Marketing: One of 4Ps
Marketing Maniac TERMS
Sometimes marketing people seem more interested in doing my job than their own. They yearn for the fun stuff; what they don’t realize is it’s only fun when an expert is doing it. Like watching a professional ice skater, it looks easy until you don the skates and land flat and hard on the ice. Marketing lands flat and hard in art direction–so I’ll share a few things I’ve learned about the 4Ps to keep marketing focused on their marketing jobs. Use these examples to lead them by the nose back to what they should be doing. You can also apply what you learn about the 4Ps to marketing your skills as a professional designer.
Marketing students are educated in the four Ps: Product, Price, Positioning and Promotion. I don’t have to tell you they sometimes get confused, especially about the last one, thinking they have all the skills necessary to concept and create promotional stuff because they took a couple of graphic courses in school. Knowing the Ps will help keep your marketing co-workers focused on work within their skill set and stop trying to mess around with yours. Let’s start with POSITIONING. A clear understanding of the strategy behind Positioning is all you need to make it work for you; even if it's just to see through the mist some marketers use to fog up discerning shoppers.
I worked with an Englishman and I looked forward every day to hearing his ever-so-eloquent pronunciation drip like the golden honey from inside a perfectly ripe honey dew melon. Having a drab midwestern accent makes me appreciate anyone with a bit of regional character. He argued with me about what the 4Ps meant; and I didn’t have the heart to tell him that positioning had nothing to do with ad placement on a page. Here's a few examples of positioning, see how you can use positioning to your advantage either for yourself or your clients.
I am a totally weird shopper. There’s nothing wrong with spending top dollar on things that matter; computers, iPods, software, fine Italian shoes even. But when it comes to things like vacuum cleaner bags, well, I used to look to the “low price leader” for the lowest price. I’m not going to give anyone free advertising here, especially if their positioning is a big fat lie. Look for that smiley face and the flying scissors and you will find the low price leader isn’t. 
They are so protective of their positioning, they evicted a product comparison shopper from their stores, saying their pricing was proprietary. Vacuum cleaner bags are 3 for $4.29 at the low price leader, but the same package and brand are 3 for eighty-nine cents at BIG LOTS. When temperatures are looming around the mid-fifties, low-end air conditioners are $78; and after watching the low price leader’s TV ads, you might expect that price to go down. 
But noooooooo (Steve Martin Style, please)—as the temperature rises, so, too, does the price at the low price leader right up to $108. Positioning has nothing to do with reality. Marketing managers decide where they want to compete in the market and control their image accordingly. Positioning tells your target how to think about you, sometimes accomplished by using an effective tagline like low price leader even though it has nothing to do with the truth.
It was big news when the low price leader announced generic prescriptions for $4 a month. All the people on fixed incomes were excited and hopeful that finally their prescription costs would be manageable. What they found out was there was a limited list of generics that were available for $4, and those only included 20 pills. I personally haven’t had a month with only 20 days, so it’s no wonder they didn’t include that information in their ads or on the multitude of news reports that extoled the program. Positioning is about painting a pretty picture of how you want people to think of your product or company; the catchphrase should be simple, easy to remember and satisfy the audience enough so that they won’t look too closely at the wicked web you weave. If you want to save on generic prescriptions, the best prices are at a place that usually requires a membership, but not to fill online prescriptions. Try it.
One of the jobs I held while I worked my way through school was at a data entry job in a major retailer. That lovely Ellie Tahari skirt I wanted was purchased from the manufacturer for $12 but retailed for $75. Now when I see a department store advertising up to 75% off end of season items, well, that’s no big deal. It also taught me that my peers in the design industry who consider the trade markup practice on printing and other sub-contracted purchases underhanded and unethical haven’t got a clue about the way the rest of the world conducts their business. Just a reminder; the standard mark-up should be the gross times point 1765, which will give you 15% of the gross, not the net. Take your profit because you earned it, and remember that agencies frequently mark stuff up as high as 45%.
There are all kinds of good examples of positioning; another good one is the insurance web site that advertises price comparisons with the competition. That insurance company's policies cost hundreds of dollars more than the caveman/gecko brand which conveniently is not included in the comparison. More Ps to come—remember to eat all your vegetables, not just your peas.
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Interesting comments on a classic topic. Positioning is endlessly fascinating, given that it ultimately takes place in the mind of the consumer. Science or art, you decide.
Susan, I enjoyed what you wrote. It’s never a safe bet (with you) to generalize, but your post’s subject, to turn a phrase, is “Truth in Positioning.”
So the challenge for the big-box retailer with the smiley face is to live up to its low-price-leader position – always. Which it may not do unless you force the issue with it. As Chris says, positioning takes place in the minds of the consumers. Unless the consumers are comparison shoppers, Wal-Mart will be able to get away with its price games.
Alternatively, look at Target’s position, which is based on value rather than price. Target doesn’t have to play price games (per se) because its position in consumers’ minds is not inextricably linked to a price sticker. Doesn’t mean Target doesn’t do it but its price plays are not central to its position.
I have been looking at positioning another way, with the most recent post at signalwriter-dot-blogspot-dot-com.
I suppose I am reaching for a rule that says, “A company’s position ought to take hold – and take place – in the minds of all its stakeholders.”
Stakeholders includes consumers, for one group; but also may encompass shareholders, stock analysts, civic leaders, opinion leaders, corporate managers and company employees. “Stakeholders” is a catch-all that helps defines prospective audiences.
Then, when we’re having fun constructing a new or revamped position for a company, shouldn’t our position recommendations consider what promises the company can honestly and ethically keep?
I end with my favorite-all-time-vaporware slogan, “We’re American Airlines, Doing What We Do Best.” How nice for its customers.
The third P is Place (as in Distribution) not Positioning. The four P's actually help to determine positioning and vice versa. And they don't even teach that anymore. Get an MBA.
SDK responds: Uh-huh, it was in 1965. But it's been updated by people who know the global marketplace has eradicated Place (as in Distribution) as a factor.
School teaches you to think; not just read and memorize. Think about that.