If You Are Confused About The Concept Of brand Positioning

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The Surface Meanings of Positioning

This health care product lost the market share because it didnt find the correct position and failed to win the consumers favor.

Working in the office, you should know your position clearly to win the praise of your colleagues and get a promotion.

This company positioned itself to be a third-party hotel which only provides top grade services and thus got remarkable profits over time.

The definition of positioning is accepted and used widely. However, if we do a sample survey of business managers and marketing personnel, and people working in market consulting services and the advertising industry for their understanding of “positioning “, I believe you will get a variety of answers. It seems that even many professional people, just simply accepted and memorized the term “positioning”, and use it in some specific situations! Few people truly consider “positioning” as a tool and how to put it in to practice.

If “positioning” is indeed effective, at least we need to understand the concept, master the methods, and put theories into practice. We can not just purely discuss about what “positioning” is and treat it as a fashionable term to enrich our vocabulary.

Now, lets look into “positioning”.

Different positioning

Advertising Age, an authoritative advertising magazine in the United States, published Positioning Era in 1972 written by Al Ries and Jack Trout, which declared the birth of positioning.

Al Ries and Jack Trout thought that “positioning” is a method of occupying a market position in the minds of the target audiences. Therefore, they use the present continuous tense “Positioning” to express the process. Any country, company, organization, individual, product or service could use this method to occupy a position in the minds of consumers.

The “positioning” that Al Ries and Jack Trout mentioned actually refers to in-depth study of the target audience from the perspective of the audience themselves in order to choose information to distribute effectively and guarantee a means for consistent communications. This will create a method which impresses consumers and gets them memorize the company in a certain way. Using common language to express these ideas we can name it: the what to say approach.

The principle of positioning brought forward a new era. With this concept widely known and accepted by the mass, marketing experts also tried to connect this principle with the existing marketing theory systems. Thus, we have the classic “S-T-P” steps, S stands for segmentation; T for targeting and P for positioning which is something that occupies a certain place in the minds of the consumers with its unique designs in supplies. (Philip Kolter, Marketing Management 10th edition). Please note that “positioning” here has surpassed its original meaning, it is not just a means of communication, but also holds meaning of unique design in supply.” In other words, the meaning of “positioning” lies in how to design the products, how to price them and what special services should be provided. Obviously, providing uniqueness in supply has actually become the key work of marketing! Therefore, “positioning” changed from a means of communication to the core point of marketing. Marketing experts have completely accepted the term “positioning” and admits the positive influence of adding “positioning” to Marketing Theories, and thus, its meaning have been enriched. Frankly speaking, from the perspective of marketing experts, “positioning” is not just matter of “what we should say”; it has become “what we should sell”.

When marketing experts promote the “S-T-P” method, strategic positioning” becomes the focus of discussion. Michael Porter’s On Competition said that: The essence of the business strategy is “positioning.” In his book, he pointed out: Enterprises can position themselves based on the types of specific products. Just as Galanz’s strategy has focused on the production and development of microwave ovens; enterprises can also position themselves based on all the needs or most needs of specific customers or as how IKEA positioned itself by providing a complete series of household products to young people, who care mainly about price, like to change styles all the time, and do not need services.

After determining a “positioning” strategy, a set of carefully selected activities can be carried out accordingly to strengthen the uniqueness value to their consumers. Take the Southwest Airlines for example, its “positioning” strategy is to provide serve- specific air routes and low-cost and convenient services, in this way, it can reduce boarding time, forgo providing any unnecessary VIP cabin services and only purchase Boeing 737 aircraft in order to enhance the efficiency of maintenance and strengthen its competitive advantages. These simplified activities are carried out based on the strategic “positioning” plan, and has helped to continuously consolidate their market “positioning”, so that other airlines can not compete with them at all.

From the perspective of Michael Porte, “positioning” has got even a richer meaning. The “positioning” of enterprises is what we should do and this is the essence of business management strategy and also the origin of competitive advantages.

