Contrary to popular belief, information is the enemy of persuasion. Not the friend. In fact, too much information is the number one killer of advertising, presentations, speeches and brand messages in general.
Most people think they can convince, sell or persuade by piling on facts and stats. Well, it might make you feel smart, but it’s not going to produce results. In fact, the more information you stuff into an ad, the less you’ll get out of it.
Information is what web sites are for. You can cover all the nitty gritty details in the content of your site. That’s where you go deep with blog posts and white papers. Don’t try doing that in your advertising.
Lead them gently down that primrose path to conversion.
Effective advertising leads prospects to that information and moves them further down the primrose path to conversion. It doesn’t change minds, it simply gets people moving in the right direction… from ad, to website, to content, to store, to purchase. That’s how it’s supposed to work.
Many people try the short cut, thinking they can do it all in one ad. There’s no thinking behind it. No strategy. No emotional hook. And worst of all, no story.
Just get the word out there. Load ’em up with product specs and features. Give ’em every detail of the coming event. Show ’em every product that’s on sale! Baffle ’em with the factoids.
Here’s an example: Several local hearing aid businesses run huge, full-page ads in the paper every week. It’s a wise media strategy, because the newspaper reaches senior citizens quite effectively.
Terrible execution though! The ads are all type and hype… packed with nothing but facts, retail features and weasels. Someone could easily win that marketing battle simply by removing the facts and taking a less-is-more approach.
Because seniors don’t like being bored to death either.
If you ignore the emotional benefits of hearing well, and start droning on about the techno-wizardry of the latest, greatest hearing aid, you’re missing it entirely.
Advertising is an arena geared specifically for stories and emotional benefits. The imaginative part of the sales pitch, if you will. Save the product features, details, proof points and testimonials for your website or for the sales pitch once they’re in your store. And even then, you need to use information wisely.
A Harvard Business Review study revealed the underlying problem with more information… unnecessarily confusing paths to a purchasing decision.
“Companies have ramped up their messaging, expecting that the more information they provide, the better the chances of holding on to increasingly distracted and disloyal customers. But for many consumers, the rising volume of marketing messages isn’t empowering—it’s overwhelming. Rather than pulling customers into the fold, marketers are pushing them away with relentless and ill-conceived efforts to engage.”
The study compared the online advertising of two digital camera brands. Brand A used extensive technical and feature information such as megapixel rating, memory and resolution details. Nothing about the beautiful images you could capture.
And guess what? All that information didn’t lead people closer to a decision. It led them down a frustrating rabbit hole and drove them to consider Brand B.
“Brand B simplified the decision making process and helped prospects traverse the purchase path quickly and confidently.” The approach focused more on the end results have having a great photo, rather than the features of the camera. Duh.
“The research showed that customers considering both brands are likely to be dramatically more “sticky” toward Brand B… The marketer’s goal is to help customers feel confident about their choice. Just providing more information often doesn’t help.”
I’ve had bosses and clients who believe that every inch of every ad should be utilized to its fullest extent. In other words, pack it with facts. Leave nothing out. “White space is for people with nothing to say.”
The underlying reason for that is usually insecurity and/or inexperience. The results are predictably dismal… You end up with a frustrated creative team, confused consumers and lousy response rates.
So if you’re working on a new ad campaign, make friends with the Delete button. Embrace the white space. Learn when to shut up. When in doubt, take it out!
Relevance. Credibility. Differentiation. These are branding fundamentals. When you look at companies — large and small — that have become successful brands, you’ll notice strength, consistency and often superiority in those three areas.
Branding fundamentals begin with Relevance.
Brand relevance is closely related to specialization and niche marketing. Because you can’t be relevant to everyone.
My old friend Preston Thompson understood the importance of branding strategies and the need for a niche. He painstakingly crafted high-end guitars for discerning bluegrass musicians who are looking for a very specific, classic, Martin-like sound.
Obviously, the Thompson Guitar brand is not relevant to those of us who don’t play the guitar. Duh!
