By Al Ries. Published on June 09,2017
Alice, on June 9, 2017.
Leads:
Mr. Jack Trout’s former partner, Mr. Alice, published an article in Advertising Age recently, reviewing the time they had spent in the past 30 years working together and reaffirming the principle of positioning.
An English-language level 8 positioning enthusiast specially translated the text of Mr. Alice, and provided a bilingual version in both Chinese and English, contributing to the positioning learning network.
Now we will publish the full text, so that positioning enthusiasts can more intuitively experience the style of the two positioning masters......
With the passing of my ex-partner and good friend Jack Trout, I feel compelled to write a few words about our nearly 30 years of working together.
As my former partner and my friend Jack Trout died, I felt that it was necessary to write something and talk about our nearly 30 years of cooperation experience.
Jack and I were opposites. In love, opposites attract. In business, opposites work well together. Jack and I were opposites.
In love, the opposite sex sucks. In business, the diametrically opposed people cooperate well. Jack and I are completely different people.
Jack was Mr. Outside; I was Mr. Inside. Jack was an extrovert, talkative and very social; I am an introvert. Jack was athletic; I am not. You name it, we were opposites.
Jack is responsible for the outside world and I'm responsible for the inside. Jack is outgoing, talkative, and social, and I'm an introvert. Jack has a talent for sports. I don't. You see, we are very opposite people.
When Jack joined my ad agency in 1967, advertising was widely considered to be "communications."
When Jack joined my advertising agency in 1967, advertising was generally regarded as a "communication tool."
You studied your product, its features and its competitors and then you prepared advertising that explained why your product was better.
You study your product, including its product features and competitors, and then prepare to advertise why your product is better.
In spite of billions of advertising dollars spent every year, perceptions about leading brands as well as their market shares seldom changed. All that advertising was not doing very much communication.
Although billions of dollars in advertisements are placed in various industries each year, the cognitive advantages and market share of industry-leading brands are seldom shaken. Advertising does not really play a role in communication.
That insight led the positioning concept. Instead of focusing on the product and its competitors, we focused on the mind of the prospect. And in the process, we developed the principles of positioning.
Based on this insight, the concept of positioning emerged. We focus on customer minds, not products and competitors. In this process, we have developed several principles for positioning.
(1) The concept of categories.
(1) The concept of category
With a billion neurons and some 2.3-trillion connections, the human mind is a massive mental storage container. From a marketing point of view, however, the most-important aspect of the mind is the concept of categories.
The human brain is a large storage box consisting of 1 billion neurons and 2.3 trillion connections. However, from a marketing perspective, the most important thing in the mind is the concept of category.
Consumers use categories to store brands that interest them. When consumers want to buy something, they think category first, brand second.
The customer service category stores the brands they are interested in. When customers want to buy something, first think of the category, followed by the brand.
Nobody walks into a store and says: I want to buy a Sony. Please show me all the Sonies you have for sale.
No one will walk into the store and say: I want to buy a Sony. Please show me all Sony in the store.
(2) For every category, there is a ladder in the mind.
(2) Each category has a mental ladder
On the rungs of the ladder are brand names, with the preferred brand at the top of the ladder and the rest of the brands in descending order.
The name of the brand is on each level of the mental ladder, with the most popular brands on the top floor and other brands in descending order.
Denocell and Energizer in appliance batteries.Crest and Colgate in toothpaste. Many categories have just two brands.
In the customer's mind, only a few brands can be stored in each category. Many categories can only store two brands, such as the battery in the Duracell and Energizer, toothpaste Crest and Colgate.
Seldom do consumers consider their top two brands as equals. Invariably, consumers prefer one brand over the other, although the second brand is often "acceptable."
And, the top two brands are rarely treated equally by customers. Customers always prefer one of the brands, although another is usually "acceptable."
(3) The name is the hook that hangs the brand on the ladder.
(3) The brand name is a hook and hangs the brand on the mental ladder
The most important marketing decision you can make is what to name the product. That's what we said in our 1981 book "Positioning."
The most important marketing decision you can make is to name the product. This is what we said in the "Positioning" published in 1981.
