What Kind of Car Are You?

I’m a huge believer in polling your customers to uncover key insights into how they buy, what they think of my clients, how they evaluate similar suppliers, etc. In fact, most of my assignments start with customer phone interviews because the information uncovered during these conversations is priceless when it comes to developing a strategy that is truly relevant to the people who actually buy your products or services. Fundamental marketing.

So why did I recently refuse a client’s request to make these critical calls? Have I decided to cut the customer out of the marketing process and simply guess at what they need? If you believe that, I have some nice Florida swampland to sell you.

Here’s the scenario. I had worked with this client’s sales team for several months with good results. However, I was also tasked with working with the marketing director. He had very different ideas when it came to "marketing". After giving my recommendations as to the direction of the customer survey, I received a short list of questions he wanted to ask his company’s clients. Everything seemed fine until I saw the questions.

This smart, capable marketing director wanted to ask an audience of high level, technology buyers questions including:

"If you were to buy us a drink, what kind of drink would it be?"
"If we were a car, what kind of car would we be?"
"If we were an airline, what kind of airline would we be?"

What would you think if some marketing guy called you up and asked you these questions? He had done this type of survey before and was dead set on repeating this folly. In my experience with this person, I knew that there was no chance of changing the direction of the survey. Not only would I not embarrass myself or my client asking such superficial, pointless questions, I could not see how this line of questioning would provide us with useful information that would help fulfill the CEO’s dictum – to increase sales, revenue and profit.

I know that a lot of marketing people ask these types of questions and think they are uncovering useful information. My problem with this approach is that it is far too subjective and open to interpretation. For example, if a customer says you are a Jaguar, you might think, "We are high end, performance oriented, expensive and desirable." However, the client might have a very different view of Jaguar and might have meant "Overpriced, conspicuous, prone to breakdowns and impractical."

If the client wanted to buy us a "White Russian" how could I possible distill anything from such an answer that would specifically help the company sell more products or enhance their value? At least I would know how the client prefers to pick up girls at the bar.

My questions would have been much different. They might include:

"What is your buying criteria and how is it ranked?"
"If we stopped doing business, who would you buy from and why?"
"How do we compare to the competition based on your buying criteria?"
"What is your buying/selection process?"
"In what areas do we need to improve?"
"Why do you continue to buy from us?"
"What other needs might you have that we could fulfill?"

But what do I know. If I were a car, I’d be a 1965 Corvette.

The art (and science) of Positioning

What is your position? Do you have a position? Understanding the concept of strategic positioning is a critical but often overlooked aspect of successful marketing. It is a result of communicated perceptions about a product or brand that is different from image. A position is a distinct place in the mind of your customer, a point that is usually set in relation to the competition. Closely related to brand distinction, a well defined positioning strategy can be used to create differentiation and quickly communicate the uniqueness of a product or service.

Your position is what you stand for in the mind of the customer. Are you known as an exclusive, high priced option or as having the best service in your industry? Adopting a position that is owned by your competition is a common mistake. If a competitor is well known for reliability, it is ill advised to try and adapt reliability as your positioning. The idea is to be relevant to the customer and to find an attribute that makes you unique.

For example, who do you think of when it comes to cola drinks? Most people say “Coca-Cola”. Coca-Cola rules the category of cola drinks. Think of a category as a ladder. On each rung is a position. On the top rung of the cola ladder sits Coke. This translates to larger market share and staying power. On the second rung sits Pepsi. One the third rung, RC Cola. On the fourth rung - who cares? They are not in the game.

It is very difficult to unseat the top rung position. In fact, in the early cola wars, a group of smart people decided to compete with Coca-Cola. These wise folks knew that competing with Coke head-on would be suicide. Instead, they decided to create a refreshing, carbonated drink that would take the position as the antithesis of Coke. Instead of a brown liquid, it was clear. Named, 7-Up, this product was perfectly positioned as “The UnCola” - thus creating a new category (lemon/lime carbonated drinks), taking the top position and taking massive market share from the leader in the industry, Coca-Cola.

Developing a positioning strategy is highly dependent on the techniques of marketing research. I have used the following seven steps to help industrial and other business to business companies identify the most profitable position.

1. Know what your customer wants. Start with listing all the possible wants and needs that your product or service may satisfy.

2. Identify the competitors.
Primary competitors are those that compete to satisfy the core need and usually are very similar to your offerings. Secondary competitors are indirect competitors, those that do not come immediately to mind.

3. Understand how your customers evaluate their options.
The standards people use to choose from similar options are the foundation upon which a position is built. You must understand these options and how the buyer weights them. Avoid a position that is low on the customers list of standards.

4. Understand how your competitors are perceived.
Positioning is always in relation to competitors. Research how each primary and secondary competitor positions itself. In many markets, competitors may have no position or a weak position making it easier to identify the most beneficial position.

5. Watch for gaps.
Upon analysis you may identify a category that is not being served by the competition. If other factors indicated that the category is viable, being the first to offer a product or service is an advantageous position.

6. Plan and carry out the strategy.
Once the target market has been selected and the desired position determined, you must design a program that ensures that every piece of information about the product or service will create the intended perception. This is where a succinct positioning statement and well thought out brand strategy become important.

7. Monitor the position.
Markets and categories shift over time. It is important to make sure that the intended position is the one actually achieved by the product or brand. A position may need to be slightly adjusted over time according to changes in the market place.

Your position is much more than a mere slogan. Get it wrong at your own risk.