UNDERSTANDING BRAND POSITIONING
Brand positioning occurs whether or not a company is proactive in developing a position, however, if management takes an intelligent, forward-looking approach, it can positively influence its brand positioning in the eyes of its target customers. Otherwise the customer will position you and may not like it. Let’s look at the concept of a brand positioning statement which is internal to the brand. Brand positioning statements are often confused with company taglines or slogans. Positioning statements are for internal use. These statements guide the marketing and operating decisions of your business. A positioning statement helps you make key decisions that affect your customer’s perception of your brand. A tag line is an external statement used in your marketing efforts. Insights from your positioning statement can be turned into a tagline, but it is important to distinguish between the two.
The unfortunate reality is that no marketer has the power to position anything in the customer’s mind, which is the core promise of positioning. The notion that positions are created by marketers has to die. Each customer has their own idea of what you are.
Positioning is not something you do, but rather, is the result of your customer’s perception of what you do. Positioning is not something we can create in a vacuum; the act of positioning is a co-authored experience with the customers. Behind your positioning statement or tagline is your intention, how you desire your business or brand to be represented to customers. By examining the essence of what you are and comparing it with what your customers want, the doors open to building a business with a strong positioning in the mind of the customer. Why? Great brands merge their passion with their positioning into one statement that captures the essence of both.
PLACING YOUR BRAND POSITIONING IN YOUR CUSTOMER’S MIND
POSITIONING YOUR BRAND IN THE CONSUMER’S MIND
To position your brand in your customer’s mind, you must start from within your business. Every member of your organization that “touches” or interacts with the customer has to be the perfect expression of your position. And, since everyone may come into contact with the customer in some way, every employee should be the best expression of your position. Now comes the hard part: Put up everything that represents your brand on a wall. List all your brand’s touch points—every point of interac-tion with your customer. With a critical, yet intuitive eye, ask:
How can I more fluidly communicate my brand’s desired position?
Does every touch point look, say, and feel like the brand I want my customers to perceive?
Many marketers don’t have the clarity and conviction of following through on their words. Without certainty, you default to the status quo. Turn everything you do into an expression of your desired positioning and you can create something special. This takes courage; to actively position your brand means you have to stand for something. Only then are you truly on your way to owning your very own position in the minds of your customers.
BRAND POSITIONING STRATEGY PROCESS STEPS
In order to create a brand position strategy, you must first identify your brand’s uniqueness and determine what differentiates you from your competition. This, by the way, takes a real critical view of your brand, product or service and lays it out on the table. If you have flaws or weaknesses with your brand, product or service, get them fixed or neutralized first. You can’t do great brand work or marketing with a marginal product. Well, actually you could but you would just kill the product or worse, the company.
There are some key steps to effectively clarify your positioning in the marketplace:
Determine how your brand is currently positioning itself
Identify your direct competitors
Understand how each competitor is positioning their brand
Evaluate what is trending in your marketplace
Compare your positioning to your competitors to identify your uniqueness
Develop a distinct and value-based positioning idea
Craft a brand positioning statement
Test the efficacy of your brand positioning statement
CREATING YOUR BRAND POSITIONING STATEMENT
A positioning statement is an internal one or two sentence declaration that communicates your brand’s unique value to your customers in relation to your main competitors. In the product technology book, Crossing the Chasm, Geoffrey Moore offers one way of formulating a positioning statement:
For (target customer) who (statement of the need or opportunity), the (product name) is a (product category) that (statement of key benefit; also called a compelling reason to believe). Unlike (primary competitive alternative), our product (statement of primary differentiation).
However, I would like to provide a more simplified structure for formulating a brand positioning statement. There are four essential elements of a solid positioning statement:
Target Customer: What is a concise summary of the attitudinal and demographic description of the target group of customers your brand is attempting to appeal to and attract?
Market Definition: What category is your brand competing in and in what context does your brand have relevance to your customers?
Brand Promise: What is the most compelling (emotional/rational) benefit to your target customers that your brand can own relative to your competition?
Reason to Believe: What is the most compelling evidence that your brand can deliver on its brand promise?
After carefully research and thoughtfully answering these four questions, you can craft your “internal” brand positioning statement:
For [target customers], [company name] is the [market definition] that delivers [brand promise] because only [company name] is [reason to believe].
To have you understand how to do this and what it looks like, here are two examples of positioning statements. Amazon.com used the following positioning statement in 2001 (when it almost exclusively sold books):
“For World Wide Web users who enjoy books, Amazon.com is a online bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection.”
Zipcar.com used the following positioning statement when it established its business in 2000:
“To urban-dwelling, educated techno-savvy consumers, when you use Zipcar car-sharing service instead of owning a car, you save money while reducing your carbon footprint.”
