MARKETING MANAGEMENT II LITERATURE REVIEW

MARKETING MANAGEMENT II

Positioning: AL Ries
And Jack Trout
Literature Review: The concept of positioning applies to products in a broad sense.
Services, tourist destinations, countries, and even careers can benefit from a well-developed
positioning strategy that focuses on a niche that is unoccupied in the mind of the consumer
or decision-maker.

Submitted by Group 6:
Ashish Sahoo
Ashish Acharya
Deepika Agarwal
Mayank Maroo
Mayur Kumar Patel
V.Kundan

SRI SRI UNIVERSITY

Executive Summary

F
ailure to communicate is the single most commonly used reason that people give to their
problems. In positioning Al Ries and Jack Trout discuss the problems that occur daily in
communication, not just in business but in society as a whole. We are the worlds most
over communicated society and there is only so much a person or prospect can process. Each
year we send or are sent more and more information and we steadily receive less of it.
Positioning which is a form of better communication that works for products, services,
companies, and even for people. Positioning is what you do to the mind of the intended prospect,
not what you do to the product itself. One of the best ways to position anything is to be first to
establish that vacant position in the mind of the prospect. If you and a companion made love for
the first time together then you will always occupy a position in their mind. A question that the
author’s asked in the book was: Who was the first person to fly across the Atlantic? Many people
know its Charles Lindbergh. Who was the second person to do it? No one really knows, even if
the second pilot was a better pilot! Charles Lindbergh had made a permanent position in the
mind of people. With today’s high volume of communication you have to select just the material
that you know will not just get to the prospect but in the prospect’s mind. You don’t look for
solutions to products in your own mind or in the product itself, but in the mind of the prospect.
How do they see your product? If they see it as second best, you can’t advertise it as first. If the
customer is always right, then isn’t the sender may be wrong? You have to focus on the
perceptions of people. And still it is important to remember that less is more today in your
message. An average newspaper weighs about four pounds and contains over 500,000 words. For
a person to read the entire paper front to back at a normal reading speed it would take almost 28
hours. How much information is getting through to people and how much of it is being retained?

Timing is also a key element of communication and positioning. You never get a second chance
with a product, company, or even as a person to make a first impression. Communication should
not take place until you are ready to position yourself for the long run. Also you have to find the
best form of media to extend your desired position to prospects. In past years we can all agree
that the wave of advertising output and methods have grown rapidly, but has our knowledge of
the products matched the growth? Let’s say if per capita consumption of advertising equals
fifteen times as much as it did a decade ago. We wouldn’t know fifteen times as much about the
products that are being advertised. This is called sensory overload, our brains can only take so
much before they shut down. Another key part of positioning strategy involves the right place
and time. When two people meet each other and end up falling in love, it requires an open
window (vacant spot) and both individuals being receptive to the idea. The same type of situation
has to occur when you position a product. It is also important to realize that the human mind best
accepts information that matches its current state of mind and views. An interesting example the
authors mentioned was if a Republican and Democrat read a controversial passage, they would
use the same facts in the article to support their different states of mind. Positioning is a book

Positioning: Al Ries & Jack Trout Page 1

that will help any company or person who is trying to beat competition and gain recognition in
todays over crowded marketplace and society.

Things Managers Need to Know from Positioning
 Positioning is a better form of communication in business and society in general.
Positioning is reaching and filling a vacant spot in the mind of the prospect. You can
position nearly anything: company, product, even yourself. The start to this process is not
looking at what’s in your mind or the product itself, but in the mind of the intended
prospect and their perceptions.

 One of the most effective ways to position a product is to be first. Many people know
Charles Lindbergh was the first man to fly across the Atlantic. Who was second? No one
knows or really cares, even if the second pilot was better because Charles Lindbergh
established a position in the minds of people.

 Today, timing and “more=less” is the approach to take when positioning. You shouldn’t
communicate with prospects until you are ready to release your long term positioning
strategy. Also in our highly over communicated society it is important to remember more
is less in a message.

