POSITIONING

In 1972, Trout and Ries heralded the coming of a new era of marketing strategy, the “Era of
Positioning”. They maintained that:

Positioning has its roots in the packaged goods field where the concept was called
product positioning. It literally meant the product’s form, package size and price
as compared to competition… today we are entering an era that recognizes both
the importance of the product and the importance of the company image, but more
than anything else, stresses the need to create a position in the prospect’s mind.

Marketers will quickly recognize the early concept of product positioning as nothing more than
the established practice of product differentiation. Referenced in the above statement, however,
are two additional positioning concepts, both external in nature: “company (image) positioning”
and “positioning within the prospect’s mind.” Trout and Ries proceed to introduce a third
concept, “master plan positioning,” which is internal in nature. This particular positioning
concept involves the firm’s strategy of positioning a given product within the framework of its
overall product line. It is a plan to manufacture a separate product to serve each of several
particular consumer needs, such as one toothpaste for cavity prevention and another for sex
appeal. Again, however, most marketers may view such “ master plan positioning” as nothing
more than differentiating each of several brands for a different market segment.

The question that this article asks – and attempts to answer – is: What is the role of the concept
of positioning in the development of marketing thought? Is it to be constructed as a new era of
marketing thought, a new approach to marketing management? Or is positioning only a
“warmed-over” version of one or more earlier recognized concepts?

Some swear by positioning, while others tend to swear at it. Ries, an early proponent of the
concept, recently stated, “If being condemned is a virtue, there must be some virtue in the
Positioning Concept.”

An examination of the use of the term positioning reveals that it is not a single, distinct concept
at all; positioning includes a variety of concepts, often closely related, and it is almost as
versatile as the term marketing strategy. Therefore, perhaps the term that provides the most
universal coverage of positioning is positioning strategy. The scope of this term is sufficiently
broad to encompass both internal and external positioning, positioning as a conceptual vehicle,
“head-on” positioning, social accountability positioning, and all of the variations within these
and other positioning concepts.

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The issue here is whether each of these positioning concepts is something new and different, or
essentially just another way of expressing a sound marketing strategy. While the author feels
that all of these positioning ideas are contained within the overall scope of marketing strategy,
they appear to have some features that set them off from traditional marketing ideas. The
following discussion examines these similarities and differences and reflects upon the
contribution of positioning to the development of marketing thought.

Positioning Strategy

The concept of positioning is subject to considerable differences in interpretation. Therefore,

one would expect much disagreement as to what constitutes proper positioning strategy. For the
most part, positioning strategy is used in such general terms as to be essentially the same thing as
the target selection and consequent promotional aspects of marketing strategy. Only
occasionally does someone such as Achenbaum attempt a definitive analysis of any significantly
aspect of positioning strategy.3 The Achenbaum treatment of the strategy of brand/product
positioning is exceptionally good with respect to the need for research as necessary foundation
for brand-positioning strategy.

Although they are not always clear as to the actual meaning of the various concepts, a number of
marketing experts appear to agree that positioning provides a useful vehicle for the interpretation
of various elements of marketing strategy. Some tend to stress a single model of positioning,
while others appear to offer a mixture of concepts. For example, one article on product
positioning contained the following recommendation:

Position your product in the marketplace so that it stands apart from competing
brands. You can cover that consumer space as if you had a patent on it. Find a
strong product position and sit on it. Positioning tells what you stand for, what you
are, how you would like customers to evaluate you. Your position telegraphs the
simple truth of your products.

Positioning as a Conceptual Vehicle

It could well be that positioning will make a real contribution as a conceptual vehicle through
which various marketing concepts (market segmentation, product differentiation, consumer
preference, target market, and the like) might be coordinated more effectively. At the present
time, the application of certain quantitative techniques to the concept of “positions” is showing
some promise.

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The Fishbein and Rosenberg attitude models would be examples of such quantitative approaches.
These models indicate that it is possible for a manufacturer to influence factors that affect a
person’s attitude toward the brand. Attitude research suggests that a brand’s position in the mind
of the prospective consumer is likely to be determined by the combined total of a number of
product characteristics, such as price, quality, durability, reliability, color, and flavor. The
consumer places importance weights on each of these product characteristics. It is apparently
possible, via promotional effort, to realign these weights, thereby adjusting the position of the
brand in the mind of the consumer. The same concept might, of course, be equally applicable to
the firm as well.