You can see how crafting an internal brand positioning statement really simplifies and clarifies exactly how you are different and to whom and why they should care. You need to do all of this carefully. And when you design your marketing campaign, hold the work up against this statement to see if you are still on strategy with your potential marketing messaging. Also, evaluate your brand positioning statement.
EVALUATE YOUR BRAND POSITIONING STATEMENT
Take your time and do your brand positioning statement well. An intelligent and well-crafted positioning statement is a powerful tool for bringing focus and clarity to your marketing strategies, advertising campaigns, and promotional tactics. If used properly, this statement can help you make effective decisions to help differentiate your brand, attract your target customers, and win market share from your competition. Here are several criteria for checking your brand positioning:
Does it differentiate your brand?
Does it match customer perceptions of your brand?
Does it enable company or brand growth?
Does it identify your brand’s unique value to your customers?
Does it produce a clear picture in your mind that’s different from your competitors?
Is it focused on your core customers?
Is it focused on new customers?
Is it memorable and motivating?
Is it consistent in all areas of your business?
Is it easy to understand?
Will it be difficult to copy by competitors?
Is it
positioned for long-term success?
Is your brand promise believable and credible?
Can your brand uniquely own it?
Will it withstand counterattacks from your competitors?
Will it help you make more effective marketing and branding decisions?
Once you believe you have crafted a strong brand positioning statement, see if you can bring it alive with a powerful tagline.
THE USE OF TAGLINES IN BRAND POSITIONING
Now you know that brand positioning statements are internal to the company. Let’s review how you bring that brand positioning statement alive in your marketing with the use of a tagline. Taglines are phrases that are written to convey not just the benefit of a product or service, but also to enhance the brand’s personality. Why do you need a tagline? So people will quickly understand what you do and who you are. To ignite passion for your brand. And, if you’re very lucky, to become part of the customer vernacular; remember “Where’s the Beef?” for Wendy’s? FedEx’s tagline, “When it
absolutely, positively has to be there overnight,” set them up as a superior service and therefore a powerful brand. Miller Lite launched with a tagline that explained the product benefit: Tastes Great. Less Filling. Geico entices people with their tagline: “15 minutes can save you 15% or more on your car insurance.” Campbell’s was comfortable selling the soup category with the tagline, Soup is Good Food. Until the FDA challenged them because maybe, all that sodium wasn’t so good. They’ve reverted back to Mmm! Mmm! Good! Skittles ‘call to action, Taste the Rainbow, definitely captures the fun spirit of the brand. Once you have a strong brand positioning statement you can create a tagline that helps establish the position you’re looking to own.
Here are a few examples of key brands using a strong tagline line to support their brand position:
Mercedes-Benz: The best or nothing.
BMW: The ultimate driving machine.
Southwest Airlines: Low fares.
State Farm: Like a good neighbor, State Farm is there.
Nike: Just do it.
Coca-Cola: The real thing.
Target: Expect more. Pay less.
Volvo: For life.
Home Depot: More saving, more doing.
You should not take your tagline lightly. It’s not a flavor of the month marketing tactic. Do it well and it could catapult your brand to the top of that market category and be with you for years. Don’t do it well and nothing will happen. Or worse, people will make fun of your tagline if it’s not believable or just does not make sense. Dr. Pepper once used a tagline that was as follows, “It’s not for women.” Honestly, I don’t get it at all. Why alienate all the women in the marketplace so you can appeal to some sort of macho place in teenage or adult male minds. What is the benefit? They ran it for a very short period of time and dropped it.
WHY BRAND POSITIONING IS CRITICAL
Brand positioning is a powerful strategy for setting your business up to thrive. It will help drive growth and build a business resilient enough to endure shifts in the market. So work to ensure it’s designed to maximize the relevance of how and why your company matters to the people as it’s important to sustaining growth and profitability. Markets, in their very nature, are dynamic, always shifting and progressing. Many businesses spend a lot of time, focus, and energy properly positioning their brand in the current market. And that alone, is hard to get right. But what many businesses fail to do is reassess their brand positioning down the road as needed. Markets change. Customers change. New competitors enter the industry. And companies develop and deploy new products, features, and benefits constantly. Note that maintaining your positioning doesn’t necessarily ensure your brand will be relevant in the future. Your positioning needs to last in a dynamic environment. And if you need to shift your positioning, do it before your competition does.
Differentiation in today’s overcrowded market-place is critical for growth and for businesses to cut through the clutter to survive. As a result, you must take the time to get it right. Focusing on brand positioning is the best way to ensure your business has a solid platform for sustained growth. And for your brand, focusing on positioning is the best way to find a meaningful space in the hearts and minds of the people vital to your success.