But it’s also NOT relevant to most guitar players. NOT relevant to pop stars or young, smash-grass musicians. Not relevant to classical guitarists. Not even relevant to most blue grass guitarists.
Wisely, Preston doesn’t worry about that.
The Thompson Guitar brand IS relevant to the tiny, narrow niche of customers they’re looking for. Rather than casting a wide net, and trying to be relevant to a broad range of guitar players, they’re staying esoterically focused.
Relevant to few, but highly valued.
The more focused you are, the easier it is to maintain relevance among the prospects who matter most. Relevance is not an absolute. In fact, it’s a bit of a moving target.
Blackberry was once a highly relevant brand among young, upwardly mobile, hyper-busy professionals. Not anymore. Technological advances from Apple and Google wiped the Blackberry off the map. Such is life in the world of high tech… if you’re not innovating quickly your brand relevance will fall faster than you can say Alta Vista.
Relevance in the restaurant business is also ridiculously fleeting. Foodies, who are the bread and butter of the trendy restaurant scene, suffer from a severe case of “been there done that” syndrome. So when something new comes along, they’re gone and the hottest restaurant of the year gets quickly supplanted by the next great thing. The restaurants that thrive in the long run find an audience after the foodies have left the building.
The demise of Sears demonstrates a dramatic loss of relevance. There’s still a very small audience of elderly consumers who have been buying appliances and tools there for 50 years, but the brand can’t survive on that. It’s NOT relevant to younger consumers who represent the future of retail. High school girls would rather be shot than caught shopping at Sears.
Sometimes entire categories experience a dip in relevance. Like what’s happened in the soft drink industry… bubbly drinks like Coke and Pepsi are not as relevant to young consumers who have taken to Glaceau Vitamin Water, Gatoraide, SoBe, Arizona Iced Tea, Kombucha and more than 50 other alternatives.
It’s a function of choice, really. When I was growing up, we didn’t have all those choices. Just milk, Coke or Kool Aid in the summer.
The more choices there are in your category, the harder it is to maintain relevance.
It’s tough staying “on the radar” when there are so many new products, new companies, and new offerings being unveiled. How many of the 50 brands of flavored water do you think will be around ten years from now?
Being relevant equates to being meaningful. If your brand is meaningful, you’ll generate interest. People will desire it. And they’ll take action. That’s what you want: Interest. Desire. Action.
Many brands fail because they didn’t really mean anything to begin with. Others lose their meaning over time, often due to a lack of credibility. They haven’t mastered the branding fundamentals.
Branding Fundamental #2: Credibility
Credibility begins by knowing yourself, your brand, and the core essence of your enterprise. You can’t stay true to yourself if you don’t know what you’re really about… your passion, your purpose and your promise. Write them down. That’s one of the things that all great brands have in common… They live by their brand values.
It’s been said that branding is about promises kept. That’s how you build trust and loyalty. So don’t bullshit people about what you can do or deliver. (That’s another, very basic, branding fundamental.)
Good sales people often gloss over the realities of delivery in order to get the sale. Like the famous line from an old FedEx ad… “We can do that. Sure, we can do that! (How we gonna do that?”) Every time you over-promise and come up short, your credibility takes a hit.
Instead, set realistic expectations. And if things do go wrong, don’t be afraid to say, “yeah, we really screwed up.” And do it quickly! In this world of social media you have to move fast to stay ahead of any bad news.
So let’s assume that you know yourself well and you’ve established a trusted brand. The easiest way to screw it up is to advertise something you’re NOT. Like a personal injury lawyer claiming to be friendly and honest.
And if you really want to compound the problem, try using a celebrity of questionable credibility. That’s a double whammy! Every brand affiliation reflects on your credibility.
Often what you’ll see is advertising based on wishful thinking rather than brand realities or customer insight. The ego of the business owner clouds the message that gets out and harms the credibility of the company. Ego is also a common culprit when it comes to differentiation… CEOs and business owners start thinking they can do anything.
Branding Fundamentals: Differentiation.
