Knowledge of strategic concepts will be useful not only for beginning businessmen, but also for all those who consider themselves educated people.
Positioning concept
"On the Duracell packaging it says 'Duracell' in bold letters. The words 'alkaline batteries' are unnecessary because they mean Duracell. That's the key to positioning. You have to make your brand synonymous with a common product. Then the consumer can easily substitute one name for another," says Jack Trout, explaining the essence of the positioning concept in plain language.
The theory was first heard oman email list of in 1969, when Industrial Marketing published Jack Trout's article "Positioning - The Game People Play in Today's MeToo Marketplace." The term "positioning" was used in the context of working with positions in the minds of consumers. Trout believes that it is not enough to invent something new or make a discovery. Sometimes this is not even necessary. It is important to first penetrate the consumer's mind. Some companies do not see the difference between creating a product and a brand. The first is something that the company produces. The second is born in the mind. Success in the market precedes the production of a brand, not a product.
Now is the time to position yourself in a unique way. There are too many competitors. If you try to please everyone, afraid of making enemies, you will not win. To succeed, you need to have your own niche in the market. Trout talks about how to do this in his popular book, Positioning: The Battle for Minds.
Blue Ocean Strategy
The author of this concept, Professor Chang Kim (INSEAD Business School), believes that the world of the market can be imagined as two oceans: red and blue. The red ocean represents well-known modern industries, the boundaries of which are clear, and the rules of the game are known. As competition in the market intensifies, the prospects for growth and profitability of the company are in great question. New products become consumer goods, and increasing competition colors the waters of the business ocean blood-red.
Blue oceans are untapped areas of the market that offer unlimited growth and high profit potential that do not yet exist, where the rules of the game have not yet been established and competition is not a threat to anyone. Here, a company has ample opportunity to develop, increase revenue, and grow rapidly.
In his groundbreaking bestseller Blue Ocean Strategy, Chan Kim shows that even in the most studied markets, it is possible to avoid competition, find new niches, and quickly implement new strategies at minimal cost, enjoying the clear waters of a free blue ocean.
The benefits of Chan Kim's strategy are quite tangible: of the more than 100 companies he studied, only one in seven followed the blue ocean path, but the total profit of this minority was 1.5 times higher than the total profit of those who chose the traditional approach to strategy development.