BRAND INSIGHT
This brand got its start as just a single small grocery store in Los Angles California. The founder did not want to compete with 7-11 stores or even large grocery stores. So he paid attention to trends and especially to the changing needs of customers. He noticed they were traveling more and often looked for food from other places of the world. But he did not want to create a “high end” store; he wanted a neighborhood type store that would offer regular people great products at a reasonable price. Well, what started as a single store with probably no marketing has evolved into Trader Joe’s today. They reinforce their brand with their own products. Simple packaging with easy to read ingredients. A smaller store footprint with products people want. A light tropical and nautical theme. They don’t do any marketing to speak of because they want to spend the savings on their employees and their products to the benefit of their customers. They have created a powerful brand that is rising right along with people who want to eat healthy and pay less for their food products. But not at the sacrifice of quality. Talk to people who shop at Trader Joe’s and they will tell you that they “love” Trader Joe’s. That is solid branding and great positioning in the customers’ minds.
KEY TAKEAWAY
Most people would never believe that you could build a brand without marketing. Well, Starbucks never did any marketing in their early days. Neither did Google or Facebook. The key message here is to find a place in the customer’s mind that you can own and then let them own it. Customers build the above brands, not marketing.
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CHAPTER NINE
UNDERSTANDING MARKET CATEGORIES AND LADDERS.
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While most marketers understand broad marketplaces, some do not understand that a large marketplace is made up of smaller market or “product” categories. Understanding this is critical when it comes to product development and then obviously to marketing. Let me give you an example. When I say bottled water, what do you think of? Do you think of Arrowhead Spring Water? SmartWater? Aquafina? Dasani? The reason it’s important to understand how large markets can be made up of smaller product segments is to better understand possible opportunities. If I were a company or brand and told you I wanted to enter the $14 billion bottled water marketplace today, what would you say? That it is too large, too saturated, too competitive? But it continues to grow, soda sales continue to fall, the health trend continues to flourish. Your understanding of market categories within a marketplace is critical because if you look at marketing through this lens, then you might see opportunity to leverage a healthy consumer or perhaps changing tastes. You would see the opportunity to “marry” vitamins and water and create Vitamin Water.
In this chapter, I will explain and share thoughts and strategies on both market categories and consumer product ladders and why you need to own the top space on a ladder because consumers have too many choices.
CONSUMERS HAVE TOO MANY CHOICES
Once upon a time, there was just toothpaste. It was called Crest, or Colgate, or maybe Pepsodent. You chose your brand and went on your way. Today their brand offshoots and a myriad of competitors occupy entire shelves. Do you pick a product formulated to freshen breath, control tartar, whiten teeth, combat plaque, or attack gingivitis? Do you select another if you’re older than 50, have sensitive teeth, sensitive gums, or sensitive enamel? And that’s just the tip of the market category iceberg. I know, because those are just some of the 27 varieties of Crest being sold at a single store. Multiply your experience by other products on your shopping list, from mustard to shampoo, and you’ve turned a trip to the grocery store into a job requiring serious study. And the bewildering number of choices can obscure price disparities.
; A new survey by the Consumer Reports National Research Center confirms that option overload can be a hindrance as well as help. Almost 80 percent of the 2,818 subscribers surveyed said they’d found an especially wide range of choices in the previous month, and 36 percent of those said they were overwhelmed by the information they had to process to make a buying decision. Between 1975 and 2008, the number of products in the average supermarket swelled from an average of 8,948 to almost 47,000, according to the Food Marketing Institute. In the past few years, that number has fallen slightly, in part because of a growth spurt among smaller stores. An abundance of choice can complicate decision-making, causing shoppers to freeze or postpone a purchase out of uncertainty and frustration. When they do make a choice, they’re more likely to be dissatisfied because they think an un-chosen item might have been better. Five percent of respondents who found too many options said they had walked away empty-handed because the scope of choices made the selection too hard. More troubling is that when faced with an array of complex options, consumers tend to throw reason out the window and pick a product based on what’s easiest to evaluate, not what’s most important. That is why it is more important than ever to clearly understand what is going on in a broad marketplace, in a market category segment and to pay attention to changing consumer tastes based on trends. Customers simply have too many choices. Your goal as a marketer is to clearly be a leader in a market category and simplify the consumer decision-making process. If you don’t do it, your competitor will.
ELIMINATE THE COMPETITION, CREATE A NEW CATEGORY
Many brands grapple with a fundamental problem: how do you profitably build revenues in hyper-competitive markets? Grabbing business from a competitor is a difficult and expensive proposition. Raising your prices, unless delicately handled, can be risky. Lowering your prices can just lead to a price war and reduce your gross margin. Driving incremental product innovation is a common strategy but one with low odds of success when the value-add may be minor and the product remains comparatively undifferentiated. There is a better approach to reigniting growth: create your own category.
Brands and Bullshit Page 12