Want to know how to craft an exceptional brand name? Curious about the power of positioning in marketing? Ever wondered how brands like 'People' magazine or 'Time' became so successful? Dive into the fascinating world of branding, positioning, and the art of naming, as we explore real-world stories, research studies, and the intriguing psychology behind it all!

Positioning: The Battle for Your Mind

How did positioning, a hard-sell concept, become a staple in the creative world of business? The past decade reveals a "return to reality," where positioning like Lite Beer's "Everything you've always wanted in a great beer. And less." resonates by touching base with what's already in the consumer's mind. Creativity isn't about creating something new but manipulating existing perceptions.

We've entered an overcommunicated society. In 1972, media expenditures were about $110 per person; today, it's $880. With so many products and companies, the old marketing strategies just don't work. The mind, inundated with information, often rejects new data unless it aligns with prior knowledge.

Millions are wasted trying to change minds with advertising. Once a mind is made up, it's nearly impossible to change it. The principle of positioning teaches us to accept existing perceptions and reframe them. 

Consider the simplicity of messages: Volvo owns "safety," FedEx owns "overnight," and Crest owns "cavities." In a cluttered communication environment, simplified, clear messages stick. The average consumer can't absorb more information than before, even though the volume of communication has exploded.

In an age where the Internet is poised to become the greatest medium, understanding how to cut through the noise is essential. Only by focusing on the perceptions of the prospect can one hope to make a lasting impact. This "outside-in" thinking is critical in our overcommunicated world.

Take Jerry Brown: most people remember him as young, good-looking, having dated Linda Ronstadt, and being against big government. Despite enormous press coverage, his image is simple. Similarly, American politician Big John Connally's well-known wheeler-dealer perception couldn't be changed, despite his $11 million campaign.

Chevrolet, despite spending $130 million annually on advertising, struggled with brand confusion, leading to Ford overtaking it. The lesson here is clear: in an overcommunicated society, a simplified, focused approach is the key to breaking through the mental traffic jam.

In essence, positioning isn't about altering reality but reshaping perceptions. Embrace simplicity in your messages, and remember, the battle for consumer attention is fought and won in the mind.

Can Jerry Brown's Dating Life Teach Us the Secret to Cutting Through Marketing Noise?

In a society flooded with communication, mastering the art of getting into someone's mind is crucial. The trick often lies not in being the best, but in being first. Consider the iconic examples: Charles Lindbergh was the first to fly solo across the Atlantic, Neil Armstrong was the first to walk on the moon, and Mount Everest is the highest mountain. Their successors are often forgotten. 

This principle applies equally to brands. Kodak, IBM, Xerox, Hertz, Coca-Cola, and General Electric were all first in their categories and remain leaders. The key takeaway is clear: "It's better to be first than it is to be better."

In the animal kingdom, biologists talk about "imprinting," where a newborn instantly recognizes its mother. Similarly, people remember their first love better than subsequent partners. This concept of being first is deeply ingrained in our psychology and reflects in how we build brand loyalty. 

However, what if you’re not first? This was the dilemma faced by Avis in the car rental market, dominated by Hertz. Avis's famous campaign, "We try harder," brilliantly acknowledged their second-place status and played on the sympathy for the underdog, leading to financial success.

The advertising landscape has evolved through different eras. The Product Era in the '50s focused on unique selling propositions. The Image Era of the '60s, championed by David Ogilvy, emphasized long-term brand reputation over individual product features. But today, we’re in the Positioning Era, where the strategy is paramount. Companies must find and occupy a unique position in the prospect's mind.

Take IBM, which didn’t invent the computer but was the first to establish a significant position in the market. Or consider Amerigo Vespucci, who wasn’t the first to discover the New World but positioned it as a separate continent and wrote extensively about it, thus securing his legacy over Columbus.

In advertising, simplicity and clarity are now more effective than ever. Miller's "Lite" beer became a runaway success by clearly positioning itself as a light beer, a position previously muddled by other brands’ poetic slogans. 