There are three different levels of application of “positioning”. They are enterprise strategy level, marketing level and communication level respectively (see picture 1). Confusion often occurs because of the definitions of these three levels of “positioning” are actually different, but all of them are wide-spread and accepted. When we are able to examine “positioning” from different levels, then we can confirm in which level to use “positioning” correctly so that we can avoid confusion about its definition.

It is worth mentioning that the three levels of “positioning” dont contradict each other, on the contrary, the unification of the three levels can form a strong competitive advantage.

For example, Volvo focuses on producing safe cars, the “positioning” of which is in the enterprise level and also in marketing level, this is consistently shown in the process of their communications. So in the minds of consumers, Volvo occupies a market position of safety.

The ideal state of the three levels of “positioning” is a united one. Southwest Airlines, IKEA and Harley Motorcycles are some of the best examples of unity among the three levels of positioning. Strategic “positioning” is the core and direction of business management, so as to determine the direction of the products and services development, and further establish its unique position in the minds of target consumers through communications. We can see that such enterprises are strong powers in their markets.

Positioning and Brands

Clients often need an advertising company to provide positioning services for a certain brands. However, because Al Ries and Jack Trout didnt attempt to construct a theoretical system, nor there is clear definition about the relationship between “branding” and “positioning”. Therefore, the following situations are likely to occur: the clients who believe in the positioning theory claim that they need brand positioning for their shampoo products, for instance, but actually, they do not know what kind of materials concerning the brand the advertising company will submit. Proceeding from the view of business, the advertising company is willing to provide this service for the client, yet due to lack of theoretical basis and standards, clients can not actually identify the quality of the proposal submitted by the advertising company. The two sides will not be able to have in-depth negotiations or revisions on the proposal.

We should change this situation by creating a clear definition; otherwise this problem will seriously affect daily work progress and market results for many enterprises. Like the invention of the light bulb is based on the discovery of electricity, the “positioning” of a brand comes from the unity between “positioning” and “branding”, it is closest to Al Ries and Jacks classic theory on positioning–the positioning of communication, which is the first of the three levels of positioning in theory and practice mentioned above.

“Branding” is the general awareness of consumers on specific organizations, products, services, and the differences among them (Please refer to my article If You Are Confused About the Concept of Branding, and Graphic II in this article to familiarize yourself with the concept of branding). “Positioning” is the process of occupying a position in consumers minds. Therefore, we can consider “branding” as a result, and “positioning” as an approach.

Graphic II
Distinguished-What the brand represents?
Entity-What the brand stands for?
Awareness-to who the brand is meaningful for?

Giving positioning to a brand is to rebuild consumers awareness through the means of communication, which is actually a process of establishing a position or adjusting the present position. When this is completed, in the minds of consumers, a brand will be established or the awareness about a certain symbol has fundamentally changed.

If “positioning” is an approach, then from the perspective of overall brand management, what is the relevance of positioning itself? We know that the core means of brand management is to establish the “symbol system” in the minds of target consumers which is, in fact, to manage the communications and the differences mentioned in the materials provided to further manage the awareness of the target consumers. For this aspect of brand management a relatively complete methodology system exists; David Aakers brand recognition system.” In this system, as a process, brand management is divided into four steps:

Graphic III
1. Establishing brand awareness
2. Brand positioning
3. Communication
4. Following and checking the effects of communication activities and continue to improve them.

In these four steps, the main task of brand positioning is to have the brand recognition content and brand value orientation communications initiatively communicate with the target consumers.

Perhaps we can use peoples thoughts as an example to help us understand David Aakers insightful view. View points of Brand recognition is how a man sees himself, brand positioning is how this person describes himself and brand awareness is how others look at this person.

It is very simple; the essence of brand management is to combine other peoples opinions about you and your own opinion about yourself through various means. Brand positioning, however, is to let others remember your methods in this complex and saturated competitive environment (Graphic IV shows the relationship among brand identification, positioning and awareness).

Conclusion

This article aims to dissipate the fog of the concept and directly reveal the core concept.

Many people are confused about positioning, the reason is that the concept of positioning originated only from communication, but it has been further developed to the following three levels: strategy, marketing and communication.

