Everything is marketing. Generally, people’s first instincts when they hear the term ‘marketing’ is selling or maybe even advertising. However, marketing is a comprehensive, integrated field, and when you look at the actual functions of marketing and the applicable nature of the field, it boils down to the fact that everything is truly marketing. “Marketing is that function of the organization that can keep in constant touch with the organization’s consumers, read their needs, develop ‘products’ that meet these needs, and build a program of communications to express the organization’s purposes” as described by Kotler and Levy in the Journal of Marketing.
Now two core concepts in the marketing field are that of differentiation and positioning. What would happen if we took those core concepts and applied them to your own life and career? Today we’re going to do just that — first we’re going to go through Differentiation & Positioning 101, examining two business cases. Then I’ll take you to explore how those concepts apply to personal positioning. Finally, we will journey to what all this means for your career and what you can do to improve yourself when you walk out that door. So let’s get started.
Does anyone workout, run, go to the gym? Has workout gear and would go if they had the time? Even just has seen an athlete on the television? Now, what brand is the world’s leading innovator in athletic footwear, apparel, equipment and accessories? What would you say? That’s right, it’s Nike!
Nike is a global phenomena — they are considered one of the top brands in the world. And do you know what? Nike spends $2.4 billion per year on marketing. Yes, that’s billion. They have actually increased their total marketing budget over the past three years. They recognize the importance of continual, strategic communication efforts in order to be a top brand. And do you know what else? They keep innovating. Their innovative spirit is driving their success. They continue to add new products to their portfolio that are of worth to their customers. As a top-performing company, Nike continues to invest in its brand and continues to add new products to its lineup.
Positioning is defined as that place in the consumer’s mind of your product in relation to competitors’ products. Positioning is our perception of a brand, product or person. What comes to mind when you hear Mercedes-Benz? What comes to mind when you hear Ford? They are both automobile companies, but we have different perceptions about them.
Nike has positioned itself very clearly as an innovator in the market. Their mission, after-all, is “to bring inspiration and innovation to every athlete in the world.” Even just visiting Nike’s home page will introduce you to the latest from Nike, whether it’s the new Nike Tech Pack (a collection engineered to the exact specifications of championship athletes), the new Nike+ Fuelband (tracks how active you are throughout the day), or the new Nike Free Flyknit (a shoe with revolutionary second-skin fit). Nike makes it very clear; they are in the business of providing state-of-the-art products for fitness success.
Differentiation is at the heart of purchase decisions. Consumers choose one product over another based on those variances. Differentiation is all about finding what is unique about your business from your competitors; it focuses on building your brand strength through attributes valued by customers. A recent article in the Harvard Business Review describes Nike’s approach: “Nike’s differentiation resides in the power of its brand, the company’s relationships with top athletes and its signature performance-focused product design.”
Here’s the lesson: Nike is among the best of the best when it comes to business and branding. Despite this achievement, they continue to invest in their brand, both from a promotional marketing standpoint and from a product development marketing standpoint. They have achieved success and remain successful because of a strategic focus on building their brand, sustaining their brand and communicating their brand effectively.
Let’s quickly explore one more brand in relation to differentiation and positioning. Almost everyone has a smartphone. You just may be holding a product of this company in your hand right now. This second company was chosen not only for their branding prowess, but also for the fact that they are ranked second in the electronics industry only to LG. The brand is Samsung!
Now, let’s take a closer look at Samsung. Not only are they ranked among the largest companies in Poland, but their brand has been recognized quite consistently in the market. Interbrand ranked Samsung the 9th Best Global Brand of 2012, calling it one of the year’s “biggest successes” with a “40 percent rise in brand value.” And Boston Consulting Group has named Samsung No. 3 on the World’s Most Innovative Companies list. What’s more, their Galaxy line has become the global leader in smartphones.
So what has propelled this top company to success? Again, this global brand has thrived by strategically focusing on differentiation and positioning, in this case specifically through innovation. Interbrand sees the company thriving well into the future “through its aspirational branding project and commitment to bringing ‘new and meaningful innovations’ to the global marketplace.” Samsung has invested in adding product attributes of value to their customers; these are unique aspects to their products that set them apart from the competition. If you’re looking for a smartphone that is the “Next Big Thing,” they have it; from fast or slow motion video, to front and back photos, to touch-free interaction, to group connection, it’s there and it’s new.
Here’s the lesson: Samsung has achieved a rapid rise in brand value by adding new product attributes that customers desire. This is the heart of why we buy new phones. If attributes never changed, no one would buy a new phone. There would be no point. Samsung has come along and strategically invested in their brand and in their product in order to compete. Don’t forget, Samsung is going up against other heavy-hitting brands. Ever heard of Apple? And yet they set themselves apart from the competition, differentiating on the basis of innovation. They positioned their products as “The Next Big Thing.” And they have been a remarkable success.
Right now the business emphasis should be on the importance of building a brand through differentiation and positioning. A major concern for any business owner or organization is what consumers think about them. Concentrate on adding strategic attributes to your business — those that consumers desire and that will make them want to buy your product or use your service over a competitor.