The leading vodka brand in Russia is Kremlyovskaya. So the owners of the brand introduced Kremlyovskaya in the American market with the slogan, The No.1 vodka brand in Russia.
In Russia, the leading brand of vodka is Kremlyovskaya. Therefore, the slogan used by the company to launch Kremlyovskaya in the US market was the first Russian vodka brand.
Naturally, the brand went nowhere. How can an English-speaking person file that name in the vodka category in the mind?
Needless to say, this brand did not provoke the slightest splash in the United States. How can you ask an English-speaking person to save that complex, hard-to-read Russian name in the mental vodka category?
The leading pasta brand in Italy is Barilla. So the owners of the brand launched Barilla in the American market with the slogan, Italy's #1 pasta. Three years later, Barilla was the No.1 pasta brand in America.
In Italy, the leading brand of macaroni is Barilla. When opening the U.S. market, the slogan used by the company was: Italy's number one pasta. Three years later, Barilla became the number one brand of American Macaroni.
(I made several speeches in Moscow suggesting that Kremlyovskaya in America be called Red Square Vodka.)
(I have repeatedly advised in Moscow that Kremlyovskaya should change his name in the United States to Red Square vodka.)
(4) Find an open hole in the mind.
(4) Finding a mental place
Every category in the mind is either filled with a brand name, or it's not. If the category is not filled, then it's an open hole or position which your brand can easily occupy.
In the mind, the category is either occupied by the brand name, or it is in a virtual position. If a category is not yet occupied, then it is an empty space, and your brand can easily occupy it.
Tesla moved into the mind to occupy an open category called "electric cars." Today, Tesla is worth more on the stock market ($61 billion) than either General Motors ($52 billion) or Ford ($44 billion.)
Tesla's mentality occupies the category of "electric cars" that are currently available. Today, Tesla’s market value is as high as 61 billion U.S. dollars, more than General Motors (52 billion U.S. dollars) and Ford (44 billion U.S. dollars).
Saw but but didn't give them different brand names so consumers had no way of filing these names in their minds.
But aren't GM, Ford, and other major auto makers launching electric cars? Of course, they don't give new names to electric cars, so customers can't classify them in their minds.
You can't put "Chevrolet" on your electric-car ladder.
You can't put "Chevrolet" on the mental ladder of an electric car.
(5) Touch base with what's already in the mind.
(5) Associated with existing cognition in mind
Advertising a minor feature of your brand that is already recognized in prospects' minds is a better strategy than advertising a major feature of your brand nobody knows about.
Distributing a customer's existing but smaller brand features in the mind is more effective than spreading an important feature that is not understood in the customer's mind.
Yet most companies do exactly the opposite. No sense advertising what people already know, let's use our advertising to communicate what they don't know.
However, most companies do the opposite. They think that it is not meaningful to spread what people already know, and use advertising to convey what the customer does not know.
Thanks to its invention of the lap-and-shoulder seat belt, Volvo was known for safety. As a result, Volvo was the leading imported luxury-vehicle brand in the American market from 1978 to 1992. But that wasn't good enough for Volvo.
Due to the invention of a three-point safety belt, Volvo Cars is known for its safety. As a result, Volvo became the leading imported luxury car brand in the US market between 1978 and 1992. But this is not good enough for Volvo.
As the global advertising manager said, Safety on its own is not enough. So Volvo introduced a range of vehicles including convertibles and the C30 hatchback with a turbo-charged engine. (Automotive News called it a "pocket rocket for the kids.")
Volvo's global advertising manager said that relying solely on "security" is not enough. As a result, Volvo has introduced a series of models, including the convertible and the hatchback C30 using a turbocharged engine (called “children's pocket rockets†by Auto News).
And Volvo advertising talked about beauty and performance with various themes including Life is better lived together.
In addition, Volvo's advertisements also talk about various topics such as appearance and performance, including a better life together.
Last year, the leading imported luxury-vehicle brands were Mercedes, Lexus, BMW, Audi, Acura, Infiniti. And then Volvo.
Last year, the leading imported luxury brands were Mercedes, Lexus, BMW, Audi, Acura, Infiniti, followed by Volvo.
(6) You can't move a brand in the mind.