Many people are confused about the relationship between branding and positioning as well, it is because they confuse branding itself with brand development and management measures.

The problem that we are facing is not the lack of theories, but actually having too many theories on this topic. Lets learn how to distinguish and select proper theories, not only select them but truly, systemically and creatively devote ourselves to implementing the theories we believe in. If these things are accomplished it will be more likely for enterprises and individuals to continuously achieve success in the more and more mature and fierce market competition in China as well as the global market.

Flush With Cash Open A Profitable Business Philippines Venture Today

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For a lot of foreigners, retirement does not mean not doing anything. You can find individuals that open a profitable business Philippines venture in order to keep busy and make money as well. Most of them come into the region flush with cash from having retired and so are aiming to build a new start in a country where the living costs is a lot more affordable. That is why you will notice plenty of small startups all over the country that are owned by foreigners. If it is your first time to work within the Philippines and want to prevent the stress of dealing with day-to-day operations, landlords, employees, inventory, as well as other such matters, allow me to share several opportunities that might be definitely worth your while.

One great place get started on if you want to open a company Philippines venture is to buy fixer-upper properties, renovate them and then sell them off. You’ll find numerous properties that are in a condition of disrepair and in case you’ve got experience in building homes and doing repair work, you will see that this is one opportunity where you could generate a nice profit. It might be advisable though, to get your own licensed Philippine broker in order to navigate the market as to what properties are worth renovating and selling.

The next thing listed where you can do good business within the Philippines is to build an apartelle. This is something that is uniquely Filipino and can be found all all over the country. An apartelle happens to be an apartment building where all but one of the units is rented out long term. Operating one of these can be done on a nightly or weekly basis, similar to a normal hotel, hence the combined name. Getting yourself into this will require heavy capital investment on your behalf, but with the right property together with a focus on rural areas and smaller cities, you can construct a small 4 unit building for about 3 million Philippine pesos, excluding the price of the land.

The third item that is also worth mentioning is farming. Considering the halt on the Agrarian Land Reform program (CARP), the private sector could have renewed confidence to invest in agricultural production once again. For the longest time, CARP has held back purchase of both production capacity along with farm acquisition. Now that it’s ended, land prices will go straight back to being valued for their own higher income producing potential.

For individuals who want to open a profitable business Philippines venture that is passive yet will yield a fantastic ROI, right here is the one. Farming has long been structured via the developers (all foreigners) to be an actual one turnkey investment price, which includes the buying price of the land, in addition to the clearing, planting, cultivating, and harvesting for the first few years. It has a price that’s intended to fit the capital investment budget associated with an average foreign retiree, and all landowners are going to be members of the co-op that can share in the usage of farming equipment. Farming operations will likely be handled by the developer’s management team.

Business within the Philippines is one thing that you should consider, especially if you really are a foreigner with a nice retirement fund. There are lots of opportunities around, however these three are some of the ones which could help you to get started.

Importance Of Business Consultancy Services

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The consultancy services are increasing day by day for various industries. The consultancy is a knowledge dispersion process through which any individual or a company out sources its information. The business consultancy services include updating the client and customers with the new emerging trend in their respective business. The strategy is based on market research analysis. The market research analysis includes studying the business in the global markets and the competitions for the business.

The consultancy services include provision of strategic tools for the development and expansion of the business. The business consultancy services provide the competitors an extra edge in the competitive markets. Consultancy services are the problem solving approach where the service provider focuses on solutions rather than the problems. The service in consultation with the staff and the management works on the core domain of the problem. Hence this evaluation results in diverse solutions and better decision making process. The consultancy services works on the risks assessments and provides appropriate measure to avoid risks and to handle risks if encountered.

The consultancy services are well known for their planning strategy on the basis of the resource allocation, scheduling of the various projects and termination of the project. The consultancy services evaluate the various projects in terms of their life cycle and utilization of resources and providing high quality outputs to the organization. For an effective functioning of any organization it requires effective and strategic policies based on the proper evaluation of the business. The consultancy services provide an effective medium to review these strategies and policies of the business. The company is assured the desired results by the predictions through such consultancy services. The services provider works as a research analyst in reviewing the pros and cons of the business.

