Testing Your Company’s Service Positioning
Once you have decided on possible positionings for your product or service, it’s wise to research them and see which of them your market finds believable and appealing.
For instance, one of our clients sells a wide range of doors and home hardware to the public through shops. We wanted to find out what the right positioning for them could be - and then reflect it in their marketing.
Accordingly, a number of lines were written, each reflecting a different position. I am going to give you these lines with a brief indication as to how consumers reacted to them. This should prove salutary if you ever feel tempted to brag or misrepresent what you offer.
- ‘The best DIY store in town’ - consumers appreciated that the stores were not DIY outlets, so this was seen as inaccurate.
- ‘The ideal home improvement store’ - consumers thought this dealt only in superlatives, which were glib and self-congratulatory.
- ‘The store for top quality home improvements at value for money prices’ - customers thought this was not distinctive; it was overused phraseology; nor did it appear credible - people expect to pay a premium price for quality.
- ‘The home improvement store where service really is personal service’ - the idea of service was good news, but not enough; products had to be good, too. In any case, this claim was seen as something other stores like Marks & Spencer could make.
- ‘Find out what “the trade” has always known’ - people had mixed feelings about the trade. Some thought of it in association with craftsmanship; others thought of cheap workmanship and cowboy operators.
- ‘The store traditionally used by the trade’ - here the same negatives aroused by the previous trade line came up, though in a better sense because of the use of the word ‘traditionally’. One problem, however, is that the line implies such products need proper experience to install.
- ‘Made to last by us. Sold direct to you’ - this conveyed that the company was personally involved in the making of the products, as opposed to being an importer.
Moreover, the line was seen as patriotic, because it clearly meant these were British goods. It also conveyed craftsmanship, durability and the good value you get by buying direct. Readers also appreciated that the line was to the point, not gimmicky. This line came out on top.
Successful companies tend to have a clear positioning from which they rarely if ever deviate - and then only with great care. I make no apology for reintroducing American Express. It was positioned single-mindedly for many years as ‘the world’s most prestigious financial instrument for business travel or entertainment’. This positioning came out in everything American Express did. For instance, the letter sent out to market to new members which began: ‘Quite frankly the American Express card is not for everyone …’. This reflected the positioning so well that for many years in most countries of the world it was the most cost-effective direct mail used.
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Marketing Segmentation and the Rise of Database Marketing
Marketing academics have noted increasing media fragmentation. In recent years, the role of advertising and promotion in the overall marketing process has changed considerably. The audiences that marketers seek, along with the media and methods for reaching them, have become increasingly fragmented. Advertising and promotional tactics have become more regionalized and targeted to specific market segments.
The extraordinary expansion of media options to reach niche markets has been fully documented. Along with the growth of products and services and the segmentation of types of consumers has come an extraordinary proliferation of media. There are new kinds of media, new developments in the traditional media, and new uses for media. Increasingly, the new media are tools for targeting rather than for saturating the mass market.
Information and the role of the marketing database In the information age marketers are not only focusing on analysis, but also understand the value of information collection.
In the past, direct marketing has been distinguishable from other marketing disciplines because of its emphasis on initiating a direct relationship between a buyer and a supplier, a relationship that until recently centered primarily on the exchange of goods and services. However, in today’s market, exchanging information is becoming almost as important as exchanging goods and services. With rising costs, crowded supermarket shelves, and over stuffed mailboxes, smart marketers are not just efficiently consummating a sale, they are also providing a chance for customers to communicate with them.
Of all these changes surely the most revolutionary is the ability to store in the computer information about your prime prospects and customers and, in effect, create a database that becomes your private market. As the cost of accumulating and accessing the data drops, the ability to talk directly to your prospects and customers — and to build one-to-one relationships with them — will continue to grow.
The new marketing landscape The effects on consumers of overwhelming change and the acceleration of change in our time have been brilliantly documented by Hugh Mackay in Reinventing Australia: So apparent is our national malaise that it has become fashionable to talk about the Age of Anxiety.
For people given to applying labels to decades, the 1980s was popularly described as “The Anxious Eighties” and there is no doubt that the decade lived up to the promise of that rather anxious label. Australia has not been alone in all this. All around the Western world, social commentators have been impressed by the rising level of angst over the past 20 years. The mind and mood of consumers in the 2000s provide interesting challenges.
The growing number of market segments and the simultaneous increase in available products have made marketing much harder. Manufacturers are in a quandary about what to produce; retail merchandise buyers are overwhelmed by the task of product selection; and advertisers feel swamped trying to convey appropriate messages to so many market segments about so many products …companies are grappling with the fact that mass advertising campaigns have become less and less useful in reaching diverse groups of consumers.
Marketers must now fight to establish the relevance of their products in an extremely noisy marketplace. The marketing future will undoubtedly look different in another respect as well: customer information technologies will change the relative roles of retailers, manufacturers, and media companies.
Retailers have a natural advantage because they can directly measure customer response and get first option at the broadest range of information. Indeed, point-of-sale scanning systems have already played a significant role in shifting power from manufacturers to retailers.
Most important, the balance of power between large and small companies will change. As customer information technology becomes more prevalent, only those companies that can invest the resources and show technological leadership will succeed.
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