 People see what they want to see. In taste test people have put inexpensive California
brands of wine in 50 year old bottles of French Burgundy. Of course, respondents were
more favorable of the cheap wine taste since it was in the old French bottle.

 Why is it hard to take leadership away from the top positioned company? One, they are in
the mind of the prospect as number one, stores are going to stock more of leading brands,
and winning companies attract outstanding employees. As a leader, don’t keep saying
you’re number 1 if people know it, it shows insecurity. What you should do is reiterate
the original concept. Coke calls itself the “real thing” because it is and it was first before
a bunch of imitations that try to copy something great.

 To reposition a competitor you can’t be afraid of conflict. When Tylenol successfully
repositioned aspirin, it started its ad by listing all the side effects on the back of the
aspirin bottle before even mentioning its own brand. It related itself to a product that was
already in the minds of people.

 One of the most important parts of positioning a product is what you name it. A name
should not be too generic but tell the major product benefit Example Head&Shoulders
dandruff shampoo.


 To position your product you have to look at the most obvious thing in the mind of the
prospect. Milk Duds positioned itself against candy bars by understanding their product
was enjoyed by their obvious target market (kids) for an obvious reason: the candy lasted
for a longer period of time compared to candy bars. So they used the millions companies
like Hershey's spent on advertising in their favor by running the line “When a candy bar
is only a memory, you’ll still be eating your Milk Duds.”

 To position yourself you have to link one concept with yourself, you can’t be everything
to all people. Your success in a company comes from trying many times and succeeding
sometimes rather than only going for sure things. Success usually doesn’t come from
within you have to ride a horse, what can others do for you? Find companies and
industries you can ride and learn from them.

 The best way to cope with today’s rapid changes is to not change if you have been
traditionally successful (own an established position in the prospect’s minds). It’s too
hard to keep up with the pace. Establish a positive long term movement and the sun will
shine tomorrow on those who have made the right decision today.

Summary of the book “Positioning” by Al Ries and Jack Trout
Positioning: A battle for Your Mind, by Jack Trout and Al Ries is one of the most famous
marketing books of all time. Their concept of positioning created a new world in advertising that
when used effectively can beat the competition. After reading this book as a group we believe
the book was such a success.The positioning strategy can be applied not only to products, but to
companies, careers, politicians, and even countries.

Information Overload:
Al Ries and Trout explain that while positioning begins with product, the concept really is about
positioning that product in mind of the customer. This approach is needed because consumers are
bombarded with a continuous stream of advertising, with advertiser spending several hundred
dollars annually per customers in the U.S. The customer’s mind react to this high volume of
advertising by accepting only what is consistent with prior knowledge or experience.

It’s quite difficult to change a consumer’s impression once it’s formed. Consumers cope with the
information overload by simplifying and are likely to shut out anything inconstant with their
knowledge and experience. In an over communicated environment the advertiser should present
a simplified message and make that message consistent with what the consumer already believes
by focusing on the perceptions of the consumer rather than on the reality of the product.


What Positioning is all about?
Positioning is all about what reality is. In the past, all organizations and companies would try to
be the most creative and inspiring in their advertising. To be successful you have to touch base
with reality. Jack Trout and Al Ries explain that this can only be done by touching base with
what is already in your prospect’s head. This is the only reality that matters. Why is this
necessary? Today we have become the world’s first over communicated society. Every day we
are exposed to more and more information that we cannot retain or let alone process. One
effective thing to do is focus on narrow targets and realize that the mind only chooses to accept
what it already has a knowing or relation of. You can’t find solutions in your company or your
products, but in the mind of the prospect. How does the customer see my product and why?

The Assault on the Mind:
How much information is getting through to the average American? Over communication has
interfered with our ability to receive and send messages. Trout and Ries mention that the average
American family watches more than seven hours of television a day or 750,000 pictures a day.
We are being pictured to death. This is just one medium we are exposed to and we can only
remember a fraction of the information that is constantly being thrown at us. If the per capita
consumption of advertising was to increase 15 times as much as it is now in the future, we would
not know 15 times more about the products or services trying to reach us. When the first
supermarket in America opened in Cincinnati, it had 60,000 products. No human is capable of
fully organizing and knowing all those products, especially when the average human vocabulary
is only a couple thousand words.

