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:

    Google News
    Updated : Sat, 06 Sep 2008 14:06:59 GMT

    Electronic Arts spawns Spore -- which may be a benevolent god - Los Angeles Times


    Los Angeles Times
    Electronic Arts spawns Spore -- which may be a benevolent god
    Los Angeles Times - 7 hours ago
    Spore is one of the most-talked-about video games in years, and it was masterminded by Will Wright, the same game developer who was behind the blockbuster Sims franchise.
    Spore reviewed Total Gaming
    EA's 'Spore' Set For Earthwide Launch InformationWeek
    CRN - Macworld - Washington Post - BusinessWeek
    all 209 news articles

    Publ.Date : Sat, 06 Sep 2008 07:01:47 GMT

    Federal Highway Fund About to Run Out of Money - New York Times


    ABC News
    Federal Highway Fund About to Run Out of Money
    New York Times - 18 hours ago
    By DAVID STOUT WASHINGTON - An important account in the federal Highway Trust Fund will run out of money this month, which could hamper completion of road and bridge construction projects across the country, Transportation Secretary Mary E. Peters said ...
    Highway Trust Fund Is Nearly Out of Gas Washington Post
    Bush reverses course, backs road fund bailout Houston Chronicle
    Seattle Times - Detroit Free Press - Arizona Republic - The Oregonian - OregonLive.com
    all 479 news articles

    Publ.Date : Fri, 05 Sep 2008 20:04:00 GMT

    SanDisk Shares Soar on Samsung Interest - BusinessWeek


    Siliconrepublic.com
    SanDisk Shares Soar on Samsung Interest
    BusinessWeek - 11 hours ago
    by Arik Hesseldahl Battered by a year of flagging prices for flash-memory chips and by an inability to get traction in sales of digital media devices, SanDisk (SNDK) may soon get scooped up by South Korean electronics giant Samsung Group.
    Samsung Weighs Buying SanDisk New York Times
    SanDisk Shares Surge as Samsung Considers Acquisition (Update3) Bloomberg
    Forbes - Financial Times - San Jose Mercury News - InternetNews.com
    all 385 news articles

    Publ.Date : Sat, 06 Sep 2008 02:28:25 GMT

    Machinists Go on Strike Against Boeing - New York Times


    BBC News
    Machinists Go on Strike Against Boeing
    New York Times - 38 minutes ago
    By MICHELINE MAYNARD The union that represents machinists struck the Boeing Company early Saturday, crippling its aircraft production in the United States and potentially delaying the development of an important new plane, the Dreamliner.
    Contract talks fail; machinists strike Boeing Co. The Associated Press
    Boeing machinists walk off the job as talks fail Reuters
    Bloomberg - Washington Post - Monsters and Critics.com - guardian.co.uk
    all 2,421 news articles

    Publ.Date : Sat, 06 Sep 2008 13:28:42 GMT

    Ready, set, go! Real race gets underway - Minneapolis Star Tribune


    Times Online
    Ready, set, go! Real race gets underway
    Minneapolis Star Tribune - 49 minutes ago
    By NEWS SERVICES, Washington Post McCain has turned this election into a soap opera about Sarah Palin and her family. Is this what we need to be talking about during these … read more critical times when people are losing their jobs, their homes, ...
    Palin intrigues Chinese public Financial Times
    Annette John-Hall: Pit bull of a hockey mom leading war on diversity Philadelphia Inquirer
    Seattle Post Intelligencer - Telegraph.co.uk - Bloomington Pantagraph - Wall Street Journal
    all 785 news articles