Head-On Positioning

“Head-on” positioning is a concept that can be applied to either the firm or the product. Only a
short time ago, this particular strategy was considered to be dangerous. According to Trout and
Ries, “You can’t compete head-on against a company that has a strong position. You can go
around under or over, but never head-on.”6 These early proponents of the “positioning era” cited
a number of cases to substantiate the contention. Such “head-on” casualties might include the
Xerox entry into the computer field, IBM’s venture into the paper copier market, and the Bristol-
Myers positioning of Fact against Crest.

The general feeling has been that the new product too often served to the advantage of the
“entrenched” brand. Starch research, in 1969, revealed test results on television advertising (the
medium in which the “head-on” clash most frequently appears) that indicated that out of 1,800
commercials in prime time, an average of only 16% of the viewers could remember the name of
the advertised product, and 8% were crediting the commercial to a rival product. In additional
research of the same nature in 1970 and 1971, the identification figure dropped below 15%, with
the degree of misidentification increasing.

The recent upsurge of comparison advertising would seem to indicate that the previous fear of
“head-on” positioning has greatly diminished. Whether the area is drugs, cosmetics, or
automobiles, there appears to be little hesitation in placing the new brand right alongside the
entrenched leaders, all in the same commercial setting. Gillette places Earth Born directly
against Clairol’s Herbal Essence, Johnson’s Baby Shampoo, and Procter & Gamble’s Head and
shoulders, and Procter & Gamble might well have to reexamine the theme that “no other potato
chip stacks up if the Pepsic test of their canister packaged, dehydrated potato flake-based,
“stacked” potato chip is successful.

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Head-On Variations: Positioning with an Idea
Most products must be launched against a leader, either directly or indirectly. The direct “head-
on” route is usually risky, but some variation in this type of strategy is quite common. Avis took
such a position in the 1960s, but elected to place itself in a courageous “underdog” position,
openly advertising its brazen intentions of displacing the leader. Later, the Coca-Cola Company
openly “announced” tab into the number one position, in an effort to knock off the diet soft drink
leaders, via the use of magazine ads using the headline “Make Room for Number One.” Another
unique variation in meeting a leading opponent “head-on” is depicted by the campaign B.F.
Goodrich launched to “separate” its name from that of Goodyear.

“Positioning with an idea” will sometimes provide the means whereby a head-on position may be
achieved with success. Vick Chemical did not elect to position Nyquil against the leading cold
remedy on a head-on basis. Instead, they positioned the product, quite successfully, via the idea
of Nyquil as the assurance of “a good night’s sleep.”

It is interesting to review the “product news-makers of 1972” from the standpoint of determining
those products that could be considered as having been “positioned with an idea.” 10 Examples
might include the following: Gillette’s Tract II twin-blade cartridge shaving system; kibbies, the
“baby-shaped” paper diaper; Menon E, the “wonder-vitamin deodorant”; and Mazda’s
“revolutionary” rotary engine. Of these particular newsmakers, one might well have predicted
that Kimbies represented one of the more serious risks of head-on positioning (against P & G’s
Pampers), with only the concept of “baby shaped” as the distinctive variation or idea.

At first glance, one might also predict that Seagram’s recent introduction of the Party Time line
of cocktail mixes would be doomed to failure in head-on positioning against National Distiller’s
Holland House brands. However, when viewed in terms of “positioning with an idea,” on an
item-by-item basis, Seagram’s marketing strategy shows considerable promise. An example is
the Party Time winter drink called Snowbird. The product was launched as “the hottest thing in
show country.” 11 The new drink was jointly promoted with United Airlines, which ran special
Snowbird Flights to various ski resorts and on each such flight served free Snowbird drinks to
passengers. Although appealing to a relatively thin market, and applying only to a single item in
the Party Time line, this campaign illustrates the means by which an advertiser avoids the direct
head-on clash with a leader via the strategy of “positioning with an idea.”

Other examples of “positioning with an idea” would be Theodore Hamm’s attempt to launch its
Burgie Beer into the tough Chicago beer market primarily via the idea of promoting Burgie’s
“California Feeling” 12 and Kraftco’s attempt to “position the three brands-Breyers and Sealtest
ice cream and light n’ lively ice milk- as complimentary rather than competitive.13 Again,
though, most marketers would probably appraise each of these “positioning” strategies as
applications of product differentiation or market segmentation or both, but not as examples of
new concept.

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Positioning for Social Accountability

This is one of the most interesting developments in positioning. E.B. Weiss described in concept
as follows.

