Putting You and Your Company in Position to Own Your Market

Americans have always liked their coffee hot. But then Starbucks made hot coffee desirable, in demand, and extraordinarily profitable. And then Starbucks made coffee "cool" with its super-popular iced Frappucino drink -- just as trendy, fashionable, and universally appealing.

Starbucks is no doubt one of the greatest marketing stories of recent history. How this company turned an unassuming beverage into an icon of sophistication and taste is no mystery, however. It's all about a marketing tenet called positioning.

The coffee company started out in Seattle's Pike Place market in 1971 as a single gourmet coffee shop, and by 1995, the chain's earnings were $26.1 million. Marketing experts agree that Starbucks' skyrocket to fortune centers on its aesthetic sense. In other words, the public's perception of Starbucks has to do with how it appreciates this company's style. Sure, Starbucks filled a need and created unique product brands, but what attracts coffee drinkers again and again is the experience of the Starbucks environment and its products. Smooth, sophisticated, artistic: These are seductive qualities even for a business based on a little brown bean.

The Starbucks story illustrates at least two powerful marketing principles. Both help us to better understand effective positioning, or the process of finding a "place" for ourselves in people's minds:

  • People buy for their own reasons, not anyone else's.

  • The stronger position is found in the experience, outcome, or benefit you provide as opposed to the methods you use for producing those outcomes. Starbucks shows us that it's not about packaging -- it's about positioning. The environment of Starbucks creates an experience that invites us to come study for exams, hang out and philosophize with friends, or get the day started with a warm cup of java and the morning news. Starbucks is an invitation to linger, not just get your coffee and go.

    When you are assessing your own position and considering how you might improve your image and thus your market share, remember that there are essentially four winning positions: better, different, faster, or cheaper. You can certainly position yourself as one of these, perhaps even two; capturing a position as three of them is tough and probably not desirable, and cornering all four is just about impossible.

    Not everyone is up to the task of creating another Starbucks. It's tempting, with price wars so rampant, to believe that a perception of being cheapest is easiest to establish. Yet in truth this is the most difficult because of fixed costs. It's like doing the limbo: you can go only so low, and then you're overextended or flat on your back. Definitely not the easiest position to be in.

    How about being better instead? Contrary to popular belief, this is perhaps the easiest position to take, since making an improvement or simply creating the impression of greater quality or ability has no constraints. One tip: when you capture the different category, you may get the better category as a by-product.

    Starbucks capitalized on this technique, as did Dennis Rodman, the oddball of basketball. He came up with a way to take two positions in fans' eyes: both different and better. Okay, maybe he wasn't actually better than his teammate Michael Jordan, who was unbeatable, but certainly he was perceived for a time as better (cooler, trendier) among those who were captivated by his style. His fashion and fascinating antics made him so unique that he became unforgettable. And because he was also an excellent ball handler, he became famous and highly regarded in his sport.

    BMW has also taken the better-different approach. Until fairly recently, Mercedes-Benz had the better luxury car market sewn up, so BMW -- a competitor with a parity product -- simply repositioned itself. Its tag, "the ultimate driving machine," appeals to a younger crowd and gives them luxury with power and handling. This is "hip luxury," which is different from the Mercedes position, which could be summed up as "elegant luxury." And voilà: BMW became as hot and desirable as a cappucino on a wintry morning.

    BMW marketers had both a strong sense of the position they wanted to hold and precisely defined their premium clients, the créme de la créme within their target market. You can do this, too. Once you've figured out what position you can successfully gain in your business, ask yourself the following.
    • Who is my premium client? Who would be the most enjoyable and rewarding to serve?
    • What are this client's unique desires, needs, and challenges? How can I best serve this client?
    • What do I (or can I) provide in a unique way to help my clients achieve their business outcomes?
    • How can I position myself as an expert in this market?
    With this information, you can tailor your marketing efforts -- everything you say to people, any support materials you use, even the way you dress and act -- directly to this audience to help establish your position. This is the first step to "owning your market."

    Positioning is like popularity: You have to be seen in the right places and with the right people. This is more than social climbing: You learn more about your clients and they learn more about you when you frequent the same places, attend the same functions, join the same associations, be published in their periodicals, and develop products and services specifically for them.

    Positioning is as much about who you are not as it is about who you are. Starbucks is not a cheaper and faster cuppa joe; it is an upscale, gourmet coffee experience. BMW is no old-style luxury; it is stylish performance. Dennis Rodman is no gentleman forward; he is the outrageous, extreme athlete who is a recognized celebrity even for people who don't know basketball from billiards.

    Do you want to win big? If so, have the courage to answer these questions clearly and define your own game: Who are you? Who are you not? Who are your clients? These are the essential decisions you must make if you want to not only understand but own your market.

    James Arthur Ray of James Ray International is an expert in teaching individuals how to achieve Harmonic Wealth? in all areas of their life by focusing on what they want, opposed to what they don't want. He has been speaking to individuals as well as Fortune 500 companies for over 20 years and is the author of four books and an inventor of numerous learning systems. His studies of highly successful people prove that they continually achieve results by taking control of their thoughts and actions to create and shape their own reality.

    The Power to Win seminar (http://www.ThePowerToWin.com) will explain in detail how success is state of mind and how the principles of quantum physics (as seen in the movie What the Bleep) can be applied to proven success-building techniques. James will also cover why people who are successful in one area of their life tend to be successful in all areas. For more information, visit http://www.ThePowerToWin.com.

