Positioning by Al Ries is a landmark book that revolutionized marketing and popularized the term “positioning”. It is considered a must-read for all marketers, business professionals, and entrepreneurs because it outlines an effective way for companies to differentiate themselves in a crowded marketplace.
To understand positioning, one must first understand what it is. Positioning is the process of taking a product from obscurity to a place where people think about it in terms of the features, benefits and values that it offers. As Ries explains, “positioning is not what you do to a product. Positioning is what you do to the mind of the prospect.”
Positioning is about effective communication. It is about distinguishing your offering in the market, ensuring that it is unique and memorable, and effectively conveying to the prospect the value that it offers. To achieve this, Ries suggests that marketers must understand the psychology of the consumer and how their mind works.
At its core, Ries defines positioning as segmentation, identification, and differentiation. By segmenting the market into distinct sets of customers, it is possible to identify which segments offer the greatest opportunities and to differentiate the offering to fit into that market. Ries suggests that you “narrowly define your product or service and sharply differentiate it from your competitors.”
Positioning is further defined by Ries as an on-going process. It is not a one-time task. Rather, it is an on-going cycle of assessing the market, selecting a positioning strategy, and then communicating it to the customers. This process is about understanding the customer’s needs, the competitive landscape, and identifying unique ways to differentiate the offering.
Ries emphasizes that positioning is about using words and creating images to define your offering. Effective positioning requires creativity and an understanding of the competitive landscape. Tactics such as competitive intelligence and perceptual mapping can be used to identify the competitive opportunities, and then appropriate words and messages can be used to position the product successfully to the market.
For positioning to be effective there must also be consistency and focus. Companies must first understand the nuances of their own brand and find ways to communicate these in the marketplace. As Ries explains, “positioning works best when you consistently keep everyone in the organization focusing on the same concept.”
Ries’ landmark book Positioning has defined the concept for decades, and has served as the source for much of today’s marketing strategy and tactics. By effectively understanding segmentation, identification, differentiation, and communication, marketers are able to more effectively position products in the marketplace and stand out from the competition. Understanding how to position products and services is essential to any successful business, and this book is an invaluable resource in doing just that.