Getting into the mind:
The easiest way of getting into someone’s mind is to be first, it is very easy to remember who is
first and much more difficult to remember who is second .Even if the second entrant offer a
better product ,the first mover has a large advantage that can make up for other shortcoming.

However, all is not lost for products that are not the first. By begin the first to claim a unique
position in the mind the consumer, a firm effectively can cut through the noise level of other
product for example, Miller Lite was not the first light beer, but it was the first to be positioned
as a light beer, complete the name to support that position, Similarly, Lowenbrau was the most
popular German Beer sold in America, but Beck’s Beer successfully carved a unique position
using the advertising.

“You’ve tasted the German beer that’s the most popular in America. Now taste the German beer
that most popular in Germany.”


Consumers rank brands in their minds. If a brand is not number one, then to be successful it
somehow must relate itself to the number one brand. A campaign that pretends that the market
leader does not exist is likely to fail. Avis tried unsuccessfully for years to win customer,
pretending that the number one hertz did not exist. Finally, it began using the line,

“Avis is only number 2 in rent-a-car, so why go with us? We try harder.”

After launching the campaign, Avis quickly became profitable, whether Avis actually tried
harder was not particularly relevant to their success. Rather, consumers finally were able to relate
Avis to Hertz, which was number one in their minds.

Another example is that of the soft drink 7-Up.which was No 3 behind Coke and Pepsi. By
relating itself to Coke and Pepsi as the “Uncola”,7-Up was able to itself in the mind of the
consumer as a desirable alternative to the standard colas.

When there is a clear market leader in the mind of the consumer, it can be nearly impossible to
displace the leader, especially in the short-term. On the other hand, a firm usually can find a way
to position itself in relation to the market leader so that it can increase its market share .It usually
is a mistake, however, to challenge the leader head-on and try to displace it.

Those little ladders in your head:
The human mind only accepts information that matches its current state of mind. Humans also
cannot deal with more than seven units of information at a time. So we try to simplify things by
ranking them. We rank different brands and products in our heads from the superior to the worst.
As a company, it is mostly impossible to try and jump a rung on the ladder in the prospects mind
unless another company seriously screws up, rarely happens. You have to bring out a whole new
product ladder. But it’s hard to relate your new product if the prospect has no room for new
information, so it’s best to relate to the old. Tell what the product is not instead of what it is. You
also have to look at the competitor’s position. Avis was the second place rent-a-car company
next to Hertz. Avis ran the ad “Avis is only No.2, so why go with us? We try harder.” This
position proved highly successful as they were honest, related themselves to Hertz (known
company), and because people tend to have a thing for liking the underdog.

You can’t get there from here:
You can have a great sales force, product, and advertising campaign and still fail miserably if
you can’t create a position. When RCA (Radio Corporation of America) tried to take on IBM
(established leader) in the computer industry they folded and lost 250 million dollars. RCA, not
known for ever making computers tried to go in an industry that they had no shot of creating a
position. They would have been better off to take advantage of whatever positions they had in
the minds of their consumers.


Positioning of a leader:
Historically, the top three brands in a product category occupy market share in a ratio 4:2:1.That
is the number one brand has twice the market share of number two,which has twice the market
share of number two, which has twice the number share of number three. Ries and Trout argue
that the success of a brand is not due to the high level of marketing acumen of the company
itself, but rather, it is due that the company was first in the product category.They use the case of
Xerox to make this point.Xerox was the first plain-paper copier and was able to sustain its
leadership positioning. However, time after time the company failed in other product category in
which it was not first.

Similarly, IBM failed when it tried to compete with Xerox in copier market, and Coco Cola
failed to use Mr.Pibb to take on Dr.Pepper.These examples support the point that the success of a
brand usuallyis due to itsbeginning first in the market rather than the marketing abilities of the
company.The power of the company’s comes from the power of its brand, not the other way
around. With this point in the mind,there are certain things that a market leader should so do to
maintain the leadership position. First,Ries and trout emphasize what it should not do, and that is
boast about being number one. If a firm does so,then customers will think that the firm is
insecure in its position if it must reinforce it by saying so.