The best brands take the conventional thinking of their industry and throw it on its ear, disrupting everything that came before. They discard the age-old excuse; “Yeah, but we’ve always done it this way.”
You cannot differentiate your brand by watching the rear-view mirror or by following the lead of others in your industry. Instead, try the convention-disruption model… Think about the standard operating procedures and practices of your industry – the conventional approach – and do something else.
There are three key areas where differentiation can produce some dramatic business gains:
The best marketing programs begin with products designed to be different from the get-go. There are plenty of ice cream brands out there, but only one with the crazy, mixed-up flavors of “Late Night Snack.” Ben & Jerry’s continually differentiates itself with its creativity in the flavor department.
If you have me-too products you can still differentiate yourself through operational innovation. Be more efficient, more employee-friendly, more environmentally conscious, whatever. For Walmart procurement and supply chain management was the differentiator. That’s what enables them to keep prices so low.
Business Model Differentiation
This is a good option that applies mostly to start-ups. If you can find a better business model, and prove that it works, investors will notice. But keep in mind, consumers might not know the difference, so you still have to do other things well.
In crowded markets with many similar offerings it’s often the advertising and marketing programs that push one brand to the front of the pack. Additionally, in advertising circles there are three areas where you can differentiate yourself: Strategy, media, or creative execution.
Take AFLAC for instance… Before that obnoxious duck came along, no one even knew what supplemental insurance was. That’s creative differentiation. And no one else in that niche was running television. That’s media differentiation.
The famous “Got Milk” ad campaign utilized a disruptive new strategy for the category, as well as exceptional execution.
RCD. Relevance. Credibility. Differentiation. Most companies are lucky to get one or two out of three. The greatest brands are three for three.
Call us to find out how Relevance Credibility & Differentiation matter to your business. 541-815-0075.
I think all entrepreneurs should study advertising. Entrepreneurs are full of ideas, and advertising is an industry of ideas…
Ideas on how to build a brand. How to build credibility and authenticity for existing brands. How to engage an audience and convert leads into sales. It’s those big ideas — paired with exceptional execution — that produce growth for clients and vault agencies into the national spotlight.
The same can be said for start-ups. Businesses that start with a big idea, and then stick to it, are the ones that become iconic brands.
Maytag owns the idea of worry-free appliances. For more than 30 years their advertising has brilliantly communicated the idea of dependability with the lonely Maytag repairman who never has anything to do.
Now he even has an apprentice. The Leo Burnett Agency introduced a strapping new version of Maytag repairman… a side-kick who can talk about technological advancements and appeal to younger women.
The Maytag repairman character is so iconic Chevy actually used him in a television spot touting the Impala’s reliability.
Maytag owns the idea. Chevy’s just borrowing it.
Maytag’s core brand idea helps segment the market and differentiate them from the competition. Nobody else in that category will try to claim the idea of “reliability.” Won’t work because everyone knows that Maytag = dependability.
Google knows how to build a brand. They own the idea of online search. So much so, it’s become a verb. “Google it.” It’s the world at your fingertips.
Campbell’s owns the idea of “comfort food.” That brand is not about flavor, it’s about the rainy day when your kids are home for lunch and you sit down for a bowl of soup and grilled cheese sandwiches. Campbell’s warms, comforts, nourishes, takes you back in time and puts a smile on your face.
For only about one dollar.
Volvo owns the idea of safety. That’s their clearly perceived position in the automotive market.
Even though driving an automobile is inherently risky, people believe they are safe in a Volvo. And that belief feeds the folklore that sustains that idea and Volvo’s brand image.
Even though Volvo models have all the glamorous features of a luxury brand, they’ll never be seen as luxury cars. Just safe cars.
Funny story about Volvo shopping… Some years ago I seriously considered buying a Volvo SUV for my family. I did the research and went to the local lot for a test drive. But the salesman blew it. He was so adamant about the brand’s safety record, he tried to convince me that Volvo actually used Swedish convicts as live test dummies. True story, he claimed. That’s how Volvo developed such a safe car… by crashing them with convicts at the wheel.