Consistency in positioning is essential. Avis and 7-Up initially succeeded by clearly positioning themselves against market leaders but faltered when they lost this focus. Avis's shift from "We try harder" to "Avis is going to be No. 1" was a strategic misstep, just as 7-Up’s departure from the "Uncola" campaign diluted its brand identity.

In short, in our overcommunicated society, the path to success lies in finding a unique, memorable position in the mind of your audience and sticking to it. Whether in love, business, or advertising, being first—or effectively positioning yourself as an alternative—is the key to staying memorable.

First Impressions Last: The Power of Positioning in a Crowded Market

There's a classic tale about a traveler asking a farmer for directions, only to be told after much confusion, "You can't get there from here!" This reflects the plight of many companies and individuals who find themselves in positions where no amount of effort can change their fate.

Take the Vietnam War as an example of America's unyielding "can do" spirit, which ultimately couldn't solve the problem despite massive investment. Similarly, a 55-year-old executive aiming for the top job may be too late in the game, just as RCA’s failure in the computer industry despite massive efforts illustrates how sometimes, "you can't get there from here."

This concept ties into the idea of positioning in the market. The first article on positioning appeared in 1969, predicting that no company could progress head-on against IBM’s established position. RCA’s attempt to challenge IBM head-on in the computer business ended disastrously, costing them $250 million. Even GE had to sell its unprofitable computer operations to Honeywell.

The story extends beyond individual products to companies as a whole. For instance, the story of GE executives Smith and Jones highlights the importance of recognizing when a market position is unattainable. Smith’s failure and Jones’s pragmatic exit strategy led to GE’s withdrawal from the computer market, demonstrating that sometimes, realistic assessments lead to better outcomes.

The lesson is clear: companies must adapt their strategies based on their market positions. Leaders like IBM focus on reinforcing their dominance rather than directly confronting competitors. For aspiring leaders, the key is to establish a unique position early on, as demonstrated by Digital Equipment Corporation’s success with minicomputers.

In essence, the power of a company is derived from the position its products hold in consumers' minds, not from the company's size or resources. Leadership is not just about being the biggest; it's about being the first and maintaining that unique position effectively. As history shows, those who understand and leverage their positions can enjoy long-term success and stability.

Can You Really Compete with Giants like IBM and Win?

In the realm of marketing, the strategies for leaders and followers differ drastically. When Tylenol faced Datril's price-cutting move, it retained its leadership through strategic covering. Followers, on the other hand, often falter with "me-too" responses unless they act swiftly and with exceptional marketing.

Take the story of DEC trying to outdo IBM PC specs. They missed the desktop revolution and were eventually acquired by Compaq. This highlights the importance of speed over mere product improvement. William Benton, founder of the Benton & Bowles advertising agency, emphasized finding the "soft spot" in a market, a strategy termed by the French as "cherchez le creneau" or "look for the hole."

Volkswagen's success with the Beetle, marketed as "small" when bigger cars were the norm, and Rolex’s positioning as the first expensive watch, illustrate the power of finding and filling a unique market niche. Advent's misstep into the home entertainment business, despite their success with projection TVs, serves as a cautionary tale against overextension.

Premium pricing can carve out a successful niche, as seen with Michelob beer and Chivas Regal scotch. These brands thrived by establishing themselves as high-priced leaders in their categories. Conversely, the low-price strategy also finds success, exemplified by Qwip facsimile equipment, which outperformed competitors by offering lower rental prices.

Similarly, Calvin Klein's use of sex to market jeans and Marlboro's masculine branding in cigarettes show that even unconventional approaches can dominate a market. Timing is crucial, as Lorillard's failed introduction of the "Luke" brand of masculine cigarettes demonstrated.

A classic example of repositioning is Tylenol's campaign against aspirin. By highlighting aspirin's potential side effects, Tylenol repositioned itself as the safer alternative, leading to its rise as the top analgesic. Similarly, Royal Doulton effectively repositioned Lenox china by clarifying its American origin, bolstering its own market share.

However, not all comparative advertising succeeds. The Pepsi Challenge, claiming more people preferred Pepsi over Coke, gained minimal traction because consumers doubted the validity of the claim. Effective repositioning needs to disrupt existing perceptions, like how Stolichnaya positioned itself as the authentic Russian vodka against American counterparts.