If a firm was the firm the first to introduce a product, that the advertising campaign should
reinforce this fact Coca-Cola “the real thing”does just that and implies that other coals are just
imitations. Another strategy that a leader can follow to maintain its position is the multi-brand
strategy.This strategy is to introduce multiple brands rather than changing existing ones that hold
leadership positioning it often is easier and cheaper to introduce a new brand rather than change
the positioning of an existing brand.Ries and trout call this strategy a single position strategy
because each brand occupies a single,unchanging positioning in the mind of the consumers.

Finally,change is evitable and a leader must be willing to embrace change rather than resist
it.When new technology open the possibility of a new market that may threaten the existing
one,a successful firm should consider entering the new market so that it will have the first mover
advantage in it, for example in the past century the New york central railroad lost its leadership
as air travel became possible then company might have been able to maintain its leadership
position had it used its resources to form an airline division.

Sometimes it’s necessary to adopt a broader name order to adapt the change.For example, Haloid
changed its name to Haloid Xerox and later to simply Xerox.This is a typical pattern of changing
Name1 to an expanded Name 1-Name 2,and later to just Name 2.
Products that fail are usually from the company following a leader. They think they can
introduce a product similar and say it’s better. It’s not about being better, but about speed. You
have to introduce products first to get a position in the minds. If every other company is heading
east, sometimes it works to head west.Volkswagen was successful releasing the Beetle because
at this time everyone else was introducing bigger size cars. They ran the simple ad “Think


small.” While there were other small cars on the market they were the first to create a small car
position which became a success.

POSITIONING OF A FOLLOWER:
Second-place companies often are late because they have chosen to spend valuable time
improving their product before launching it. According to Ries and Trout, it is better to be first
and establish leadership. If a product is not going to be first, it then must find an unoccupied
position in which it can be first. At a time when larger cars were popular, Volkswagen
introduced the Beetle with the slogan "Think small." Volkswagen was not the first small car, but
they were the first to claim that position in the mind of the consumer.
Other positions that firms successfully have claimed included:

 Age
 High price (Mobile 1 synthetic engine lubricant)
 Gender (Virginia Slims)
 Time of day (Nyquil night-time cold remedy)
 Place of distribution (L'eggs in supermarkets)
 Quantity (Schaefer - "the one beer to have when you're having more than one."

It most likely is a mistake to build a brand by trying to appeal to everyone. There are too many
brands that already have claimed a position and have become entrenched leaders in their
positions. A product that seeks to be everything to everyone will end up being nothing to
everyone.

Reposition the competition:
To reposition a competitor you have to remove an idea or product out of the consumer’s mind.
The world was first flat in everyone’s mind but a simple observation changed everything. You
can’t be afraid to rumble and undercut an existing concept or product. A famous example was
when Tylenol repositioned aspirin and the millions who were taking the product. Tylenol’s ad
said “For the millions who should not take aspirin” then they listed several of the precautions
associated with aspirin. There was sixty words said before Tylenol even mentioned its product.
The repositioning strategy allowed to Tylenol to grab a position as a safer alternative in the
prospects mind, and allowed them to efficiently become number one. Sometimes, there are no
unique positions to carve out. In such cases, Ries and Trout suggest repositioning a competitor
by convincing consumers to view the competitor in a different way. Tylenol successfully
repositioned aspirin by running advertisements explaining the negative side effects of aspirin.
Consumers tend to perceive the origin of a product by its name rather than reading the label to
find out where it really is made. Such was the case with vodka when most vodka brands sold in
the U.S. were made in the U.S, but had Russian names. Stolichnaya Russian vodka successfully
repositioned its Russian-sounding competitors by exposing the fact that they all actually were


