What is positioning in marketing

Summary

This video explains how brands are ranked in people's minds, comparing it to a ladder where the goal is to be on the top rung. Popular social media sites like Facebook and Twitter dominate their category. However, platforms like LinkedIn and Pinterest succeeded by creating new categories to dominate, such as business-related networking and crafts/recipes. The video encourages brands not ranking in the top two of their broad category to find a niche and create a new ladder to climb to the top. It promotes a free resource to help brands learn more about effective positioning.

Takeaways

• 🧠 Your brain automatically categorizes and ranks social media sites in an internal hierarchy.
• 📈 The order in which you recall social media sites reflects their perceived rank in your mind.
• 🏆 The goal for brands is to be at the top rung of their category's ladder to dominate the market.
• 📱 Facebook, Twitter, Instagram, LinkedIn, and Pinterest are commonly recognized social media platforms.
• 🎯 LinkedIn and Pinterest creators knew they couldn't outrank Facebook or Twitter, so they created new, niche ladders.
• 👔 LinkedIn owns the top rung in the business-related social media ladder.
• 🎨 Pinterest dominates the ladder for recipes and crafts on social media.
• 🚜 Niche categories are continually being created, such as specialized platforms like farmers-only dating sites.
• 🔑 If you're not in the top two rungs of a broad category, you're missing out on substantial opportunities.
• 🚀 Brands should consider carving out a new position if they can't reach the top in their current category.

Q & A

What does the script suggest about how people categorize social media sites?

The script suggests that people's minds categorize social media sites like a ladder, with each rung representing a different brand. The goal for brands is to be at the top rung to dominate the market.

Why does the order of names that come to mind when thinking about social media sites matter?

The order matters because it reflects how brands are ranked in a person's mind. Being at the top of the mental ladder means that brand is more dominant in its category, which can lead to higher market share.

How did LinkedIn and Pinterest succeed despite Facebook and Twitter dominating the general social media category?

LinkedIn and Pinterest succeeded by carving out new positions and starting their own ladders. LinkedIn focused on business-related social media, while Pinterest focused on crafts and recipes, allowing them to dominate these niche categories.

What is meant by 'owning the top rung of the ladder' in the context of the script?

Owning the top rung of the ladder means being the leading brand in a specific category within people's minds, which can translate to higher recognition and market share for that brand.

Why does the script say it's important to be in the top two rungs of a broad category?

Being in the top two rungs of a broad category is important because those positions tend to capture the most attention and opportunities. Brands outside of these top positions are likely missing out on a significant share of the market.

What should a brand do if it cannot reach the top rungs in a broad category?

If a brand cannot reach the top rungs in a broad category, the script suggests it should create a new position or niche where it can dominate, effectively starting a new ladder where it can own the top rung.

Can you give an example of a niche ladder mentioned in the script?

An example of a niche ladder mentioned in the script is LinkedIn for business-related social media and Pinterest for recipes and crafts. These platforms created their own categories and became leaders in them.

How does the example of farmers having their own dating site relate to the main idea of the script?

The example illustrates how new positions and categories are constantly being created to cater to specific groups or niches. Farmers have their own dating site because their needs differ from city folk, showing how creating a new category can lead to market dominance.

What resource does the script offer for those interested in learning more about brand positioning?

The script offers a free resource called the 'positioning cheat sheet,' which provides more in-depth information about how to position a brand effectively.

What is the main message of the script regarding brand positioning?

The main message is that brands should aim to be at the top of their category ladder to maximize market share. If they can't reach the top of a broad category, they should create a new position or niche where they can lead.