Needless to say, Volvo’s reputation for safety and the car’s luxurious ride couldn’t trump the salesman’s idiocy. I bought an Audi.
Who owns the idea of “fast food?”
McDonald’s, of course. But when people began to realize that fast food wasn’t so good nutritionally, Subway had their own idea… “Healthy Fast Food.” It was healthier than McDonalds, and Jerod proved it by losing like a thousand pounds while eating Subway Sandwiches.
That simple idea has propelled Subway to #1 in the fast food category. There are 44,800 subway Subway stores to 36,500 McDonald’s stores.
Now Jimmy John’s owns the idea of FAST sandwiches. Not fast food, or sandwiches like Subway, but sandwiches delivered quickly, wherever you may be.
That’s a good strategy of differentiation, especially because their sandwiches aren’t all that great. If they stick with the idea, and execute the idea religiously by actually delivering every sandwich faster than anyone expects, they’ll have a winning business formula.
It’s a core brand concept that’s easily demonstrable in advertising.
And that’s particularly important when it’s a category of parity. The sandwiches at Quiznos, Tomo’s, Jimmy John’s and Subway are all pretty much the same, so the advertising idea becomes even more important.
Insurance in another such category. It’s a fairly even playing field in a low-involvement category. (Let’s face it, dealing with insurance is about as much fun as going to the dentist.)
Allstate owns the idea of mayhem. In their current advertising campaign the agency put a face on mayhem, and gave him a smart-ass personality. Everybody knows somebody like that, you just hope your daughter doesn’t date the guy
State Farm has a long-running slogan, “like a good neighbor.” Unfortunately, neither the advertising nor the customer service support that idea.
Geico saturates the airwaves with humorous advertising and outspends everyone in the insurance category. Thanks to an annual budget of $500 million a year the Geico Gecko and the cavemen have become fixtures in American pop culture. But the message is all over the place. There’s no core brand idea that anyone can grasp.
Guess who owns the idea of sparkling white teeth? It’s not Colgate. Not Crest. Not a toothpaste, at all. It’s Orbit chewing gum, a fairly new brand from the master marketers at Wrigleys.
The Orbit girl “cleaning up dirty mouths” campaign helped them capture the #1 spot in the chewing gum market.
(I think Orbit copied the Progressive Insurance advertising. Progressive is the sparkling white insurance brand, for whatever that’s worth.)
Coming up with a core brand concept is hard work. You really have to dig. And think. And explore.
Most of the good ideas have already been done, or can’t be owned authentically. That’s the trick… finding a conceptual framework that honestly fits with your product or service offering. (BNBranding can help you with that.)
Many big brands don’t own an idea at all. JCPenny, or JCP as they’d like us to say, doesn’t own an idea. They’re trying desperately to be younger, cooler and more hip than they used to be, but the name change and the slick new execution of of their print advertising doesn’t make up for the lack of a relevant idea.
Whether you’re selling insurance or chewing gum, building a brand begins with a simple idea.
Anybody can borrow some money, hang up a shingle and start their own business. But the companies that last — the ones that become iconic brands — almost always start with a clearly defined, highly demonstrable idea that goes beyond just the product or service.
I’m appalled. A successful marketing guy asked me a question recently — a real no-brainer — which led me to believe he didn’t know the difference between marketing strategy and tactics.
How can that be? He’s held several high-paying marketing positions. He has an MBA. He’s gotta know this stuff.
So I started doing some research online and I’ve found the problem: The internet! And specifically, LinkedIn and other social media channels of misinformation.
Just about every day there’s another misleading article about marketing strategy and tactics. There’s more misinformation than information out there. More nonsense than common sense.
For instance, I ran across one article that listed “search engines” as a marketing strategy and said “long-term strategies such as giving away freebies will continue to pay off years down the road.”
Freebies are NOT a strategy. Search engines are NOT a strategy. Digital is NOT a strategy.
Just the other day, one of the biggest gurus of digital marketing published a post about “marketing strategy” that was flat-out wrong. It was about media buying — specifically, choosing Facebook over Television advertising. I
That’s not Marketing Strategy, that’s tactical media buying. Step 5 in the branding process, not the beginning.
