The Marketing Mindset | Part V
Matheus Schmidt
Creative Director | Digital Marketing Specialist | Designer & Copywriter
POSITIONING
The Banana Stand
It's easier to attract fish if they remember where the food is.
Thiago La Torre
We've already seen that push actions are less effective than pull actions. The positioning that a brand occupies in the market also strongly impacts the outcome of its actions.
Returning to the lake example, imagine that a fisherman discovers that a particular fish species loves his bait and that these fish like the shade of the trees. This fisherman starts throwing the bait in shady areas so that, over time, the fish learn that there is food they like there. When he goes fishing, he will definitely have better results.
To facilitate this reasoning, we can also associate the market with a fruit and vegetable market. Customers who frequent this market are already familiar with certain vendors and don't even look around before heading to them.
About Positioning:
We consider that the positioning of a brand is the position that a particular business occupies or wants to occupy in the consumer's mind in order to differentiate itself from the competition. Following the same example, Mr. José, who has been selling fruits at the market for ten years, is immediately associated with the fresh fruits he offers.
Now imagine that you have just opened a fruit stand at the same market. Even if you have a similar structure to Mr. José's and offer the same products as him, we know that customers will continue to buy fruits from him. After all, they have known him for years.
We can infer that the newer the brand (or the less established its positioning), the less effective the advertising campaign will be. This fact is corroborated by a 2016 American study, which found that leading brands had a 363% return on advertising investment. Brands with moderate exposure had a 278% return, while brands with low visibility had a 218% return.
So, how do you compete with established brands? Almost always, the solution consists of analyzing the specific needs of customers and opting for a more specific positioning in which you can be the best option compared to the available competition.
Within the same example, suppose you realize that a large portion of the market's customers are interested in bunches of bananas. In this case, opening a stand solely dedicated to this type of fruit, as well as offering a greater variety of species and possible recipes, can attract the attention of this target audience. Thus, your brand's positioning would change from "fruit stand" to "banana stand" and compete more aggressively in the sector as it occupies a new place in the minds of people who frequent the market.
Of course, there may already be another banana stand at the same market, as it is not such a unique idea. In these cases, you can differentiate yourself not only by the product or service offered but also by price, audience segmentation, and brand values.
Differentiating:
By differentiating yourself through price, the vendor takes into account that some people are always looking for the cheapest price, or they always go for the most expensive product. Differentiating yourself by the lowest price is a less sustainable strategy for micro, small, and medium-sized businesses, as there is almost always a heavyweight competitor with strong negotiation power.
By differentiating yourself by offering exclusive and innovative products, the vendor risks investing heavily in the conception and development of these products or services, only for their competitors to copy them afterward.
Standing out through the values and lifestyle of the brand is a viable model that requires significant marketing effort.
Another way to stand out is to focus on solving a specific "pain" that drives potential customers' purchase decisions. In other words, understanding the true reason that drives customers to consume your product. Often, this reason arises from some dissatisfaction on the customer's part that they intend to address.
A 1991 study, still little known in Brazil, points out the existence of five universal motives that can induce someone to consume: functional, emotional, social, situational, or epistemic. Identifying the strongest motive within your segment can assist both in product positioning strategy and more effective promotion.
Emotional:?
People buy products or services because they want to feel something specific after the consumption.
For example: for a special occasion, a couple may choose a restaurant that provides an experience that makes them feel more in love. The price may be higher, and the food may not be as important. But the ambiance and service will certainly make a difference in the reception of the public.
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Functional:?
People buy something because they believe it will save them time or money.
For example: for everyday lunch, a self-service restaurant may be the ideal choice. It's near the office, with a short line and affordable. Lit candles and romantic music won't help sell.
Social:?
People buy a product or service because it makes them belong to a certain social group. For example: a businessman may choose to take his clients to a luxury restaurant because it shows that he has connections, good taste, and influence.
Situational:?
People buy because the current situation requires them to consume that type of product or service.
For example: during a trip, you may stop at a roadside restaurant. Not because it's the cheapest or has the best service. Simply because the situation you're in, being on the road, forces you to consume there.
Epistemic:?
People consume because they enjoy collecting knowledge or experiences.
For example: many people like to visit new bars and restaurants to explore the various options available in their city. Or they enjoy trying different restaurants to see each chef's technical style.
Which motive is most suitable for consumption? It varies greatly depending on the positioning, moment, and market segment in which your brand is located. The important thing is that you differentiate yourself enough from the competition to be the best available option according to some criteria, and thereby attract a specific audience capable of consuming and becoming loyal.
Does this mean that you should not engage in exposure actions until your brand's positioning is consolidated? No. This means that you should take advantage of promotional actions as a way to consolidate your positioning by promoting your competitive differentiator as part of the message.
Let's continue with the previous example. You are finally launching your banana stand. However, you also have some oranges that grow at home, and it would be easy to sell juice at your stand.
The bananas are selling well, new customers come every week. Now, the juices, no one buys them. Is this a great opportunity to do a promotional action and offer discounts on the juice?
Not in our opinion. Look, my banana stand is still not well-known at the market, and I decide to do a promotion to sell juice? For consumers who have had little contact with the brand, this can hinder the process of positioning consolidation.
"Wait, does this stand sell bananas or juice? I'm not sure. But I know that Mr. José sells both." In this sense, our recommendation is that you first engage in exposure actions with those products or services that are integral to your brand's positioning, your "flagship" items.
Another point is that when conducting a promotional action, it is better to choose a product or service that already has a natural appeal to the public.
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