    In The News:

    Branding takes the bluetooth way
    Business Standard, India - 10 hours ago
    Indian firms are now using wireless technology to advertise and create brand awareness among consumers for their products. The concept is being used mainly ...

    BBC News
    Cigarette packets 'should be blank'
    Telegraph.co.uk, United Kingdom - 5 hours ago
    Cigarette packets should be just black and white with any distinctive branding removed, in an attempt to stop children being lured into taking up the habit, ...
    Call to curb tobacco marketing BBC News
    UPMC study shows smoking water pipes is popular with college crowd Pittsburgh Post Gazette
    Many college kids have hired a hookah The Oregonian - OregonLive.com
    all 4 news articles

    New Branding Initiative Dots Green Bay Area
    WBAY, WI - 12 minutes ago
    It's part of a new branding initiative to change the perception of Northeast Wisconsin. Green Bay is synonymous with Titletown -- it even says so right on ...

    Keokuk branding coming together
    Keokuk Gate City Daily, IA - 8 hours ago
    Eventually, a mykeokuk.com Web site could become a portal for the community and encompass the branding campaign. The campaign also could include more ...

    Search advertising: Branding, sales channel, or a waste of money?
    The Industry Standard, CA - 11 hours ago
    Sure, he's a little biased, but I'm much more likely to drop a product or brand name into Google to find more information than to go to a manufacturer's ...
    The Great Online Advertising Divide Widens TechCrunch
    all 3 news articles

    New Branding Initiative Planned for Green Bay Area
    WBAY, WI - 12 hours ago
    Thursday afternoon, Green Bay area leaders unveil a new branding initiative aimed at attracting more people to Green Bay and its nearby communities and ...

    Techstur.com Offers Customization, Branding For Microsoft Outlook ...
    PRarticle.com (press release), Canada - 11 hours ago
    Valrico,, Florida, United States (PRarticle.com) - Interface Customization gives Outlook Web Access consistent branding with corporate websites. ...
    Techstur.com Announces New Partnership with 2X Thin Client Computing PRarticle.com (press release)
    all 3 news articles

    Branding: a board's responsibility
    Bizcommunity.com, South Africa - 20 hours ago
    Gone are the days when a company's brand - or reputation - relied solely on the efforts of marketers. While the more public efforts to build the brand may ...

    Company branding under the spotlight
    Allmediascotland, UK - 20 hours ago
    National law firm McGrigors LLP is highlighting a new brand protection opportunity for brand owners, when further changes to the Companies Act come into ...

    CEDIA 2008: Pioneer Launches New Branding Campaign
    Twice, NY - 12 hours ago
    “Our goal this year is to take the brand from merely connecting people’s senses and emotions to their favorite entertainment, and illuminate the concept ...
    branding - Google News


    • Wind Chimes and more...

    Windchimes for great gifts!

    Trademark: Do I Need One for My Business Name and Logo?

    Wondering if a trademark is important to you as a... Read More

    Branding: Bring Back the Jingle!

    Did you grow up in the '70s and '80s? If... Read More

    Mascots ? The Killer Promotional Concept

    Mascots are the unique dolls or puppets that help identify... Read More

    Planning Ahead With Your Designer: Tips For Design Consistency With Your Logo And Brand Elements

    While we recommend that you contract with the same designer... Read More

    McDonalds Supply Chain of Potatoes

    McDonald's buys its potatoes from corporate farmers in Idaho not... Read More

    Brand Value Plan - Brand Identity Guru

    Developing brand value is critical to every organization and when... Read More

    Choosing the Right Color Palette

    Color is a highly personal experience ? everyone has favorite... Read More

    Positioning and Branding - Brand Identity Guru

    Where is your brand positioned in the marketplace? How is... Read More

    Brand Warfare is More of a War than You Think

    We will discuss Brand Marketing for a minute. In this... Read More

    Managing the Corporate Brand - a Reputation Perspective

    Adored, respected and coveted by customers and organisations alike, corporate... Read More

    Is It Legal? - Indecent Naming With Tradition

    When Mitsubishi launched a new car with the name "Pajero"... Read More

    Understand Brand

    Branding has been defined, explained and examined extensively. There are... Read More

    How A Crazy Branding Stunt Can Bring Results For Years

    As a beginner, you would be forgiven for thinking that... Read More

    Speech on Branding from a Franchisor Founder

    I was asked today by a group of students; What... Read More

    Creative Branding Increases Sales Through Company Recognition

    The one thing that everyone has in common is that... Read More

    Trademark Issues in the Mobil Auto Business

    There have always been trademark issues and lawsuits in the... Read More

    Id Buy That: Getting A Brand Mindset

    Feel that? The crisp tingle in the air? It's fall.... Read More

    Standing Under the Umbrella And Still Getting Wet

    Make More Money Making a Name for YourselfCalling all realtors,... Read More

    Personal Branding: Characteristics of a Strong Personal Brand

    How many times have you been at a networking function... Read More

    Your Identity Speaks Loudly...What Are You Saying?

    Your corporate identity is a graphic expression of who you... Read More

    Adventures in Advertising and the Affect on the Brand Name

    Studying various target-marketing techniques and here is a thought. We... Read More

    Good Logos Make Great Sales Tools

    Every day, the average person is exposed to millions of... Read More

    What About Me? What You Need To Know About Me-Marketing

    What about me? Are you asking yourself this question? If... Read More

    Jan Verhoeff: Brand Your Market

    Marketing potential of any product is based on recognition and... Read More

    Why Branding?

    Having a concise, clear image that you project to your... Read More