This isn’t just a matter of semantics, it’s negligence! Advice like that would never get past the editors of a brand-name business magazine, but you can find it on-line. All over the place.
In any case, the easiest way to clarify the difference between marketing strategy and tactics is to go to the source…
I’m sorry if the war analogy doesn’t appeal to you, but that’s where these terms came from, some 3,000 years ago.
Here’s how it breaks down: Goals first. Then strategy. Then tactics.
Goal: Win the war.
Strategy: “Divide and conquer.”
CIA spies gather intelligence.
Navy Seals knock out enemy communications.
Paratroopers secure the airports.
Armored Divisions and tank battalions race in and divide the opposing army’s forces.
Drone attacks take out the enemy leadership.
An overwhelming force of infantry invade.
A marketing strategy is an idea… A conceptualization of how the goal could be achieved.
Like “Divide and Conquer.” Another possible war strategy would be “Nuke ‘Em.” (They call them Strategic Nuclear Weapons because they pretty much eliminate the need for any further battlefield tactics.)
In WWII, the generals spent more than six months mapping out the strategy to win the war in Europe before D-Day. They diagnosed the problem, researched the enemy, pinpointed weaknesses and literally mapped out a plan of attack. Much of that strategic debate focused on what NOT to do… Where NOT to invade. What battlefields to avoid.
But let’s get off the battlefield and look at a successful brand. In business, great strategies are built on BIG ideas. And BIG ideas usually stem from some little nugget of consumer insight.
Back in the 70’s, executives at Church & Dwight Inc. noticed that sales of their popular Arm & Hammer baking soda were slipping. The loyal moms and grandmas who had been buying the same baking soda all their lives weren’t baking as much as they used to.
Business Goal: Turn the tide and increase Baking Soda sales.
Strategy: Devise new reasons for their current customers to pick up that yellow box at the supermarket and use more baking soda.
Specifically, sell Arm & Hammer as a deodorizer for the fridge. That’s a big, strategic idea that led Arm & Hammer in a completely different direction.
They’re now marketing a whole line of environmentally friendly cleaning products. Every current Arm & Hammer product, from toothpaste to cat litter, originated from that strategy of finding new ways to use baking soda. And in the process, an old-fashioned brand has managed to stay relevant.
Tactics: All the traditional marketing tactics have been employed… TV advertising. Magazine ads. Digital advertising. Search engine marketing. Content marketing. Retail promotions. Website dedicated to all the various uses of Arm & Hammer Baking Soda.
All great marketing strategies share these common traits:
• Thorough understanding of the brand’s status and story. Arm & Hammer has a strong heritage that dates back to the 1860’s. That yellow box with the red Arm & Hammer logo is instantly recognizable, and stands for much more than just generic sodium bicarbonate. It’s iconic.
• A realistic assessment of the product’s strengths & weaknesses. Market research proved what Arm & Hammer executives suspected… that people don’t bake as much as they used to. But it also showed that people were using their baking soda for all kinds of things besides baking. That was the insight that drove the strategy.
• A clear picture of the competition. Arm & Hammer has always been the undisputed market leader in the category. However, when they decided to introduce toothpaste and laundry detergent, the competition became
fierce. Arm & Hammer’s long-standing leadership position in one vertical market gave them a fighting chance against Procter & Gamble.
• A grasp of the big-picture business implications. Good brand strategies reach way beyond the marketing department. When you have a big idea, execution of the strategy will inevitably involve operations, R&D, HR, finance and every other business discipline.
A great strategy does not depend on brilliant tactics for success. If the idea is strong enough, you can get by with mediocre tactical execution. (Although I wouldn’t recommend tactical short cuts.)
However, even the best tactics can’t compensate for a lousy strategy.
You can waste a lot of money on marketing tactics if there’s no cohesive strategy involved. Some people confuse marketing strategy with marketing objectives. They are not synonymous. Here are a few examples of “marketing strategies” from seemingly credible on-line sources:
“Create awareness.” “Overcome objections.” “Boost consumer confidence.” “Refresh the brand.” “Turnkey a multiplatform communications program.”
