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Four Questions That Define Agency Positioning Strategy
The document discusses the importance of effective agency positioning, highlighting that a clear and differentiated strategy is crucial in mature markets where businesses often appear generic. It emphasizes that successful positioning involves focusing on strengths, targeting specific market segments, and avoiding the lure of being 'full service.' Key questions are proposed to help firms identify their unique competencies and market expertise, ultimately driving innovation and client success.
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Four Questions That Define Agency Positioning Strategy
- 1. THE FOUR QUESTIONS THATDEFINE AGENCY POSITIONING Presented by Tim Williams Ignition Consulting Group
- 3. We desperately want toappeal to everyone.
- 4. You can begood at something, but you can’t be good at everything.
- 5. In mature categories(including professional services), brands and organizations start copying one another so much they begin to look generic.
- 6. Legendary Economist AdamSmith “In mature markets, profits don’t come from increased efficiency, but rather from increased innovation and differentiation.”
- 7. We’re collaborative We customizesolutions for every client We’re team players We’re your trusted business partner We deliver excellence We’re experienced professionals Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. JUST TABLE STAKES
- 8. What qualifies as apositioning strategy?
- 9. SIZEIS NOT ASTRATEGY
- 10. WIDE RANGE IS NOTA STRATEGY
- 11. INTEGRATION IS NOT ASTRATEGY
- 12. FULL SERVICE IS NOTA STRATEGY
- 13. FULL SERVICE doesn’t scale ①There’s really no such thing as “full service” ② Clients don’t hire you for “everything” but for something ③ “Full service” simply doesn’t scale
- 14. FOCUS does scale ① People,competencies, and systems constantly improve. ② Time and money are directed toward a coherent strategy. ③ Expertise can be deployed across a large client base. ④ Alignment between your strategy and day-to-day decisions.
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- 16. Positioning = Decidingwhat not to do
- 17. Positioning = Away to repeat success
- 18. Positioning = Lettingclients outgrow you “Companies need to be true to a type of customer more than a specific individual customer with changing needs.” Jason Fried 37 Signals
- 19. Positioning = Curating “Whatmakes a great museum is the stuff that’s not on the walls.” Seth Godin
- 20. Positioning = Abusiness strategy Michael Porter Harvard Business School “The essence of strategy is choosing what not to do.”
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- 22. BUSINESS STRATEGY DEFINED X Choices,not plans
- 23. BUSINESS STRATEGY DEFINED Subtraction,not addition
- 24. BUSINESS STRATEGY DEFINED Fewerfeatures, not more
- 25. BUSINESS STRATEGY DEFINED Trade-offs,not add-ons
- 26. Of over 200management practices studied, only one has a causal relationship to superior business performance: A clearly stated, focused strategy. Source: Nohria, Joyce, & Roberson, “What Really Works,” Harvard Business Review,
- 27. 1. We havea unique and differentiating answer to the question, “What business are we in?” 2. We have effectively identified the areas in which our firm is “best in class.” 3. We have a clear definition of our best, ideal client. 4. We target a specific segment of the market, not the entire market. 5. We try to focus on what we do best instead of attempting to offer every possible service. 6. We avoid the promises of “full service,” “complete,” or “wide range.” 7. We are as concerned with making our firm different as we are with making it better. 8. We actively avoid working in areas that don’t represent the core of our business. 9. We believe in the strategic advantages of “narrow and deep” over “broad and shallow.” 10. We avoid imitating the business models of our competitors. How differentiated are we? Strongly Disagree 1 2 3 4 5 6 7 8 9 10 Strongly Agree
- 28. POSITIONING STRATEGY? We helpbrands thrive in harsh environments by creating meaning work that makes a huge impact. We take brands from where they are to where they ought to be. We’re an end-to-end marketing and communications company that looks at everything from your perspective. Be passionate. Have big ideas. Make a big impact. Get big results. Because that’s what it takes. To innovate. To compete. To thrive.
- 29. To arrive atan effective positioning strategy, you must interrogate your firm until it confesses its strengths.
- 30. WHAT PRODUCT LEADERSHIP THEFOUR QUESTIONS THAT DEFINE YOUR STRATEGY WHO MARKET EXPERTISE WAY OPERATIONAL INNOVATION WHY MOTIVATING MISSION 1 2 3 4
- 31. WHAT WHO WAY PRODUCT LEADERSHIP WHY 1. Whichof our competencies could be considered best-in-class? 2. What different or innovative services do we offer? 3. In which service areas do we have specialized knowledge or expertise? 4. What kinds of unique strategic assets do we possess? 5. What specific problems do our clients have and which of our offerings are most effective at solving them?
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- 36. WHAT WHO WAY MARKET EXPERTISE WHY 1. Whattypes of clients have we been most successful attracting in the past? 2. Which industries or business categories do we know best? 3. Which specific market segments do we know best. 4. What types of client company business models do we have the most experience with? 5. Do we have special knowledge or expertise understanding our customers’ customers?
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- 40. WHAT WHO WAY OPERATIONAL INNOVATION WHY 1.Do we have strong, differentiating philosophies that set us apart from other firms. 2. Have we created distinctive methodologies for solving problems and creating client value? 3. Do we have unique ways in which we provide or deliver services to our clients? 4. Do we approach resourcing in particularly effective or unconventional ways? 5. Are we differentiated by a non-traditional organizational structure?
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- 44. WHAT WHO WHY MOTIVATING MISSION WAY 1.Do we have a stated purpose that transcends making money? 2. What do we preach? What do we crusade against? 3. What are our people volunteering for? 4. What would we attempt to achieve if we knew we could not fail?
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- 46. “Profit is notthe purpose of a company, but rather a test of its validity.” Peter Drucker WHAT WHO WHY MOTIVATING MISSION WAY
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- 48. CLIENT SIZE BEST-OF-BREED AGENCIES LARGERNATIONAL CLIENTS AGENCY FOCUS “FULL SERVICE” AGENCIES SMALLER REGIONAL CLIENTS
- 49. HOWARD SCHULTZ A.G.LAFLEY STEVE JOBS TO EXPAND YOUR BUSINESS, NARROW YOUR FOCUS
- 50. HOWARD SCHULTZ “WE NEEDTO FOCUS TO START GROWING AGAIN” ๏ Closed 900 stores in the U.S. ๏ Reduced store staffing by 1,000 ๏ Slowed down new store openings to a total of 73 worldwide ๏ Recommitted to core product: coffee
- 51. A.G. LAFLEY 150 BRANDS75 BRANDS “Fewer products will make us bigger — and more profitable”
- 52. STEVE JOBS 300+ PRODUCTS3 PRODUCTS
- 53. 15,000 SKUs 60SKUs Market Cap $50.6 Billion
- 54. Positioning is a prospectingstrategy
- 56. THE FOUR QUESTIONS THATDEFINE AGENCY POSITIONING