2 Positioning Part 1 The Marketing Seminar from Seth Godin
Summary
TLDRThis script delves into the concept of positioning in marketing, as originally introduced by Jack Trout and later expanded upon. It explains how positioning is not about aggressive competition but about finding a niche in the consumer's mind by linking new ideas to familiar concepts. Using examples like Tesla, Volvo, and Duke University, the script illustrates how effective positioning helps consumers make sense of crowded markets by offering them a simple, relatable narrative. It emphasizes empathy in marketing, encouraging marketers to understand and cater to the existing beliefs and needs of their target audience, thereby finding a 'hole' to fill with their product or service.
Takeaways
- 📖 Jack Trout's 1969 article, later turned into a book with Al Ries, introduced the concept of 'Positioning', often misunderstood by marketers.
- 🤔 Positioning is misconceived as a battle to differentiate products to outcompete others, while it's actually about making a place in the consumer's crowded mind.
- 📚 The human brain is overwhelmed by ads and information, making it challenging to adopt new ideas without relating them to existing knowledge.
- 🖥 Examples like Tesla being an 'electric Mercedes' illustrate how positioning helps consumers relate new products to familiar concepts.
- 🚗 Volvo's positioning as 'the safest car' demonstrates how a clear, singular message can effectively differentiate a product in a crowded market.
- 💎 Empathy in marketing means serving the customer's need for shorthand to understand and categorize products, not just pushing differentiation.
- 📈 Positioning fills a 'slot' in the consumer's mind by aligning a product with pre-existing beliefs or knowledge, not by displacing competitors.
- 🔬 Photoshop's example shows positioning can be about offering variations (e.g., free, high-powered, simplified) that fit into what consumers already understand.
- 💻 Marketers need to understand their audience deeply to 'own' a position in the market by being 'like X but with Y difference'.
- 👨💻 The challenge for marketers is to identify and articulate the position their brand occupies in the minds of their consumers based on their preferences and choices.
Q & A
Who is credited with codifying the concept of positioning in marketing?
-Jack Trout is credited with codifying the concept of positioning in marketing.
What book did Trout and Al Ries write that focuses on the concept of positioning?
-Trout and Al Ries wrote the book 'Positioning: The Battle for Your Mind' focusing on the concept of positioning.
How is the brain's capacity for processing information compared to previous generations according to the script?
-According to the script, your brain is 50 times more crowded than your parents' brains, and their brain was 50 times more crowded than their parents' brain, making you 2500 times more crowded than your grandparents.
What example is given to explain how people categorize new information?
-The example given is Tesla, which is categorized as 'sort of an electric Mercedes', to explain how people categorize new information by relating it to something they already understand.
What marketing strategy did Volvo use to position itself, according to the script?
-Volvo used the marketing strategy of positioning itself as the safest car, appealing to those who prioritize driving the safest car.
What does the script suggest is the essence of positioning in marketing?
-The essence of positioning in marketing, according to the script, is finding a hook or a shorthand for an idea that the customer can easily process and remember.
How does the script differentiate between the traditional misunderstood version of positioning and its proposed understanding?
-The traditional misunderstood version of positioning is about pushing one's point of view and differentiating products to box out competitors, whereas the proposed understanding focuses on serving the customer by providing them with a shorthand to easily understand and remember the product.
What role does empathy play in positioning according to the script?
-Empathy plays a crucial role in positioning by helping marketers serve customers better by understanding their needs and providing them with a simple way to think about what is being offered.
What does the script imply about the relationship between positioning and product/service development?
-The script implies that positioning is closely tied to product/service development, suggesting that marketers should develop products or services that fit into a currently open slot in the customers' minds.
How does the script suggest marketers should approach the challenge of positioning?
-The script suggests that marketers should approach the challenge of positioning by being empathetic, knowledgeable about the customer's choices, and by finding a unique position that fills a specific need or gap in the market.
