M. Anand from Businessworld, India’s leading business publication interviewed me in 2005 on the relevance of positioning in a changing world. Here’s the conversation that transpired…
• Is positioning still relevant 35 years after you first wrote about it?
It is more relevant now. The original body of work on positioning was made on the premise that the United States was an over-communicated market. There was too much noise and lots of competition for the mind. The mind was the battleground. Then, the question was how do we get into the consumers’ mind in an over-communicated society. Little did we know that it was going to become an even more over-communicated world. In fact, what we thought was over-communicated was nothing. Now, you have the Internet, satellites etc.. All that has made positioning an even bigger deal. That is why the book continues to sell even now.
• Many contemporary marketers believe that positioning is now outdated. In fact, McDonald’s chief global marketing officer Larry light said: “Identifying one brand position, communicating it in a repetitive manner is old-fashioned, out of date, out of touch.” What is your response?
I had a big fight with Larry light and I wrote several counter articles. Larry Light doesn’t know what he is talking about. He has jumped up and said positioning is obsolete. The problem with Larry light is that he has not been able to understand positioning. He never has. I know Larry. And I told Larry that he has not been able to do a good job of positioning accounts. So I told him here is your deal: “if you want the answer to what you are, I will give it to you.” I said, in essence, here is your (McDonald’s) positioning. You are the ‘world’s favorite place to eat’. That’s your concept. That is it. That is a leadership position. And that’s a very powerful idea. And I published that idea. But I know he won’t use it because I wrote it. That’s why I gave it to him. I think Larry has no clue to what positioning is all about.
• But other voices like The Economist (in its April 2, 2005 issue) has argued that positioning is not working with sophisticated and knowledgeable consumers. It is argued that consumers now buy on research and personal value, not on how companies seek to ‘position’.
Well, again what people don’t understand is that the definition of positioning is how you differentiate your brand in the market… in the mind. So in other words, if consumers are becoming more knowledgeable, it is more important that they differentiate themselves. What is the reason to buy my brand versus all the other brands that are trying to get my business? So people have to understand what positioning is – it really comes down to differentiation. In the US, people want to talk about emotion, they want to talk about stuff that is not differentiating. And as a result what is happening there is that many products are becoming commoditized. Once you reach that stage, you better have a very good price.
• But the Internet and information clutter has made positioning more and more difficult…
Let’s talk about that. I believe that the Internet is another medium, another tool. You had the radio, the television and now the Internet. All that means to me is that you as a marketer have another tool to deliver information, which means, it is just another way to deliver your differentiating idea. And bring it to life.
• But it has made positioning more difficult…
You are absolutely correct. But then you have more tools to work with. People are doing different things. It is difficult only in that people’s attention is more divided. But your responsibility is to find ways to reach various people through various mediums.
• Many believe that the recent emphasis on customer relationship and experience is taking the focus away from positioning…
Position and strategy attract customers. It is the reason why a customer buys your product instead of somebody else’s. Customer relationship is what happens after that. How can you have a relationship if he is not your customer yet? So I tell people — don’t get confused. Part one is to attract customers. Part two is to hang on to them. Once you have a customer, you establish that relationship — you use one to one marketing, technology etc.
• Is it at all possible that positioning may not be as relevant in the future as it was in the past?
It will always be relevant. It will always be how you differentiate yourself in the mind and if you don’t do that, then you would better have a great price. You don’t have to worry about positioning in only one instance – when there is no competition.
Period.
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