This book tells how to establish a position for your products and company in the minds of prospects. The authors say that the essence of positioning is to make your brand name stand for the generic (e.g., Kleenex).
I like the advice to start with the position you already have (what you’re already known for), and work to improve from there.
It’s mostly applicable to large companies with large advertising budgets, but most principles can apply to smaller businesses. It’s mostly applicable to products, not services, but most lessons can apply to services.
I read it because it was recommended by a local restaurateur. I’ve also seen it on lists of marketing books.
Below are my notes.
Pricing
“Charging high prices is not the way to get rich. Being the first to (1) establish the high price position (2) with a valid product story (3) in a category where consumers are receptive to a high-priced brand is the secret of success.”
“The place to establish the high price is in the ads, not in the store. The price (high or low) is as much a feature of the product as anything else.”
“There should be no surprises in the store. Your ads don’t have to quote exact prices, although sometimes that’s a good thing to do. What they should do, however, is to clearly position your brand in a particular price category.”
The Power of the Name
A name should begin the positioning process by telling the product’s major benefit. For example, Head & Shoulders Shampoo, or DieHard batteries. But the name shouldn’t be so close to the product itself to become generic. It should be strong, generic-like, and descriptive.
In names, stick with common descriptive words (e.g., Spray ‘n Wash) and avoid coined words (e.g., Qyx).
Prevent customer confusion by putting the product/service you’re known for in your company name. For example, change Continental Corp. to Continental Insurance.
“A name is a rubber band. It will stretch, but not beyond a certain point. Furthermore, the more you stretch a name, the weaker it becomes.”
The Free-Ride Trap
“One name can’t stand for two distinctly different products. When one goes up, the other goes down.” Use different names for different products.
The Line-Extension Trap
The more products hung on a brand name, the less meaning the name has to the average consumer.
Offering a step-down product (lower end version) hurts the prestige of the original.
Positioning Your Business
“Your company’s name ought to stand for something within your industry.”
Don’t try to position based on having better people (staff). Buyers won’t believe it.
“The solution to a positioning problem is usually found in the prospect’s mind, not in the product.”
“Find a way into the mind by hooking your product, service, or concept to what’s already there.”
“If you can start with a strongly held perception, you’ll be that much ahead in your efforts to establish your own position.”
“Start with what the prospect is already willing to give you.” Emphasize your perceived advantages. “Instead of asking what you are, you ask what position you already own in the mind of the prospect”
You find your position by studying your competition, not yourself.
Smaller businesses should position against large competitors, because the large competitors are in the minds of prospects. In ads, exploit their weaknesses.
“A positioning exercise is a search for the obvious. Those are the easiest concepts to communicate because they make the most sense to the recipient of a message. Unfortunately, obvious concepts are also the most difficult to recognize and to sell.”
“The big winners in business and in life are those people who have found open positions near the center of the spectrum. Not at the edge.” For example, “You must be slightly conservative in a field of liberals or slightly liberal in a field of conservatives.”
“Prospects don’t buy, they choose … among brands … The merit, or lack of merit, of your brand is not nearly as important as your position among the possible choices.
“Often to create a viable position, you must reposition another brand or even an entire category of product. As Tylenol did to aspirin, for example.”