Customers, not you, position your company

If you've been in business for a while, that business has been "pigeon-holed" by the folks who know something about your company.

They do it based on their observations and experiences, and they compare them with similar observations and experiences with your competitors. They judge you, rank you, classify you, accept or dismiss you on the basis of their perceptions.

This process is called "positioning". The idea of positioning, first espoused by All Ries and Jack Trout in the 1970's, is how people collectively determine the likelihood of doing business with you.

Positioning is what people "do" to brands. That is they judge, rank and classify them. "Coke is number one", "Rolex is the highest quality watch you can buy", "Wal-Mart is the least expensive", "Volvo is the safest car".

For many brands with a history, the company has made a determined effort to position their business or product favorably and to establish the brand as a unique (differentiated) offering.

As Ries and Trout put it they, "establish a lasting relationship between a positive attribute and the brand in the collective minds of your target market members." That attribute is the differentiator: first, oldest, most innovative, safest, least expensive, sweetest, most versatile, most durable, etc.

Most companies position their offerings consciously and deliberately. As long as the offering delivers on the differentiating attribute, the attribute is important to the market, and the position is not already taken by a strong competitor, the offering can become positioned in the market's mind as the company planned and profits follow.

However, there are many examples of businesses attempting to position their offering without the credentials. The result is the market scoffing and positioning the product as being deceitful. I offer Qwest's "Spirit of Service" advertising campaign flying in the face of customer experience as a prime example.

Thus, prior to attempting to influence a market to accept the position you prefer them to have, make sure you can deliver better than your competitors can. And most importantly, deliver at least as good as your market’s expectations.

Martin Jelsema
Signature Strategies
Helping smaller companies profit from the power of branding