Executive Summary 179
“Positioning starts with a product. A piece of merchandise, a service, a company, an
institution, or even a person.... But positioning is not what you do to a product.
Positioning is what you do to the mind of the prospect. That is, you position the prod-
uct in the mind of the prospect.”
Ries and Trout argue that well-known products generally hold a distinctive posi-
tion in customers’ minds; Coca-Cola, for example, holds the position of world’s largest
soft-drink firm. To compete against this kind of position, a rival can (1) strengthen its
own current position in the consumer’s mind (the way 7-Up advertised itself as the
Uncola), (2) grab an unoccupied position (as Snapple did with its tea-based bever-
ages), (3) deposition or reposition the competition, or (4) promote the idea that it is
in the club with the “best.”^40
How Many Differences to Promote?
Each company must decide how many differences (e.g., benefits, features) to pro-
mote. Ries and Trout favor one consistent positioning message.^41 With this approach,
each brand is touted as “number one” on a particular attribute, such as “best quality,”
“best service,” “lowest price,” or “most advanced technology.” If a company hammers
away at one positioning and delivers on it, it will probably be best known and recalled
for this strength.
Not everyone sticks to single-benefit positioning. Smith Kline Beecham pro-
motes its Aquafresh toothpaste as offering three benefits: anticavity protection, better
breath, and whiter teeth. The company’s challenge is to convince consumers that the
brand delivers all three. Smith Kline’s solution was to create a toothpaste that squeezes
out of the tube in three colors, thus visually confirming the three benefits.
Communicating the Company’s Positioning
Once the company has developed a clear positioning strategy, it must communicate
that positioning effectively through all facets of the marketing mix and every point of
contact with customers. Suppose a service company chooses the “best-in-quality” strat-
egy. A good example is Ritz Carlton hotels, which signals high quality by training its
employees to answer calls within three rings, to answer with a genuine “smile” in their
voices, and to be extremely knowledgeable about all hotel information.
On the other hand, companies risk confusing the target audience if their mar-
keting tactics run counter to their positioning. For example, a well-known frozen-food
brand lost its prestige image by putting its products on sale too often. A smart com-
pany carefully coordinates its marketing-mix activities and its offer to support its posi-
tioning. New products may be the lifeblood of a growing firm, but they must be clearly
differentiated and properly positioned to be competitive. The firm also faces numer-
ous decisions in the course of managing product lines and brands, as discussed in the
next chapter.
EXECUTIVE SUMMARY
Once a company has segmented the market, chosen its target customer groups, iden-
tified their needs, and determined its desired market positioning, it is ready to develop
and launch new products. Although the rate of new product failure is disturbingly
high, companies can improve their chances of success by creating new products with a
high product advantage. Eight stages are involved in the new-product development
process: idea generation, screening, concept development and testing, marketing
strategy development, business analysis, product development, market testing, and