    Publ.Date : Sat, 06 Sep 2008 13:17:06 GMT

    'True Blood': Undead On Arrival - Washington Post


    Boston Globe
    'True Blood': Undead On Arrival
    Washington Post - 10 hours ago
    By Tom Shales You need a very good excuse to dig up the subject of vampires yet again, and filmmaker Alan Ball seems to have one. His "True Blood" is an audacious, outrageous, playfully grisly comic drama (or dramatic comedy) in which vampirism is ...
    Vampire tale deserves chance to suck us in Columbus Dispatch
    'Blood' lacks that dramatic HBO bite San Diego Union Tribune
    E! Online - The Plain Dealer - cleveland.com - eFluxMedia - Hartford Courant
    all 185 news articles

    Publ.Date : Sat, 06 Sep 2008 03:49:55 GMT

    Seinfeld ads only part of Microsoft push - United Press International


    Scientific American
    Seinfeld ads only part of Microsoft push
    United Press International - 1 hour ago
    REDMOND, Wash., Sept. 6 (UPI) -- Microsoft Corp. (NASDAQ:MSFT) says it's banking on a new US marketing campaign to fix the image problems of its Vista Windows operating system and connect with customers.
    Windows Vista: The OS About Nothing InformationWeek
    Microsoft Works to Perfect Windows Vista New York Times
    eFluxMedia - Macworld - CNET News - CRN
    all 476 news articles

    Publ.Date : Sat, 06 Sep 2008 13:01:13 GMT

    Clickbank Datafeed
    How to Earn Money At Home


    • PARLOT::Ebooks, Scripts, Websites, and more...

    Adsense websites

    Branding Your Radio or TV Campaign With A Musical Identity (aka Audo Logo, aka Jingle)

    You don't think twice about a business card and letterhead... Read More

    Value Proposition Writing - Brand Identity Guru

    Your Value Proposition, or as I usually call it, your... Read More

    The Face of Your Business, Part I

    When we initially started our businesses, we had to decide... Read More

    Hawaiian Heirloom Jewelry

    Back to the era of the Hawaiian monarchy, the origin... Read More

    The Aim of the Name

    Large corporations spend lavish amounts seeking names for their products... Read More

    Trade Journals in Franchising

    As many people know Industry Trade Journals in America have... Read More

    Im Just Starting, Why Do I Need a Logo Design?

    Businesses eager to open often give little thought to their... Read More

    Logo-ize For Instant Identification & Increased Awareness

    The task of creating an indelible impact on the memory... Read More

    Co-Branding in Automotive Service Businesses

    In a world of co-branding, point of destination strategies and... Read More

    Corporate Internet Branding ? Branding Your Business Online

    Let me tell you a story about Pete and a... Read More

    The Big-Pay Off -- Brand Value

    Many CEOs and marketing directors find their time wasted evaluating... Read More

    10 Secrets for Free Media Placement

    Why pay a high priced PR agent when you can... Read More

    Great Brands Depend On Attention To The Brand Architecture

    Do you have the architecture in place to make sure... Read More

    Id Buy That: Getting A Brand Mindset

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

    Branding 101: Why Its Critical to Business Success and How to Do It Right

    What's Your Brand?A brand is a product/company personality that helps... Read More

    What is Private Franchising? It is Nothing Someone Made It Up

    The Federal Trade Commission has an obligation to the general... Read More

    Creative Branding Increases Sales Through Company Recognition

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

    Logo Design - Branding - Brand Identity Guru

    Do you have any idea how important your company logo... Read More

    Light Up Necklaces Help Promote Red Doors Movie at the 2005 Tribeca Film Festival Awards

    June 13, 2005 -- Jane Chen (Producer) of the Red... Read More

    Introduction to A Branded World: Adventures in Public Relations and the Creation Of Superbrands

    You'd have to labor to shield yourself from the power... Read More

    Branding: Bring Back the Jingle!

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

    Boston Brand Building - Brand Identity Guru

    "Make no little plans, they have no magic to stir... Read More

    12 Ways to Reduce Postage

    1. Never send a letter that weighs less than 30... Read More

    Trademark Issues in the Mobil Auto Business

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

    Santa - The Brand

    Every Christmas Eve, a burglar named Santa busts into homes... Read More