Firms must be willing to adjust

Dubai: One of the world's renowned marketing strategists came to Dubai this week. Jack Trout was host to the International Advertising Association (IAA) UAE Chapter last Tuesday where he gave a lecture on the theory of positioning and repositioning in a competitive market.

The marketing expert said that it all boils down to finding that powerful idea. Gulf News sat down with him for a chat about his theory, the current marketing trends and the challenges that face the industry today.

Gulf News: How would you describe the positioning/repositioning theory in simple terms?

Jack Trout: Positioning is how you differentiate yourself, your product, your brand, your city in the minds of others. It's all about the mind and getting into the mind is what makes you different. That's the essence. Repositioning is adjusting those perceptions in the mind. So, if something has happened — whether the competition has changed or the technology has changed or the financial has changed something, you have to make some adjustments. Dubai is a vivid example. Dubai was positioned in the minds as a hot, fast growing, widely successful place and then the financial crisis hit. Now Dubai is faced with repositioning itself. You're going to have to make some adjustments in terms of what has happened to you, where you're going and stuff like that.

What are the challenges of that process?

You have to admit a negative to set up a positive. You have to frame what happened and be honest about it. Then say, here's how we're going to fix things and here's where we're going.

Toyota had a lot of problems in America when they had to recall a lot of cars. They were well positioned in the market and suddenly that's been threatened by all these recalls, so they have to admit it. You have to be very honest. That's the process. When things go bad and you have some real problems, you have to reposition yourself.

If you're coming out of a problem, you have to admit it. If you have a big product recall you have to say, "Hey some bad things have happened and this is how we'll fix it." Because later what happens people will say, "Oh this is what happened," and they will accept that.

What happens if you wait too long?

In your [Dubai's] case, Abu Dhabi becomes the lead player. That's what happens. You hang back and you let them take your business, let them take your reputation, let them take the next hot place in this part of the world.

When you have a problem, you open the door to your competitor. If you make a mistake in today's environment, because there's so much choice people say, "I'm moving on. I'm sorry." Years ago you could get away with stuff. You can't get away with anything today. It's all out there. The good, the bad and the ugly is on the internet.

Do companies understand and know how to put the positioning/repositioning theory into practice?

It's easy to understand what I write, but it is very hard to practice it especially if you're getting off a mistake. Nobody wants to admit they've made a mistake. That's a hard thing for companies to do.

How can you handle your marketing when money is tight and budgets are cut?

You have to play this the way the military does. The generals have a very simple concept. They say, "We reinforce victory and cut our losses." That's the deal. You've got something going, then you reinforce it. You've got something that is not going well, you cut it. Money gets tight. You can't hang on and say maybe we'll fix it. Forget it. That's exactly what the generals are. They will not hang around if they are not doing well. I've got something successful I reinforce it and put money into it. Stop trying to fix things that aren't working for you.

What's your view of the digital platform?

The digital platform is over-hyped. If you look at the marketing dollar spent today in the US, 90 per cent are in traditional media and 10 per cent are in the digital media. It's a work in progress. They're still figuring out how to use it. It's a new tool, but they're not sure how to use this tool effectively. It is a new tool with which you can tell your story. You get your story first and then you have an array of places to communicate.

Why do you think that?

People don't like to be interrupted when they're online, they hate it. They're willing to accept it because it's part of the package. The internet is a very difficult thing. Now they're at 10 per cent and maybe if they're lucky they'll get to 20, who knows. I don't think it's going to be a gigantic tool because people don't like to be interrupted when they're online. My view is: be careful.

How can your theory be used for someone to reposition themselves?

You have to find a horse to ride whether it's a product, a company, family business or a new idea. Bill Gates was not trying hard. He invented a piece of software for the PC. That was his horse. He had an idea. It's not a question of trying hard. Real success from positioning yourself is not about saying "I'm wonderful. I can do it." It's more about finding a horse or a skill that you get very good at.

Event

Jack Trout spoke on Tuesday night at an event hosted by the Dubai Chapter of the International Advertising Association (IAA). Gulf News sponsored the event.