Category Archives: Business

If You Are Confused About The Concept Of brand Positioning

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The Surface Meanings of Positioning

This health care product lost the market share because it didnt find the correct position and failed to win the consumers favor.

Working in the office, you should know your position clearly to win the praise of your colleagues and get a promotion.

This company positioned itself to be a third-party hotel which only provides top grade services and thus got remarkable profits over time.

The definition of positioning is accepted and used widely. However, if we do a sample survey of business managers and marketing personnel, and people working in market consulting services and the advertising industry for their understanding of “positioning “, I believe you will get a variety of answers. It seems that even many professional people, just simply accepted and memorized the term “positioning”, and use it in some specific situations! Few people truly consider “positioning” as a tool and how to put it in to practice.

If “positioning” is indeed effective, at least we need to understand the concept, master the methods, and put theories into practice. We can not just purely discuss about what “positioning” is and treat it as a fashionable term to enrich our vocabulary.

Now, lets look into “positioning”.

Different positioning

Advertising Age, an authoritative advertising magazine in the United States, published Positioning Era in 1972 written by Al Ries and Jack Trout, which declared the birth of positioning.

Al Ries and Jack Trout thought that “positioning” is a method of occupying a market position in the minds of the target audiences. Therefore, they use the present continuous tense “Positioning” to express the process. Any country, company, organization, individual, product or service could use this method to occupy a position in the minds of consumers.

The “positioning” that Al Ries and Jack Trout mentioned actually refers to in-depth study of the target audience from the perspective of the audience themselves in order to choose information to distribute effectively and guarantee a means for consistent communications. This will create a method which impresses consumers and gets them memorize the company in a certain way. Using common language to express these ideas we can name it: the what to say approach.

The principle of positioning brought forward a new era. With this concept widely known and accepted by the mass, marketing experts also tried to connect this principle with the existing marketing theory systems. Thus, we have the classic “S-T-P” steps, S stands for segmentation; T for targeting and P for positioning which is something that occupies a certain place in the minds of the consumers with its unique designs in supplies. (Philip Kolter, Marketing Management 10th edition). Please note that “positioning” here has surpassed its original meaning, it is not just a means of communication, but also holds meaning of unique design in supply.” In other words, the meaning of “positioning” lies in how to design the products, how to price them and what special services should be provided. Obviously, providing uniqueness in supply has actually become the key work of marketing! Therefore, “positioning” changed from a means of communication to the core point of marketing. Marketing experts have completely accepted the term “positioning” and admits the positive influence of adding “positioning” to Marketing Theories, and thus, its meaning have been enriched. Frankly speaking, from the perspective of marketing experts, “positioning” is not just matter of “what we should say”; it has become “what we should sell”.

When marketing experts promote the “S-T-P” method, strategic positioning” becomes the focus of discussion. Michael Porter’s On Competition said that: The essence of the business strategy is “positioning.” In his book, he pointed out: Enterprises can position themselves based on the types of specific products. Just as Galanz’s strategy has focused on the production and development of microwave ovens; enterprises can also position themselves based on all the needs or most needs of specific customers or as how IKEA positioned itself by providing a complete series of household products to young people, who care mainly about price, like to change styles all the time, and do not need services.

After determining a “positioning” strategy, a set of carefully selected activities can be carried out accordingly to strengthen the uniqueness value to their consumers. Take the Southwest Airlines for example, its “positioning” strategy is to provide serve- specific air routes and low-cost and convenient services, in this way, it can reduce boarding time, forgo providing any unnecessary VIP cabin services and only purchase Boeing 737 aircraft in order to enhance the efficiency of maintenance and strengthen its competitive advantages. These simplified activities are carried out based on the strategic “positioning” plan, and has helped to continuously consolidate their market “positioning”, so that other airlines can not compete with them at all.

From the perspective of Michael Porte, “positioning” has got even a richer meaning. The “positioning” of enterprises is what we should do and this is the essence of business management strategy and also the origin of competitive advantages.

There are three different levels of application of “positioning”. They are enterprise strategy level, marketing level and communication level respectively (see picture 1). Confusion often occurs because of the definitions of these three levels of “positioning” are actually different, but all of them are wide-spread and accepted. When we are able to examine “positioning” from different levels, then we can confirm in which level to use “positioning” correctly so that we can avoid confusion about its definition.