made in the U.S., and that Stolichnaya was made in Leningrad, Russia. When Pringle's new-
fangled potato chips were introduced, they quickly gained market share. However, Wise potato
chips successfully repositioned Pringle's in the mind of consumers by listing some of Pringle's
non-natural ingredients that sounded like harsh chemicals, even though they were not. Wise
potato chips of course, contained only "Potatoes vegetable oil Salt."
As a resulting of this advertising, Pringle's quickly lost market share, with consumers
complaining that Pringle's tasted like cardboard, most likely as a consequence of their thinking
about all those unnatural ingredients. Ries and Trout argue that is usually is a lost cause to try to
bring a brand back into favor once it has gained a bad image, and that in such situations it is
better to introduce an entirely new brand. Repositioning a competitor is different from
comparative advertising. Comparative advertising seeks to convince the consumer that one brand
is simply better than another. Consumers are not likely to be receptive to such a tactic.

The Power of the Name:
A brand's name is perhaps the most important factor affecting perceptions of it. In the past,
before there was a wide range of brands available, a company’s could name a product just about
anything. These days, however, it is necessary to have a memorable name that conjures up
images that help to position the product. Ries and Trout favor descriptive names rather than
coined ones like Kodak or Xerox. Names like DieHard for a battery, Head & Shoulders for a
shampoo, Close-Up for a toothpaste, People for a gossip magazine. While it is more difficult to
protect a generic name under trademark law, Ries and Trout believe that in the long run it is
worth the effort and risk.

In their opinion, coined names may be appropriate for new products in which a company is first
to market with a sought-after product, in which case the name is not so important. Margarine is a
name that does not very well position the product it is describing. The problem is that it sounds
artificial and hides the true origin of the product. Ries and Trout propose that "soy butter" would
have been a much better name for positioning the product as an alternative to the more common
type of butter that is made from milk. While some people might see soy in a negative light, a
promotional campaign could be developed to emphasize a sort of "pride of origin" for soy butter.
Another every day is example is that of corn syrup, which is viewed by consumers as an inferior
alternative to sugar. To improve the perceptions of corn syrup, one supplier began calling it
"corn sugar", positioning it as an alternative to cane sugar or beet sugar. Ries and Trout propose
that selecting the right name is important for positioning just about anything, not just products.
For example, the Clean Air Act has a name that is difficult to oppose, as do "fair trade" laws.
Even a person's name impacts his or her success in life. One study showed that on average,
schoolteacher’s grade essays written by children with names like David and Michael a full letter
grade higher than those written by children with names like Hubert and Elmer. Eastern Airlines
was an example of a company limited by its name. Air travel passengers always viewed it as a
regional airline that served the eastern U.S., even though it served a much wider area, including


the west coast. Airlines such as American and United did not have such a perception problem.
(Eastern Airlines ceased operations in 1991. Another problem that some companies face is
confusion with another company that has a similar name. Consumers frequently confused the tire
manufacturer B.F. Goodrich with Goodyear. The Goodyear blimp had made Goodyear tires well-
known, and Goodyear frequently received credit by consumers for tire products that B.F.
Goodrich has pioneered. Other companies have changed their names to something more general,
and as a result create confusion with other similar-sounding companies. Take for instance The
Continental Group, Inc. and The Continental Corporation. Few people confidently can say which
makes cans and which sells insurance.

The No Name Trap
People tend use abbreviations when they have fewer syllables than the original term. GE is often
used instead of General Electric. IBM instead of International Business Machines. In order to
make their company names more general and easier to say, many corporations have changed
their legal names to a series of two or three letters. Ries and Trout argue that such changes
usually are unwise. Companies having a broad recognition may be able to use the abbreviated
names and consumers will make the translation in their minds. When they hear "GM", they think
"General Motors". However, lesser known companies tend to lose their identity when they use
such abbreviations. Most people don't know the types of business in which companies named
USM or AMP are engaged. The same applies to people's names as well. While some famous
people are known by their initials (such as FDR and JFK), it is only after they become famous
that they begin using their initials. Ries and Trout advise managers who aspire for name
recognition to use actual name rather than first and middle initials. The reason that initials do not
lead to recognition is that the human mind works by sounds, not by spellings. Most companies
began selling a single product, and the name of the company usually reflected that product. As
the successful firms grew in to conglomerates, their original names became limiting. Ries and
Trout advise companies seeking more general names to select a shorter name made of words, not
individual letters. For example, for Trans World Airlines, they favored truncating it simply to
Trans World instead removing all words and using the letters TWA.

