Positioning: The Timeless Marketing Strategy
by Dan Seyer
Back in 1969 — well before the era of the Internet and content marketing — marketing gurus Al Ries and Jack Trout introduced the concept of “positioning” to readers of Advertising Age. Eleven years later, following a challenging recession, they expanded their ideas into the landmark book Positioning: The Battle For Your Mind, which quickly became a classic in the marketing world. Decades later, their principles remain as relevant as ever, especially in today’s complex and fast-paced media environment.
Why Positioning Matters: Then and Now
From the late 1960s through the early 1980s, American media underwent a profound transformation. Television advertising boomed, and the sheer volume of marketing messages reached unprecedented levels. This led to an “information glut,” a term popularized by media theorist Marshall McLuhan, who argued that “the medium is the message.” Ries and Trout seized on this insight, observing that consumers were being bombarded with so much information that only clear, focused messages could break through the noise.
“We have become an overcommunicated society,” they wrote. “In the communication jungle out there, the only hope to score big is to be selective, to concentrate on narrow targets, to practice segmentation. In a word, ‘positioning’.”
Fast forward to today, and the challenge has only intensified. With the rise of content marketing and the exponential growth of data, businesses are creating their own noise. Data production skyrocketed from 2 zettabytes in 2010 to 92 zettabytes in 2022. By 2025, that number is projected to double. In a world of limitless data, finding a clear position is more critical than ever.
Big Content, Big Problem
Content marketing — currently practiced by 82% of marketers — was supposed to be the solution to this problem. However, it may have become part of the problem. As more businesses generate content to “stand out,” they inadvertently flood the market with even more noise. Without a clear position, it’s easy for content to get lost in the shuffle. Positioning is the antidote to this dilemma, offering clarity in a sea of excess information.
Positioning in Hard Times
Recessions occur, on average, every 7.5 years. During tough economic cycles, marketing teams are under pressure to deliver results with fewer resources. Branding and rebranding initiatives can be costly, requiring changes across visual design, messaging, and customer experience. Positioning, on the other hand, is a leaner, faster alternative. It offers a way to reframe the narrative without requiring a total brand overhaul, driving a higher return on every marketing dollar.
Why Positioning Matters in Mergers and Acquisitions (M&A)
In the world of tech, positioning plays a pivotal role in mergers and acquisitions. Early in the era of the Internet, an adage emerged in Silicon Valley: “Positioning is more important than branding.” This was particularly true for tech companies with complex products that were hard to explain. Positioning helps differentiate a company from its competitors, which is essential when companies are viewed as both potential partners and rivals.
For example, a well-positioned company can significantly increase its valuation. Investors, partners, and acquirers are more likely to see a clear path to growth. In this sense, strong positioning isn’t just about differentiation — it’s about driving valuation.
Defining Positioning
Positioning, at its core, is about owning a place in the mind of the consumer. Ries and Trout introduced the metaphor of “mind real estate” — a limited space in the consumer’s brain where only one dominant idea can live. For example, Coca-Cola occupies the position of the “original cola,” while Seven-Up successfully positioned itself as “The Uncola.” These aren’t just catchy taglines — they’re deliberate mental positions.
Another definition from The Economic Times defines positioning as: “Positioning defines where your product stands in relation to others offering similar products and services in the marketplace as well as in the mind of the consumer.” This definition underscores two key aspects of positioning: market positioning (how you compare to competitors) and mental positioning (how you’re perceived by consumers).
A Generic Example of Positioning for Growth
1. Where Are We in the Marketplace?
Imagine a software company offering programmable tools for telephony services. Initially, the company markets itself as a telephony app but struggles to differentiate itself from larger consumer-facing platforms. To compete, the company needs a clearer position in the market.
2. Do We Want to Sit Above, Below, or Adjacent to the Customer?
Software companies face a critical question: Should they be the platform (the foundation) or the app (the add-on)? Positioning as an app places a company “above” the platform, meaning it’s more vulnerable. By rethinking its position, the company could instead position itself as a platform that supports multiple apps, becoming essential infrastructure rather than just one of many apps.
3. Can We Position for the Ultimate Customer?
Instead of targeting end-users, the company shifts focus to potential acquirers. By identifying who might see them as a strategic acquisition, they realize that major telecommunications companies may be their true ultimate customers. This change in perspective shifts the company’s strategy from end-user adoption to enterprise appeal.
4. How Do We Stand Out?
The company repositions itself as “The Industry’s First Open Telephony Platform,” a bold statement that draws attention from journalists, industry analysts, and potential acquirers. This position isn’t about being a traditional app — it’s about being the foundational platform that other apps can build upon.
5. How Can We Better Listen and Answer Questions?
By inviting questions and engaging with the controversy around its “first platform” claim, the company’s marketing team turns doubt into dialogue. Journalists and analysts question the premise, but the team’s thoughtful responses reinforce the position. This strategy keeps the company in the spotlight and strengthens its narrative.
The Big Picture Breakdown
Positioning is faster and more cost-effective than rebranding. It’s about rethinking the story, not overhauling everything.
Know your “ultimate customer.” For many tech companies, the ultimate customer is often a strategic acquirer rather than an end user.
Ask the right questions. Knowing where you stand and how you’re perceived in the market is critical.
Own a mental position. Be the “first” or the “only” in a clear, defensible category.
Invite dialogue. Don’t fear questions or skepticism.
Engage and strengthen your position in the process.Positioning isn’t just a marketing tactic — it’s a business strategy that drives valuation, M&A potential, and sustainable growth. It’s as relevant now as it was in 1969, and perhaps even more so in today’s hyper-competitive, information-saturated world.