That’s just marketing industry jargon.
Those are NOT strategies, they’re goals. (And not even very good goals.) Remember, it’s not a strategy unless there’s an idea behind it.
Any number of strategies can be used to achieve a business goal. In fact, it often takes more than one strategy to achieve a lofty goal, and each strategy involves its own unique tactical plan.
Unfortunately, a lot of marketing managers simply throw together a list of the tactics they’ve always used, and call it a strategy.
If you’re still wondering about the difference between marketing strategy and tactics, try the “what-if” test…
At Dominoes, someone said, “Hey, what if we guaranteed 30-minute delivery?” Dominoes couldn’t compete on product quality or price, but they could compete on speedy delivery.
So a strategy was born.
After that, their entire operation revolved around the promise of 30-minute delivery. They built a hell of a strategy around a simple, tactical idea. That strategy worked well for more than 20 years until a lawsuit forced them to abandon it. Now Jimmy John’s owns the “Super fast delivery” niche in the fast food industry.
At Arm & Hammer someone asked, “What if we could come up with a bunch of new uses for baking soda?” Presenting people with entirely new ways to use your product is a good marketing strategy.
On the other hand, “What if we do search engines?” doesn’t make sense. Must be a tactic.
“What if we increase market share?” There’s no idea in that, so it must be a goal.
What if we could screen all web content for factual errors and eliminate some of the conflicting information you find. Wouldn’t that be nice?
The fact is, even the sharpest marketing people need help sometimes. Even the most savvy entrepreneurs run into roadblocks on a regular basis. They crash and burn, pick up the pieces and keep on going!
BNBranding can help you navigate the world of marketing and take your business to the next level. We have a disciplined branding process that produces a unique strategy that will differentiate you from all your competitors. And then we help you execute that strategy it in creative new ways.
It starts with an affordable test drive assessment of your current marketing efforts. We’d be happy to do that for you. It’s a simple, no-risk assessment that will point the way forward. No matter where you’re starting.
In the 1970’s Al Ries and Jack Trout popularized the concept of positioning strategy. Since then, they’ve written dozens of spin-off books, including Focus, The Immutable Laws of Marketing, Bottom Up Marketing, and even Re-Positioning.
Still, you could have a roomful of MBA’s and no two would agree on what positioning really means. Many people can’t even decide if the word is an active verb or a proper noun.
Most people think of positioning as a simple step ladder. The cheapest, lowest-end products are “positioned” at the bottom of the ladder, and the best, most expensive products are on the top shelf, if you will.
But positioning has little to do with real price or quality. Instead, it’s all about perception.
The whole concept of positioning is based on the simple fact that we form opinions about products and companies based on our own perception. These opinions are influenced by all sorts of things… word of mouth, personal experience, individual prejudices, blogs, the marketing efforts of the brand in question and a hundred other factors.
In our own minds we make some pretty broad — and often rash — assumptions about things. Call it consumer bigotry if you want to. The fact is, we pigeon hole companies and products the same way we pigeon hole political candidates.
As marketers, our goal is to tap into these existing perceptions and use them to our advantage.
Here’s a classic example. Back in 1968, before the term positioning was ever invented, the makers of 7-Up scored a huge coup in the soft drink market.
Taste tests and other forms of consumer research revealed that people saw 7-Up as a refreshing alternative to colas. Respondents said it flat out… “it’s a nice change from all the cola I’ve been drinking.”
So the 7-Up executives decided to market the drink as the alternative to cola. It was a no-brainer, really. They simply took the existing perception in the marketplace and turned it into their strategy.
Like all good positioning strategies, 7Up’s was simple and almost painfully obvious. Once the executives at 7-Up knew what consumers were thinking, there was no other way to go.
The creative execution of the strategy, however, was not so obvious.