Why Los Angeles is often called L.A. and New York is not called N.Y.? Trout and Ries wrote on
a topic called phonetic advantage, which is our simple knack to have shorthand names or
abbreviations for longer syllables. In business, if you want to be well known you can’t use
initials until you are popular and successful. Think about the names of some of the most popular
presidents FDR and JFK. They were popular enough to use initials and it helped with phonetic
shorthand. It is important to make sure that if you go to the initials that you won’t be confused
for another brand, company, person, etc. Sometimes you can carefully select initials to form
acronyms. EX: MADD (Mothers Against Drunk Driving) has been a long time proof that this
method can be effective.


The Free Ride Trap:
A company introducing a new product often is tempted to use the brand name of an existing
product, avoiding the need to build the brand from scratch. For example, Alka-Seltzer named a
new product Alka-Seltzer Plus. Ries and Trout do not favor this strategy since the original name
already in positioned in the consumer's mind. In fact, consumers viewed Alka-Seltzer Plus
simply as a better Alka-Seltzer, and the sales of Alka-Seltzer Plus came at the expense of Alka-
Seltzer, not from the market share of the competition. Some firms have built a wide range of
products on a single brand name. Others, such as Procter and Gamble have selected new names
for each new product, carefully positioning the product in a different part of the consumer's
mind. Ries and Trout maintain that a single brand name cannot hold multiple positions; either the
new product will not be successful or the original product bearing the name will lose its
leadership position. Nonetheless, some companies do not want their new products to be
anonymous with an unrecognized name. However, Ries and Trout propose that anonymity is not
so bad; in fact, it is a resource. When the product eventually catches the attention of the media, it
will have the advantage of being seen without any previous bias, and if a firm prepares for this
event well, once under the spotlight the carefully designed positioning can be communicated
exactly as intended. This moment of fame is a one-shot event and once it has passed, the product
will not have a second chance to be fresh and new.

Ries and Trout stress the importance of having a new name for new products to avoid confusion
or even competing against yourself. Example when Alka-Seltzer wanted to introduce their new
cold remedy idea “Alka-Seltzer PLUS” they figured they would take the free ride on the $20
million dollar a year name Alka-Seltzer. The new product ate into the Alka-Seltzer market
instead of stealing shares from competitors like Dristan andContac. You have to avoid corporate
ego and wanting to slap your company name on everything. Proctor and Gamble is a great
example of a company that understands a new product needs a new name as they make more
money each year than most of America’s advertising agencies combined. A well-known name
got well known because it stood for something else in the minds of prospects. When Heinz tried
to slap their name on ketchup they experienced the “teeter totter” effect. While they became
successful with their ketchup they lost leadership and a lot of market share in their pickle
position which is what Heinz originally stood for. One name is meant to stand for one thing.

The Line Extension Trap
Line extension is often misunderstood. Companies think it is logical to extend based on their
success of one product alone. Example : Dial soap tried to extend into Dial deodorant and didn’t
pick up market share. Companies like this look at their strategy from their point of view our
name will carry us. Instead they need to work backwards and look from the prospects point of
view. This will let you know that line extension will likely blur the prospect’s vision of your
brand. If you have a position like Kleenex it becomes almost generic because it’s so strong.


“Hand me a Kleenex” often heard over hand me a tissue paper. If Kleenex was to start making
toilet paper it would imply to the prospect that they are becoming just another brand name.

Line extensions are tempting for companies as a way to leverage an existing popular brand.
However, if the brand name has become near generic so that consumers consider the name and
the product to be one and the same, Ries and Trout generally do not believe that a line extension
is a good idea.

Consider the case of Life Savers candy. To consumers, the brand name is synonymous with the
hard round candy that has a hole in the middle. Nonetheless, the company introduced a Life
Savers chewing gum. This use of the Life Savers name was not consistent with the consumer's
view of it, and the Life Savers chewing gum brand failed. The company later introduced the first
brand of soft bubble gum and gave it a new name: Bubble Yum. This product was very
successful because it not only had a name different from the hard candy it also had the advantage
of being the first soft bubble gum.

