9 21 Positioning world We live in an over communicated We live in an over advertised world The human mind Craves order Likes predictability Has a limited capacity for information Position is a battle of perceptions not products Positioning a series of techniques designed to differentiate yourself from the competition 1 The Law of the Leadership The first successful company brand identity tends to stay successful Charles Lindbergh 1st successful flight across Atlantic ocean never heard of 2nd Brand names become generic names so successful band aid Q tip Jello 2 The Law of the Category If you cannot be 1 in your category start a new category and be 1 in that 7 up the uncola Dell customization Marlboro Man 3 The Law of the Mind It is better to be first in the customer s mind than to be first in the marketplace Sperry first to invent computer 4 The Law of Focus It is critical to own an attribute in the customer s mind Chocolate Hersheys Cola soft drink Coca Cola Ketchup Heinz 9 26 5 The Law of the Name The best advertising for a company product is a descriptive name Bell Atlantic General Telephone Electrics Verizon Aleve sounds like relieve Acura sounds like accurate Chevy Nova No va in Spanish doesn t go Self descriptive media names Sci fi Channel Discovery Weather Channel Food Network Viacoms Brand name power Paramount Pictures 1912 Simon Shuster Publishers 1924 Blockbuster 1985 MTV Cable Network Abbreviations don t really work there are exceptions but only w good reason GM CBS IBM 6 The Law of Division Over time a category will divide fragment into two or more categories Beer Category tap bottle can lite low alcohol non alcohol 7 The Law of Perspective Marketing results take place over a long period of time Short term benefits sometimes become long term liabilities Frequent sales condition consumers into waiting for the next sale Sales dilute the power of positioning Short term positive Long term negative 8 The Law of Line Extension There is a temptation to extend the equity of the brand new products require new names Equity value added or identity Ivory soap ivory shampoo Giving the new product the name of established product Confuses consumers about the new product Alienates them about the established product 10 3 9 The Law the Ladder Marketing strategy is determined by position on competitive ladder acknowledges that in most market categories there is actually more than one available slot in the mind of the customer sometimes being 2 or 3 in the prospect s mind isn t such a bad thing Avis Enterprise Products that are used everyday have high interest w many steps on the ladder Products purchased more infrequently like furniture laptops and lawn equipment have less steps Products that deal with a prospect s personal pride such as cars watches and purses will also be of high interest and have more steps on the ladder 10 The Law of Duality in the long run every market becomes a two horse race Young markets have many rungs on the ladder They are highly fragmented Gradually as the market matures players disappear 11 The Law of the Opposite and the market settles on exactly two primary players Coke and Pepsi McDonalds and Burger King GM and Ford Once a market reaches this state it will generally not allow 1 and 2 to move around When 1 gets too far ahead of 2 the market will usually correct the problem the 2 player should generally do the opposite of what the 1 player is doing The worst thing you can do is to try and beat the 1 player at his own game Instead realize that not everyone in the market wants to play that game Offer those people an alternative Coke associated with older generation Pepsi marketing campaign Pepsi Generation for younger generation Scope 2 marketed as good tasting mouthwash that kills germs 12 The Law of Unpredictability you cannot predict the future Before the battle planning is everything once the shooting starts planning goes out the window Strategy vs Tactics Strategy your goal Tactics the maneuvers you use to attain the goal Your overall business strategy is determined by the of competitors you have A great way to deal with the unpredictable is to establish an immense amount of flexibility into your business 13 The Law of Candor Products admitting a negative get credit for a positive Damage control You better get out in front of dis NYPD Blue Tylenol Scare 7 died from cyanide spiked bottles of Tylenol Johnson Johnson at once recalled ALL Tylenol 31 000 000 bottles Quickly innovated tamper proof bottles Avis We Have to Try Harder We re 2 With a name like Smucker s It s Got to be Good Listerine The taste you hate twice a day If you have a problem admit it as soon as common sense requires Advantages 1 You cannot control timing of bad news 2 Story told using your words not media competitions 3 Public pays most attention to first story 4 Cover ups usually worse than original error The Law of Perception In reality there are no best products What exist in the world of marketing are perceptions in the mind of the prospect and that perception is the reality The Law of Exclusivity two businesses cannot own the same word in the mind of their prospects Volvo safety mcdonalds fast The Law of Sacrifice means learning to say NO to certain opportunities which isn t easy 3 elements product target audience change The Law of Attributes you search for an attribute opposite of the leader to play against having similarity just won t work Crest owns cavities other company can use whitening taste or cost to gain some of the market share The bottom line is to know what attributes are important to the prospect know which word is owned by your competition focus on owning your own word and empowering your product and the prospect s needs The Law of Singularity there s only one move for every situation that produces considerable results Competitors always have a weak point a vulnerable place and this is the focal point of your single bold strike Coke classic The Law of Success Be confident but not arrogant His success often times leads to arrogance and it s that same arrogance that can lead to failure Don t get out of touch with your customers Stay involved in some of the basic stuff Your ego should never get so big that you think you are too good for the little stuff It s that little stuff that leads to success The Law of Failure How does anyone become better at what they do They learn by their mistakes John C Maxwell a well known motivational author says you must fail forward to