBMhasareputationastheworld’slargestcomputermanufacturer.Notasaworldwidemanufacturerofmanytypesofofficemachines.

Acompanymaybeabletomakemoremoneybydiversifying.Itshouldthinktwice,however,abouttryingtobuildapositionbasedonthatconcept.

EventhestockmarketconsistentlyundervaluesconglomerateslikeITTandGulf&Western.(Manycompaniesareworthmorebrokenintopartsthantheyareworthwhole.)Sometimescompaniesthinktheyareconcentratingtheircommunicationeffortswhentheyarereallynot.Thepositioningconceptbecomessobroadthatitisalmostmeaningless.

Whichcompanyusedtocallitself“adeveloperandsupplierofinformationsystemsforwork,education,andentertainment?”

WouldyoubelieveBell&Howell?That’sright,Bell&Howell.Howdoyoudevelopaneffectivepositionforacompany?Let’slookat

Xerox,acompanythatseemstoalreadyhaveaposition.

What’sinXerox’smind?

What’sinXerox’smind?WhywouldXeroxwantaposition?Xeroxhasaposition.XeroxistheCoca-Colaofcopiers.

Quick,nameanothercopiercompany?Nothingjumpsintothemind,doesit?Sure,afterawhile,youprobablycanrememberthatSharp,Savin,Ricoh,Royal,andCanonmakecopiers.EvenIBMandKodakmakecopiers.

ButnobodyownsthecopierpositionthewayXeroxdoes.Thisisanenormousadvantageinsellingcopiers.Whenyouthinkyourcompanyneedsanothercopier,yourfirstthoughtisXeroxandyourfirsttelephonecallismostlikelytoXerox.

Sowhat’stheproblem?Xeroxseestheofficemarketmovingtowardsystems,especiallycomputer-basedinformationsystems.SoXeroxboughtScientificDataSystemsandsubsequentlychangedthenametoXeroxDataSystems.

“OurobjectiveinacquiringSDS,”saidthechairman,“wastoofferbroader-basedinformationsystems.Wefeelthattoreallyseizetheopportunitiesaroundtheworldforsupplyinginformation,wehadtobroadenoutfromgraphics,asIBMisbroadeningoutintographics.Peopleintheseventieswhocansaytoacustomer,‘Wecanhandleallyourinformationneeds,whetherfascimiletransmission,graphics,orwhatever,’willhaveanenormousadvantage.”

Sixyearslater,XeroxDataSystemsfolded.ButthelossofXDSdidn’tstopXeroxfromtryingtobroadenthecompany’sproductline.Xeroxwasstillcommittedtotheconceptofgoingbeyondcopiers.

Intheyearstocome,Xeroxintroducedaparadeofofficeautomationproducts.TheXTENnetwork,theEthernetnetwork,theStarworkstation,the820personalcomputer.“Nowtheindustrywillknowoursecretforcertain,”declaredaXeroxvicepresident.“WewanttobeNo.1inthismarket.”

What’sintheprospect’smind?IfXeroxwouldlookintothemindsofitsprospects,itwouldquicklyseethatmovingintoofficeinformationsystemsisnotinthecards.

ThetradepublicationInformationWeekrecentlysurveyedasampleofitssubscribers.(Themagazinehas100,000subscribers,80percentofwhomrepresentcompanieswith1000ormoreemployees.Itwouldseemthatthisistheheartoftheofficeautomationmarket.)Herearetheanswersgivenwhensubscriberswereasked,“Whichmanufacturersofofficeinformationsystemsareyoumostinterestedin?”

Xeroxdidn’tmakethecharts.WhatcanXeroxdo?OurmessagetoXeroxistostopfightingcopiers.You

can’tchangewhat’sintheprospect’smind.Startusingcopiers.Theycouldbeyourstrongestasset.Anassetinastrategic

warwithIBMandAT&T.

The“third-leg”strategyIt’sawayforXeroxtotakeadvantageofitsheritage.Aswithmanystrategies,it’shelpfultostepbackandgetasenseofwhathasbeengoingoninthemarketplace.

Let’slookfirstattheofficeofthepast.Thingsweresimplethen.Toputyourselfinbusiness,yougotatelephonefromAT&T,atypewriterfromIBM,andacopierfromXerox.

Nowlookattheofficeofthepresent.Alltheactionhasbeeninthetypewriterleg.Typewritershavebeensupplantedbycomputers.Thetelephoneandcopierlegshavehardlychangedatall.

Whatabouttheofficeofthefuture?Ifyoubelieveeverythingyouread,theofficeofthefuturewillhaveasinglelegconsistingofanofficeautomationsystemsuppliedbyasinglevendor.IBM,ofcourse,iseveryone’sbet.

Asaresult,everymanufacturerworthitscomputerischasingthis“singlevendor”idea.

Butsystemsdon’talwayssell.Thehigh-fidelityaudiosystemwasneversuppliedbyonevendorasconsumerspickedthereceiversandturntablesandtapeplayerstheywanted.

ThesamewentforthehomeentertainmentcenterandthedreamthatGEhadtosellallthemajorappliancesinthekitchen.Thewomanofthehousepickedherfavoritebrands.

Furthermore,eveniftheofficeofthefutureshouldturnouttobeonebigsystemsuppliedbyonebigmanufacturer,it’sunlikelythatXeroxwouldbeamajorfactor.

Therefore,Xeroxhasnothingtoloseandeverythingtogainbybettingona

Therefore,Xeroxhasnothingtoloseandeverythingtogainbybettingonadifferentscenario.

The“third-leg”scenarioisadifferentviewoftheofficeofthefuture.It’saviewthatseestheofficeofthefutureasstillhavingthreelegs.ThetelephonelegofAT&Tbecomesacommunicationlegwiththeadditionofvoicemailandfacsimileequipment.

ThetypewriterlegofIBMbecomesaninputorprocessinglegwiththeadditionofcomputers,workstations,andnetworks.ThequestioniswhatwillXeroxaddtothecopierleg?

Some“cross-log”difficultiesThere’sagooddealofevidencethatthemergingoflegsisnotthewayofthefuture.Historypointstothedifficultyofmany“cross-leg”activities.

TakeXeroxvs.IBM.(1)Xeroxhasnotbeenverysuccessfulwithcomputers,workstations,orlocalareanetworks,allofwhichbelongtothelegownedbyIBM.(2)Ontheotherhand,IBMhasnotbeenverysuccessfulwithcopiers,aleg,orposition,ownedbyXerox.

TakeXeroxvs.AT&T.(1)Nobody,includingXerox,hasdoneverywellwithfacsimileequipment,alegownedbyAT&T.(2)VoicemailandfacsimilewilltakeoffassoonasAT&Tgetsbehindthem.

TakeAT&Tvs.IBM.(1)AT&Twon’tdowellwithcomputers,alegownedbyIBM.(2)Ontheotherhand,IBMandRolmwon’tdoverywellwithtelephones,alegownedbyAT&T.(SatelliteBusinessSystemsislosing$100millionayear.)EvensinceScientificDataSystems,Xeroxhasbeentryingtobridgethecopier/computergap.Insteadofbeinganobstacle,thecopier/computergapinthelongruncouldturnouttobeXerox’sstrongestally.

“Third-leg”opportunitiesIfAT&T’stelephoneleghasbecomethecommunicationlegandIBM’stypewriterleghasbecometheinputandprocessingleg,thenwhathasXerox’scopierlegbecome?

Theobviousansweristheoutputleg.Therearemany“third-leg”opportunitiesforXeroxasofficesaddcomputerprinters,scanners,andstoragedevicestocomplementtheircopiers.

Furthermore,ahotnewtechnologyismovingintotheoutputsideoftheoffice.Thattechnologyisthelaser.Therearelaserprinters,lasertypesetters,lasermemorysystems.

Furthermore,thelaserismakinganameforitselfinmanyotherplaces.Incommunication,thelaserisbeginningtoreplacesatellites.Inthehospital,the

communication,thelaserisbeginningtoreplacesatellites.Inthehospital,thelaserisrevolutionizingheartsurgery.Inthesupermarket,youfindlasercheck-outcounters.

McDonnell/Douglastalksaboutalaserthatis“capableoftransmittingtheentirecontentsofa24-volumesetofencyclopediainasinglesecond.”UnitedTelecomissettingupanationwidelasernetwork.AT&Tislayingdownatransatlanticlaserlink.GTEisbouncinglaserbeamsoffthemoon.

Intheconsumerfield,thereisthelaservideodiskplayer.Thelaseraudiodiskplayer.Andthelasereverythingdiskwhichcanplaybothvideoandaudio.

Noself-respectingrockshowwouldendwithoutalaserlightshow.EvenRonaldReagan’s“starwars”satelliteswouldbeequippedwithnuclear-poweredlaserweapons.

ThefourthtechnologyInthepast30years,threetechnologieshaveroaredthroughtheofficeandintothedictionary.Thefirstwasthermographyby3M,aphotocopyingprocessthatusesinfraredraystoproduceacopyonaspecialtypeofpaper.

ThesecondwasxerographybyXerox,acopyingprocessthatusestheactionoflighttoproduceacopyonplainpaper.

ThethirdisthemicroprocessortechnologythatcomputercompanieslikeIBMhavedominated.

There’sanopportunityforXeroxtoputanothertechnologicalwordinayettobepublishededitionofWebster’sDictionary.

Thefourthtechnologywouldbecalled“lasography.”Itcouldbedefinedastheprocessofcommunicating,printing,scanning,andstoringopticalorprintedmessageswiththeuseoflaserbeamsandopticalfibers.

OnewordcansayalotXeroxisa$9billioncompanywithmorethan100,000employees.ItoughttobeimpossibletopositionanenterpriseasbiganddiverseasXeroxwithasingleword.

Butinanovercommunicatedsocietythereisonlysomuchroominthemind.TodayXeroxmeansjustoneword—copiers.TomorrowXeroxcoulduselasographytocreateabroadermentalposition.

Lasographysaysnewanddifferent,andthebusinessworldlovesthingsthatarenewanddifferent.

Lasographysoundslikeabasictechnologysomehowrelatedtoxerography.Inotherwords,itconnectswithXerox’slastbigtechnology.

Inotherwords,itconnectswithXerox’slastbigtechnology.LasographyfromXerox,thecompanythat’sperceivedtobeinthe“ography”

business.Lasographyuseslasers,whichareperceivedtobeontheleadingedgeof

technology.LasographyistheoneconceptthattakesadvantageofXerox’spositionand

broadensittoincludethenextgenerationofproducts.Inthepositioninggameyoucan’tsitstill.Youmustconstantlybealertto

keepyourpositiontargetedtotoday’sproblemsandtoday’smarkets.

15Positioningacountry:Belgium

Withtheadventofrelativelyinexpensiveairfare,we’refastbecomingaworldoftourists.

Indaysgoneby,internationaltravelwaslimitedtotheolder,moreaffluentperson.Todaythat’sallchanged.Therewasatimewhentheflightattendantswereyoungandthetravelersold.Nowthetravelersareyoungandtheflightattendantsareold.

TheSabenasituationOneofthemanyNorthAtlanticcarriersjockeyingfortheseinternationaltravelersisanairlinecalledSabenaBelgianWorldAirlines.Butallcompetitorsdon’tcompeteonanequalbasis.TWAandPanAm,forexample,haveforsometimehadalonglistofgatewaycitiesinboththeUnitedStatesandEurope.

ButSabenafliesnonstopfromNorthAmericatoonlyonecityinEurope:Brussels.Unlesstherewasahijackeraboard,everySabenaplanewasgoingtolandinBelgium.

WhileSabenacapturedthelion’sshareofthetraffictoBelgium,theywereonaverymeagerdiet.Nottoomanypeoplewereflyingtothislittlecountry.Onlyoneoutof50NorthAtlanticpassengersflytoBelgium.

Onthecountryladderintheprospectivetraveler’smind,Belgiumwasononeofthebottomrungs.Ifitwasontheladderatall.

OnelookatthesituationanditwaseasytotellwhatwaswrongwithSabena’sadvertising.Sabenawasusingclassicairlinestrategy.Sellthefoodandtheservice.

“DoIhavetobeabonvivanttoflySabena?”saidatypicalad.Butalltheterrificfoodintheworldwon’tinduceyoutoflyanairlinethatisn’tgoingwhereyouwanttogo.

Positionthecountry,nottheairlineSabena’smostproductivestrategywasobviouslynottopositiontheairlinebuttopositionthecountry.Inotherwords,dowhatKLMhaddoneforAmsterdam.

SabenahadtomakeBelgiumaplacewhereatravelerwouldwanttospendsometime.Notaplaceyoutraveledthroughtogettosomewhereelse.

Furthermore,there’samoralherethatshinesthroughloudandclear.Whether

Furthermore,there’samoralherethatshinesthroughloudandclear.Whetheryou’resellingcolas,companies,orcountries.Outofmind,outofbusiness.

MostAmericansknewverylittleaboutBelgium.TheythoughtWaterloowasasuburbofParisandthemostimportantproductofBelgiumwaswaffles.Manydidn’tevenknowwherethecountrywas.

“Ifit’sTuesday,thismustbeBelgium,”wasthetitleofapopularmotionpicture.

Buthowdoyoufindapositionforacountry?Well,ifyouthinkaboutit,themostsuccessfulcountriesallhavestrongmentalimages.

Say“England”andpeoplethinkofpageantry,BigBen,andtheTowerofLondon.

Say“Italy”andtheythinkoftheColiseumandSt.Peter’sandworksofart.Say“Amsterdam”andit’stulips,Rembrandt,andthosewonderfulcanals.Say“France”andit’sfoodandtheEiffelTowerandthedazzlingRiviera.Yourmindseescitiesandcountriesasmentalpicturepostcards.Inyour

mind,NewYorkisprobablyaskylineoftallbuildings.SanFranciscoiscablecarsandtheGoldenGateBridge.Clevelandisagrayplacewithalotofindustrialsmokestacks.

Obviously,London,Paris,andRomearealltop-of-the-ladderdestinationsthataremostpopularwithfirst-timetravelerstoEurope.Sabenahadlittlechancetogetthesetravelers.

ButintheUnitedStatesthereisalargesegmentofseasonedtravelerslookingtovisitthenexttierofdestinations.CountrieslikeGreecewithitsruins.Switzerlandwithitsmountains.

Oncetheobjectivebecameclear,findingapositionwasn’tthatdifficult.

BeautifulBelgiumBelgiumisabeautifulcountrywithmanyofthethingsthatappealtotheseasonedEuropeantraveler.Likeinterestingcities,historicalpalaces,museums,andartgalleries.

Oddlyenough,manyBelgianpeopledon’thaveahighopinionoftheirowncountryasatouristattraction.ThatattitudeisperhapsepitomizedbyasignthatusedtobeattheBrusselsairport.Amongotherthingsitsaid,“WelcometoBelgacountry.Weather:mild,butrains220daysayear,onaverage.”