Pringle's faced a setback when Wise's repositioning highlighted Pringle's artificial ingredients, damaging its market share. Even Procter & Gamble's Scope mouthwash, although successful, could have performed better with a more compelling name than "Scope."

The key takeaway is that successful marketing hinges on filling a unique niche, whether through premium pricing, effective repositioning, or leveraging unconventional strategies. To thrive in today’s saturated market, brands must innovate while remaining agile and perceptive to shifting consumer perceptions.

Mastering Market Leadership: Lessons from Tylenol, IBM, and VW

The power of a name in branding cannot be overstated. It's the hook that lodges a product in a consumer's mind. Names significantly impact perception. Consider "Alfred" versus "Charlie" or "Hog Island" versus "Paradise Island"; the latter names evoke far more appealing images.

Choosing a name involves more than historical references like Chevrolet or Mercedes. In today's saturated market, a name must kickstart the positioning process by highlighting the product's primary benefit. For instance, Miller Lite's success was stymied by its generic name, falling behind Bud Light and Coors Light.

Consider "DieHard" for batteries, "Shake 'n Bake" for cooking, and "Edge" for shaving cream. These names effectively communicate the product's key advantage. However, names can backfire if they become too generic, like "Lite beer" did for Miller.

Finding an available name is increasingly tough. There are millions of registered trademarks, prompting some companies to buy existing names rather than create new ones. Trademark attorneys often cite "Lite" as a cautionary tale about using descriptive terms.

Naming is akin to racing; you must take calculated risks. Names that are slightly generic yet distinctive can fend off competitors. "People" magazine is a runaway success, while "Us" struggles. Names like "Time" and "Fortune" have proven effective, although initial skepticism favored more descriptive titles like "Newsweek" and "Business Week."

Names can become outdated, opening opportunities for competitors. "Esquire" lost ground to "Playboy," and "Yachting" faces challenges from "Sail." Even strong brands like "The Wall Street Journal" could benefit from a broader name reflecting its comprehensive business coverage.

An airline's name can determine its success. "Eastern Airlines" struggled with a regional image compared to national carriers like "American" and "United." Despite attempts to improve its reputation, Eastern's name held it back, eventually leading to bankruptcy. Conversely, "Trans World Airlines" (TWA) might have fared better as "Trans World."

Companies often fall into the trap of initials, assuming everyone will recognize them. However, names like IBM and GE only became effective after the full names were well-known. Initials alone rarely build a strong brand.

Ultimately, names resonate because the mind processes them aurally. Whether for people or products, a well-chosen name can make all the difference.

Can the Right Name Make or Break a Brand Like Miller Lite? Or Boost Success Like Bud Light?

Imagine a room full of executives at a big meeting, brainstorming names for a new cold remedy. Harry suggests "Alka-Seltzer Plus" to leverage the $20 million already spent on the Alka-Seltzer name. This seems like a smart, cost-saving move, but customers thought it was just an improved version of Alka-Seltzer, not a new product. As a result, it ended up cannibalizing the original Alka-Seltzer market instead of competing with other cold remedies like Dristan and Contac.

This concept is known as the "free-ride trap," where companies try to capitalize on an existing brand's name, thinking it will save money and build on already established customer trust. However, this often leads to confusion and dilutes the brand's identity, ultimately weakening its market position.

In the world of conglomerates, companies like General Electric and RCA have ventured into diverse fields, from jet engines to rent-a-cars. This strategy can sustain competition and growth, but it also risks spreading the brand too thin. For instance, Xerox tried to enter the computer market, but the brand was too strongly associated with copiers. Their efforts failed, costing them billions.

The case of Procter & Gamble versus Colgate-Palmolive illustrates different branding strategies. Procter & Gamble carefully positions each product with unique names like Tide, Cheer, and Bold, while Colgate-Palmolive uses house names like Colgate Dental Cream and Palmolive Soap. Despite having fewer brands, Procter & Gamble outperforms Colgate-Palmolive in both sales and profits.