Outlines
🧠 Understanding Positioning: Beyond Competition
This segment introduces the concept of 'Positioning' as originally defined by Jack Trout, highlighting its evolution from a misunderstood marketing tactic to a strategic approach aimed at finding a unique place in the consumer's mind. The explanation delves into the human brain's capacity to recognize and remember thousands of brands amidst a barrage of advertisements, emphasizing the challenge of introducing new ideas. The essence of positioning is depicted as the art of relating new concepts to familiar ones, thereby making them understandable and memorable. Examples include comparing Tesla to an electric Mercedes and Volvo's successful positioning as the safest car choice. The narrative criticizes the conventional competitive approach to positioning, advocating instead for empathy towards the customer's need for cognitive shortcuts to navigate an overloaded market.
🎯 Positioning as a Strategic Tool for Marketers
The second paragraph builds on the foundation of positioning, emphasizing its role in marketing strategy as a means to connect with the target audience's pre-existing beliefs and knowledge. The narrative provides practical examples, such as positioning a product as a free alternative to Photoshop, to demonstrate how positioning helps marketers fill a specific niche in the consumer's mind. It also discusses the broader implications of positioning, like defining Duke University's identity in the educational space. The ultimate message is that effective marketing strategy and positioning involve understanding and empathizing with the consumer's perspective, thereby finding a unique 'slot' or position that the product or service can fill. The segment concludes by challenging the audience to reflect on their own experiences with brands and how positioning influenced their decisions, underscoring the pervasive impact of positioning in consumer choice.
Mindmap
Keywords
💡Positioning
💡Jack Trout
💡Brain Overload
💡Empathy in Marketing
💡Volvo
💡Differentiation
💡Consumer Psychology
💡Brand Story
💡Consumer Choice
💡Market Saturation
Highlights
In 1969, Jack Trout wrote an article that codified what David Ogilvy had been saying for years, later turning it into a book with Rhys called 'Positioning: The Battle for Your Mind.'
Positioning is widely misunderstood by marketers as a battle to differentiate their offerings to box out competitors.
Your brain is far more crowded with ads and information now than your grandparents' was, making it difficult to find space for new ideas.
Positioning helps connect new ideas with something already understood, using familiar concepts as a frame of reference.
Examples include Tesla as an 'electric Mercedes' and Scharffenberger chocolate as an 'expensive Hershey bar.'
Empathetic positioning focuses on serving the customer by providing them with a shorthand to think about what you make.
Volvo's positioning as the safest car is highlighted as a prime example of effective marketing that serves customer needs.
Positioning isn't about persuading customers to care about certain features, but about informing them of an option that fits their existing needs or beliefs.
Marketers should strive to understand their audience deeply, including their beliefs and the alternatives they consider.
Good positioning finds a 'hole' in the market or in consumer minds and fills it effectively.
The concept of positioning extends beyond products to universities and other institutions, as illustrated by Duke University's positioning as the 'Yale of the South.'
Successful marketing strategies involve changing or tailoring products and services to fit a niche or fulfill a specific consumer need.
The real job of a marketer is to own a position by being 'just like this except' different in a meaningful way.
Positioning influences consumer choices significantly, even if consumers don't understand everything about a brand.
The challenge to readers is to think about how positioning has influenced their own brand preferences and choices.
Transcripts
in 1969
jack trout
wrote an article that codified some of
what david ogilvy had been saying for
years
later
he turned it into a book
trout and rhys
called positioning
the battle for your mind
positioning has been widely
misunderstood by selfish marketers ever
since
here's the misunderstood version
we are in a battle to get our word out
our word the way we want it heard
and we will push
our point of view forward by
differentiating what we make
so that other competitors are boxed out
and we get our share
so let me first explain positioning and
then explain how i think about it
here you go
your brain is crowded
your brain is 50 times more crowded than
your parents brains were and their brain
was 50 times more crowded than their
parents brain so you're 2500 times
more crowded than your grandparents
because of all the ads and all the news
and all the yelling
that the typical 10 year old can
identify a thousand or more logos a
thousand or more
that the number of ads we see every day
surfing the web or watching television
or listening to the radio is infinite
and the only way we can deal with it
is by ignoring almost everything
and even when something comes along that
we're sort of interested in
we have a problem
and this has been backed up by a lot of
insight and brain theory ever since our
problem is
it's really difficult
to find a space in our brain for a brand
new idea
and so what we do
is we take something we're interested in
and make it sit next to something we
already understand
so quick question
what's a tesla
well it's sort of an electric mercedes
i know what electric would mean and i