Astheresult,Belgium’sfavoritetouriststrategywastopromotethecentrallocationofBrusselsasa“gateway”cityandtheeaseofgettingsomewhereelse.LikeLondon,Paris,andRome.(IfyouwanttovisitNewYork,flytoPhiladelphiabecauseit’scloseby.)There’sanimportantlessonhere.The

Philadelphiabecauseit’scloseby.)There’sanimportantlessonhere.Theperceptionsofpeoplelivinginaplaceareoftendifferentfromthosevisitingit.

ManyNewYorkersfailtoseeNewYorkasatouristattraction.TheyrememberthegarbagestrikesandforgettheStatueofLiberty.YetNewYorkattracts16millionvisitorsayearwhoallwanttoseethose“bigbuildings.”

Three-starcitiesButwhile“beautiful”wasagoodposition,itwasn’treallyenoughasatouristpromotiontheme.Topositionacountryasadestination,youneedattractionsthatwillkeepthetraveleraroundforatleastafewdays.

NobodyconsidersMonacomuchofadestinationbecauseitsnumberoneattraction,MonteCarlo,canbeseeninanevening.

Obviously,sizeisanimportantfactor.Bigcountrieshavelotsofattractions.Smallcountriesareatadisadvantage.(IftheGrandCanyonranthroughBelgium,youwouldn’thavemuchlandlefttolookat.)WefoundtheanswertotheoverallpositioningprobleminoneofthoseMichelinGuides.YoumaynotknowthatMichelinratescitiesaswellasrestaurants.

Michelin’sBeneluxeditionlistssixthree-star“worthaspecialjourney”cities.FivewereinBelgium:Bruges,Ghent,Antwerp,Brussels,andTournai.

ButwhatwasreallysurprisingwasthefactthatthebigtouristattractiontotheNorth,Holland,hadonlyonethree-starcity,Amsterdam.

Theadthatresultedwasheadlined,“InbeautifulBelgium,therearefiveAmsterdams.”Theillustrationwascomprisedoffivebeautifulfour-colorpicturesofBelgium’sthree-starcities.

ThisadvertisementgeneratedanenormousnumberofinquiriesaboutacountrymanytravelershadseenonlythroughthetrainwindowastheytraveledfromAmsterdamtoParis.

OneoftheinquiriescameintheformofacallfromtheministeroftourisminHollandtohiscounterpartinBelgium.Needlesstosay,therewasoneirateDutchmanwhowantedthatadvertisementkilled,alongwiththepeoplewhocreatedit.

The“three-starcity”strategyhadthreeimportantthingsgoingforit.First,itrelatedBelgiumtoadestinationthatwasalreadyinthemindofthe

traveler,Amsterdam.Inanypositioningprogram,ifyoucanstartwithastronglyheldperception,you’llbethatmuchaheadinyoureffortstoestablishyourownposition.

Second,theMichelinGuide,anotherentityalreadyinthemindofthetraveler,gavetheconceptcredibility.

Finally,the“fivecitiestovisit”madeBelgiumabonafidedestination.

Finally,the“fivecitiestovisit”madeBelgiumabonafidedestination.Eventuallythe“three-starcitiesofbeautifulBelgium”conceptwasmoved

intotelevision.Theresponsewassubstantial.Atelevisioncommercialwithitsabilitytocommunicateinsightandsound

candrivepicturesofacountryintothemindmuchmorequicklythanaprintadvertisement.

There’salsoadangerofmisusingthemediumoftelevision.Thishappenswhenyourvisualsaresimilartovisualsbeingusedbyothercountries.

ThinkaboutthoseislandsintheCaribbeanyou’veseenadvertised.Canyoukeepthosepalmtreesandbeachesseparateinyourmind?DoyouconjureupthesamementalpostcardwhensomeonesaysNassau,theVirginIslands,orBarbados?Ifthere’snodifference,themindwillsimplydumpallthosevisualsinaslotmarked“IslandsintheCaribbean”andtuneout.

ThesamethingcanhappenwiththosequaintEuropeanvillages.Orthesmilingresidentswavingmugsofbeeratyou.WesolvedtheproblembyusingtheMichelin“stars”asiftheywerechurchbellswhichrangoutastheyweresuperimposedontheBelgiumcityscenes.

Whathappened?Nowyoumightbewonderingwhy,afterallthis,youhaven’tseenmuchaboutBelgiumanditsthree-starcities.

Anumberofeventskeptthisprogramfromgettingofftheground.Allofwhichholdsalessonforanyoneembarkedonapositioningprogram.

Newmanagementnotcommittedtotheprogramarrivedonthescene,andwhenheadquartersinBrusselswantedtochangethestrategy,theyquicklyacquiesced.

Thelessonhereisthatasuccessfulpositioningprogramrequiresamajorlong-termcommitmentbythepeopleincharge.Whetherit’stheheadofacorporation,achurch,anairline,oracountry.

Inaconstantlychangingpoliticalenvironment,thisisdifficulttoaccomplish.

16Positioninganisland:Jamaica

WhenEdwardSeagareplacedsocialistMichaelManleyasJamaicanprimeminister,heproclaimedanopendoorforcapitalistinvestment.

DavidRockefellerwassoimpressed,heformedagroupof25AmericancorporatechiefsspecificallyforthepurposeofdevelopingJamaica.IntheduecourseofeventstheJamaicans,encouragedbytheRockefellercommittee,hiredustodevelopapositionfortheislandofJamaica.

Investmentortourism?Jamaicaatthetimeneededboth.Butwhichshouldcomefirst?

Obviously,investmentswon’tdomuchfortourism,butmanytouristsworkforbigcompanies.IftheycomebackfromJamaicawithfavorableimpressions,theyjustmightencouragetheircompaniestoinvestintheisland.Executivesatthosesamecompaniesliketoinvestinplacesthatarefuntovisit.WhichiswhyyouseesolittleinvestmentinAlaskaandsomuchintheCaribbean.

WhowantstogotoFairbanksinthewintertimetocheckouttheplant?

ThecompetitionLookingattheCaribbeanfromatourist’spointofview,therearefourmajorcompetitorstoJamaica:theBahamas,PuertoRico,theU.S.VirginIslands,andBermuda.EachofthesedestinationsdrawsmorevisitorsayearthanJamaica.

WhatspringstomindwhenyoumentionanyoftheseCaribbeanislands?Withoneexception,theconsistentvisualimageisthecoupleinthebathingsuitsonthebeach,underneaththepalmtrees.(Thissea,sand,andsurfpicturehasbecomeavisualclichéfortheCaribbean.)

Theexception,ofcourse,isBermuda.Yearsofadvertisingthosemotorbikesparkedbesidethepinksandhaveputastrongvisualinthemind.

Effective,too.Ourresearchshowsthatintermsofperceptions,BermudaissecondindesirabilitytotheU.S.VirginIslands.Ifitweren’tfortheweatherfactor(Bermudaisconsiderablynorthoftheotherislands),Bermudawouldhavebeeninfirstplace.

Jamaica’spositioningproblemissimilartotheproblemofBelgium.HowtoputamentalpicturepostcardintothemindoftheCaribbeanprospect?

ThesearchforthepostcardThefirstapproachistosortthroughthousandsofpostcardstofindtheoneperfectpictureoftheislandofJamaica.Butitcan’tbefound.

There’sagoodreason.Iftherewereoneimagethatcapturedtheessenceoftheisland,someonewouldhavenoticeditalreadyandusedit.Inotherwords,therewouldhavebeenanimagealreadyburnedintoatleastafewminds.

ThesecondapproachistovisitJamaicaandshoothundredsorthousandsofpicturestryingtocapturethatillusivementalpicturepostcard.Notsurprisingly,nothingtotallyrightturnsup.

Thethirdapproachistheonethatshouldhavebeenusedfirst.It’stolookintothemindoftheprospecttoseewhatmentalimagesalreadyexist.AndthenselectoneyoucantieJamaicainto.

WhatistheverbalessenceofJamaica?Anoldadvertisementsaid,“JamaicaisthebiggreenislandintheCaribbeanthathasdesertedbeaches,coolmountains,countrypastures,openplains,rivers,rapids,waterfalls,ponds,gooddrinkingwater,andajunglyinterior.”

Doesthatsoundfamiliar?DoesitremindyouofaverypopulartouristdestinationinthePacific?

TheHawaiianconnectionThat’sright.Hawaii.Mostpeoplehaveamentalpictureofthebiggreenvolcanicmountainscomingdowntothebluesea.

It’saviewthatyoucanalsoseeasyouapproachtheislandofJamaica,theHawaiioftheCaribbean.

TheHawaiioftheCaribbeanbecomesanevenmorepowerfulconceptwhenyoucompareJamaicawithitsfourbiggestcompetitors.Thischartliststhehighestpointofeachdestination.

At7402feet,BlueMountaininJamaicaishigherthananypointintheUnitedStateseastoftheMississippiRiver.

Anotherimportantcomparisonisthesizeofeachdestination.Thischart

Anotherimportantcomparisonisthesizeofeachdestination.Thischartgivesthelengthofthelargestislandineachdestination.

Again,Jamaicaisconsiderablylargerthananyofitscompetitors.Jamaicahashundredsofmilesofbeachesandtwovolcanicmountainrangeswithatoweringpeakover7000feet.Thissupportsthe“Moretosee,moretodo”advantagesthatarealsoimplicitintheHawaiianconnection.

Conceptually,thisapproachsaystotouriststhatthethingstheytravelagreatdistancetoHawaiifor(naturalbeauty,biggreenmountains,beautifulbeaches,wonderfulyear-roundweather)canbefoundalotclosertohome,downintheCaribbean.

JamaicacouldevencopyoneofthemostsuccessfulofHawaii’smarketingploys:meetingtouristswithflowersattheairport.

Jamaicahasbeautifulflowersandthisgesture,aboveall,wouldsaythatJamaicaisafriendlyplaceaswellasabeautifulone.

Benefitsofthe“Hawaiian”position“TheHawaiioftheCaribbean”providesaquickvisualanalogy.Jamaicadoesn’thavetheluxuryofbuildingthatvisualimageovertheyears.TransferringHawaii’smentalpicturepostcardswillsaveenormousamountsoftimeandmoney.

Furthermore,theconceptstronglydifferentiatesJamaicafromtheotherCaribbeandestinations.

Aposterentitled“Acartographer’sviewoftheCaribbean”madethispointverygraphically.Itshowedeachofthedestinationsdrawntoscale.(YouneedamagnifyingglasstofindBermuda.)

AnothermajorbenefitoftheHawaiiananalogyistheplatformitprovidesforEuropeanprograms.IfyouliveontheContinent,Hawaiiisalongwayaway.

Ifyou’rewonderingwhyyouhaven’theardmuchabouttheHawaiioftheCaribbean,you’llhavetoaskMr.Seaga.HeiswidelyviewedasaCaribbeanRonaldReagan,but“heisreallytheJimmyCarterofJamaica,”aRockefeller

aidetoldTheWallStreetJournal.“He’sthepersonwhogetsinvolvedineverydetailandagonizesovereveryissue.”

Presumablyheisstillagonizingoverthisone.

17Positioningaproduct:MilkDuds

ThebrandisMilkDuds,aproductofSwitzerClark.MilkDudsisacandyproductthatcomesinalittleyellowandbrownbox.Ithadareputationasa“movie”candyforteenagers,butthecompanywantedtobroadenitsMilkDudsbusinesstoincludetheyoungercrowd.

LookingintothemindThefirststepinanypositioningprogramistolookinsidethemindoftheprospect.

AndwhoistheprospectforMilkDuds?It’snotsomelittlekidwhodoesn’tknowthescore.ResearchindicatesthatthebestMilkDudsprospectisasophisticatedcandybuyer.Heorshehasbeeninandoutofcandystoresseveralhundredtimesatleast.

TheaverageMilkDudsprospectis10yearsold.Acautious,suspicious,shrewdpurchasingagentwhoisalwaysonthelookoutforvaluereceived.

Mostpositioningprogramsarenothingmoreorlessthanasearchfortheobvious.Yettheobviousiseasytomissifyouzerointooquicklyontheproductitself.(Aswiththe“purloinedletter”ofEdgarAllanPoe,theobviousisoftenhardtofindbecauseit’stooeasytosee.It’stooobvious.)

What’sintheprospect’smindwhenthesubjectofcandycomesup?NotMilkDuds,eventhoughtheaverage10-year-oldkidmightbevaguelyawareofthebrand.

Formost10-year-olds,thecandyurgeimmediatelyconjuresuptheconceptofcandybars.

CandybarslikeHersheys,Nestlés,Mounds,AlmondJoys,Reeses,Snickers,MilkyWays.Putthere,ofcourse,bythemillionsofdollars’worthofadvertisingspentontheseandothercandybarbrands.

RepositioningthecompetitionSinceMilkDudswasgettingonlyasmallfractionofthatkindofadvertisingmoney,itwouldhavebeenhopelesstotrytobuildaseparateidentityforthebrand.TheonlywaytodriveMilkDudsintothekid’smindwastofindawaytorepositionthecandybarcategory.

Inotherwords,findawaytomakethemillionsofdollarsspentbythe

Inotherwords,findawaytomakethemillionsofdollarsspentbythecompetitionworkforMilkDudsbysettingupthebrandasanalternativetothecandybar.(Littlewouldbegainedbyjustputtinganothercandynameinanoverloadedmind.)

Fortunately,therewasaglaringweaknessinthecandybarcompetitionthatcouldbeexploited.Andtheweaknessisobviousonceyoulookatthesizeandshapeandpriceoftoday’sHersheybar.

Acandybarjustdoesn’tlastverylong.Akidcangothrougha50-centHersheybarin2.3secondsflat.

ThereexistsastrongundercurrentofdissatisfactionamongAmerica’scandyeaters.Asthecandybarhasshrunkinsize,thisdiscontenthasgrown.

“Myallowancedoesn’tlastverylongwhenitcomestocandybars.”“EitherI’meatingfasterorcandybarsaregettingsmaller.”“Youcansuckupacandybarawfullyfastthesedays!”Thisisthesoft,chocolatyunderbellyofthecandybarcompetition.MilkDudsaredifferent.Theycomeinaboxinsteadofapackage.Theygive

thekid15individualslow-eatingchocolate-coveredcaramels.Comparedwithacandybar,aboxofMilkDudswilllastalongtime.(Ifyou

trytostuffawholeboxinyourmouth,itwillcementyourjawsshut.)Whichisexactlywhytheproducthasbeensopopularinmovietheaters.

SowhatisMilkDuds’newposition?

Thelong-lastingalternativeWhy,it’sAmerica’slong-lastingalternativetothecandybar.

Ifthisseemsliketheobviousanswertoyou,itwasn’ttothepeoplewhousedtodotheMilkDudsadvertising.Insome15yearsofMilkDuds’televisioncommercials,therewasn’tonereferencetothelong-lastingidea.

Let’stakeamentalwalkthrougha30-secondtelevisioncommercialtoseehowthelong-lastingideawassugarcoatedforthebenefitofthe10-year-old.