The business is not only measured on the sales and pricing strategy but also on the impact it creates in the minds of its customers. The surveys include the reviews on the operations of the business. It also requires the effective use of the human resources. The key to any business is its financial growth and stability. The consultancy services are beneficial in providing this business reviews. The policy also includes the measure of the business plans. The business is evaluated by the professional who are engaged in these consultancy firms. These are mostly the management graduates who work on the various policies of running a business effectively. Consultancy services aims at securing the place for the business in the competitive global market place. Hence a company must select an appropriate consultancy firm as the policies suggested may play a prominent role in shaping the business. For the evaluation criteria the company must review the past success of such consultancy services and the key clients of such services. This assures the company about the service providers. This also helps in establishing trust and faith about the service provider. Hence a company must select its consultancy services based on its objectives and the services including value added services provided by the service provider.

Why Android Is A Great Match For Mobile Business Users

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The smart phone industry is expanding greatly, and business users are left wondering which smart phones best match their needs. While BlackBerry has been the historic winner, many businesspeople are starting to look much more seriously at Android as a strong contender.

What makes Android so attractive to business users? This can be broken down into a few key areas: flexibility and choice, pricing, apps and software, and business integration.

Flexibility: On the whole, Android presents a lot of flexibility for users – they can choose from a variety of phones, a variety of providers, and an app store that is not heavily regulated (unlike Apple’s App Store). Business users have differing needs depending on their industries, position, and even lifestyle, and Android makes it easier to find a smart phone that’s a perfect match.
Applications: On other mobile operating systems, applications are heavily policed. While this has some advantages in terms of reliability, it also means that one company is choosing exactly what people do and do not want on their mobile phones. It excludes small niche programs designed for specific types of business people from existing – a problem that is rectified on Android. Android’s applications are open to all software developers, which means more innovation for the business user.
Strong web browsing capabilities: Android supports Adobe Flash – a popular way of encoding web pages that the Apple iPhone does not support. In other words, Android users are able to view a number of web pages that iPhone users would not otherwise be able to. This is important when you need one quick piece of information on the go!
Prices are much more competitive: Because Android is available on many different types of phone, there’s much more room for the budget-minded businessperson to find a price that works for them.
Strong Exchange integration: Many businesses use Microsoft Exchange, though mobile support for Exchange is sometimes hit and miss. BlackBerry requires of the installation of their BES server. However, Android integrates with Exchange without any need for add-ons – perfect for easy integration into the business world!

Dos And Don’ts Of Running A Business

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The goal to all business is turning a profit, but exactly how to do so is another matter. The truth is there are no real simple answers, but there are guidelines that offer the promise of success. Some things depend on the scope of the business, and what the business owner is capable of doing.

Good Habits for Profit

This is not an exhaustive list, and there will be many variations offered by different sources. The following will give a basic idea of ways get your business into the customer base building mode:

Putting the right gear in place: No business can succeed without the necessary implements of the trade. Computers and various types of meeting software are pretty much basic essentials these days. However, other solutions that are fast becoming must haves include web conferencing tools, smart phones and Internet based promotional tools.

The customer is always right: It may sound like a tired refrain to say that the customer always come first, but this adage is still true today. Always be willing to listen to your customers. And be prepared to go the extra mile for those that arent quite satisfied, that is, if you didnt deliver as promised.

Upgrade your skills: There is always something new to learn in just about any field. The smart business owner keeps abreast of changes in their area so they can keep offering quality service.

Network, network: There are so many opportunities for building vital links for your business. These include trade shows and expos, family gatherings and high school reunions. This simply means letting others know what you do in order to create your own opportunities.

Business owners can add to this list as they see fit. This is a useful guide that can serve as a springboard to profitability. Many businesses choose to promote themselves online as it is more cost effective. The boom in support software for customer support and smart phone use underscores the need for fast and reliable communications. Keep in mind that if you ignore the basics of good business habits, you can be sure your competitor wont.