When a new product emerges, giving it a fresh name is crucial. Xerox's attempt to market computers under its well-known copier brand led to significant losses. Customers couldn't reconcile the name Xerox with anything other than copiers, undermining the new product's success.

In the battery market, Duracell outshone Eveready's alkaline batteries, even though Eveready had the better-known name. Duracell's distinct branding helped it dominate, proving that a new name can carve out a strong market position.

Lastly, the story of Taster's Choice coffee shows that even if you're not the first to market, a strategic name can make you a winner.

In short, while the logic behind line extensions and leveraging existing brand names seems sound, the real-world outcomes often tell a different story. New products frequently need new names to establish their own identities and succeed in the market.

The Branding Blunders: Lessons from Alka-Seltzer, Xerox, and Taster’s Choice

Line extension can seem like a brilliant move at first glance, especially when you consider the catchy names of New York City's sports teams: Mets, Jets, Nets, and the now-renamed Sets. It's tempting to think you can piggyback off a well-known brand and ride the wave of success. 

Imagine announcing a professional swimming team called the "Wets"—it's instantly clear they're a water sport team from New York. This immediate recognition boosts short-term sales and visibility, much like how Diet Coca-Cola or Alka-Seltzer Plus see initial surges in sales.

But here’s the catch: long-term, this strategy often backfires. Names like Schlitz Light, Pall Mall Extra Mild, and Jergens Extra Dry fade away because they lack a unique position in the market. They blur the brand's identity, leading to confusion and, ultimately, a loss of market share. Take Ralston Purina’s ill-fated "Ralston 1, 2, 3" cereal strategy or the legendary David Ogilvy’s struggle with Rinso White-Rinso Blue. Even big names like USA Today on TV and Sara Lee's venture into frozen dinners couldn't escape the pitfalls of line extension.

Sara Lee, known for its desserts, failed when it tried to branch out with products like Chicken & Noodles Au Gratin. Levi Strauss also stumbled with "Levi's for Feet," though they later found success renaming their tailored classics to Dockers. These examples highlight that sometimes, sticking to what you’re known for is the best strategy.

Interestingly, the shopping-list test reveals the confusion line extensions create. Ask someone to buy Kraft—will they get cheese, salad dressing, or something else? This dilution of brand identity can weaken even the strongest brands over time.

Even iconic brands like Cadillac and Volkswagen aren't immune. Cadillac’s attempt to enter the small car market with the Cimarron and Catera conflicted with its big-car image. Volkswagen's move to larger cars like the Dasher led to a significant market share drop. 

However, some companies have managed to extend their brand successfully. Volvo, for instance, shifted its focus to safety and saw sales soar. Brands need to find a balance, stretching their identity just enough without losing their core appeal.

Monsanto provides a masterclass in corporate positioning. They tackled the anti-chemical sentiment head-on with their "Chemical Facts of Life" campaign, highlighting the essential role of chemicals in everyday life. This bold move not only improved public perception but also positioned Monsanto as a leader in the industry.

In the end, whether it's a product, a politician, or a company, the key to successful positioning lies in understanding and leveraging your core strengths while avoiding the pitfalls of overextension.

Can New York's 'Wets' Teach Us Why Brand Extensions Often Sink?

With the rise of affordable airfare, the world has turned into a playground for young travelers. Once upon a time, only the older, wealthier crowd could afford to fly, but today’s passengers are younger, while the flight attendants have aged.

Take Sabena Belgian World Airlines. Competing with giants like TWA and Pan Am, Sabena had a narrow entry point: New York. If you weren’t headed to Brussels, Sabena wasn’t your airline. Their strategy of selling food and service didn’t quite cut it, as they struggled to attract passengers to Belgium—a country many Americans knew little about, associating it mostly with waffles and confusing Waterloo for a Paris suburb.

But Belgium had hidden gems. Cities like Bruges, Ghent, Antwerp, Brussels, and Tournai boasted historical palaces and art galleries, yet locals didn’t see their tourism potential. Imagine the Grand Place, Europe’s most beautiful square, serving as a parking lot until cars were eventually banned.