1.Oncetherewasakidwhohadabigmouth…(Akidisstandingnexttoanenormousmouth.)

2.…thatlovedcandybars.(Thekidisshovelingcandybarsonerightafteranotherintothemouth.)

3.…buttheydidn’tlastverylong.(Thekidrunsoutofcandybarsandthemouthgetsveryupset.)

4.ThenhediscoveredchocolatycaramelMilkDuds.(ThekidholdsuptheMilkDuds,andthemouthstartstolickitschops.)

5.ThemouthlovedtheMilkDudsbecausetheylastalongtime.(ThekidrollstheMilkDudsonebyoneupthemouth’stongue.)

6.(Thenthekidandthemouthsingaduettogether,whichisthecampaignsong.)Whenacandybarisonlyamemory,you’llstillbeeatingyourMilkDuds.

7.GetyourmouthsomeMilkDuds.(Bigsmilesonboththekidandthemouth.)

Diditwork?Notonlydidthetelevisionadvertisingreverseadownwardsalestrend,butin

theensuingmonthsthecompanysoldmoreMilkDudsthaniteverdidinitshistory.

IfthereisoneimportantlessontobelearnedfromtheMilkDudsexample,it’sthis:Thesolutiontoapositioningproblemisusuallyfoundintheprospect’smind,notintheproduct.

18Positioningaservice:Mailgram

What’sthedifferencebetweenthepositioningofaproduct(likeMilkDuds)andthepositioningofaservice(likeWesternUnion’sMailgram)?

Notmuch,especiallyfromastrategicpointofview.Mostofthedifferencesareintechniques.

Visualvs.verbalInaproductad,thedominantelementisusuallythepicture,thevisualelement.Inaservicead,thedominantelementisusuallythewords,theverbalelement.(Soifyousawanadvertisementwithabigpictureofanautomobile,youwouldassumethecarwasbeingadvertised,notacarrentalservice.)

WithaproductlikeMilkDuds,theprimarymediumwastelevision,avisuallyorientedvehicle.

WithaservicelikeMailgram,theprimarymediumwasradio,averballyorientedvehicle.

Naturally,therearealotofexceptionstotheseprinciples.Ifeveryoneknowswhattheproductlookslike,thereisnoadvantageinusingprint,television,orotherformsofvisualmedia.

Conversely,ifaservicecanmakeeffectiveuseofavisualsymbol(O.J.SimpsonforHertz,forexample),thenvisualmediacanoftenbeproductive.

Inspiteoftheexceptions,it’ssurprisinghowoftenthesevisual/verbalgeneralitiesholdup.Inafour-waytestofnewspapers,magazines,radio,andtelevisionforMailgram,themosteffectivemediumwasradio.ButtheessenceoftheMailgramstoryisstrategy,notmedia.Beforediscussingstrategy,itmaybehelpfultotakealookathowthesystemworks.

ElectronicmailDevelopedjointlywiththeU.S.PostalServiceandinauguratedonalimitedexperimentalbasisin1970,Mailgramisthenation’sfirstelectronicmail.

TosendaMailgram,youcallWesternUnion,whichtransmitsthemessageelectronicallytoapostofficeneartherecipient.TheMailgramisdeliveredthenextbusinessday.

InadditiontosendingMailgramsbytelephone,thecustomercanalsosendthembytelex,TWX,magnetictape,computer,facsimileequipment,or

thembytelex,TWX,magnetictape,computer,facsimileequipment,orcommunicatingtypewriters.

Whybelaborthetechnicalities?WhydiscussthecomplexdetailsoftheMailgramsystem?

Tomakeanimportantpoint.Mostadvertisingprogramsnevergobeyondthedetailsoftheproductorservicewhichisofferedforsale.Andthemoreinterestingandcomplextheserviceis,themorelikelythiswillhappen.Themarketingpeoplewhoareresponsibleforintroducingtheproductgetallwrappedupintheserviceandforgetallaboutthecustomer.Asamatteroffact,thetraditionalapproachwouldhavebeentointroduceMailgramasa“new,automated,computerizedelectroniccommunicationservice”orsomethingofthatsort.(WesternUnionspentmillionsoncomputerprogrammingalone,nottomentiontheenormousexpenseofearthstations,satellites,etc.)

Thelow-costtelegramRegardlessofhowmuchmoneyyouspend,regardlessofhowtechnologicallyinterestingyourserviceis,togetinsidetheprospect’smind,youhavetorelatetowhat’salreadythere.Youcan’twalkawayfromyourexistingpositionintheprospect’smind.

Andwhat’supthereintheprospect’smind?TheTelegram,ofcourse.Anytimeyoumentiontheword“WesternUnion,”theaveragemindconjures

upthemostfamousyellowmessageinthehistoryoftheworld.Andthe“gram”partoftheMailgramnameonlyreinforcesthisperception.

Sowhat’sthedifferencebetweenthenewgramandtheoldgram?Well,themaindifferenceisprice.Bothhavethesametelegraphicformat.

Bothdemandimmediateattention.ButtheyellowTelegrammessageisthreetimesthepriceoftheblueandwhiteMailgrammessage.

SothepositioningthemedevelopedforMailgramwassimple:“Mailgram:ImpactofaTelegramatafractionofthecost.”

Atthispoint,someonesaid“Waitaminute.WhypositionMailgramagainsttheTelegram,alsoaWesternUnionservice?Whytakebusinessawayfromourselves?

“Furthermore,theTelegramisadecliningbusiness.Whycompareanew,modernservicelikeMailgramwithanoldservicepastitsprime?TheTelegramstillhasanimportantroletoplay,butitisnotagrowthbusiness.”

Thelogicisimpeccable.Butasoftenhappens,logicisnotnecessarilythebeststrategyfordealingwithhumanminds.Still,thelogicwassosound,itwasworthwhilerethinkingtheconcept.Especiallysincetherewasanother

worthwhilerethinkingtheconcept.Especiallysincetherewasanotherpositioningstrategythatalsohadmerit.

ThehighspeedletterActuallytheMailgramnameitselfsuggestsasecondpositioningapproach.WecouldrelatetheMailgramtotheU.S.mail.

Then,too,ifWesternUnionwantedtheMailgramtotakebusinessawayfromanotherservice,thenumberssuggestitwouldbemuchbettertopositiontheserviceagainstregularmail.

Inarecentyear,68billionfirst-classlettersweredroppedintothenation’sletterboxes.That’s815first-classlettersperhouseholdperyear.

TheTelegramgeneratesonlyatinyfractionofthatkindofvolume.Soasecondthemewasdeveloped:“Mailgram:Anewhighspeedservicefor

importantmessages.”Whichisthebetterapproach?Inspiteofthenegatives,positioningtheory

suggeststhatthe“low-costTelegram”isabetterdirectionthanthe“highspeedletter.”YetMailgramwastooimportanttoWesternUniontomakeadecisionbasedonjudgmentalone.Sobothcampaignsweretest-marketedusingcomputerdatatotrackresults.

Lowcostvs.highspeedThetestitselfwasamassiveone.NotinymarketslikePeoriawereevenconsidered.ThesixMailgramtestcitieswereBoston,Chicago,Houston,LosAngeles,Philadelphia,andSanFrancisco.Allbig,importantcommunicationcenters.

Whowon?Actuallybothcampaignswereeffective.HerearethedataforMailgramvolumeincreasesinthetestcitiesduringthe13-weekprogram.

Thesenumbersalonewereenoughtoprovethesuperiorityofthe“low-costTelegram”position.Butwhatreallydecidedtheissueweretheproductawarenesslevelsinthetestcities,whichweremeasuredbothbeforetheprogramranandafterward.

HerearethefiguresonhowmanypeoplecouldcorrectlydescribewhataMailgramwasbeforetheprintandbroadcastadvertisingbegan.

Statistically,notmuchdifference.Thisindicatesthatthetestmarketcitieswereprettyevenlymatched.Inotherwords,aboutone-fourthofthemarketalreadyknewabouttheMailgramservice.

Aftertheadvertisingran,however,therewasabigdifferenceinthetwogroupsofcities.HerearetheMailgramawarenesslevels13weekslater.

Asunbelievableasitmayseem,awarenessinthehighspeedlettercitiesactuallydeclined.From27percentto25percent.(Notreallystatisticallysignificant.)

Thenwheredidtheincreasedvolumecomefrominthehighspeedlettercities?ObviouslyfrompeoplewhoknewwhataMailgramwasandwereremindedtousetheservicebytheadvertising.

Itwasatotallydifferentstoryinthelow-costTelegramcities.Mailgramawarenessmorethandoubled.From23percentto47percent.

Notonlywasthisabigjump,butthenumberssuggestthatMailgramvolumeincreaseswerelikelytocontinueoveralongperiodoftime.

WesternUnionalsomeasuredTelegramvolumeinthetestcitiesbefore,during,andaftertheadvertising.Theyfoundthatvolumeheldfairlystable.Infact,thecompanyfeltthatadvertisingtheMailgramasthelow-costTelegramhelpedratherthanhurtTelegramvolume.

AndwhathashappenedtoMailgramsincethedevelopmentofthisadvertisingstrategy?Thevolumenumberstellthestory.

After10yearsofsuccess,WesternUniondecidedtochangetheMailgramstrategy.Insteadof“impact,”thenewstrategywouldemphasize“next-day

strategy.Insteadof“impact,”thenewstrategywouldemphasize“next-daydelivery.”Sotheyhiredanewadvertisingagencytodevelopthenewprogram.

Again,thevolumenumberstellthestory.

Rarelycanyoufindsuchaclearcutexampleofthedifferencebetweengoodadvertisingstrategyandbad.(Mostexamplesarecloudedbyotherfactors.)ButintheMailgramcase,theminutethestrategywaschanged,volumedeclined.

Yourproblemisnotjustoneofdevelopingagoodstrategy.Equallyimportantisthecourageyouwillneedtokeephammeringatthesametheme,yearafteryear.

19PositioningaLongIslandbank

LikeWesternUnion,bankssellaserviceandnotaproduct.UnlikeaMailgram,however,whichisanationalservice,bankingisstillaregionalservice.

Infact,positioningabankismuchlikepositioningadepartmentstore,anappliancestore,oranyotherkindofretailestablishment.Tosuccessfullypositionaretailoutlet,youmustknowtheterritory.

TheLongIslandbankingsituationTounderstandhowwedevelopedapositionfortheLongIslandTrustCompany,youshouldknowalittlebitabouttheterritory.

FormanyyearsLongIslandTrustwastheleadingbankontheIsland.Itwasthelargestbank,ithadthemostbranches,anditmadethemostmoney.

Intheseventies,however,thebankbattlefieldonLongIslandchangeddramatically.AnewlawpermittedunrestrictedbranchbankingthroughoutNewYorkState.

Sincethen,manyofthebigNewYorkCitybankshavebecomefirmlyentrenchedintheLongIslandarea.BankslikeCitibank,ChaseManhattan,andChemicalBank.

Also,agoodnumberofLongIsland’sresidentscommutetoNewYorkCityeverydayanddopartoftheirbankingatthesesamebanks.

However,theintrusionofthebigcitybanksintoLongIslandTrust’sterritorywasonlypartoftheproblem.Theterritorythatreallycountsisinthemindofthebankingprospect.Andalittleresearchturnedupalotofbadnews.

Mappingtheprospect’smindBynowyoucanappreciatetheimportanceofknowingwhat’sintheprospect’smind.Notonlyaboutyourproductorservice,butaboutcompetitiveofferingsaswell.

Oftentheinsightsareintuitive.Nobodyneedsa$20,000researchprojecttoknowthatWesternUnionisstronglyidentifiedwiththeTelegram.NorwasmuchresearchneededtodeterminethepositionsofMilkDuds,Belgium,andXerox.

Moreoftenthannot,however,itcanbeexceedinglyhelpfultomaptheprospect’smindbymeansofformalpositioningresearch.Helpfulnotonlyin

prospect’smindbymeansofformalpositioningresearch.Helpfulnotonlyindevelopingastrategy,butinsellingthestrategytotopmanagement.(Thechiefexecutivewhohasspent30yearswithonecompanywillobviouslyseethatcompanydifferentlythanaprospectwhosetotalexposureoverthesame30yearscanbemeasuredinminutesorevenseconds.)

“Mappingtheprospect’smind”isnormallydonewitharesearchtechniquecalled“semanticdifferential.”ThiswastheprocedureusedtodevelopapositioningprogramfortheLongIslandTrustCompany.

Insemanticdifferentialresearch,theprospectisgivenasetofattributesandthenaskedtorankeachcompetitoronascale,generallyfrom1to10.

Forexample,pricemightbeoneoftheattributes.Inautomobiles,it’sobviousthatCadillacwouldberankedatthehighendandChevetteatthelowend.

Inbanking,thereisalmostnopriceperception,sootherattributeswereselected.Theoneschosenwerethese:(1)manybranches,(2)fullrangeofservices,(3)qualityofservice,(4)largecapital,(5)helpsLongIslandresidents,and(6)helpsLongIslandeconomy.

Thefirstfourattributesarethetraditionalreasonsfordoingbusinesswithaparticularbank.ThelasttwoareuniquetotheLongIslandsituation.

Asfarasthetraditionalreasonswereconcerned,thesituationwasbleakfortheLongIslandTrust.Prospectsratedthemlastonallfourattributes.

Manybranches

Fullrangeofservices

Qualityofservice

Largecapital

Thepositionswerereversed,however,whentheattributesconcernedLongIslanditself.

HereishowtherespondentsrankedthesixbanksontheLongIslandattributes.

HelpsLongIslandresidents

HelpsLongIslandeconomy

WhentheattributesconcernedLongIsland,theLongIslandTrustCompanywentrighttothetop.Anottoosurprisingresult,consideringthepowerofthename.

DevelopingthestrategyWhatapproachshouldLongIslandTrusttake?Conventionalwisdomsaysyouacceptyourstrengthsandworkonimprovingyourweaknesses.Inotherwords,runadstellingtheprospectsaboutthegreatservice,friendlytellers,etc.

Conventionalwisdomisnotpositioningthinking.Positioningtheorysaysyoumuststartwithwhattheprospectisalreadywillingtogiveyou.

AndtheonlythingtheprospectgaveLongIslandTrustwasthe“LongIslandposition.”Acceptingthispositionallowedthebanktorepeltheinvasionofthebigcitybanks.Thefirstadstatedthetheme.

WhysendyourmoneytothecityifyouliveontheIsland?

Itmakessensetokeepyourmoneyclosetohome.Notatacitybank.ButatLongIslandTrust.WhereitcanworkforLongIsland.

Afterall,weconcentrateondevelopingLongIsland.NotManhattanIsland.OrsomeislandoffKuwait.Askyourself,whodoyouthinkismostconcernedaboutLongIsland’s

future?Abank-come-latelywithhundredsofotherbranchesinthegreater

metropolitanareaplusaffiliatesinfivecontinents?Orabanklikeoursthat’sbeenhereforover50yearsandhas33offices

onLongIsland.

