Consumers have changed, has your marketing strategy?


Doe this sound familiar?

You need to spend time creating a position that is driven by the corporation.

Once created, the position must be communicate across traditional media (with a nod toward social media, but a nod only) to as many people as possible and hope that some of it sticks.

If it doesn’t, create a new position and repeat ad nauseum. Hopefully you will get it right. If you don’t, well you can always discount. This model was developed by Jack Trout in the 1970s. I wrote a blog post about it here

Sadly, despite US$1.5 trillion spent annually on marketing, 70% of today’s manufactured goods will be obsolete in six years (Industry Week magazine). There are estimated to be more than 30,000 new product introductions in the US alone every year, and that’s just in the packaged goods market. According to AC Nielsen, up to 90% of products fail to become brands. This means that as many as 27,000 of those new products will fail.

Today’s consumer has changed the way he lives his life and moreover, markets are so fluid, spending time developing a position and watching your competitors is the fastest route to business oblivion.

The key to success is the sales force and their ability to build your business through collaborations and by matching products/services to individual customer requirements for value and then maintaining those relationships and your brand communities team who develop brand evangelists and influence influencers.

And with social media and modern technology, that is not difficult. A lot less difficult than creating a position and pinning all your hopes on, well hope.

Is positioning still relevant today? Part three


Here are some thought starters related to my belief that positioning is generally a pointless exercise:

According to Industry Week magazine, 70% of today’s manufactured goods will be obsolete in six years. There are estimated to be more than 30,000 new product introductions in the US alone every year, just in the packaged goods market. According to AC Nielsen, up to 90% of products fail. This means that as many as 27,000 of those new products will fail.

Despite approximately US$1.5 trillion spent on marketing annually and over US$500 million spent on advertising alone in the US, the annual US based “Most Memorable New Product Launch Survey 2007”, found that unaided, 77% of respondents could not name one of the top 50 new products of 2007, even if it was a strong well recognised brand.

The development of a positioning strategy takes time and the communication of that ‘position’ will be the responsibility of an advertising agency and that agency will, generally speaking use mass media to communicate the position.

With such short life times and high failure rates, isn’t it time companies reviewed the tools/tactics/strategies/channels etc that they are using to build brands? Don’t they owe it to their shareholders, investors, customers, the environment to do something about this?

What do you think?