It is worth mentioning that the three levels of “positioning” dont contradict each other, on the contrary, the unification of the three levels can form a strong competitive advantage.

For example, Volvo focuses on producing safe cars, the “positioning” of which is in the enterprise level and also in marketing level, this is consistently shown in the process of their communications. So in the minds of consumers, Volvo occupies a market position of safety.

The ideal state of the three levels of “positioning” is a united one. Southwest Airlines, IKEA and Harley Motorcycles are some of the best examples of unity among the three levels of positioning. Strategic “positioning” is the core and direction of business management, so as to determine the direction of the products and services development, and further establish its unique position in the minds of target consumers through communications. We can see that such enterprises are strong powers in their markets.

Positioning and Brands

Clients often need an advertising company to provide positioning services for a certain brands. However, because Al Ries and Jack Trout didnt attempt to construct a theoretical system, nor there is clear definition about the relationship between “branding” and “positioning”. Therefore, the following situations are likely to occur: the clients who believe in the positioning theory claim that they need brand positioning for their shampoo products, for instance, but actually, they do not know what kind of materials concerning the brand the advertising company will submit. Proceeding from the view of business, the advertising company is willing to provide this service for the client, yet due to lack of theoretical basis and standards, clients can not actually identify the quality of the proposal submitted by the advertising company. The two sides will not be able to have in-depth negotiations or revisions on the proposal.

We should change this situation by creating a clear definition; otherwise this problem will seriously affect daily work progress and market results for many enterprises. Like the invention of the light bulb is based on the discovery of electricity, the “positioning” of a brand comes from the unity between “positioning” and “branding”, it is closest to Al Ries and Jacks classic theory on positioning–the positioning of communication, which is the first of the three levels of positioning in theory and practice mentioned above.

“Branding” is the general awareness of consumers on specific organizations, products, services, and the differences among them (Please refer to my article If You Are Confused About the Concept of Branding, and Graphic II in this article to familiarize yourself with the concept of branding). “Positioning” is the process of occupying a position in consumers minds. Therefore, we can consider “branding” as a result, and “positioning” as an approach.

Graphic II
Distinguished-What the brand represents?
Entity-What the brand stands for?
Awareness-to who the brand is meaningful for?

Giving positioning to a brand is to rebuild consumers awareness through the means of communication, which is actually a process of establishing a position or adjusting the present position. When this is completed, in the minds of consumers, a brand will be established or the awareness about a certain symbol has fundamentally changed.

If “positioning” is an approach, then from the perspective of overall brand management, what is the relevance of positioning itself? We know that the core means of brand management is to establish the “symbol system” in the minds of target consumers which is, in fact, to manage the communications and the differences mentioned in the materials provided to further manage the awareness of the target consumers. For this aspect of brand management a relatively complete methodology system exists; David Aakers brand recognition system.” In this system, as a process, brand management is divided into four steps:

Graphic III
1. Establishing brand awareness
2. Brand positioning
3. Communication
4. Following and checking the effects of communication activities and continue to improve them.

In these four steps, the main task of brand positioning is to have the brand recognition content and brand value orientation communications initiatively communicate with the target consumers.

Perhaps we can use peoples thoughts as an example to help us understand David Aakers insightful view. View points of Brand recognition is how a man sees himself, brand positioning is how this person describes himself and brand awareness is how others look at this person.

It is very simple; the essence of brand management is to combine other peoples opinions about you and your own opinion about yourself through various means. Brand positioning, however, is to let others remember your methods in this complex and saturated competitive environment (Graphic IV shows the relationship among brand identification, positioning and awareness).

Conclusion

This article aims to dissipate the fog of the concept and directly reveal the core concept.

Many people are confused about positioning, the reason is that the concept of positioning originated only from communication, but it has been further developed to the following three levels: strategy, marketing and communication.

Many people are confused about the relationship between branding and positioning as well, it is because they confuse branding itself with brand development and management measures.

The problem that we are facing is not the lack of theories, but actually having too many theories on this topic. Lets learn how to distinguish and select proper theories, not only select them but truly, systemically and creatively devote ourselves to implementing the theories we believe in. If these things are accomplished it will be more likely for enterprises and individuals to continuously achieve success in the more and more mature and fierce market competition in China as well as the global market.