AsecondadhadaphotoofpalmtreesinfrontofabuildingwithaCitibankN.A.sign.

Toabigcitybank,abranchinNassauisn’tnecessarilyyourNassau.ChancesareitwillturnouttobeintheBahamas.It’soneofthefavorite

locationsofthebigcitybanks.Infact,themultinationalinstitutionshavesome$75billioninloansbookedintheBahamasandCaymanIslands.

Nothingwrongwiththat.Exceptitdoesn’tdomuchforyouifLongIslandisyourhome.

LongIslandisnotonlyourfavoritelocation,it’souronlylocation.Wehave18branchesinNassau(County,thatis)and16inQueensandSuffolk.

Andwe’vebeenherealongtime,overahalfcentury.We’reinvolvedfinanciallytotheextentthat95percentofourloansandservicesgotoLongIslandersandtheirhomes,schools,andbusinesses.Otheradsinthecampaignhadsimilarthemes:“Thecityisagreatplacetovisit,butwouldyouwanttobankthere?”“Toacitybank,theonlyislandthatreallycountsisManhattan.”(Atiny

drawingofLongIslandisdwarfedbyanenormousdrawingofManhattan.)“Iftimesgettough,willthecitybanksgetgoing?(Backtothecity.)”Fifteenmonthslaterthesameresearchwasrepeated.NoticehowLongIsland

Trust’spositionimprovedineveryattribute.

Manybranches

Fromlasttofirstplacein“manybranches.”InspiteofthefactthatChemicalBank,forexample,hasmorethantwiceasmanybranchesonLongIsland.

Fullrangeofservices

In“fullrangeofservices”LongIslandTrustmoveduptwospots.Fromsixthtofourthplace.

Qualityofservice

In“qualityofservice”LongIslandTrustalsomovedfromsixthtofourth

In“qualityofservice”LongIslandTrustalsomovedfromsixthtofourthplace.

Largecapital

In“largecapital”LongIslandTrustmovedfromlasttofirstplace.Resultswereseennotonlyintheresearchbutinthebranchestoo.“Withthe

assistanceoftheadvertisingagencywhichpioneeredthewidelyacceptedconceptofpositioning,”saidthebank’sannualreport,“ourleadbank,LongIslandTrust,assumedthemantleoftheLongIslandBankforLongIslanders.Acceptanceofthecampaignwasimmediateandgratifying.”

Youmightthinkthatabankpromotingtheareathatitservesisanobviousidea.Anditis.

Butthebestpositioningideasaresosimpleandobviousthatmostpeopleoverlookthem.

20PositioningaNewJerseybank

ThebankisUnitedJerseywith116branchesinthestateofNewJersey.UnitedJerseyisnotinthesamesituationasLongIslandTrust.(Thereisno

onepositioningapproachthatwillworkeverywhere.)Therearemanydifferencesbetweenthetwobanks,themostimportantbeingthatunlikeLongIslandTrust,UnitedJerseyisnotthebiggestlocalbankinitsmarketingterritory.(ThatdistinctionbelongstoFirstFidelitywithMidlanticinsecondplaceandUnitedJerseyinthird.)

FindingaviablebankingpositionOnethingthatUnitedJerseyhasincommonwithLongIslandTrustisitsmarketingenvironment.BothoperateintheshadowsofCitibank,ChaseManhattan,Chemical,ManufacturersHanover,andtheotherbigNewYorkCitybanks.That’satthenorthendoftheterritory.

Inthesouth,UnitedJerseyoperatesintheshadowsofthebigPhiladelphiabanks(Mellon,FirstPennsylvania).

TheproblemoffindingaviablebankingpositioniscomplicatedbythefactthattheservicesofferedbyUnitedJerseyaresimilartothoseofitscompetitors.Federalandstateregulationsseetothat.

TheonlyapproachthatwillworkistheTylenolapproach.Youdon’tfindtheanswertotheproblemofpositioningthebankbystudyingthebank.Youfinditbystudyingthecompetition,asTylenoldidbystudyingtheproblemsofaspirin.

Atoneendofthescale,UnitedJerseycompetesinthemarketingjungleknownasmetropolitanNewYorkCity.

Anditreallyisabankingjungle.InManhattanalone,thereare389banks.NottomentionBrooklyn,Queens,theBronx,StatenIsland,andtheentirestateofNewJersey.

TheKingandQueenofthejungleareCitibankandChaseManhattan.Thesearebigbanks.InManhattanaloneCitibankhas74branches.

HowdoyoufindweaknessinCitibank,whichhasalmostasmanyvicepresidentsasUnitedJerseyhasemployees?

ThedisadvantageoflargesizeTheproblemoffindingameaningfuladvantageforUnitedJerseycanbe

TheproblemoffindingameaningfuladvantageforUnitedJerseycanbeapproachedbylookingatthedisadvantagesofitsbig-citycompetitors.

WhypositionUnitedJerseyagainstthebigbanks?Whynottakeonthescoreofsmallfinancialinstitutions?Thereasontogoagainstthebigbanksisbecausetheyaretheonesinthemindsoftheprospects.Positioningisalwaysaquestionofdealingwithwhat’sinthemind.

Thedisadvantageoflargesizeisslowservice.AsanAvisadoncesaid,“Rentfromus.Thelineatourcounterisshorter.”Banksshouldn’tholduppeople,either.WedevelopedapositioningstrategyforUnitedJerseycalledthe“fast-movingbank.”Thisstrategyhadtwokeyaspects.

A.ExploittheonlyrealweaknessofthebigmetropolitanNewYorkbanks:theirslowreactiontime.

B.EncourageUnitedJerseymanagementtomakesurethebank’sperformancematchestheadvertising’spromise.Thattooktheformofsevenkeycommitments.

1.Decentralizeddecisions.UnitedJerseypusheddecisionmakingdowntothelocallevel.(Oneoftheirlendingteamscanapprovea$10millionloan,andthatteammeetsdaily.)In10commercialbankingcentersthroughoutthestate,otherofficersonsitecanmakebusinessloansquickly.

2.Crosstraining.UnitedJerseytrainsitspeopleinalltheirbankingservices,notjustinonespecialty.Sowhenacustomerhasaquestion,heorshedoesn’thavetowaitforananswerwhilethequestionisreferredtoanotherperson.

3.Commitmenttoelectronics.UnitedJersey’ssystemofstatewideATMs(AutomaticTellerMachines)isthelargestprivatenetworkinthestate.UnitedJersey’scorporatecustomerscanbeonlinedirectlywiththebank’scomputersforbalanceinquiriesandotherdailyquestions.

4.Speedylockboxservice.UnitedJerseypeoplepickupcheckssixtimesadayduringtheworkweek,fourtimesontheweekend.ItsNewarklockboxhasitsownprivateZIPCode.UnitedJerseyemptieslockboxesandfillsupcustomeraccountsasfastasitcan.

5.FACTterminals.(FastAuthorizationofCashlessTransactions.)Withtheseterminalsnowinplace,merchantsenjoythebenefitofrapidelectronicapprovals.Andfasterapprovalswithminimizedriskmeanimprovedcashflow.

6.Responsiveness.Whetherit’sbeingfirstwithanewproductormatchingthecompetition’srates,UnitedJerseyiscommittedtobeingresponsivetothecustomer’sfinancialneeds.

7.Centrallocation.UnitedJerseybuiltitsnewcorporateheadquartersinPrinceton.Fromthegeographiccenterofthestate,UnitedJerseyislessthananhourawayfromanyofitsbusinesscustomersbycar,evenlessbyhelicopter.

Advertisingthefast-movingbankWhenthebank’sperformancematchedthepromisestheadvertisingwasgoingtomake,theadvertisingstartedtomakethepromises.Focusingontheweaknessofthecompetition,naturally.

EachtelevisionspotcontrastedUnitedJerseybankerswiththeircounterpartsatthewhimsicallynamed“LethargicNationalBank.”Inonespot,approvalforabusinessloanatLethargicNationalseemedtotakeforever.AsecondspotshowedaLethargicbankerdisappearingwhenacustomerneededaquickanswertohisquestions.Andinthethirdspot,ahusbandandwifefoundthebankersatLethargicmovinginslowmotiononasimpleinstallmentloan.

ThehumorousvignettesdrovehomethepointthatUnitedJersey“valuesyourtimeasmuchasyourmoney.”

Printadvertisementsalsocarriedthe“fast-movingbank”theme.“Hastemakesmoney”and“Banksshouldn’tholduppeople,”weretwotypicalheadlines.

“TimeIsMoney”desksignsweregiventoallUnitedJerseybankofficers,anot-so-subtleremindernottokeepthecustomersittingnexttotheirdeskwaiting.

Diditwork?Byallmeasurementsthefast-movingbankstrategywasabigsuccessforUnitedJersey.Unaidedawareness,forexample,almosttripledinjustoverayear.

Businessandprofitswentup.Ayearaftertheprogramstarted,UnitedJerseyannouncedearningswereup$30million,anincreaseof26percentoverthepreviousyear.

Anevenmoreimportantbarometerofchangewastheattitudeofemployees.OneUnitedJerseyofficerreported,“Theimageadvertisingisgreat,butthebestthingI’veseenhappenisthatourpeople,lineofficers,etc.,arestrivingtoliveuptoFastMoving…andtheyare!I’veseenatremendouschangeinattitude

sincethecampaignbegan.Approvalscomefaster.Peopledon’tsitonthings.”Theessenceofagoodpositioningstrategyisthatittranscendseveryaspect

ofacompany.Youknowyouhaveawinnerwhenyourunitupthecorporateflagpoleandeverybodysalutes.

21Positioningaskiresort:Stowe

Thereareoverathousand“name”skiareasinAmerica.Sincethemindoftheaverageskiercanholdonlyafractionofthosenames,theproblemofpositioningaskiresortcanbedifficult.

IfyournameisStowe,theproblemisgreatlysimplified.Stoweisalreadywellknown.“StoweisformetheessentialEasternskivillage,”saidAdvertisingAgecolumnistJamesBrady,“thewayAspenisoutwestorVald’IsereisinFranceorKitzbühelisinAustria.”

WhyapositionforStowe?Withthatkindofreputation,whydoesStoweneedaposition?Isn’titenoughtoadvertiseStoweandlettheskierconjureuptheStoweimage?

Toacertainextent,thisistrue.ThereputationofaproductlikeSteinwayoraplacelikeStowecreateswordofmouthwhichcarriesthereputationalongfromyeartoyear.Butproperpositioningcanenhancethewordofmouthandcontributetotheprocess.Inessence,thepositioningsuppliesthematerialtotalkabout.

Whatdoskierstalkabout?JamesBradyputitbest.Theytalkaboutplacestoski,placeslikeAspen,Vald’Isere,andKitzbühel.

Withthisbackgroundinmind,thesearchbeganforapositionforStowe.Thesituationseemedtocallfortheoutsideexpert,thepersonwhocouldsupplythecredibilitytobringacomparisonclaimtolife.

Thetop10skiresortsintheworldThenotedskiandtravelwriter,AbbyRand,suppliedthecredibility.WritinginHarper’sBazaar,sheselectedthetop10skiresortsintheworld.OnewasStowe,Vermont.Theotherswere:Aspen,Colorado;Courchevel,France;JacksonHole,Wyoming;Kitzbühel,Austria;Portillo,Chile;St.Christoph,Austria;St.Moritz,Switzerland;SunValley,Idaho;andVail,Colorado.(Notabadlist.)ThepositioningadvertisementsforStoweusedshoulderpatchestoillustratetheskiareas.“Oftheworld’stop10skiresorts,”saidthead,“onlyoneisintheEast.”

“Youdon’thavetogototheAlpsortheAndesoreventotheRockiestoexperiencetheskivacationofalifetime,”continuedthead.“Youneedonly

experiencetheskivacationofalifetime,”continuedthead.“YouneedonlyheadfortheSkiCapitaloftheEast:Stowe,Vermont.”

SkiersrespondedtothenewStowestrategy.Theyrequestedthousandsofbrochuresinresponsetotheadvertising.Theyalsobrokeallattendancerecordsattheskiresort.

YoumightthinkitwouldbeeasytoincreasebusinessataplacelikeStowe,butcompetitionhasonemajoradvantage.PlaceslikeStratton,Sugarbush,BigBromley,andMt.SnowarealllocatedsouthofStowe.Sotheskierdrivingfromthemajorpopulationcenter(NewYorkCity)hastodriveanhourortwolongertogettoStowe.Oneofthefunctionsoftheadvertisingistopromisetheskierarewardforthelongerdrive.

“Oneofthetop10skiresortsintheworld”isaclassicpositioningstrategy.Ittakesadvantageofthemind’stendencyto“makealist”whentryingtocopewithcomplexity.“Thesevenwondersoftheworld”isoneoftheearliestexamplesofthisapproach.

Furthermore,the“top10”strategycanconceivablybeusedindefinitely.There’snoreasontochange.Whatbetterstrategycantherebethanhavingyourplaceorproductincludedinalistoftheworld’sbest?

Whenyouusearecognizedauthoritytogiveyourproductorservicecredibility,youaretappingafundamentalaspectofhumannature.There’ssecurityinnothavingtotrustyourownjudgment.

ThedarksideofthistendencytodefertoauthoritywasexploredbyAllenFunt,creatorofCandidCamera.“Theworstthing,andIseeitoverandover,”saidMr.Funt,“ishoweasilypeoplecanbeledbyonekindofauthorityoreventhemostminimalsignsofauthority.”

“Weputupasignontheroad,DelawareClosedToday,”reportedMr.Funt.“Motoristsdidn’tquestionit.Insteadtheyasked,‘IsJerseyopen?’”

22PositioningtheCatholicChurch

Thisbookcouldhavebeenwrittenaboutreligionjustaswellasaboutadvertising.

Afarfetchedidea?Notreally.Theessenceofanyreligioniscommunication.Fromdivinityto

clergytocongregation.Theproblemsarisenotwithaperfectdivinityoranimperfectcongregation

butwiththeclergy.Howtheclergyappliescommunicationtheorytothepracticeofreligionwill

haveamajorinfluenceonthewayreligionaffectsthecongregation.

AnidentitycrisisSomeyearsago,positioningthinkingwasappliedtotheCatholicChurch.Inotherwords,communicationproblemsofthisenormousinstitutionweretreatedasiftheybelongedtoamajorcorporation.

ThisrequestdidnotcomefromthePopeoracommitteeofbishops.Itcamefromagroupoflaitywhoweredeeplyconcernedaboutwhatonerenownedtheologiandubbeda“certaincrisisofidentity”thathadfollowedinthewakeofthereformsofVaticanII.

ItwasquicklyapparentthatcommunicationintheCatholicChurchwashaphazardatbest.

Whilemuchefforthadbeenexpendedinimprovingtechniques,theprogramslackedastrongcentralthemeoranycontinuity.(Anespeciallyseriousprobleminaneraofelectronicovercommunication.)

ItwaslikeGeneralMotorswithnooverallcorporateadvertisingprograms.Allcommunicationcamefromthelocaldealers.Someofitgood,muchofitbad.

