9/21Positioning- We live in an over-communicated world- 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 staysuccessful (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-fiChannel; 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 product10/3#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 ofthe customer- sometimes being #2 or #3 in the prospect’s mind isn’t such a bad thing (Avis, Enterprise)- Products that are used everyday havehigh 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 and the market settles on exactly twoprimary 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.#11 The Law of the Opposite- the #2 player should generally do theopposite 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 playthat 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 goesout 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, twicea day”- If you have a problem, admit it as soon as common-sense requires Advantages:1.) You cannot control timingof bad news2.) Story told using your words, not media/competitions3.) Public pays most attention to first story4.) Cover-ups usually worse than original errorThe Law of Perception- In reality there are no best products. What exist in the world of marketingare 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= fastThe Law of Sacrifice- means learning to say NO to certain opportunities, which isn’t easy.- 3 elements- product, target audience,changeThe 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 ownedby your competition, focus on owning your own word and empowering your product and the prospect’s needsThe 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