A Beginners Guide To Business Intelligence Analysis

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A business cannot be run without certain skills and techniques in hand – this was the belief in earlier times. Today, the concept of running a business has come to include so much more than just skills; there are processes, applications, technologies, and different practices that enhance decision making. All these are put under one roof, known as Business Intelligence. Business intelligence analysis has assumed grave importance for the corporate world, considering the heavy competition afoot in all industrial sectors.

What is Data Analysis?

Now, if you are a business owner, you would need to know how your company is doing in the market, how your rivals are faring, what are the current market trends globally, and so on. All this information is to be collected and presented as data in the form of graphs, tables, and charts. Experts will draw inferences from this data. Problems can be pin-pointed and solutions worked out. Since it is not possible to handle all this manually, there are manufacturers who have come up with sophisticated Business Intelligence Systems to take over the job. And they do it commendably, though they can be expensive.

What Role does Data Analysis Play in Business Intelligence?

Where business intelligence analysis is concerned, it relates to the collection of data involving customers, trends, finances, productivity, and so on. The information is historic, current, and predictive. Of course, the professionals ensure that it is presented in an easy-to-understand way. This has to undergo analysis now; the process is detailed and very precise.

Tools Used for Business Intelligence Analysis

There are many tools that are used, but some of the common ones are:

The Finance and Budgeting tool analyses the management and control of finances. Which areas need to be focused on? How much money is required? Are there certain areas that are involved with heavy expenditure? Is that expenditure more than necessary? Once the right answers are received, it helps in balancing costs evenly, so that the business always stays on its feet and does not collapse.

Business Activity Monitoring talks about the activities taking place within the organisation. All the operations, processes, and transactions are scrutinised. This type of analysis will aid in improvement of services, as well as revenue.

Then there is Trend Analysis, which is basically about the future. Observing current trends will indicate the direction of the future. This kind of analysis even works with past performances and trends. Patterns within the data can aid in making informed decisions concerning future events.

Another aspect of Business Intelligence Analysis is Competitive Analysis. If any company is to stay afloat, it has to be one step ahead of its competitors. And this is possible if there is adequate knowledge about the rival’s strengths and weaknesses – objectives, assumptions, strategies, resources and capabilities.

The last tool is Multidimensional Analysis. With the help of this tool, data can be classified as data dimensions and data measurements. In simple terms, the data spanning over several years (could be related to anything) would be known as Multidimensional Analysis.

Business Intelligence Analysis cannot be attempted without the proper tools, for there is too much of data to be collected and analysed. Thus, Business Intelligence Systems can help in saving time, effort, and money.

Challenges Faced By Small Business Operators

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For many, the idea of owning a small business is a dream come true. People conjure up images of working reduced hours and having a fistful of cash. Whilst this is definitely a possibility for long term success stories, the truth of the matter is that owning and operating a small business is very hard work, can be stressful and the owners are often stretched financially until the business gains momentum. It is, therefore, important for individuals who are contemplating owning or starting a business to be aware of the challenges and reality that can present in day to day operations. This article examines a few key areas operators will need to address.

Operating a small business requires an individual to draw on a diverse range of skills. Often, the owner has strengths in some core areas and has weaknesses in others. Hopefully, this was identified in the business plan. Irrespective, business owners must face facts that they will need to outsource or hire personnel when skill deficiency presents. Trying to be an expert in all the business facets can drain organizational resources and draw the business owner’s attention away from core business imperatives. Part of good business management is knowing how to focus and use your skills in the most appropriate and productive way.

Financial responsibility is an often overlooked and misunderstood area of business operations. This is often the case in organizations that are run by sales personnel who are strong at generating and closing business but not so good at running operations. Having a centralized accounting system with designated personnel or employing the services of a bookkeeping service can assist business owners to deal with the accounting side of the business. It is also important that the business owner consider outside advice from an accountant to assist with the financial and strategic direction of the organization.

Maintaining strong organizational culture has many fringe benefits for business operators. Staff who respect managers and are content with their work environment are inevitably more productive and do not take as many sick holidays. Lower staff turnover reduces staff replacement costs. Building a business requires dedicated and focused staff. Investing in staff training also raises operational IQ and allows managers to delegate tasks to individuals who have upgraded skills. This improves the overall organizational effectiveness. Maintaining good staff relations is an important and often overlooked area of small business management.

The Importance Of Seo For Small Business

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Many people wonder why SEO (Search Engine Optimization) matters, especially in small business where resources are limited. While it may be true that some people overrate SEO to the point of magic (make millions in a year, etc.), its hard to argue that SEO is one of the best ways to advertise in the modern Internet age.