AlargemeasureoftheproblemscouldbetracedtoVaticanII.Priortothat“openingofthewindows,”theinstitutionalChurchhadaclearly

perceivedpositioninthemindsofthefaithful.Tomost,theChurchwastheteacherofthelaw.Muchemphasiswasplacedonrules,rewards,andpunishment.TheChurchwasconsistentinitsapproachtooldandyoungalike.

VaticanIImovedtheCatholicChurchawayfromthispostureoflawandorder.Manyrulesandregulationsweredismissedasunnecessary.Changesin

order.Manyrulesandregulationsweredismissedasunnecessary.Changesinliturgyandstylebecamecommonplace.Flexibilitytooktheplaceofrigidity.

Unfortunately,therewasnoadvertisingmanagerinRomewhenthesemomentouschangeswerebeingmade.Noonetodistillwhathadtranspiredandproduceaprograminsimplelanguagethatexplainedthenewdirections.

Afteryearsofnotneedinga“corporate”communicationprogram,it’sunderstandablethattheCatholicChurchfailedtorecognizethescopeoftheproblemonitshands.

LosingitsinfluenceWhatwaspainfullylackingwasaclearpresentationofwhatthenewchurchwasabout.

Thefaithfulquietlyasked,“Ifyouarenottheteacherofthelaw,whatareyou?”

IntheyearssinceVaticanII,therehasbeennosimpleanswerforthcoming.Noattempttorepositionthechurchinthemindsofthelaity.Eveninthemindsoftheclergy,forthatmatter.

Andwithnoanswers,confusionwalkedinandmanypeoplewalkedout.Forthefirsttime,regularMassattendancedroppedbelow50percentofthe

Catholicpopulation.Thisamountstoa20percentdrop,whileProtestantattendancehasremainedremarkablystable.

Thereare20percentfewerpriests,nuns,andbrotherstodaythantherewere10yearsago.Vocationshavedroppedby60percent.

Onefinalsetofstatisticsisespeciallysignificant.TheCatholicChurchispresentlythe“largestcommunityofmoralauthorityinAmericansociety.”(AtitlebestoweduponitbytheProtestanttheologianPeterBerger.)

Yetwhenagroupof24,000highlyinfluentialexecutiveswereaskedbyU.S.News&WorldReporttoratetheinfluenceofmajorinstitutions,theChurchandotherorganizedreligionscameindeadlast.

ThemoralauthorityoftheCatholicChurchwasobviouslynotbeingcommunicatedverywell.

WhatrolefortheChurch?“WhatistheroleoftheCatholicChurchinthemodernworld?”

Thisquestionwasaskedofclergy,bishops,laity.Neverwasthesameanswerreceivedtwice.

Somesaythereisnosimpleanswer.Somesaythere’smorethanoneanswer.(Recognizetheeverybodytrap.)

(Recognizetheeverybodytrap.)Corporateexecutivesusuallyhaveanswerstoquestionslikethis.Ifyouask

thetopexecutivesatGeneralMotors,theywillmorethanlikelyseetheirroleasbeingtheworld’slargestmanufacturerofautomobiles.Companiesspendmillionsfindingandcommunicatingtheessenceoftheirproductswithwordslike“Whiterthanwhite”or“FightingcavitiesiswhatCrestisallabout.”

TheChurchhadtoanswerthisunansweredquestioninsimple,definitiveterms.Andithadtoputthisanswerintoatotallyintegratedcommunicationprogram.Thenithadtotakethisprogramtotheflockinanewanddramaticway.

Workingoutanidentityprogramforacorporationusuallyentailsaretracingofstepsuntilyoudiscoverthebasicbusinessofacompany.Thisrequiresporingoveroldplansandprograms.Seeingwhatworkedandwhatdidn’t.

InthecaseoftheCatholicChurch,youhavetogoback2000yearsandretracethestepsoftheChurch.Insteadofoldannualreports,youhavetorelyonScripture.

Inthesearchforasimple,directexpressionoftheroleoftheChurch,twoexplicitstatementsintheGospelcouldholdtheanswer.

First,duringChrist’sministryonearth,God,asreportedinMatthew’sGospel,instructedmantolistentothewordsofhisSon,theBeloved(Matt.17:23).

ThenChrist,ashedepartedfromearth,instructedhisfollowerstogoandteachallnationswhattheyhadheardfromhim(Matt.28:19).

TeacherofthewordIt’sapparentfromtheScripturesthatChristsawtheroleoftheChurchas“teacheroftheword.”

Becausehewas“theSonofGod,”itmustbeassumedthathiswordisawordforallages.Christ’sparableswerenotjustforthepeopleofhistime,butalsofornow.

Hencetheymusthaveintheirconstructionauniversalitywhichwouldneverbecomedated.Theyaresimpleanddeep.InthemJesusgivestopeopleofallagesfoodforthoughtandaction.

Soitcanbeassumedthatthosewhoproclaimthemessagetodaycanandshouldtransmittheoldmessageinanewformintheirownlocality,intheirowntime,intheirownway.

ThustheretracingofstepsledtodefiningtheroleoftheChurchasthatofkeepingChristaliveinthemindsofeachnewgenerationandrelatinghisword

totheproblemsoftheirtime.InmanywaysVaticanIIseemedtopointtheChurchbackwardratherthan

forward.From“teacherofthelaw”to“teacheroftheword.”Thismayseemlikeaverysimplistic,almostobviousanswertoacomplicated

problem.Anditis.Experiencehasshownthatapositioningexerciseisasearchforthe

obvious.Thosearetheeasiestconceptstocommunicatebecausetheymakethemostsensetotherecipientofamessage.

Unfortunately,obviousconceptsarealsothemostdifficulttorecognizeandtosell.

Thehumanmindtendstoadmirethecomplicatedanddismisstheobviousasbeingtoosimplistic.(Forexample,manyclericsintheCatholicChurchadmirethedefinitionoftheroleoftheChurchputforthbyanotedtheologiannamedAveryDulles.Hisanswer:TheChurchhasn’tonerole.Ithassixdifferentrolestoplay.)

ImplementingthepositionOncetheobviousconcepthadbeenisolated,thenextthingtobedonewastodevelopthetechniquesforimplementingit.

Firstandforemostwaspulpittraining.Tofulfilltheroleof“teacheroftheword,”theclergyhadtobecomefarbetterspeakersandtogivefarbettersermons.(YourbestreligiousspeakerstodaycanbefoundnotinchurchbutonSundaymorningtelevision.)

Inadditiontopulpittraining,anintroductoryfilmentitledReturntotheBeginningwasproposed.

Thestartofanymajorcommunicationeffortoftenneedssomedramatogetpeople’sattention.Theemotionofthefilmmediumisidealforthiskindofeffort.(Whichisalsowhytelevisionissopowerfulatoolfornewproductintroductions.)

Awiderangeofotherprogramelementswassuggested,allcarefullyconstructedaroundtheroleofthechurchas“teacheroftheword.”

Thepointhereisthatonceapositioningstrategyhasbeendeveloped,itsetsthedirectionforalltheactivitiesoftheorganization.EvenoneaslargeandmultifacetedastheCatholicChurch.

Whathappened?Nothing.

IthasbeenverydifficulttoconvincethemanagementoftheCatholicChurch

IthasbeenverydifficulttoconvincethemanagementoftheCatholicChurchtoimplementthissolutiontotheirproblems.

NotonlydobishopsresisthavinglaypeopletellthemhowtoruntheirChurch,butthesolutionappearstobemuchtooobviousforthemtoaccept.Simplicityisnotasattractiveascomplexity.

Andaswithmostbigproblems,theydon’tgoaway.Ifyou’vebeenreadingthenewspapers,you’veprobablynotedthatthePopeisintheprocessofconveninganothersynodtoevaluatetheresultsofVaticanII.TheVaticannewspaperL’OsservatoreRomanosaidthatthesynod’spurposewastoresolveconfusionthathasarisenoverVaticanIIinthe20yearssinceitended.

Willtheyatlonglastacknowledgetheconfusionproblems?Willtheysolvetheir“crisisofidentity”andcomeupwithacommunicationsprogramthatrepositionstheChurchinthemodernworld?WillthisprogramreconcilethewideninggulfbetweenliberalandconservativeCatholics?

Don’tholdyourbreath.

23Positioningyourselfandyourcareer

Ifpositioningstrategiescanbeusedtopromoteaproduct,whycan’ttheybeusedtopromoteyourself?

Noreasonatall.Solet’sreviewpositioningtheoryasitmightapplytoyourownpersonal

career.

DefineyourselfWhatareyou?Peoplesufferfromthesamediseaseasproducts.Theytrytobeallthingstoallpeople.

Theproblemwiththisapproachisthemindoftheprospect.It’sdifficultenoughtolinkoneconceptwitheachproduct.It’salmostimpossiblewithtwoorthreeormoreconcepts.

Themostdifficultpartofpositioningisselectingthatonespecificconcepttohangyourhaton.Yetyoumust,ifyouwanttocutthroughtheprospect’swallofindifference.

Whatareyou?Whatisyourownpositioninlife?Canyousumupyourownpositioninasingleconcept?Thencanyourunyourowncareertoestablishandexploitthatposition?

Mostpeoplearen’truthlessenoughtosetupasingleconceptforthemselves.Theyvacillate.Theyexpectotherstodoitforthem.

“I’mthebestlawyerinDallas.”Areyou?Howoftenwouldyournamebementionedifwetookasurveyof

theDallaslegalcommunity?“I’mthebestlawyerinDallas”isapositionthatcanbeachievedwithsome

talent,someluck,andalotofstrategy.Andthefirststepistoisolatetheconceptthatyouaregoingtousetoestablishthatlong-termposition.It’snoteasy.Buttherewardscanbegreat.

MakemistakesAnythingworthwhiledoingisworthwhiledoinglousy.Ifitwasn’tworthwhiledoing,youshouldn’thavedoneitatall.

Ontheotherhand,ifitisworthwhiledoingandyouwaituntilyoucandoit

Ontheotherhand,ifitisworthwhiledoingandyouwaituntilyoucandoitperfectly,ifyouprocrastinate,youruntheriskofnotdoingit.Ever.

Therefore,anythingworthwhiledoingisworthwhiledoinglousy.Yourreputationwillprobablybebetterwithinthecompanyifyoutrymany

timesandsucceedsometimesthanifyoufearfailureandonlytryforsurethings.PeoplestillrememberTyCobb,whostole96basesoutof134tries(70

percent).ButtheyhaveforgottenMaxCarey,whostole51basesoutof53(96percent).

EddieArcaro,perhapsthegreatestjockeywhoeverrodeahorse,had250straightlosersbeforeherodehisfirstwinner.

MakesureyournameisrightRememberLeonardSlye?Fewpeopledid,untilhechangedhisnametoRoyRogers,animportantfirststepinbecomingamotionpicturestar.

HowaboutMarionMorrison?Alittlefeminineforahe-mancowboy,sohechangedittoJohnWayne.

OrIssurDanielovitch?FirstchangedtoIsadoreDemskyandthentoKirkDouglas.

“Fatetriedtoconcealhim,”saidOliverWendellHolmes,Jr.,“bynaminghimSmith.”

Commonlawgrantsyoutherighttoadoptanynameyouwantaslongasyou’renottryingtodefraudorbedeceptive.Sodon’tchangeyournametoMcDonaldandopenupahamburgerstand.

Also,ifyou’reapolitician,don’tbothertochangeyournameto“NoneoftheAbove.”LutherD.Knox,acandidateinaLouisianagubernatorialprimary,hadhisnamelegallychangedtojustthat.However,afederaljudgehadMr.NoneoftheAbove’snametakenofftheballotbecausethemovewasdeceptive.

Avoidtheno-nametrapManybusinesspeoplefallvictimtoinitialituspersonallyaswellascorporately.

Asyoungexecutives,theynoticethattopmanagersusuallyuseinitials:J.S.Smith,R.H.Jones.Sotheydothesame.Onmemosandinletters.

It’samistake.Youcanaffordtodothatonlyifeveryoneknowswhoyouare.Ifyou’reonyourwayup,ifyou’retryingtoburnyournameintothemindsoftopmanagement,youneedaname,notasetofinitials.Forexactlythesamereasonsyourcompanydoes.

Writeyournameandlookatit.RogerP.Dinkelacker.Whatanamelikethissayspsychologicallytomanagementis:Wearesucha

bigcompanyandyouhavesuchaninsignificantjobthatyoumustusethe“P”to

bigcompanyandyouhavesuchaninsignificantjobthatyoumustusethe“P”todifferentiateyourselffromtheotherRogerDinkelackersonthestaff.

Notlikely.Itispossible,ifyournameissomethinglikeJohnSmithorMaryJones,that

youactuallydoneedamiddleinitialtodifferentiateyourselffromtheotherJohnSmithsorMaryJoneses.

Ifso,whatyoureallyneedisanewname.Confusionistheenemyofsuccessfulpositioning.Youcan’t“burnin”anamethat’stoocommon.HowareotherpeoplegoingtodifferentiatebetweenJohnT.SmithandJohnS.Smith?

Theywon’tbother.They’lljustforgetyoualongwiththerest.Andtheno-nametrapwillhaveclaimedanothervictim.

Avoidtheline-extensiontrapIfyouhadthreedaughters,wouldyounamethemMary1,Mary2,andMary3?Asamatteroffact,wouldyounamethemMary,Marian,andMarilyn?Eitherway,you’recreatingalifetimeofconfusion.

Whenyouhangajunioronyourson’sname,youdohimnofavor.Hedeservesaseparateidentity.

Inshowbusiness,whereyoumustburnaclearcutidentityinthemindofthepublic,evenafamouslastnameshouldprobablynotbeused.

TodayLizaMinnelliisabiggerstarthanhermother,JudyGarland,everwas.AsLizaGarland,shewouldhavestartedwithahandicap.

FrankSinatra,Jr.,isanexampleofthemostdifficultkindofline-extensionname.Heliterallystartedwithtwostrikesagainsthim.

WithanamelikeFrankSinatra,Jr.,theaudiencesaystoitself,“He’snotgoingtobeabletosingaswellashisfather.”

Sinceyouhearwhatyouexpecttohear,ofcoursehedoesn’t.

FindahorsetorideSomeambitious,intelligentpeoplefindthemselvestrappedinsituationswheretheirfuturelooksbleak.Sowhatdotheygenerallydo?

Theytryharder.Theytrytocompensatebylonghoursofhardworkandeffort.Thesecretofsuccessistokeepyournosetothegrindstone,doyourjobbetterthanthenextperson,andfameandfortunewillcomeyourway,right?

Wrong.Tryingharderisrarelythepathwaytosuccess.Tryingsmarteristhebetterway.

It’sthestoryoftheshoemaker’schildrenalloveragain.Toooften,

managementpeopledon’tknowhowtomanagetheirowncareers.Theirownpromotionalstrategyisoftenbasedonthenaiveassumptionthat

abilityandhardworkareallthatcounts.Andsotheydiginandworkharder,waitingforthedaythatsomeonewilltapthemontheshoulderwiththemagicwand.

