Is the Positioning theory working today?

 

First the perspective

It was in 1969 that Jack Trout introduced the term Positioning, and strangely in context of industrial marketing. It was only in 1981 that the term was popularized in the bath breaking book, “Positioning, A Battle for Your Mind” with Al Reis. Jack Trout then wrote the book “New Positioning” in late 90s that never caught reader’s imagination.

The concept of positioning is based on a simple principle of identifying a ‘differentiator” and then owning that differentiator in consumers’ mind. The ownership of the differentiator creates a lasting impression and becomes the driver of business in a wider sense of term.

The concept of positioning was created in a world where communication was just about taking off. It was necessary to differentiate one communication message from another. It was necessary to make it distinctive and build on salience. Things have changed since. We now live in over manufactured world. Today the production cycles have come down to minimum. You don’t even need to own a factory, there are factories that would gladly produce it for you and stamp your name on it. If you are in service business, you don’t even need a factory, just an idea! In an over produced world, is it still relevant to own a fixed position in consumers’ mind. Is it possible to own one, and make the distinction when the consumer is bombarded with overflowing shelves and choices?

The world of branding is witnessing something really strange. A search engine on web is world leader in digital maps. A telecom operator in India is among the largest seller of digital music. A cellphone brand is world’s largest brand of cameras. Even iconic Apple is no longer just a brand of cutting edge computers that takes on PC in an irreverent way.

The whole concept of positioning is built on a simple premise.  It starts with the product. Every product has functions, every product appeals to emotions. Every product delivers functional benefits and also delivers emotional benefits. The synthesis of this functional and emotional benefits leads to brands’ position. The brands job is to keep building on this factor.

Today, life has dramatically changed. Every brand has a context to operate in, and the contexts are rapidly changing. Is the consumer really seeking one benefit out of brand? In this over produced world is that not a recipe for disaster? After all there is always someone waiting to deliver the same benefit as your brand in better, cheaper, faster or cooler way. Even the delivery models of brands are changing. The linear old world model is not applicable to all brands any longer. So would the 70s theory work any longer?

If the old theories are not working, what is the way of making brands iconic? If we look at some of the greatest brands of our times, the answer is obvious

I believe great brands have to be about Good Karma. Good Karma not in religious sense, but in sense of action. Brands need to ensure that their actions today, impact overall wellbeing of its wider franchise. This simply means brands have to be focused on inherent beliefs and have a wider philosophy. This wider belief and philosophy of brand should be translated into a coherent action plan that propels the brand forward. This means brands need to have belief in what they are doing, and have a strong point of view on how they want to impact consumers’ lives.

There is one thing in common since the concept was propounded in early seventies; consumers need brands as much as brands need consumers. This relationship in the twenty first century needs a new charter.

It needs Good Karma

Road Ahead For Media Planners

The Original Article

Future is always complex. Predicting future is fraught with danger. Chances of getting future wrong are bright. However future is always built on contexts that are current. Future is always shaped by the challenges faced in present.

There is a lot happening in our world at this time. Technology is progressing at a pace that is hard to keep track of. Just for example in last three years the mobile penetration has doubled, homes with digital TV subscription have gone up exponentially; the FM stations have moved from metros to class one and class two towns. The changes are not just tech driven.  The demographic changes are re-crafting the entire society. The rapid urbanization is throwing up challenges not faced before. There are no indicators suggesting that the speed of change will slow down or the transformation is eased off.

Here are three challenges that we are likely to face in coming years. First is the challenge of nomadic audiences.  Second the challenge of contexts. Last is the challenge of measurement.

Challenge of Nomadic Audiences

Media planning and buying is dependent on a set of audience being available to receive the message. The process of enumeration assumes that the audience is stationary, and once counted is always available. In today’s technology empowered scenario, the audience is not stationary. Rapid adoption of net enabled personal devices like tablets is making media portable. This has serious implications. It means that mass media will get empowered by personal media. It means that that notion of fixed audience will have to shelved. It means that media buyers will have to find a way of synthesizing the broadcast media with new age portable media. Nomadic audiences and personal portable media are forces that have will permanently change the media landscape

Challenge of contexts

Let’s take this rise of portable personal media and the possible stagnation of traditional mass media forward. Till now the media planning was built on increasing salience, so that it impacted interest in brand so that it lead to positive action on retail point. This is straight forward and linear in approach. This has delivered great results for brands. Today, the entire context of brand consumption is changing. Salience matters and salience impacts the interest in a brand, but from here on two new forces comes into play. The personal portable media is the transformational force. It makes Search and Share more important than mere Action of the traditional AIDA theory. Today everything is searchable, and people share everything. We know that this peer to peer network has an amazing power to influence brand choices. This change in context is already a reality and will only grow in future.

Challenge of measurement

The concept of fixed audience is ingrained in the existing media measurement systems. With the nomadic audience and the rise of personal portable medium will require a new type of measurement system to be created. Media agencies have tended to merge TV with online TV, press with Digital media and events with outdoors. Tomorrow they will have to find a system of one composite measurement that merges the traditional with new. The search and share impact on brands health will have a far greater bearing than mere rise or drop in reach and salience

Future is complex, and it is often not possible to predict it with certainty, but the present has a way of showing the impending challenges. We need to be prepared

Published in 4Ps of Business and Marketing, November 4th, 2011 Issue