Ries and Trout cite many examples of failures due to line extensions. The consistent pattern in
these cases is that either the new product does not succeed, or the original successful product
loses market share as a result of its position being weakened by a diluted brand name.

When line extension can work
Despite the disadvantages of line extensions, there are some cases in which it is not economically
feasible to create a new brand and in which a line extension might work. Some of the cases
provided by Ries and Trout include:
Low volume product-- if the sales volume is not expected to be high.
Crowded market- if there is no unique position that the product can occupy.
Small ad budget- without strong advertising support, it might make sense to use the house name.
Commodity product-- an undifferentiated commodity product has less need of its own name than
does a breakthrough product.
Distribution by sales reps-- products distributed through reps may not need a separate brand
name. Those sold on store shelves benefit more from their own name.
Line extension can be useful in the short term. When Alka-Seltzer introduces Alka-Seltzer plus,
retailers are going to buy and load up on it. This doesn’t necessarily mean that consumers will as
Trout and Ries say “This will probably give you enough time to hang yourself.” Kraft which was
originally strongly known for cheese, line extended into categories like mayonnaise and salad
dressing and didn’t come close to a top position in those markets. When a name becomes
everything it starts to mean nothing in the mind of the prospect, falling further down the ladder.
Where they are no brands or weak brands, you can line extend, but soon as the competitors arrive
you’re in trouble.


Positioning a company: Xerox
Why would you want to position a company? Who buys a company? When a new employee
accepts a job, that person buys the company which sold itself with recruiting programs, etc. The
company’s that occupy the best positions in the minds of prospective employees usually get
those employees. The same goes for getting investors to buy shares of stock in your company
and the position of your company. When trying to create a position in the mind of the prospect,
whoever it may be, you have to take into consideration the position that people have towards
you. When Ford was trailing GM in the car industry, Ford’s campaign was “Ford has a better
idea”, but the prospect is thinking “if you have better ideas, why aren’t you ahead of GM?” To
be successful, your advertising has to answer the questions that roam the mind of the prospect.

Positioning a country: Belgium
The book also proves you can apply positioning strategies to a country. Sabena Belgian World
Airlines was an airline that took Americans only to one destination: Belgium. While a high end
airline, you can’t convince people to fly with you if you aren’t going where they want. They
needed to position Belgium, just like when you hear France you think wine and the Eiffel Tower.
San Francisco and you think cable cars and golden gate bridge. They created a strategy that
related them to Amsterdam, a popular tourist stop which was ranked 3 stars by Michelin Guides.
Michelin ranked Belgium as having five-3star cities. The campaign that was established was “In
Belgium there are five Amsterdam’s.” Amsterdam and the Michelin Guide which were two
concepts already in the mind of the prospect traveler, helped put Belgium on the map in tourism.

Positioning an Island: Jamaica
When Jamaica was announced open for capital investment, David Rockefeller rounded up 25
American corporate officers to see if the island was worth investing in. They knew they would
have to create a position against competitors like the Bahamas, Puerto Rico, Virgin Islands, and
Bermuda. Jamaica needed a mental picture placed in the minds of prospect travelers. They
started by looking at what images already exist in the minds of people. A connection was made
with the similar landscaping and scenery of Hawaii. The campaign that was launched was
“Hawaii of the Caribbean.” This along with pointing out that Jamaica was a far bigger island
than all its competitors gave the “more to see, more to do” touch.

Positioning a product: Milk Duds
Traditionally, Milk Duds were mainly for teenagers at movie theaters. They wanted to gain
market share by spreading appeal to others, especially the younger kids. The company did what
all good positioning strategies need and found the obvious outlook that was in the mind of the
prospect. They knew that kids were disappointed in the downgraded size of candy bars and how
quickly you could eat one. Kids felt that their time of enjoyment wasn’t worth the money they


spent. The Milk Dud candy was a box of 15 individual slow chew pieces of chocolate candy. So,
they launched a simple campaign that related well to the kids. “When a candy bar is only a
memory, you’ll still be eating your Milk Duds.” This created a position that not only reversed a
bad sales trend, but allowed them to sell more units than ever in its history.