Butthatdayseldomcomes.Thetruthis,theroadtofameandfortuneisrarelyfoundwithinyourself.The

onlysurewaytosuccessistofindyourselfahorsetoride.Itmaybedifficultfortheegotoaccept,butsuccessinlifeisbasedmoreonwhatotherscandoforyouthanonwhatyoucandoforyourself.

Kennedywaswrong.Asknotwhatyoucandoforyourcompany.Askwhatyourcompanycandoforyou.Therefore,ifyouwanttotakemaximumadvantageoftheopportunitiesthatyourcareerhastooffer,youmustkeepyoureyesopenandfindyourselfahorsetodothejobforyou.Thefirsthorsetorideisyourcompany.Whereisyourcompanygoing?Ormoreimpolitely,isitgoinganywhereatall?

Toomanygoodpeoplehavetakentheirgoodprospectsandlockedthemintosituationsthataredoomedtofailure.Butfailureatleastgivesyouasecondchance.Evenworseisthecompanywithlessthanaveragechancesforgrowth.

Nomatterhowbrilliantyouare,itneverpaystocastyourlotwithaloser.EventhebestofficerontheTitanicwoundupinthesamelifeboatastheworst.Andthat’sifhewasluckyenoughtostayoutofthewater.

Youcan’tdoityourself.Ifyourcompanyisgoingnowhere,getyourselfanewone.Whileyoucan’talwayspickanIBMoraXerox,yououghttobeabletodoconsiderablybetterthanaverage.

Placeyourbetsonthegrowthindustries.Tomorrow-typeproductslikecomputers,electronics,optics,communications.

Anddon’tforgetthatsoftservicesofalltypesaregrowingatamuchfasterratethanhardproducts.Solookatbanks,leasing,insurance,medical,financial,andconsultingservicecompanies.

Don’tforgetthatyourexperiencewithyesterday-typeproductscanblindyoutoopportunitiesintotallydifferentproductareas.Andespeciallyservices.

Andwhenyouchangejobstojoinoneofthosetomorrow-typecompanies,don’tjustaskhowmuchtheyaregoingtopayyoutoday.

Alsoaskhowmuchtheyarelikelytopayyoutomorrow.Thesecondhorsetorideisyourboss.Askyourselfthesamequestionsaboutyourbossasyouaskedyourselfaboutyourcompany.

Isheorshegoinganywhere?Ifnot,whois?Alwaystrytoworkforthe

Isheorshegoinganywhere?Ifnot,whois?Alwaystrytoworkforthesmartest,brightest,mostcompetentpersonyoucanfind.

Ifyoulookatbiographiesofsuccessfulpeople,it’samazingtofindhowmanycrawleduptheladderofsuccessrightbehindsomeoneelse.FromtheirfirstassignmentinsomemenialjobtotheirlastaspresidentorCEOofamajorcompany.

Yetsomepeopleactuallyliketoworkforincompetents.Isupposetheyfeelthatafreshflowerstandsoutbetterifit’ssurroundedbywiltedones.Theyforgetthetendencyoftopmanagementtothrowthewholebunchoutiftheybecomedissatisfiedwithanoperation.

Twotypesofindividualscomeinlookingforjobs.Oneisinordinatelyproudofhisorherspecialty.Heorshewilloftensay,

“Youpeoplereallyneedmearoundhere.You’reweakinmyspecialty.”Theothertypesaysjusttheopposite.“You’restronginmyspecialty.Youdo

aterrificjob,andIwanttoworkwiththebest.”Whichtypeismorelikelytogetthejob?Right.Thelatterperson.Ontheotherhand,strangeasitmightseem,topmanagementpeoplesee

moreoftheothertype.Thepersonwhowantstobeanexpert.Preferablywithabigtitleandsalarytomatch.

“Hitchyourwagontoastar,”saidRalphWaldoEmerson.Goodadvicethen.Evenbetteradvicenow.

Ifyourbossisgoingplaces,chancesaregoodthatyouaretoo.Thethirdhorsetorideisafriend.Manybusinesspeoplehaveanenormousnumberofpersonalfriendsbutnobusinessfriends.AndwhilepersonalfriendsareawfullynicetohaveandcansometimesgetyouadealonaTVsetorbracesforthekids,they’reusuallynottoohelpfulwhenitcomestofindingabetterjob.

Mostofthebigbreaksthathappeninaperson’scareerhappenbecauseabusinessfriendrecommendedthatperson.

Themorebusinessfriendsyoumakeoutsideofyourownorganization,themorelikelyyouaretowindupinabig,rewardingjob.

It’snotenoughjusttomakefriends.Youhavetotakeoutthatfriendshiphorseandexerciseitonceinawhile.Ifyoudon’tyouwon’tbeabletorideitwhenyouneedit.

Whenanoldbusinessfriendyouhaven’theardfromin10yearscallsyouandwantstohavelunch,youknowtwothingswillhappen:(1)you’regoingtopayforthelunch,and(2)yourfriendislookingforajob.

Whenyouneedajob,it’susuallytoolatetotrythattypeoftactic.Thewaytoridethefriendshiphorseistokeepintouchregularlywithallyourbusinessfriends.

friends.Sendthemtearsheetsofarticlestheymaybeinterestedin,clipsofpublicity

items,andcongratulatoryletterswhentheygetpromoted.Anddon’tassumepeoplealwaysseestoriesthatmighthavementionedthem.

Theydon’t.Andtheyalwaysappreciateitwhensomeonesendsthemanitemtheymayhavemissed.Thefourthhorsetorideisanidea.Onthenightbeforehedied,VictorHugowroteinhisdiary,“Nothing,notallthearmiesoftheworld,canstopanideawhosetimehascome.”

Everyoneknowsthatanideacantakeyoutothetopfasterthananythingelse.Butpeoplesometimesexpecttoomuchofanidea.Theywantonethatisnotonlygreat,butonethateveryoneelsethinksisgreattoo.

Therearenosuchideas.Ifyouwaituntilanideaisreadytobeaccepted,it’stoolate.Someoneelsewillhavepreemptedit.

Orinthein-outvocabularyofafewyearsago:Anythingdefinitelyinisalreadyonitswayout.

Toridethe“idea”horse,youmustbewillingtoexposeyourselftoridiculeandcontroversy.Youmustbewillingtogoagainstthetide.

Youcan’tbefirstwithanewideaorconceptunlessyouarewillingtostickyourneckout.Andtakealotofabuse.Andbideyourtimeuntilyourtimecomes.

“Oneindicationofthevalidityofaprinciple,”accordingtopsychologistCharlesOsgood,“isthevigorandpersistencewithwhichitisopposed.”“Inanyfield,”saysDr.Osgood,“ifpeopleseethataprincipleisobviousnonsenseandeasytorefute,theytendtoignoreit.Ontheotherhand,iftheprincipleisdifficulttorefuteanditcausesthemtoquestionsomeoftheirownbasicassumptionswithwhichtheirnamesmaybeidentified,theyhavetogooutoftheirwaytofindsomethingwrongwithit.”

Neverbeafraidofconflict.WherewouldWinstonChurchillhavebeenwithoutAdolfHitler?Weknow

theanswertothatone.AfterAdolfHitlerwasdisposedof,attheveryfirstopportunitytheBritishpublicpromptlyturnedWinstonChurchilloutofoffice.

AndyourememberwhatLiberacesaidaboutthebadreviewsoneofhisconcertsreceived.“Icriedallthewaytothebank.”

Anideaorconceptwithoutanelementofconflictisnotanideaatall.It’smotherhood,applepie,andtheflag,revisited.Thefifthhorsetorideisfaith.Faithinothersandtheirideas.Theimportanceofgettingoutsideofyourself,offindingyourfortuneontheoutside,is

illustratedbythestoryofamanwhowasafailuremostofhislife.HisnamewasRayKroc,andhewasalotolderthanmostpeopleanda

failuretobootwhenhemettwobrotherswhochangedhislife.Forthebrothershadanidea,butnofaith.Sotheysoldtheirideaaswellas

theirnametoRayKrocforrelativelyfewdollars.RayKrocbecameoneoftherichestpeopleinAmerica.Worthhundredsof

millionsofdollars.Thebrothers?TheyweretheMcDonaldbrothers,andeverytimeyoueatone

oftheirhamburgers,rememberitwasthevision,courage,andpersistenceoftheoutsiderwhomadetheMcDonald’schainasuccess.NottwoguysnamedMcDonald.Thesixthhorsetorideisyourself.Thereisoneotherhorse.Ananimalthatismean,difficult,andunpredictable.Yetpeopleoftentrytorideit.Withverylittlesuccess.

Thathorseisyourself.Itispossibletosucceedinbusinessorinlifeallbyyourself.Butit’snoteasy.

Likelifeitself,businessisasocialactivity.Asmuchcooperationascompetition.

Takeselling,forexample,Youdon’tmakeasaleallbyyourself.Somebodyalsohastobuywhatyou’reselling.

Soremember,thewinningestjockeysarenotnecessarilythelightest,thesmartest,orthestrongest.Thebestjockeydoesn’twintherace.

Thejockeythatwinstheraceisusuallytheonewiththebesthorse.Sopickyourselfahorsetorideandthenrideitforallit’sworth.

24Positioningyourbusiness

Howdoyougetstartedonapositioningprogram?It’snoteasy.Thetemptationistoworkonthesolutionwithoutfirstthinking

throughtheproblem.Muchbettertothinkaboutyoursituationinanorganizedwaybeforeleapingtoaconclusion.

Tohelpyouwiththisthinkingprocess,herearesixquestionsyoucanaskyourselftogetyourmentaljuicesflowing.

Don’tbedeceived.Thequestionsaresimpletoaskbutdifficulttoanswer.Theyoftenraisesoul-searchingissuesthatcantestyourcourageandyourbeliefs.

1.Whatpositiondoyouown?Positioningisthinkinginreverse.Insteadofstartingwithyourself,youstartwiththemindoftheprospect.

Insteadofaskingwhatyouare,youaskwhatpositionyoualreadyowninthemindoftheprospect.

Changingmindsinourovercommunicatedsocietyisanextremelydifficulttask.It’smucheasiertoworkwithwhat’salreadythere.

Indeterminingthestateoftheprospect’smind,it’simportantnottoletcorporateegosgetintheway.Yougettheanswertothequestion“Whatpositiondoweown?”fromthemarketplace,notfromthemarketingmanager.

Ifthisrequiresafewdollarsforresearch,sobeit.Spendthemoney.It’sbettertoknowexactlywhatyou’reupagainstnowthantodiscoveritlaterwhennothingcanbedoneaboutit.

Don’tbenarrow-minded.Youmustlookatthebigpicture,notthedetails.Sabena’sproblemisnotSabena,theairline,butBelgium,thecountry.Seven-Up’sproblemisnottheprospect’sattitudetowardlemon/limedrinks,

buttheoverwhelmingshareofmindoccupiedbythecolas.“Getmeasoda,”tomanypeople,meansaCokeoraPepsi.

LookingatthebigpicturehelpedSeven-Updevelopitssuccessfuluncolaprogram.

Mostproductstodayarelike7-Upbeforetheuncolacampaign.Theyhaveweakornonexistentpositionsinthemindsofmostprospects.

Whatyoumustdoistofindawayintothemindbyhookingyourproduct,

Whatyoumustdoistofindawayintothemindbyhookingyourproduct,service,orconcepttowhat’salreadythere.

2.Whatpositiondoyouwanttoown?Hereiswhereyoubringoutyourcrystalballandtrytofigureoutthebestpositiontoownfromalongtermpointofview.“Own”isthekeyword.Toomanyprogramssetouttocommunicateapositionthatisimpossibletopreemptbecausesomeoneelsealreadyownsit.

FordfailedtopositiontheEdselsuccessfully.Onereasonwastheresimplywasnoroominthemindoftheautobuyerforanotherheavilychromed,medium-pricedcar.

Ontheotherhand,whenRichardsonMerrillwastryingtopositionanentryinthecold-remedyfieldagainstContacandDristan,itwiselyavoidedadirectconfrontation.Leavingthesetwotofightitoutinthedaylighthours,RichardsonMerrillchosetopreemptthe“nighttimecoldremedy”positionforNyquil.

Nyquilturnedouttobethemostsuccessfulnewproducttheyhaveintroducedinrecentyears.

Sometimesyoucanwanttoomuch.Youcanwanttoownapositionthat’stoobroad.Apositionthatcan’tbeestablishedintheprospect’smind.Andevenifitcould,itcouldn’tbedefendedagainsttheassaultsofnarrowlybasedproductslikeNyquil.

This,ofcourse,istheeverybodytrap,andoneexampleisafamouscampaignforabeercalledRheingold.ThisbrewerywantedtopreemptNewYorkCity’sworkingclass.(Notabadobjectivewhenyouconsiderthelargenumberofheavybeerdrinkersinthisgroup.)SotheyproducedsomemarvelouscommercialsfeaturingItaliansdrinkingRheingold,BlacksdrinkingRheingold,IrishdrinkingRheingold,JewsdrinkingRheingold,andsoon.

Well,ratherthanappealtoeverybody,theyendedupappealingtonobody.Thereasonwassimple.Prejudicebeingabasichumancommodity,thefactthatoneethnicgroupdrankRheingoldsuredidn’timpressanotherethnicgroup.

Infact,allthecampaigndidwasalienateeveryethnicgroupinNewYork.Inyourowncareer,it’seasytomakethesamemistake.Ifyoutrytobeall

thingstoallpeople,youwindupwithnothing.Bettertonarrowthefocusofyourexpertise.Toestablishauniquepositionasaspecialist,notasajack-of-all-tradesgeneralist.

Thejobmarkettodaybelongstothepeoplewhocandefineandpositionthemselvesasspecialists.

3.Whommustyououtgun?

3.Whommustyououtgun?Ifyourproposedpositioncallsforahead-to-headapproachagainstamarketingleader,forgetit.It’sbettertogoaroundanobstacleratherthanoverit.Backup.Trytoselectapositionthatnooneelsehasafirmgripon.

Youmustspendasmuchtimethinkingaboutthesituationfromthepointofviewofyourcompetitorsasyoudothinkingaboutitfromyourown.

Prospectsdon’tbuy,theychoose.Amongbrandsofautomobiles.Amongbrandsofbeer.Amongbrandsofcomputers.Themerit,orlackofmerit,ofyourbrandisnotnearlyasimportantasyourpositionamongthepossiblechoices.

Oftentocreateaviableposition,youmustrepositionanotherbrandorevenanentirecategoryofproduct.AsTylenoldidtoaspirin,forexample.

Noticewhathappenswhenyoufailtodealwiththecompetition.Bristol-Myersspent$35milliontolaunchNuprin,andAmericanHomeProductsspent$40milliontolaunchAdvil.Bothproductscontainibuprofen,ananalgesicnewtoAmerica.