Sabena’s breakthrough came with the idea of positioning Belgium itself as a destination. Leveraging Michelin Guide's ratings, they promoted Belgium’s five three-star cities. An ad proclaiming “In beautiful Belgium, there are five Amsterdams” ignited curiosity and drew tourists’ attention. The campaign even ruffled feathers in Holland, whose tourism minister wasn’t pleased with the comparison.

Unfortunately, organizational changes at Sabena killed the promising program. The lesson here is clear: consistency and commitment are crucial in positioning campaigns. Belgium’s beauty deserved decades of persistent publicity to become a top-tier destination.

Switching gears to sweets, Milk Duds had a reputation as a movie candy. Beatrice Foods wanted to expand its appeal to the younger, candy-loving crowd. The key to repositioning Milk Duds lay in recognizing a common frustration: candy bars didn’t last long. In contrast, Milk Duds, with their slow-eating, chocolate-covered caramels, offered a long-lasting alternative.

A clever TV commercial featured a kid with an enormous mouth devouring candy bars in seconds, only to discover the enduring joy of Milk Duds. The tagline, “When a candy bar is only a memory, you’ll still be eating your Milk Duds,” struck a chord.

The campaign reversed declining sales and set a record for Milk Duds, proving that the solution to a positioning challenge often lies in understanding the prospect’s mind, not just the product.

From Sabena's Belgian Dream to Milk Duds' Candy Revolution: Marketing Masterstrokes

Positioning a service, like Western Union's Mailgram, isn't that different from positioning a product like Milk Duds. The primary distinction lies in techniques rather than strategy. For products, visuals dominate, like a big picture of a car in an ad. Services, however, rely more on words. 

Mailgram, a joint venture between Western Union and the U.S. Postal Service, was America's first electronic mail service, debuting in 1970. To send one, you called Western Union, which transmitted your message via satellite to a nearby post office for next-day delivery. Despite its advanced technology, the key to Mailgram's success was strategic simplicity: "Mailgram: Impact of a Telegram at a fraction of the cost."

Western Union test-marketed two positioning strategies for Mailgram: as a low-cost Telegram and as a high-speed letter. The results were clear. In six major cities, the "low-cost Telegram" approach doubled product awareness and significantly boosted volume, proving to be the superior strategy. Despite this success, when Western Union changed its advertising strategy, Mailgram's volume fell.

Similarly, positioning a regional service like Long Island Trust (LIT) involved understanding local perceptions. Competing against big NYC banks, LIT leveraged its identity as a local institution deeply invested in Long Island's community. Their ads emphasized a simple yet powerful message: "Why send your money to the city if you live on the Island?" This campaign significantly improved LIT's perceived attributes, like branch availability and service quality, demonstrating the impact of aligning with local identity.

Both Mailgram and LIT underscore that effective positioning hinges on understanding and aligning with what's already in the customer's mind, whether it's the familiarity of a telegram or the community loyalty of a local bank.

Can Strategic Simplicity Propel Services Like Western Union's Mailgram to Success?

Imagine a scenario where the Catholic Church was treated like a corporation struggling with its brand identity. A group of concerned laity, noticing a "crisis of identity" at post-Vatican II church, sought to apply modern communication strategies to the Church. Vatican II had brought significant changes, replacing rigidity with flexibility, but it left the faithful confused. Without a clear communication plan, many congregants simply walked away.

To understand this better, let's think about General Motors without a unified advertising strategy—each local dealer doing their own thing, some good, much bad. The Catholic Church faced a similar issue, with no central message to guide its vast communication efforts. This lack of cohesion led to a decline in mass attendance and vocations.

Interestingly, a Protestant theologian, Peter Berger, called the Catholic Church the "largest community of moral authority in American society." Yet, when influential executives were asked to rate institutions, organized religion ranked dead last. Clearly, the Church's moral authority wasn’t being effectively communicated.

The solution seemed simple: the Church needed to re-embrace its role as the "teacher of the word," a concept rooted in Scripture. Christ’s instructions to "teach all nations" could provide a clear direction. However, implementing this involved more than just a slogan; it required robust communication programs and better pulpit training.