Usually, the ones who criticize SEO advertising or have disappointing experiences with an SEO company dont entirely understand how the process works. SEO is a form of advertising, and a form of targeted advertising, in that you only sell to the people who look up your chosen keywords. Who in their right minds would say that advertising is overrated or that targeted advertising is a passing fad?

Technology comes and goes but advertising and marketing are as old as human history. The facts show that SEO advertising is one of the best ways to attract attention online, and no one denies that everyone is on the Internet in 2011, whether they are shopping, surfing, or wasting time playing farm simulator games.

The truth is that SEO doesnt single-handedly make or break a businessyou do. With your efforts, you can strategise and bring your company to new heights or let it stall out by taking a misguided turn. However, SEO must always be a part of your campaign, because search engines are a major part of Internet life.

There are only four major ways to attract attention online: SEO (that is, the articles and texts that make websites), PPC (pay-per-click advertising), banner advertising and news articles/press releases. SEO is not only the most affordable way to advertise, its also the best way to target advertise. Instead of selling your business to random surfers or Googlers, you are selling your services to people who are already interested in your productpeople who have taken the time to type out what they want to buy.

Did you know that an estimated 60% of the market do not invest in SEO? Furthermore, upwards of an estimated 20% dont even know what the term means. This means that once you start a complete SEO 9 campaign, you can expect to reach more of the market than over half of your competitors are reaching.

The fact that SEO is affordable and targeted makes it exceptionally important for small businesses, who cant afford to put off advertising or run an expensive ad to random Internet surfers. Your investment in Search Engine Optimization will help your small business grow!

Types Of Business Management

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Anybody that has ever had a job (whether it was with a large firm or small start-up company) has had some interaction with business management.

Every business needs some way of planning, organizing, staffing, leading or control in order to accomplish a goal. Business management can be defined as human action as well as design to create useful outcome and production. Management can also mean one person or a group of people performing the act of management.

It is difficult to trace the history of management since it is a more modern conceptualization. Management-like history dated back to Sumerian traders and workers of the pyramid in ancient Egypt. With the use of bookkeeping, management planning and control was then in place. As complexity and sizes of organizations grew, so did the split between groups and responsibilities. Gradually independent managers grew more and more common.

Management can be seen as a philosophy, where one measures quantity, bases their plans on that, and then takes actions to reach a goal. Business management has separated into different branches: human resources, operations, strategic, marketing, financial, and information technology.

Basic functions in management include a process of planning, organizing, staffing, leading, controlling and motivation. These ongoing functions let management operate their business and evaluate their progress. Business policies include mission statements, their vision and objectives. The policy is a guide that stipulates rules, regulations, and objectives in the manager’s decision-making process. It must be easy to understand by all employees. Policies and strategies of managerial staff include understanding how to implement strategies, having a plan of action, reviewing policies and strategies regularly, having contingency plans, having progress assessed, having a good team environment, and determining roles in achieving the business’s mission.

The management hierarchy is split into different levels. There is the Senior management, Middle management, Low-level management, Foreman, and Rank and File. The Senior level management has extensive knowledge in roles and skills, they are also very aware of external factors. Their decisions are usually long-term, analytic, directive, and conceptual. They are responsible for strategic decisions. Middle management has a specialized understanding of certain managerial duties. They are responsible for carrying out decisions by Senior managers. Low-level management ensures that the other two management level decisions are executed. Low-level manager’s decisions are usually short-term. The Foreman, (or supervisor) has direct supervision over the working force, or work group. The Rank and File is more restricted and specific than the Foreman.

There are also different styles of management that people are very familiar with. Macromanagement and Micromanagement are two good examples. Macromanagement is when a manager is focuses on system entities, such as constraints, rules, information architecture, etc. Micromanagement is where a manager observes or controls the work of their employees to great detail; it is generally viewed negatively.

There are endless types of business management out there: Accounting, Capability, Change, Conflict, Communication, Cost, Crisis, Customer Relations, Design, Educational, Engineering, Environmental, Facility, Financial, Human Resources, Hospital, Hotel, Information Technology, Innovation, Inventory, Land, Logistics, Marketing, Merchandising, Materials, Office, Program, Project, Process, Performance, Product, Public, Quality, Records, Relationship, Restaurant, Risk, Spend, Stress, Systems, Talent, Time, and Work are just a few of them.