Every now and then it pays to pick up a classic and see how marketing philosophy has evolved. Positioning (Ries & Trout) was such a classic. A lot of what it says holds, so toss it onto your reading list, but be warned: much of it is painfully out-of-touch.

Then again, in the pre-Internet days (Page 7: “…Philips has just introduced a 3.5 inch disk that holds 600 megabytes of data”!) businesses and consumers were out of touch. You made a product, and pushed it. There was no “permission marketing“, no online instant feedback, no e-pinions (or blogs!).

But one thing self-proclaimed “gurus” like to do is make blanket statements without data to back them.

Mis-dis-positioning Xerox

Reis and Trout discuss Xerox’s attempt in the late 90’s at a entering the “office information systems” (PC) business. At the time, they tell us, the most recognized brands were:

• IBM (81%)
• Wang (40%)
• Digital Equipment (DEC) (36%)
• AT&T (22%)
• HP (21%)

Today? IBM sells consulting services, Wang is what?, DEC? ditto. AT&T transfers the data other computers make (e.g. Cisco) - only HP is still in the game, and it’s bleeding.

Ok, so they were wrong about everything, but let’s not stop kicking them while down, because they can’t be a “guru” without telling the people who actually do things what to do…

“Laserography”

Positioning argues that Xerox should stop pursuing the computer business and sieze upon the “hot new technology”, the laser, to brand themselves as the laser output company.

Why? Today we realize that such a narrow focus could kill a business. Imagine HP took that advice and never sold ink jets. Imagine Apple saying, “Nah, we don’t make music players”. Or Microsoft saying “Game boxes? We make business software!”

When a business is succesful it’s time to innovate, to find the next big thing growing in some garage, to buy up patents and licenses - and make things.

Everyone talks about the iPod. Remember the Newton? The difference between Xerox and Apple is that Apple keeps offering solutions to customers. Most ideas will struggle, but if you’re not in the game, you wont find the few that soar.

What’s in a name?

We’ll develop this topic more, but we should end with one thing: companies spend too much time worrying about a name. Pick a name that’s meaningless, and go about establishing meaning. The notion that you can call yourself something you’re not and people will buy it is demeaning to your customers, and the lack of faith with be returned.

Oh, and nobody at 12gurus is a guru. We are, forever, disciples.