ButbothcampaignsfailedtorepositionTylenol,thedominantheadacheremedyonthemarket.Asaresult,neitherproducthasbeenabletocarveoutmorethanatinymarketshare.

Comingtogripswiththecompetitionisthemainprobleminmostmarketingsituations.

4.Doyouhaveenoughmoney?Abigobstacletosuccessfulpositioningisattemptingtoachievetheimpossible.Ittakesmoneytobuildashareofmind.Ittakesmoneytoestablishaposition.Ittakesmoneytoholdapositiononceyou’veestablishedit.

Thenoiseleveltodayisfierce.Therearejusttoomanyme-tooproductsandtoomanyme-toocompaniesvyingforthemindoftheprospect.Gettingnoticedisgettingtougher.

Duringthecourseofasingleyear,theaveragehumanmindisexposedtosome200,000advertisingmessages.Whenyourememberthata30-second$500,000SuperBowlcommercialcanmakeonlyoneofthose200,000impressions,theoddsagainstanadvertisertodaymustbeseenasenormous.

ThisiswhyacompanylikeProcter&Gambleissuchaformidablecompetitor.Whenitbetsonanewproduct,itwillslide$50milliononthetable,lookaroundatthecompetition,andsay,“Yourbet.”

Ifyoudon’tspendenoughtogetabovethenoiselevel,youallowtheProcter&Gamblesofthisworldtotakeyourconceptawayfromyou.Onewaytocopewiththenoise-levelproblemistoreducethegeographicscopeofyourproblem.

withthenoise-levelproblemistoreducethegeographicscopeofyourproblem.Tointroducenewproductsornewideasonamarket-by-marketbasisratherthannationallyoreveninternationally.

Withagivennumberofdollars,it’sbettertooverspendinonecitythantounderspendinseveralcities.Ifyoubecomesuccessfulinonelocation,youcanalwaysrollouttheprogramtootherplaces.Providedthefirstlocationisappropriate.

IfyoucanbecometheNo.1scotchinNewYork(theNo.1scotch-drinkingareaofthecountry),youcanrollouttheproducttotherestoftheU.S.A.

5.Canyoustickitout?Youcanthinkofourovercommunicatedsocietyasaconstantcrucibleofchange.Asoneideareplacesanotherinbewilderingsuccession.

Tocopewithchange,it’simportanttotakealong-rangepointofview.Todetermineyourbasicpositionandthensticktoit.

Positioningisaconceptthatiscumulative.Somethingthattakesadvantageofadvertising’slong-rangenature.

Youhavetohanginthere,yearafteryear.Mostsuccessfulcompaniesrarelychangeawinningformula.HowmanyyearshaveyouseenthoseMarlboromenridingintothesunset?Cresthasbeenfightingcavitiesforsolongthey’reintotheirsecondgenerationofkids.Becauseofchange,acompanymustthinkevenmorestrategicallythanitdidbefore.

Withrareexceptions,acompanyshouldalmostneverchangeitsbasicpositioningstrategy.Onlyitstactics,thoseshort-termmaneuversthatareintendedtoimplementalongtermstrategy.

Thetrickistotakethatbasicstrategyandimproveit.Findnewwaystodramatizeit.Newwaystoavoidtheboredomfactor.Inotherwords,newwaystohaveRonaldMcDonaldendupeatingahamburger.

Owningapositioninthemindislikeowningavaluablepieceofrealestate.Onceyougiveitup,youmightfindit’simpossibletogetitbackagain.

Theline-extensiontrapisagoodexample.Whatyouarereallydoingwhenyouline-extendisweakeningyourbasicposition.Andoncethat’sgone,youareadriftwithoutananchor.

Levi’sline-extendedintocasualclothes.Andthenfounditsbasicpositioninjeansunderminedby“designerlabel”jeans.

6.Doyoumatchyourposition?Creativepeopleoftenresistpositioningthinkingbecausetheybelieveitrestricts

Creativepeopleoftenresistpositioningthinkingbecausetheybelieveitrestrictstheircreativity.

Andyouknowwhat?Itdoes.Positioningthinkingdoesrestrictcreativity.Oneofthegreatcommunicationtragediesistowatchanorganizationgo

throughacarefulplanningexercise,stepbystep,completewithchartsandgraphsandthenturnthestrategyovertothe“creatives”forexecution.They,inturn,applytheirskillsandthestrategydisappearsinacloudoftechnique,nevertoberecognizedagain.

Aninstitutionlikethiswouldhavebeenmuchbetteroffrunningtheflip-chartwiththestrategyonitratherthantheadwiththousandsofdollarsworthofcreativityapplied.

“AvisisonlyNo.2inrent-a-cars,sowhygowithus?Wetryharder.”Thisdoesn’tsoundlikeanad.Itsoundslikethepresentationofthemarketingstrategy.Intruth,it’sboth.

Doyouradvertisementsforyourselfmatchyourposition?Doyourclothes,forexample,telltheworldthatyou’reabankeroralawyeroranartist?

Ordoyouwearcreativeclothesthatundermineyourposition?Creativitybyitselfisworthless.Onlywhenitissubordinatedtothe

positioningobjectivecancreativitymakeacontribution.

TheroleoftheoutsiderThequestionsometimesarises:Dowedoitourselvesordowehiresomeonetopositionus?

Thesomeonethatoftengetshiredisanadvertisingagency.Anadagency?WhoneedshelpfromthoseMadisonAvenuehucksters?

Everybody.Butonlytherichcanaffordtohireanadvertisingagency.Alltheothershavetolearnhowtodoitthemselves.Havetolearnhowtoapplytheinvaluableingredientonlyavailablefromtheoutsider.

Andwhatdoestheoutsidersupply?Aningredientcalledignorance.Inotherwords,objectivity.

Bynotknowingwhatgoesoninsideacompany,theoutsiderisbetterabletoseewhatishappeningontheoutside.Inthemindoftheprospect.

Theoutsiderisnaturallyattunedtooutside-inthinking,whiletheinsiderismorecomfortablewithinside-outthinking.

Objectivityisthekeyingredientsuppliedbytheadvertisingormarketingcommunicationorpublicrelationsagency.

Whattheoutsiderdoesn’tsupply

Inaword,magic.Somebusinessmanagersbelievethattheroleofanadvertisingagencyistowaveamagicwandwhichcausesprospectstoimmediatelyrushoutandbuytheproduct.

Thewand,ofcourse,iscalled“creativity,”acommoditymuchsoughtafterbytheneophyteadvertiser.

Thepopularviewisthattheagency“creates.”Andthatthebestagenciesarefilledwithasubstancecalled“creativity”whichtheyliberallyapplytotheiradvertisingsolutions.

Inadvertisingcircles,thestoryistoldaboutanadvertisingagencythatwasverycreative.Socreative,infact,itcouldtakestrawandspinitintogold.

Nowyoumighthaveheardofthembecausetheyhadaverycreativename.Rumplestiltskin,Inc.

Thelegendliveson.Eventoday,somepeoplethinkagenciesaresocreativethattheycanspinstrawintogold.

Nottrue.Advertisingagenciescan’tspinstrawintogold.Iftheycould,they’dbeinthestraw-spinningbusinessandnottheadvertisingbusiness.

Today,creativityisdead.ThenameofthegameonMadisonAvenueispositioning.

25Playingthepositioninggame

Somepeoplehavetroubleplayingthepositioninggamebecausetheyarehunguponwords.

Theyassume,incorrectly,thatwordshavemeanings.TheyletMr.Websterruletheirlife.

YoumustunderstandtheroleofwordsAsgeneralsemanticistshavebeensayingfordecades,wordsdon’tcontainmeanings.Themeaningsarenotinthewords.Theyareinthepeopleusingthewords.

Likeasugarbowlwhichisemptyuntilsomeonefillsitwithsugar,awordhasnomeaninguntilsomeoneusesitandfillsitwithmeaning.

Ifyoutrytoaddsugartoaleakysugarbowl,youwon’tgetanywhere.So,too,ifyoutrytoaddmeaningtoaleakyword.Muchbettertodiscardthatleakywordanduseanother.

Theword“Volkswagen”won’tholdtheconceptofamedium-sizedluxurycar,soyoudiscardthatsugarbowlanduseanother,“Audi,”whichholdstheconceptbetter.Youdon’tinsistthatbecauseit’smadeinaVolkswagenfactory,itmustbeaVolkswagen.Mentalrigidityisabarriertosuccessfulpositioning.

(WhileVolkswagenfalteredintheAmericanmarket,Audiboomed.CurrentlyAudioutsellsBMWandisbreathingdowntheneckofMercedes-Benz.)

Tobesuccessfultodayatpositioning,youmusthavealargedegreeofmentalflexibility.Youmustbeabletoselectandusewordswithasmuchdisdainforthehistorybookasforthedictionary.

Notthatconventional,acceptedmeaningsarenotimportant.Quitethecontrary.Youmustselectthewordswhichtriggerthemeaningsyouwanttoestablish.

Butisthisethical?Remember,wordshavenomeaning.Theyareemptycontainersuntilyoufillthemwithmeaning.Ifyouwanttorepositionaproduct,aperson,oracountry,youoftenhavetofirstchangethecontainer.

Inasense,everyproductorserviceis“packagedgoods.”Ifitisn’tsoldinabox,thenamebecomesthebox.

YoumustknowhowwordsaffectpeopleWordsaretriggers.Theytriggerthemeaningswhichareburiedinthemind.

Ofcourse,ifpeopleunderstoodthis,therewouldbenoadvantageinrenamingaproductorselectingemotionalwordslikeMustangforanautomobile.

Buttheydon’t.Mostpeopleare“unsane.”They’renotcompletelysaneandthey’renotcompletelyinsane.They’resomewhereinbetween.

What’sthedifferencebetweensanepeopleandinsanepeople?Whatexactlydoinsanepeopledo?AlfredKorzybski,whodevelopedtheconceptofgeneralsemantics,explainsthatinsanepeopletrytomaketheworldofrealityfitwhatisintheirheads.

TheinsanepersonwhothinksheisNapoleonmakestheoutsideworldfitthatnotion.

Thesanepersonconstantlyanalyzestheworldofrealityandthenchangeswhat’sinsidehisorherheadtofitthefacts.

That’sanawfullotoftroubleformostpeople.Besides,howmanypeoplewanttoconstantlychangetheiropinionstofitthefacts?

It’sawholeloteasiertochangethefactstofityouropinions.Unsanepeoplemakeuptheirmindsandthenfindthefactsto“verify”their

opinion.Orevenmorecommonly,theyaccepttheopinionofthenearest“expert,”andthentheydon’thavetobotherwiththefactsatall.

Soyouseethepowerofthepsychologicallyrightname.Themindmakestheworldofrealityfitthename.AMustanglookssportier,racier,andfasterthanifthesamecarhadbeencalledtheTurtle.

Languageisthecurrencyofthemind.Tothinkconceptually,youmanipulatewords.Withtherightchoiceofwords,youcaninfluencethethinkingprocessitself.(Asproofthatthemind“thinkswithwords”andnotabstractthoughts,considerhowalanguageislearned.Tobereallyfluentinaforeignlanguage,sayFrench,youmustlearntothinkinFrench.)

Buttherearelimits.Ifawordissofaroutoftouchwithreality,themindjustrefusestousetheword.Itsays“large”onthetubethateveryoneexceptthemanufacturercallsa“small”toothpastetube.Itsays“economy”onthetubethateveryonecalls“large.”

ThePeople’sRepublicofChinaisusuallycalled“RedChina”becausenoonebelievesitisa“people’srepublic.”(Insidethecountry,thePeople’sRepublicofChinaisundoubtedlyaneffectivename.)

Youmustbecarefulofchange

YoumustbecarefulofchangeThemorethingschange,themoretheyremainthesame.Yetpeopletodayarecaughtupintheillusionofchange.Everyday,theworldseemstobeturningfaster.

Yearsagoasuccessfulproductmightlive50yearsormorebeforefadingaway.Todayaproduct’slifecycleismuchshorter.Sometimesitcanbemeasuredinmonthsinsteadofyears.

Newproducts,newservices,newmarkets,evennewmediaareconstantlybeingborn.Theygrowtoadulthoodandthenslidetooblivion.Andanewcyclestartsagain.

Yesterdaythewaytoreachthemasseswasthemassmagazines.Todayit’snetworkTV.Tomorrowitcouldbecable.Theonlypermanentthingtodayseemstobechange.Thekaleidoscopeoflifeclicksfasterandfaster.Newpatternsemergeanddisappear.

Changehasbecomeawayoflifeformanycompanies.Butischangethewaytokeeppacewithchange?Theexactoppositeappearstobetrue.

Thelandscapeislitteredwiththedebrisofprojectsthatcompaniesrushedintoinattemptingtokeeppace.Singertryingtomoveintotheboominhomeappliances.RCAmovingintotheboomincomputers.GeneralFoodsmovingintotheboominfast-foodoutlets.Nottomentionthehundredsofcompaniesthatthrewawaytheircorporateidentitiestochasethepassingfadtoinitials.

Meanwhiletheprogramsofthosewhokeptatwhattheydidbestandheldtheirgroundhavebeenimmenselysuccessful.Maytagsellingitsreliableappliances.WaltDisneysellingtheworldoffantasyandfun.Avoncalling.

YouneedvisionChangeisawaveontheoceanoftime.Short-term,thewavescauseagitationandconfusion.Long-term,theunderlyingcurrentsaremuchmoresignificant.Tocopewithchange,youhavetotakealong-rangepointofview.Todetermineyourbasicbusinessandstickwithit.

Changingthedirectionofalargecompanyisliketryingtoturnanaircraftcarrier.Ittakesamilebeforeanythinghappens.Andifitwasawrongturn,gettingbackoncoursetakesevenlonger.

Toplaythegamesuccessfully,youmustmakedecisionsonwhatyourcompanywillbedoingnotnextmonthornextyearbutin5years,10years.Inotherwords,insteadofturningthewheeltomeeteachfreshwave,acompanymustpointitselfintherightdirection.

Youmusthavevision.There’snosensebuildingapositionbasedonatechnologythat’stoonarrow.Oraproductthat’sbecomingobsolete.Oraname

technologythat’stoonarrow.Oraproductthat’sbecomingobsolete.Oranamethat’sdefective.

Mostofall,youhavetobeabletoseethedifferencebetweenwhatworksandwhatdoesn’twork.

Soundssimple,butit’snot.Whenthetideisrising,everythingseemstobeworking.Whenthetideisfalling,nothingseemstobeworking.

Youhavetolearnhowtoseparateyoureffortsfromthegeneralmovementoftheeconomy.Manymarketingexpertsareblessedwithageneroussupplyofluck.Bewary.Today’shula-hoopmarketinggeniuscouldbetomorrow’swelfarerecipient.

Bepatient.Thesunshinestomorrowonthosewhohavemadetherightdecisionstoday.

Ifacompanyhaspositioneditselfintherightdirection,itwillbeabletoridethecurrentsofchange,readytotakeadvantageofthoseopportunitiesthatarerightforit.Butwhenanopportunityarrives,acompanymustmovequickly.