Unfortunately, the Church's leadership, favoring complexity over simplicity, did not adopt these strategies. The Pope’s return to conservative values further complicated the matter, leaving the Church’s communication problems unresolved.

This story also holds lessons for personal branding. Just as the Church needed a clear identity, so do individuals. Defining your unique position, avoiding confusing names, and finding the right mentors and opportunities are crucial. The story of Ray Kroc and the McDonald brothers exemplifies this—Kroc's belief in their idea turned it into a global success, highlighting the importance of vision and persistence.

In essence, whether it’s an institution like the Catholic Church or your personal career, clear communication and strategic positioning are key to maintaining relevance and achieving success.

Rebranding the Vatican: A Post-Vatican II Identity Crisis

Starting a positioning program isn't a walk in the park. The urge to jump straight to solutions without understanding the problem is strong, but it's essential to think strategically. Here are six steps to guide you:

1. What Position Do You Own?
   Begin by assessing your current position in the minds of your prospects. For instance, 7-Up realized its issue wasn't just about lemon-lime competition but the dominance of cola drinks. By embracing this, they launched the successful "Uncola" campaign, making a significant impact.

2. What Position Do You Want to Own?
   Look ahead and identify a position you can truly own. Take Nyquil, for example. Instead of clashing with cold remedy giants Contac and Dristan, they carved out the "nighttime cold remedy" niche, becoming highly successful. On the flip side, Rheingold Brewery’s attempt to appeal to every ethnic group backfired, alienating their target audience.

3. Whom Must You Outgun?
   Avoid direct confrontations with market leaders. Think like a football player; rather than charging head-on, find a way around the defense. This strategic thinking helped Schaefer Brewing Company dominate the heavy beer drinker market with their "The one beer to have when you're having more than one" slogan.

4. Do You Have Enough Money?
   Establishing and maintaining a position requires investment. The advertising noise is deafening, and standing out is challenging. Procter & Gamble's strategy of hefty initial investments exemplifies the financial commitment needed to secure and hold a position.

5. Can You Stick It Out?
   Consistency is key. Companies like Marlboro and Crest stuck to their core messages for decades, reaping long-term benefits. Changing your basic strategy frequently can be detrimental, as seen with Levi's struggle after extending into casual clothes.

6. Do You Match Your Position?
   Ensure every aspect of your brand aligns with your positioning strategy. Avis's "We try harder" campaign is a classic example of a strategy directly reflected in their marketing, resonating well with their audience.

Remember, positioning is like real estate in the mind—once you own it, it's valuable. But it takes vision, courage, objectivity, simplicity, subtlety, patience, and a global outlook to play the game successfully.

Can You Master Market Positioning Like 7-Up and Nyquil?

In today's overcrowded market, the concept of positioning has become essential. It's not about creating something entirely new but about reshaping existing perceptions to fit into the consumer's mind. Our society is inundated with information, making traditional marketing strategies ineffective. The key is to accept existing perceptions and reframe them with simple, clear messages that stick.

Understanding the importance of being first is crucial; pioneers like Kodak and Coca-Cola maintain leadership by being the first in their categories. For those not first, like Avis, clever positioning as the underdog can still lead to success. 

The evolution of marketing from the Product Era to the Positioning Era underscores the importance of strategic positioning. Companies must find and occupy a unique mental space in their audience's mind. Simplified, memorable messages are more effective than complex or generic ones. 

Names play a critical role in branding. They must be distinctive and reflect the product's primary benefit to avoid market confusion. Missteps in naming or overextending a brand can dilute its identity and weaken its market position.

Successful positioning also involves adapting strategies based on market positions and focusing on unique attributes rather than directly confronting competitors. Services, much like products, benefit from strategic simplicity and clear messaging.

Overall, the lesson is clear: in an overcommunicated society, the path to success lies in finding a unique, memorable position in the mind of your audience and maintaining it consistently. Whether for a product, service, or personal brand, clear communication and strategic positioning are key to achieving lasting success.

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