People seem to naturally rank things. They list things in order. They tend to remember things at the top of the various lists.

On nearly any list, most people can remember the top three with little effort. It’s generally accepted that seven is the maximum simultaneous number of items that the average person will remember.

In 1980 consultants Al Ries and Jack Trout suggested that as astute marketers we take advantage of this human characteristic, and “position” our products against whoever tops the list.

This creates a new list, with us at the top. That makes it easier to remember.

One of their examples was 7-Up

As a soft drink, it was way down the list. As the “Uncola” it was number one, beating out Coke.

As a soft drink, 7-Up needs you to remember Coke, Pepsi, Royal Crown, Dr. Pepper, and Mountain Dew, before you’re likely to remember 7-Up.

As the Uncola, 7-Up needs you only to remember 7-Up.

The Uncola is a marketing position. It’s a mental shortcut. It lets you get your message across in just a few seconds. A marketing position reminds your customers “Here’s why we’re worth recommending. Here’s why your friends and colleagues will be glad you told them about us.”

Let’s apply this concept to an industry familiar to all of us.

Hamburger Restaurants

How many hamburger restaurants can you remember? Four? Six? Most people can remember seven. Did anyone do nine (without peeking)?

Suppose you have a hankerin’ for a double cheeseburger. Does any particular restaurant come to mind?

Here are the rankings of hamburger restaurants in the U.S:

  1. McDonald’s
  2. Wendy’s
  3. Burger King
  4. Sonic
  5. Jack In The Box
  6. Dairy Queen
  7. Hardees
  8. Roy Rogers
  9. Carl’s Jr.
  10. Rax
  11. WhatABurger
  12. White Castle
  13. Krystal
  14. Fudrucker’s
  15. A&W
  16. Ralley’s

How many of these names do you remember?

Our question was, “Does any particular restaurant come to mind?”

Did anyone say “IHOP?”

Silly question?

Perhaps. After all, you can get a double cheeseburger at IHOP.

Even though they don’t mention cheeseburgers in their ads, IHOP has them on the menu.

So, why does IHOP not mention cheeseburgers in their ads?

Two reasons: the cost of advertising; and the number of names down the list IHOP would find themselves.

Share of mind roughly equates to share of market.

In order to create a space in your memory and help you to remember that IHOP has burgers, they’d have to beat out all of the hamburger chains listed.

They’d have to help you to remember at least seventeen down on this list. That’s a formidible undertaking. And, since we can predict minimal success, it’s likely to be very expensive when costs are compared to results.

No matter how much they spend, IHOP will never have more than a tiny fraction of the hamburger market.

How many pancake restaurants can you name?

Humm.

So, instead of hoping that you’ll remember at least sixteen other restaurants and still have mental space (and frankly, the willingness) to remember IHOP, they don’t mention burgers at all in their ads.

Instead, they make it easier for you to remember IHOP by becoming the top of a completely different list.

Instead of getting the crumbs of the hamburger market, they get the biggest share of the breakfast market. And in the minds of the public, IHOP pretty much owns the pancake position.

Marketing position = “specialization”

Frequently when I recommend specialization, people think I’m talking about refusing business.

I’m not.

Our objective is to capture a larger share of the market. The actual competition for a greater share of awareness happens within shoppers’ minds.

By specializing we create a position at the top of some small list (market) rather than attempt to compete for awareness from way down a much bigger list (market).

Specialists do not refuse customer’s money at the cash register. Their ads just don’t talk about things that are not likely to be remembered.

Let’s take a test

    1. IHOP is famous for _______?
    2. Waffle House is famous for _______?
    3. Tony Roma’s is famous for ______?
    4. Marie Calender’s is famous for _______?
    5. Spaghetti Warehouse is famous for _______?
    6. Black Angus is famous for ______?
    7. Olive Garden is famous for ______?
    8. Lotus Garden is famous for _______?
    9. Panda Express is famous for _______?
    10. Pizza Hut is famous for ______?
    11. Taco Bell is famous for _______?
    12. Kentucky Fried Chicken is famous for ______?
    13. McDonalds is famous for _______?
    14. Red Lobster is famous for _______?
    15. Hometown Buffet / Old Country Buffet is famous for _______?
    16. Benihana is famous for _______?

Humm. Same number as the list of hamburger restaurants. And yet, you do remember most of these.

Each has created a unique marketing position, and that position places each of them the top of a completely different mental list. Each has stopped trying to get a smaller share of the “dining out” market, and is instead competing for dominance within their speciality.

Your business is not likely to be a restaurant. Regardless, to compete in the minds of shoppers, it needs a position. That position will be a specialty.

What is your business’ position? Owning one is almost a requirement when you’re fishing for customers.

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