YouneedcourageWhenyoutracethehistoryofhowleadershippositionswereestablished,fromHersheyinchocolatetoHertzinrent-a-cars,thecommonthreadisnotmarketingskillorevenproductinnovation.Thecommonthreadisseizingtheinitiativebeforethecompetitorhasachancetogetestablished.Theleaderusuallypouredinthemarketingmoneywhilethesituationwasstillfluid.

Hershey,forexample,establishedapositioninchocolatesostrongthatHersheyfeltitdidn’tneedtoadvertiseatall.ThisconvictionwasaluxurythatcompetitorslikeMarscouldn’tafford.

FinallyHersheydecidedtoadvertise.Butnotintime.TodaytheHersheymilkchocolatebarisnotthelargestseller.It’snoteveninthetop5.

Youcanseethatestablishingaleadershippositiondependsnotonlyonluckandtimingbutalsoonawillingnesstopouritonwhenothersstandbackandwait.

YouneedobjectivityTobesuccessfulinthepositioningera,youmustbebrutallyfrank.Youmusttrytoeliminateallegofromthedecision-makingprocess.Itonlycloudstheissue.

Oneofthemostcriticalaspectsofpositioningisbeingabletoevaluateproductsobjectivelyandseehowtheyareviewedbycustomersandprospects.

Youalsohavetorememberthatyoucan’tplaybasketballwithoutabackboard.Youneedsomeonetobounceyourideasoff.Assoonasyouthink

backboard.Youneedsomeonetobounceyourideasoff.Assoonasyouthinkyouhavefoundthatsimpleideathatisthesolutiontoyourproblem,youhavelostsomething.

Youhavelostyourobjectivity.Youneedtheotherpersontotakeafreshlookatwhatyouhavewrought.Andviceversa.

LikePing-Pong,positioningisagamebestplayedbytwopeople.It’snoaccidentthatthisbookwaswrittenbytwopeople.Onlyinagive-and-takeatmospherecanideasberefinedandperfected.

YouneedsimplicityOnlyanobviousideawillworktoday.Theoverwhelmingvolumeofcommunicationpreventsanythingelsefromsucceeding.

Buttheobviousisn’talwayssoobvious.“Boss”KetteringhadasignwhichheplacedonthewalloftheGeneralMotorsResearchBuildinginDayton:“Thisproblemwhensolvedwillbesimple.”

“RaisinsfromCalifornia.Nature’scandy.”“MoistandmeatyGainesburgers.Thecanneddogfoodwithoutthecan.”“BubbleYum.Numberyuminbubblegum.”Thesearethekindsofsimpleideasthatworktoday.Simpleconcepts

expressedwithsimplewordsusedinastraightforwardway.Oftenthesolutiontoaproblemissosimplethatthousandsofpeoplehave

lookedatitwithoutseeingit.Whenanideaiscleverorcomplicated,however,weshouldbesuspicious.Itprobablywon’tworkbecauseit’snotsimpleenough.

ThehistoryofscienceisahistoryoftheKetteringsofthisworldwhofoundsimplesolutionstocomplexproblems.

Theheadofanadvertisingagencyonceinsistedthathisaccountexecutivespastedownthemarketingstrategyonthebackofeachlayout.

Thenwhentheclientaskedwhattheadwassupposedtodo,theaccountpersoncouldturnthelayoutoverandreadthestrategy.

Butanadshouldbesimpleenoughsothatitisthestrategy.Theagencymadeamistake.Itranthewrongsideofthelayout.

YouneedsubtletyBeginnerswhoplaythepositioninggameoftenremark,“Howeasythisis.Youjustfindapositionyoucancallyourown.”

Simple,yes.Buteasy,no.Thedifficultyisfindinganopenpositionthat’salsoeffective.Inpolitics,for

example,it’seasytoestablishapositiontothefarright(aconservativeposition)

example,it’seasytoestablishapositiontothefarright(aconservativeposition)orthefarleft(asocialistposition).Youwillundoubtedlypreempteitherposition.

Youwillalsolose.Whatyoumustdoistofindanopeningnearthecenterofthespectrum.You

mustbeslightlyconservativeinafieldofliberalsorslightlyliberalinafieldofconservatives.

Thiscallsforgreatrestraintandsubtlety.Thebigwinnersinbusinessandinlifearethosepeoplewhohavefoundopenpositionsnearthecenterofthespectrum.Notattheedge.

Youcansometimeshaveapositioningsuccessandasalesfailure.Thismightbetermed“Rolls-Roycethinking.”

“We’retheRolls-Royceoftheindustry”isaclaimyouoftenhearinbusinesstoday.

DoyouknowhowmanyRolls-RoycesaresoldinAmericaeveryyear?Aboutathousand,or0.01percentofthemarket.Cadillac,ontheotherhand,

sellsmorethan300,000.BothCadillacandRolls-Royceareluxurycars,butthegulfbetweenthemis

enormous.Totheaverageautomobilebuyer,theRolls-Royceat$100,000andupisoutofreach.

Cadillac,likeMichelobandotherpremiumproducts,isnot.Thesecrettoestablishingasuccessfulpositionistokeeptwothingsinbalance:(1)Auniquepositionwith(2)anappealthat’snottoonarrow.

YoumustbewillingtosacrificeTheessenceofpositioningissacrifice.Youmustbewillingtogiveupsomethinginordertoestablishthatuniqueposition.

Nyquil,thenighttimecoldmedicine,gaveupthedaytimemarket.Thefocusofmostmarketingoperationsisjusttheopposite.Theylookfor

waystobroadentheirmarketsbylineextension,bysizeandflavorproliferation,bymultipledistribution.Allthesethingstendtoproduceshort-termsalesincreasesandlong-termpositioningerosion.

Inpositioning,smallermaybebetter.Itisusuallybettertolookforsmallertargetsthatyoucanownexclusivelyratherthanabiggermarketyouhavetosharewiththreeorfourotherbrands.

Youcan’tbeallthingstoallpeopleandstillhaveapowerfulposition.

YouneedpatienceVeryfewcompaniescanaffordtolaunchanewproductonanationwidescale.

Insteadtheylookforplacestomakethebrandsuccessful.Andthenrollitouttoothermarkets.

Thegeographicroll-outisoneway.Youbuildtheproductinonemarketandthenmoveontoanother.Fromeasttowest.Orviceversa.

Thedemographicroll-outisanother.PhilipMorrisbuiltMarlborointotheNo.1cigaretteoncollegecampuseslongbeforeitbecametheNo.1brandnationwide.

Thechronologicroll-outisthethirdway.Youbuildthebrandamongaspecificagegroupandthenrollitouttoothers.“ThePepsiGeneration”helpedPepsi-Colabuildtheproductamongtheyoungersetandthenreapthebenefitsastheygrewup.

Distributionisanotherroll-outtechnique.TheWellalinewasfirstsoldthroughbeautysalons.Aftertheproductswereestablished,theyweresoldthroughdrugstoresandsupermarkets.

YouneedaglobaloutlookDon’toverlooktheimportanceofworldwidethinking.AcompanythatkeepsitseyeonTom,Dick,andHarryisgoingtomissPierre,Hans,andYoshio.

Marketingisrapidlybecomingaworldwideballgame.Acompanythatownsapositioninonecountrynowfindsthatitcanusethatpositiontowedgeitswayintoanother.IBMhassome60percentoftheGermancomputermarket.Isthisfactsurprising?Itshouldn’tbe.IBMearnsmorethan50percentofitsprofitsoutsidetheUnitedStates.

Ascompaniesstarttooperateonaworldwidebasis,theyoftendiscovertheyhaveanameproblem.

AtypicalexampleisU.S.Rubber,aworldwidecompanythatmarketedmanyproductsnotmadeofrubber.ChangingthenametoUniroyalcreatedanewcorporateidentitythatcouldbeusedworldwide.

Whatyoudon’tneedYoudon’tneedareputationasamarketinggenius.Asamatteroffact,thiscouldbeafatalflaw.

Alltoooften,theproductleadermakesthefatalmistakeofattributingitssuccesstomarketingskill.Asaresult,itthinksitcantransferthatskilltootherproductsandothermarketingsituations.

productsandothermarketingsituations.Witness,forexample,thedisappointingrecordofXeroxincomputers.Andthemeccaofmarketingknowledge,InternationalBusinessMachines

Corporation,hasn’tdonemuchbetter.Sofar,IBM’splain-papercopierhasn’tmademuchofadentinXerox’sbusiness.Touché.

Therulesofpositioningholdforalltypesofproducts.Inthepackaged-goodsarea,forexample,Bristol-MyerstriedtotakeonCresttoothpastewithFact(killedafter$5millionwasspentonpromotion).ThentheytriedtogoafterAlka-SeltzerwithResolve(killedafter$11millionwasspent).ThentheytriedtounseatBayerwithDissolve,anotherfinancialheadache.

Thesuicidalbentofcompaniesthatgohead-onagainstestablishedcompetitionishardtounderstand.

Hopespringseternalinthehumanbreast.Ninetimesoutoften,thealso-ranthatsetsouttoattacktheleaderhead-onisheadedfordisaster.

Torepeat,thefirstruleofpositioningis:Towinthebattleforthemind,youcan’tcompetehead-onagainstacompanythathasastrong,establishedposition.Youcangoaround,underorover,butneverheadtohead.

Theleaderownsthehighground.TheNo.1positionintheprospect’smind.Thetoprungoftheproductladder.Tomoveuptheladder,youmustfollowtherulesofpositioning.

Inourovercommunicatedsociety,thenameofthegametodayispositioning.Andonlythebetterplayersaregoingtosurvive.

Index

Pleasenotethatindexlinkspointtopagebeginningsfromtheprintedition.Locationsareapproximateine-readers,andyoumayneedtopagedownoneormoretimesafterclickingortappingalinktogettotheindexedmaterial.

Advertising:comparative,32–34,66imageeraof,24andthemarketplaceoftoday,22–23positioningeraof,24–27producteraof,23–24

Advertisingexplosion,17–18Ageandpositioningstrategy,58Airlines,79–80,93,137–138Anonymity,99–100Automobilerental,3,33–35,198,205Automobiles,14,31,45,47,54–56,58–59,120–123,128–129,201–202

Banks,159–171Batteries,103–104,108Beer,25–27,30,55,57,58,72,195Belgium,137–142“Broadeningthebase,”112–113

“Cando”spirit,37–40Candy,149–152,205–206Cars(seeAutomobilerental;Automobiles)CatholicChurch,177–182Change,effectof,onpositioning,203–204Chewinggum,107–108China(dinnerware),63Cigarettes,57,109–110

Coffee,3,111Coldremedies,58,194–195Communication,6excessivevolumeof,11–13mediaexplosion,15–16oversimplifiedmessage,7–9

Comparativeadvertising,3,32–34,66,68Computers,24,38–42,46,98,131–134Conglomerates,95–96Copiers,44,47–49,99,131–134Corporatenames(seeNames,corporate)Creneaus,54–61

Detergents,49–50,97Distributionaspositioningstrategy,58Diversification,130–131

Ethics,67–69Everybodytrap,60

Free–ridetrap,95–100F.W.M.T.S.trap,34–35

Genericnames,102–103Givennames,77–78

Handlotion,111–112Housenames,124–125Humanmind(seeMind)

Inside–outthinking,101–102,199

Jamaica,143–147Jewelry,56

Leaders,market(seeMarketleaders)Lineextension:advantagesof,115–116

bartendertestfor,119–120disadvantagesof,116–118examplesof,103–112andinside–outthinking,101–102,199listtestfor,118–119andoutside–inthinking,102–103,199andpersonalnames,186reverse,112–113rulesfor,124–125

Line–extensiontrap,101–113,186LongIslandTrustCompany,159–165

Mailgram,153–158Margarine,110–111Marketleaders:actionstobeavoided,46effectofnamechangeon,50–51establishingposition,43failuresof,44maintainingposition,45–46andmultibrandstrategy,49–50andpoweroftheproduct,48–49protectingagainsttheunexpected,47–48reinforcingposition,47andtemporaryequality,45

Mediaexplosion,15–16MilkDuds,149–152Mind:capacityof,30–31easywayinto,19–21hardwayinto,21–22mappingoftheprospect’s,160–163oversimplified,6–7responseof,toexpectations,29–30

Mouthwash,65–66

Names:

Names:corporate,78–80,128–129andacronyms,93andconglomerates,95–96house,124–125obsolescenceof,90–92andphonetics,85–86reasonforselectionerrors,89–90shortenedtoinitials,86–91,94similarityof,80–83andtelephonedirectories,94

generic,102–103given,77–78personal,184–185product:choosing,71–74,96–100coined,74–75comparedtorubberbands,123–124negative,75–77

No–nametrap,85–94,185–186

Outside–inthinking,102–103,199Overcommunicatedsociety,6Oversimplifiedmessage,7–9Oversimplifiedmind,6–7

Painrelievers,62–63,95,102,105,196Paperproducts,106–107Perfume,55,58Personalnames,184–186Politicians,8,13–14,37,62,65,78,86–87,100Positioning,5againstundisputedleader,40–42forabusiness,193–200defined,2–3effectofchangeon,203–204majorexamplesof:banks,159–165,167–171achurch,177–182

acompany,127–136acountry,137–142anisland,143–147aproduct,149–152aservice,153–158askiresort,173–175yourselfandyourcareer,183–191

originof,3–4personalcharacteristicsfor:courage,205–206globaloutlook,209–210objectivity,206patience,209sacrifice,208simplicity,206–207subtlety,207–208vision,204–205rulesfor,201–210

Positioningstrategies:age,58appealingtoeveryone,60comparativeadvertising,32–34,66distribution,58andexistingproductline,58–59heavyusage,58highprice,55–56lowprice,56–57sex,57–58size,54–55andtechnology,59–60timeofday,58unique,34

Potatochips,64–65Priceaspositioningstrategy,55–57Productexplosion,16–17,32Productfailure,reasonsfor,53–54Productnames(seeNames,product)

Repositioning:changingexistingattitudes,61–62andcomparativeadvertising,66andethics,67–69examplesof,62–66legalityof,67

Reverselineextension,112–113

Semanticdifferentialresearch,160“Sensoryoverload,”17Sexaspositioningstrategy,57–58Shampoo,105–106,112–113Sizeaspositioningstrategy,54–55Softdrinks,3,34,44,47–49,74,104–105,194Stoweskiresort,173–175

Technologyaspositioningstrategy,59–60,134–136Technologytrap,59–60Toothpaste,58,66Tourism,137–147,173–175Traps:everybody,60free-ride,95–100F.W.M.T.S.,34–35line-extension,101–113,186no-name,85–94,185–186technology,59–60

UnitedJerseyBank,167–171

Vodka,60,63–64

Whisky,59–60,110,119–120Words:effectof,onpeople,202–203roleof,inpositioning,201–202

XeroxCorporation,24,42,44,47–50,97–99,127–136