know what a mercedes is so now i have a
box for a tesla
we can look at lots of things in our
life this way what's a scharfenberger
chocolate bar
well for some people it's a really
expensive hershey bar take a hershey bar
add cash now you have a sharpened burger
chocolate bar
for other people people have a lot of
domain knowledge a scharfenberger bar is
the grandfather of a mast brothers bar
except it has a better provenance and it
reminds us a little bit of a rogue bar
except he uses a blend and on and on and
on i can find all these pins
and
put the pins next to the other parts of
the idea and remember them
what's interesting to note
is i didn't say oh a tesla that's the
car my brother-in-law's cousin makes
because that's the way a different
person would find a way to remember and
understand what something is
positioning
is the way a busy human being
finds a hook
for an idea they want to be able to
process
and when we bring empathy to the table
as a marketer we don't worry about
differentiation and how we elbow our way
in front of the competition
instead
we exist to serve the customer
and what the customer needs is shorthand
what they need is a way to think about
what it is you make
so my favorite positioning example from
a bunch of years ago is the volvo
now there were lots of cars to choose
from saabs
volvos chevys mercedes
bmws go down the list
they're all different
it's too complicated it's too hard to
make a decision
so volvo says
not everyone cares
about driving the safest car
but if you're the kind of person that
cares about driving the safest car
this is the safest car
now does it matter that a volvo is
faster than a saab
well it might to some people but i don't
need you to remember that right now
does it matter that volvos are made near
your house in london and that toyotas
are made far away it might but not right
now
right now
what i am working to help you do is
realize there are 40 cars you can choose
from that are over here performance cars
cheap cars fast cars sexy cars non-sexy
cars cars that last a long time
and there's one car
that lives over here
and that one car is a volvo
now it's not my job
to persuade you
to care about a safe car
it's my job to help you know
that when you're trying to solve your
car problem
you can solve it with a safe car that's
us
so for me
i'm not putting words into trout or
reese's mouths here
for me
what we see when we see positioning done
well is simple
we make an assertion
about what the person we seek to serve
already believes
what they already know
what they are already aware of
and then
we build a product a true story
a service
that will fit into a slot that is
currently open
that photoshop for example
for a lot of people is a high powered
expensive
graphic design and editing program
so
i could stake out the position of
this is a high powered free version of
photoshop
which comes with ads or some other way i
make money
so now if you know what photoshop is you
know what this is it's photoshop but
it's free
or i could make a super expensive super
high powered version of photoshop or one
that comes with a lot of customer
service or one that's simpler or one
that's go down the list in each case i'm
not trying to hurt photoshop
i'm trying to help my customer i'm
trying to meet the prospect where she is
and go to her and say i will not
persuade you that you are wrong
i will not try to change your mind
i am here with a simple offer
you have a spot in your brain for this
i can fill that spot
that when we do positioning properly
what we are doing is finding a hole
and filling it
so when i ask you about your university
oh duke you're the yale of the south
what does that even mean
here's what it means
a student who already knows what yale is
who already believes that the ivy league
is the thing that they need who already
aspires to go hundreds of thousands of
dollars into debt to go to a private
school that's sort of famous
and who also believes
that their life will be better if they
spend it in the south that their life
will be better in a school with
fraternities or other elements if their
life will be better with a basketball
team all of those things associated with
a southern university
duke can come along with a very simple
positioning statement
and their positioning statement is for
people who already believe these things
that is us
we fill that slot
now the magic of marketing strategy
is we get to change the product we get
to change the service we get to invent a
thing
that we can tell the story about
so your job as a marketer is to be
comfortable enough
empathetic enough
with the people that you seek to serve
knowledgeable enough
about all of their choices
that you can appear
and own a position
we're just like this except we're over
there we're just like this except we're
over there
in our next session we're going to talk
about the magic of the xy grid and how
you can begin to understand where to
position yourself
but for now
here's my challenge what i'd like you to
do
is think about brands
that you like
that you buy from that you care about
and then as honestly as you can
tell us their position for you
how is it that you stopped buying this
and started buying that how is it that
you stopped recommending this and
started recommending that these choices
that you made
you made them because of positioning
you never understood everything about
the brand you never had full experience
it's impossible you could never know as
much as the person who works there but
you knew enough
what did you know
what story did you tell yourself
when you chose to take this action
thanks
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