Understanding Positioning

“Don’t be the best, be the only.”  —Kevin Kelly

Positioning is one of those strategy terms that is often said yet seldom understood.  Candidly, I have to remind myself fairly often because it is routinely used (perhaps mistakenly) interchangeably with other terms.  

In the realm of marketing, positioning is an important concept to grasp and a powerful tool in differentiating your institution from others.  But before thinking through positioning from the side of the marketer, let’s begin by considering the consumer.

As consumers, we’re overwhelmed with information.  That’s certainly not a secret.  But as we come across new brands or products—be it a new fitness concept that just opened in a nearby shopping center or a new energy drink being handed out at an outdoor event—we immediately (and subconsciously) begin thinking about how to relate to the brand.  Is the new fitness concept going to be too hard on my back?  Does it have childcare?  How many classes a day do they offer?  How much sugar and caffeine does that energy drink have?  Who makes it?  Is it vegan?

This process of assimilation, in consumer psychology, is called cognitive categorization.  We have a natural tendency to organize and categorize information as a way to make sense of the world around us, helping us understand whether a product is for us, what it might cost, when we might use it, and how we might engage with it.  Author Seth Godin describes this process as “the way a human being finds a hook for an idea they want to be able to process.”  

Said another way, positioning is the process by which we help consumers decide what box to put us in—where to place us.  Similar to when I unload the groceries and decide whether items go in the pantry, the refrigerator, the freezer, or under the sink.  And once I’ve made that decision, I decide which drawer, shelf, or bin, each item belongs. How far back on a shelf… and so on.  

Consumers perform a similar cognitive process to create order.  Positioning, then, is the process by which we can actually help consumers to truly know us—to separate us from others.  In turn, it helps us to focus on which individual consumers are a fit for what we’re trying to offer.  

The term itself was popularized in the 1970s through the work of Al Ties and Jack Trout who were noticing that the marketplace was overwhelming the consumer with too many messages and too much information.  This is an important point to note in that this work happened decades prior to the launch of the consumer Internet and certainly the advent of social media, underscoring the need for positioning in today’s increasingly noisy marketplace.  

They introduced the idea of positioning as the strategy of establishing a brand or product in the mind of the consumer, highlighting the importance of how a product is perceived relative to the competition. This strategic positioning involves the careful selection of messaging, imagery, and the overall communication strategy to differentiate a brand and create a unique place in the consumer’s mindset.  Some of the more notable examples used were:

Volkswagen Beetle: They discussed how the Volkswagen Beetle was positioned as a unique, small car “anti-establishment” alternative at a time when big American cars dominated the market. This clear, distinct positioning helped it become a symbol of simplicity and reliability.

Avis: The car rental company Avis successfully positioned itself as the number two in the market with the tagline, “We try harder.” At a time when Hertz was the market leader, Avis used its position as a challenger to its advantage, turning a potential weakness into a compelling reason to choose Avis over Hertz.

7-Up: 7-Up was positioned as the “Uncola” to differentiate itself from the cola giants like Coca-Cola and Pepsi. This positioning strategy helped 7-Up to stand out in a crowded market by embracing its difference and presenting it as a positive alternative.

Positioning not only says, “this is what we offer,” it challenges us to think about—and empathize with—a particular kind of person.  Positioning says, “this is what we offer to people that happen to want _________.”

Coca-Cola lovers are those that love the taste of the original formula and aren’t particularly concerned about the calories.  Diet Coke drinkers may like Coca-Cola but think it’s too sweet and are cutting back on sugar.  Coke Zero drinkers may love the taste of Coca-Cola but really don’t want the sugar and calories.  These scenarios represent three different drinks for three different people:  three positions.

In this way, positioning helps us think long and hard about who we want to serve.  It challenges us to get to know them, to empathize with them, and to think long and hard about how to serve them well.  And while it may seem as if we’re ignoring the rest, we’re really helping those that represent our focus.  Yet there still may be times when what we offer works for those that are outside of our focus.  After all, Diet Coke drinkers may occasionally enjoy a Coke Zero when that’s all that’s available or they’re in a different mood.