J. Walter Thompson’s simple two-word slogan “The UnCola” said it all. Brilliant! The campaign gave the product a personality, cemented the idea in our collective consciousness, and assured 7Up a place in advertising history.
From a positioning standpoint this strategy worked remarkably well for several reasons. First, it didn’t attempt to change anyone’s perception. It simply leveraged the existing public opinion.
Secondly, it effectively repositioned the competition. Without slamming them, 7-Up lumped Coke, Pepsi and RC all together in a single boring category of colas.
Finally, the new strategy made 7Up relevant to the young people who account for a large portion of soft drink sales. The campaign tapped into the prevalent anti-establishment mind set of the late 60’s. It actively encouraged defiance against the cola establishment and portrayed 7-Up as a symbol of dissent. The entire campaign summarized the popular values of the public and catapulted 7-Up into the position as the third leading soft drink in America.
While it is possible to build a positioning strategy around images alone, it’s usually a few simple words like “The Uncola” that solidify things in the consumer’s mind. Because you don’t “position” a product, you communicate its position.
“Just Do It” communicates Nike’s position as a brand of everyday athletes. “Pizza Pizza” is a fun way to communicate Little Ceasar’s low-price strategy. “Avis, we try harder” communicated the benefit of being number two in the rental car business.
On the other hand, many automobile companies have struggled with their positioning strategy. Oldsmobile, the now defunct GM brand, is a good example.
In its last 14 years, Oldsmobile floated no fewer than ten different slogans. Here’s a few of the real gems:
“Olds Quality. Feel it.”
“Look what happens when you demand better.”
“It knows the road.”
Ironically, the slogan that’s most memorable is the only one that even hints at the reality of Oldsmobile’s perception with American car buyers. “This is not your father’s Olds” used the old, fuddy-duddy perception of Oldsmobile and spun it in a positive way. Maybe if they’d have stuck with it for more than a year, the brand would still be alive today.
You wonder what kind of research Cadillac executives did that led them to believe they could compete with Honda and Toyota in the small car market. The Cimmeron failed miserably back in the 80’s. Then they’re tried again in the 90’s with Caterra, “The Caddi that zigs.” Nobody believed that!
Now they’re trying to compete against BMW, Audi and Mercedez. GM finally got the product right with the CTS, but it’s still a classic case of force-feeding a product into a position in the market. Cadillac as a sports car just does not compute with the American public. It goes against everything Cadillac has ever stood for. The world’s biggest, most luxurious SUV is one thing, but we’ll never buy the concept of a small, sporty Cadillac.
On the same vein, Porsche is off track trying to compete in the SUV market. “The Porsche of SUV’s” has a nice ring to it, but it will never really resonate with the public that sees Porsche as a rich-man’s sports car. What’s next, Chateaubriand at McDonald’s?
There’s an important distinction to be made here between niche marketing and positioning. Cadillac can decide to focus on the luxury sports car niche and can build a car specifically for that purpose. But that does not mean the product will ever be perceived that way in the minds of the consumer. The problem is, Audi and BMW already occupy that space in the consumer’s mind.
Here’s another trap that many companies fall into: They mistake their mission statement for a positioning strategy.
Fortune-500 companies miss the boat all the time on this. There’s a giant health care provider that recently formed an internal committee to study the “position” of the company and draft a “positioning strategy.” What they came up with was a mission statement at best.
But your mission — your statement of purpose — may have nothing to do with your position in the market place. And vice versa.
A mission statement is concocted by a committee and exists in corporate brochures, annual reports, and press releases. A positioning statement is formed in the consumer’s mind. A mission statement is the rose-colored view of your company. A positioning statement is the gritty, 16mm view.
No doubt, the semantics of positioning and positioning strategy can get confusing. But if you want to hedge your bets, think of it this way:
Positioning is not something you do, it’s something that happens. You can choose a narrow market niche, devise a new pricing strategy and launch a giant ad campaign that, together, may affect people’s perception of you. But you can’t technically “position” anything.
Want to transform your business into an iconic brand like 7-Up? Call us. 541-815-0075. Want more classic positioning advice? Read this post.