Understanding the Ladders in Your Head
To cope with the explosion of products, people have learned to rank products and brands in their mind, and perhaps this can be best visualized by imagining a series of ladders in the mind, on each row is a different brand,
and each different ladder represents a completely different product category, and while some ladders have many steps (seven is me) and others have few, if any, and a competitor that wants to increase its share of the business, must either dislodge the brand above (a task that is usually impossible) or somehow relate its brand to the other companies position.
Too many companies embark on marketing and advertising campaigns as if the competitor’s position did not exist and this strategy seldom works, as they advertise their products in a vacuum of market attention, and are disappointed when their messages failed to get through, as they fail to understand that moving up the ladder in the mind can be extremely difficult, especially if they prance about without a strong foothold, and no leverage or positioning strategy is applied.
The positioning strategy for you to use depends on which rung you occupy on the ladder and your marketing strategy should depend on how soon you got into the mind of the consumer, and consequently which rung of the ladder you occupy, the higher the better, of course.
The consumer mind is selective and prospects use their ladders in deciding which information to accept and which information to reject, and in general, any mind accepts only new data that is consistent with its product ladder in that category, and everything else is ignored.
The ladder is a simple, but powerful analogy and can help you understand and deal with the critical issues in marketing, but before starting any marketing program, ask yourself which ladder are “we” on, and more specifically, where are “we” on the ladder in the prospects mind, on the top rung, on the second rung, or are we not on the ladder at all?
You will come to understand that positioning is counter to classic marketing thinking, which is brand oriented, as in how I get people to prefer my brand, but you have to forget the brand and think categories, since prospects are always on the defensive when it comes to brands and everyone is talking about why their brand is better, but prospects have an open mind when it comes to the latest, as everyone is interested in what’s new, and few people are interested in what is better.
Early on, a new category is a matter of many rungs (remember seven is many), and in the long run, every market becomes a two horse race, and this is known as the “Law of Duality.” In photographic film, it is Kodak and Fuji, and in hamburgers, it is McDonalds and Burger King. In colas, it is Coke and Pepsi, and in sneakers, it is Nike and Reebok. In toothpaste, it is Crest and Colgate, and in long-distance, it is AT&T and MCI.
Successful marketers concentrate on the top two rungs and Jack Welch, the former chairman and CEO of General Electric, said “Only businesses that are number one or number two in their markets, could win in the increasingly competitive global arena. Those that could not were fixed, closed, or sold.”
Over time, a category will often divide into two or more categories, and like an amoeba dividing in any petri dish, the marketing arena can be viewed as an ever expanding sea of categories, and a category starts off as a single entity, as in computers, but over time, the category breaks up into other segments including mainframes, minicomputers, workstations, personal computers, laptops, notebooks, Palm computers, etc., and instead of understanding this concept of division, many business leaders wrongly hold the belief that categories are combining, but it won’t happen, as categories are dividing not combining.
An Entrepreneur who wants to introduce a new product category must carry in a new ladder and this too, is difficult, especially if the new category is not positioned against an old one, as the mind has no room for what is new and different, unless it is somehow related to the old.
You must understand that’s why if you have a truly new product, it is often better to tell the prospect what the product is not, rather than what it is, as the first automobile, for example, was called the “horseless”
carriage. Words like “off-track” betting, “lead-free” gasoline, “sugar free” soda, and “wireless” Internet connections, are all examples of how new concepts can be positioned against the old.
Finally, due to the existence of ladders in the mind, there are only a few generic external positioning strategies you can employ including getting into the mind first, or finding the niche, positioning yourself to the leader, or repositioning the competition.
Understanding Your Positioning
David Ogilvy is one of the best-known names in American advertising circles, who after spending several billion dollars on advertising over the years, developed and listed 32 things that his ad agency had learned, and of the 32, the most insightful finding he said was the fact that the single most important decision involved positioning the product, as he further claimed that the marketing results depend less on how advertising was written, than how the product or service was actually positioned.
In their 1981 book, Positioning: the Battle for your Mind, Al Ries and Jack Trout describe how positioning is successfully used as a communication tool to reach targeted niche customers in a very crowded marketplace, and as the increased flow of information through Social Media Technology continues to escalate at an exponential pace, it grows increasingly difficult for any business to communicate with both its potential and existing customers.
Only enlightened companies that develop strategies to cut through the market clutter and “noise” by careful positioning in the mind of the customer, will be seen and heard in the overcrowded marketplace, and not long thereafter the release of their findings, Madison Avenue advertising executives began to develop positioning slogans for their clients and positioning quickly became a key aspect of the marketing communications.
You must understand completely that positioning begins with a product, a piece of merchandise, a service, a company, or even a person, but what is not traditional thinking is that positioning is not what you do to a product, rather positioning is what you do to the MIND of the customer. That is, you position the product by the prospective customer, strategy is therefore planned in the MIND, not the marketplace, and marketing then becomes a battle of perceptions not products.
You therefore must realize that all successful positioning strategies must start with the MIND of the consumer and then work backward to the product or service, and this is true simply because the answer is not contained within the product or service itself, and no amount of creative thinking or analysis will result in the insights needed to successfully position your company, product, or service. The answer rest instead in the MIND of your customer, and you must begin with what’s already there and then work backwards, outside in, to successfully create your strategies.
Let’s examine an important figure in the history of the world to illustrate positioning in the MIND as a very effective strategy, now as every school child learns,
the man who discovered America was poorly rewarded for his efforts, and Christopher Columbus made the mistake of not only looking for gold, but more importantly, keeping his mouth shut. Amerigo Vespucci didn’t, and Amerigo was five years behind Columbus, but he did two things correctly, with the first, he positioned the “New World” as a separate continent, totally distinct from Asia, and second, he wrote extensively of his discoveries, both absolutely brilliant positioning strategies, and as a result, Europeans credited Amerigo Vespucci with the discovery of America and even named the place after him, while Columbus died in jail.