We hear a good deal currently about positioning products. I suggest that products
will also be positioned for social accountability. Johnson and Johnson, in its new
marketing strategy, plans a program designed to locate areas of greatest consumer
dissatisfaction with all of the company’s consumer products. That’s a splendid
example of using a social audit to achieve improved service to the public – and
improved profit performance.

How extensive this particular type of positioning will become is, of course, subject to much
speculation. Each producer of consumer products must become increasingly aware of the trend
toward consumer protection, a trend that will certainly continue in the future. A stance of “social
accountability” is one to be coveted in today’s market, and many firms, via their promotional
planning, are exerting considerable effort to project the image of good citizenship.

For example, Del Monte recently initiated a crash program to become more socially accountable
by converting to consumer-pleasing labels for its extensive line of food products. According to
Business Week, this firm is pioneer in its efforts to become a major force in the “marketing of
nutrition.” 15 In a like manner, American Motors has staged a remarkable comeback in the
automotive world through the strategy of positioning the firm as the only producer of
automobiles that guarantees customer satisfaction in the troublesome area of service.

The profit potential of positioning for social accountability was recently defined by Bayard
Hooper. He stressed the fact that surveys indicate that the majority of consumers today distrust
the majority of business firms and business executives. Furthermore, most consumers feel that
product and service quality has deteriorated over the past decade, and even the majority of
business executives agree that such deterioration has taken place. Hooper concluded that:

You must convince your corporate clients that advertising can only gain in
credibility as the products you are promoting gain in reliability, and you must
make it clear to them that as Americans’ faith in business is declining, their
expectations of what business should be doing as responsible corporate citizens is
growing all the time.

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From the macro standpoint, it might well be that marketing will be forced to adapt to the social
accountability philosophy of doing business much in the same manner that the marketing
concept became a “must” in the 1950s. Whether an “era,” a philosophy, or a strategy, the idea of
social accountability appears to be gradually replacing the original version of the marketing
concept. A 1970 survey of business executives and marketing educators indicated that,
“Academicians with more education and those with more business experience express less
confidence in the Marketing Concept than do those with less training and experience”17 Bell and
Emery also have expressed the opinion that the future will present marketing with the difficult
challenge of recognizing and dealing with the dual business goals of social responsibility and
profitability, and that “a revised view of the marketing concept is one approach to meet this
challenge.” 18

A growing number of consumerists, academics, and business people seem ready to endorse the
following emerging opinion:

Because it is amoral in its present form, the marketing concept has outlived its
usefulness, especially for those firms whose products – engines, fertilizers,
detergents, fuels, nuclear reactors, etc. – contribute pollution that threatens man’s
very survival. A new concept of business responsibility to the public and to
future generations must replace the current criterion of the highest level of
current, individual need satisfaction that has been the goal of the marketing
concept. Tomorrow’s customer must be defined not as some of “the people but as
all of the people.”19

Thus, it might well be that the product are of the 1950s and the image are of the 1960s will be
replaced, or at least overshadowed, by the social accountability era of the 1970s.

Summary and Conclusions

A decade ago the term positioning would have been recognized as nothing more than a simple,
all-purpose word such as placing or locating during the early 1970s, positioning became a
popular term with marketing people, especially those in the area of advertising and promotion. It
continues to be a frequently used term in marketing literature. Unfortunately, however, the
concept is still difficult to define and involve a variety of different interpretations. The purpose
of this article has been to explore a number of these different ideas of positioning, and to
determine whether or not there is something new and different about such concepts as: internal
positioning external positioning, head-on positioning, positioning with an idea, and positioning
for social accountability.

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There are a number of sound elements of marketing strategy embodied in the overall notion of
the positioning concept. Most of these, however, are related rather closely to the advertising and
promotional aspects of the marketing mix. The author does not agree with those who would
proclaim positioning as something new and revolutionary in marketing strategy.

The use of positioning strategy by marketers is as old as the ideas of market segmentation and
product differentiation. Product innovations have traditionally been launched as the results of
new ideas, while such concepts as social accountability and even the recent idea of
“demarketing” are really part of the established image-building role of marketing strategy. This
is not to say, however, that positioning concepts are useless. On the contrary, positioning
provides a valuable conceptual vehicle, which is being effectively used to make various strategy
techniques more meaningful and more productive.

PORTER’s SOURCES OF COMPETITIVE ADVANTAGE

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