Positioning a Service: Mailgram:
When advertising for a service, it is important that you say everything well, and the way you
intended. An advertisement for Milk Duds should heavily rely on the strength of the visuals. For
a service, you want to make the customers aware of what exactly you are doing and how you are
going to do it.

Positioning a Long Island Bank:
The Long Island Trust bank did research to see where their bank stood amongst the surrounding
banks. When their numbers came back they saw they were ranked last in the amount of branches
they had, their range of services, and their quality of services. Getting those numbers back, The
Long Island Trust Bank knew with their new advertisements they had to address those issues
while continuing to do the things they did well.

Positioning a New Jersey Bank:
The name of this bank is called United Jersey, and the problem with it, is that it is in the shadows
of a lot of the bigger banks that are in New York. With United Jersey being a smaller bank they
need to look and study their competition to let their potential customers know all of their
disadvantages of being a part of a large bank. Some of those disadvantages include bad response
time by big banks in terms of help and having no real relationships.

Positioning a Ski Resort: Stowe:
In this example of positioning, this certain ski resort in Stowe, Vermont is using its notability in
order to help out with advertising. In a magazine, Stowe ski resort was named one of the top 10
ski resorts in the world. Stowe ski resort used this to its advantage with all of its advertisements.
They even talked about how they were the only ski resort on this list on the east coast of North
America. This was another strong point for them.

Positioning the Catholic Church:
Ries and Trout here discuss the difficulties of positioning in the Catholic Church. There were a
lot of communications problems that were going on between the church and these issues need to
be addressed. It is a lot harder to work on your positioning with a religion because churches do
not usually use the same kind of advertisements that companies use.


Positioning yourself and your career
People suffer from the same thing that companies and products do: Trying to be all things to all
people. This creates problems in the minds of people. You have to select something to hold on to
that will make you cut through the prospects mental wall. To be successful you to have to isolate
the concept that you want to use to create a long term position. Your reputation will probably be
better within your company if you try many times and succeed sometimes than if you only try for
things that are for certain. Trying harder in business is rarely your key to being a successful
individual. You have to find a horse to ride, what can others do for you? First, ride your
company. Ask, where is your company going? If nowhere, find a new company. Place your
focus on growing industries. Second, ride your boss. Is your boss going anywhere and what can
this person teach you in business? Thirdly, ride your business friends. Most big breaks in careers
happen because a friend recommended that person. The more friends you have outside your job,
the better the chances are you will end up in a big rewarding position. Fourth, ride an idea, but be
ready to receive ridicule. Never be afraid of conflict. Fifth, ride the faith horse, faith in others
and their ideas. Ray Kroc bought the idea for McDonalds from the McDonald brothers who had
no faith in the idea. Ray Kroc became one of the richest people in America. The sixth and final
horse to ride is yourself. “Like life itself, business is a social activity. As much cooperation as
competition so remembers, the winnings jockeys are not necessarily the lightest, the smartest, or
the strongest. The best jockey doesn’t win the race. The jockey that winds the race is usually the
one with the best horse.”

Positioning your business
What position do you own in the market place, not from the marketing manager’s view. What
position do you want to own? Most failures come from trying to create a position that someone
else owns. Whom must you outgun? Look at the situation not only from the prospect’s view of
your product, but your competitors products as well.

Playing the Positioning Game:
One of the final messages Ries and Trout left us in the book was “words don’t contain meanings.
The meanings are not in the words. They are in the people using the words.” “A word has no
meaning until someone uses it and fills it with meaning.”

Conclusion:
The concept of positioning applies to products in the broadest sense. Services, tourist
destinations, countries, and even careers can benefit from a well-developed positioning strategy
that focuses on a niche that is unoccupied in the mind of the consumer or decision-maker.


MARKETING MANAGEMENT II LITERATURE REVIEW

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