(6) You can't move the brand in your mind
Many billions have been wasted by companies that violate this positioning principle. IBM trying to move its brand into personal computers. Kodak trying to move its brand into digital photography.BlackBerry trying to move its brand into touchscreen smartphones.
Hundreds of millions of resources were wasted by companies that violated this positioning principle. IBM is trying to get the brand into the personal computer space. Kodak is trying to get the brand into the digital photography arena, and Blackberry is trying to get the brand into the touchscreen smartphone space.
The list is endless. We called this exercise in futility, The line-extension trap.
This list is too numerous to mention. We call this invalid action a "brand extension trap."
(7) Initials don't exist in the mind.
(7) The acronym name does not exist in the mind
There are letters of the alphabet and there are words in the mind, but not initials. When a mind hears or reads about a brand using initials, the instant reaction is "What do those initials stand for?"
There are letters in the alphabet and words in the mind, but no acronyms. When the customer hears or sees the brand acronym name mentally, he will subconsciously think, "What do these initials stand for?"
GE stands for General Electric. HP stands for Hewlett-Packard. IBM stands for International Business Machines. Initials are recognized in the mind not as initials, but as the shorthand for names. If the names are not in the mind, then the prospect is Unlikely to remember the initials.
GE stands for General Electric, HP stands for Hewlett-Packard (HP), and IBM stands for International Business Machines. An acronym is not recognized as the abbreviation itself in the mind but as a shortened full name. If the full name does not enter the mind, then its abbreviation is difficult to enter the mind.
And yet, there is a strong trend toward initials. Do you recognize any of these 30 no-name companies? HCA, CHS, TJX, EMC, PNC, AES, NRG, PBF, CDW, VF, CSX, CBRE, BBGT, DTE , CST, EDG, PVH, KKR, PPL, AGCO, LKQ, AK, UGI, CMS, WEC, HRG, CH2M, SGP, LAM and NVR.
However, people are keen to use an acronym. Do you know these 30 nameless companies? HCA, CHS, TJX, EMC, PNC, AES, NRG, PBF, CDW, VF, CSX, CBRE, BBGT, DTE, CST, EDG, PVH, KKR, PPL, AGCO, LKQ , AK, UGI, CMS, WEC, HRG, CH2M, SGP, LAM and NVR.
Probably not. But all 30 are on Fortune's latest list of the 500 largest American companies. The smallest, NVR, had revenues last year of $5.2 billion, enough money to hire a marketing-strategy firm.
May not know, but these 30 are the United States "Fortune" 500 companies, of which the smallest company NVR revenue of 5.2 billion US dollars last year, have enough money to hire a marketing strategy company.
(8) A slogan or a tagline is not a position.
(8) Advertising slogans or slogans are not positioning.
Almost every company in the world uses either a slogan or a tagline. Yet almost none of these slogans or taglines are what Jack or I would have called a "position."
Almost every company in the world has slogans or slogans, but there is hardly a slogan or slogan that Jack and I call "positioning."
A position is something that exists in the mind. Most slogans or taglines are "aspirational." With enough advertising, they hope to be inserted into prospects' minds. It seldom happens.
Positioning is something that already exists in the mind, and most slogans or slogans are corporate ambitions and expectations, and hope to enter the mind through a large enough amount of advertising. This hope is rarely realized.
Take Nissan's slogan Innovation that excites. Does Nissan really think potential car buyers have has an open hole in their minds called "Exciting automobile innovations."
For example, Nissan's slogan is "Exciting Innovation." Does Nissan really think there is an empty seat in the minds of potential customers called "inspiring car innovations"?
Insurance is a position. Driving is a position. Inexpensive is a position. Small is a position. But Exciting automobile innovations is not.
Safety is a positioning, driving is a positioning, low price is a positioning, small size is a positioning, but exciting automotive innovation is not.
There's still a lot of work to be done.
There is still a long way to go.
And without Jack Trout, it is going to be a lot more difficult to move the positioning concept into the minds of business executives around the world.
Without Jack Trout, it would be much more difficult to make the concept of positioning into the minds of global business managers.
But with my daughter Laura Ries, I will keep trying.
But with my daughter Laura Rees, I will continue to work hard.
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