ARTICLE TEXT:
WHAT'S
YOUR POSITION?
Inconsistencies
have consequences.
Globally,
businesses from a broad spectrum of sectors are suffering
from a trend to commoditisation and the inherent consequences
of heightened price sensitivity, squeezed margins and lack
of client and customer loyalty.
Some
business owners and managers contend they are victims of
the prevailing market forces. Few readily acknowledge or
recognise their own roles in this lamentable, no-win situation.
Companies,
products and services which have long benefitted from favoured
market positioning founded on quality, value, differentiation
and innovation have, in recent times, been tempted to respond
to the economic downturn and discounting-led competitor
actions with advertising, merchandising, promotions and
marketing which have focused on sales, prices and incentives.
The decisions made and the underlying rationales are understandable,
but not advisable.
Years
of astute strategic development are being dismantled by
broadbrush short term tactical initiatives. Consumer perceptions
and value constructs are being discounted. The market positioning
of companies, products, services and workforce teams are,
or have been, compromised
REALITY
HITS
Few
will counter the contention that many, if not an overwhelming
majority of consumers and clients are currently driven by
the pursuit of bargains. The relationship power pendulum
has swung strongly in favour of customers.
Price
has been rerated to be consistently the first or second
most important criteria being applied in the initial contemplation
of purchases and in the final purchase selection of a specific
product on service.
However,
consumers and clients still seek and gain reassurance and
“peace-of-mind” from the implied promise of quality, value
and consistency of a recognised, respected and valued brand,
which is supported by a definitive and accurate positioning
statement.
The
dilemma confronting us all is to strike a balance between
the two aspects.
WHAT
HAPPENED TO...
The
concept of “lost leaders” has waned in importance and effectiveness.
Rightly so! Contemporary consumers and clients are too well
informed, discerning and demanding to be tempted and to
be totally influenced by the offer of conspicuous below-cost
offers.
They
value the need for businesses to make profits so that a
continuity and consistency of services can be provided and
enjoyed. Hence, the ready marketplace acceptance of the
promise of “Everyday Lower Prices”.
This
stance reflects the new reality. Past profit margins, sales
volumes, customer loyalty and repeat business percentages
have little relevance and credence in the new and the future
market structures. The important structural changes which
have become evident in industry and sector compositions
dictate a total, integrated and objective review and analysis
of the market positioning of all entities, products and
services. Stability is a virtue, an attribute which should
be projected by a definitive positioning statement.
VOLATILITY
COSTS
Wide,
wild and consistent oscillations between regular, discount
and sales prices make it difficult for existing, prospective
and past clients to establish datum points against which
the measures of quality and value are determined.
A
detailed audit of the presence of a company, products, services
and people is commended for many entities at this time.
Such review and refinements should, ideally, include:
POSITIONING
STATEMENT
A
defined positioning statement projects the values and what
customers and clients should expect, find and enjoy to their
benefit and advantage when dealing with a company, group
or network.
The
brand names Sony and 3M have always been at the forefront
of innovation, creativity and change. These are endearing
qualities which are much valued by those who deal with,
work for and invest in such entities.
The
current positioning of Sony is both clever and concise,
being:
“Make.
Believe”
From
such brevity expectations arise and the promise needs to
be delivered. A recommitment to an appropriate positioning
statement is energising, for those internal and external
to a company.
PREMISES
PRESENTATION
Premises,
stationery, packaging and uniformed staff members who are
considered to be “tired” are enormous impediments to market
acceptance and preference.
Investments
in and the updating of “the packaging” of all assets traditionally
and consistently enhances the currency, relevance and distinctiveness
of trading groups.
Given
the dynamic nature of contemporary life and business in
general scheduled, periodic reviews, maintenance and update
of presentations should be mandatory and be undertaken at
least every three years.
Inventories
and fleets need to be modern, attractive, appealing and
compelling. It's all part of the need to be true to the
positioning statement.
SYSTEMS
A
dominant characteristic of modern technology is self-induced
obsolescence. Within limited time spans miniaturization
evolves, costs reduce and time spans are compacted.
Client
and customer expectations are greatly influenced by such
technological developments.
Aging,
dated and obsolete systems are bad business and bad for
business. They make a statement about an entity, often in
conflict with the positioning statement.
Consistency
and continuity between all aspects of an operation are important.
A
MOMENT OF REFLECTION
“Getting
on with the job” is a philosophy which often overlooks and
contaminates the need for a moment of reflection.
Responding
to aggressive competitor actions and volatile economies
often necessitates immediate decisions. It is the longer
term consequences that may not be recognised nor qualified.
All
business owners, leaders and managers need to get themselves
and their entities positioned so that all dimensions of
their market presence and communications are consistent,
positive and effective. It is a sound investment in the
future.
