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7 Signs You Have A Positioning Problem [And Why Familiarity Kills Businesses]

There is a new status quo emerging in the business world and it can all be summed up with one word: “Familiar”.

Matt Brown

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familiarity

There is a new status quo emerging in the business world and it can all be summed up with one word: “Familiar”.

Competitive rivalry tends to force business owners to slavishly copy what has worked in the past, casting their services ever wider with the hope of catching new clients in the process.

From a market perspective, the familiar is invisible – a category which is typically is dominated by incumbents who compete on price, essentially then re-enforcing the feeling of familiarity in the eyes of consumer and this is especially true in markets where there is intense competition.

why-position-matters-in-business

Related: Why Flame-Grilled Chicken Franchise Galito’s Opened Up Shop Right Next To The Competition

How Customers Choose

Customers are always hiring a business, product or service to solve a problem for them, but the challenge for them is to articulate their problem and understand the costs of switching from one business, product or service to another.

It’s about risk. Often, it can be less risky for a customer to maintain the status-quo than to change it and that can be said for choosing a new type of yoghurt, switching banks and especially choosing between your own business and one of your competitors.

From a customer’s perspective, there are always quantifiable and unquantifiable switching costs. Quantifiable switching costs are things like price and taste but then there are the unquantifiable switching costs like your child crying because he/she doesn’t have his usual yoghurt in his lunch box.

This same dichotomy can be applied to literally every single type of product and service that business offers. 

Why Positioning Matters

For business owners who do not have a compelling positioning and message in the market, your business will not grow. In today’s cluttered brand and communications landscape, there are three things that determine whether your brand will have any notoriety in the market: Distinctiveness, credibility and salience.

If your brand is not doing anything unique it will lack distinctiveness. If it lacks credibility your prospects will not believe you and if it lacks future salience it will lose relevance and without relevance you do not have a business.

Positioning your business is about helping your market make sense of what you do but most importantly, it’s about positioning your business in the mind of your target customer in such a way that your business becomes distinctive and ridiculously attractive.

7 Signs You Have a Positioning Problem

1Your prospects cannot tell you what you do

There is a simple litmus test for this. Phone three prospects and ask them what they think you do as a business? If you fail to get three of the same answers you have a positioning problem.

2You are losing business to your competitors

Let’s say you have two competitors trying to sell similar things to the same market. If there is any parity whatsoever in terms of the competitor’s value propositions and their price, then the prospect will invariably revert to the competitor with a more unique positioning in the market.

In my experience, many business owners lose out to a competitor who simply tells a better story in the marketplace and the competitor with a more compelling story that talks to a differentiated positioning will always win out. So, if you are losing business to your competitors and are feeling the pinch, then you probably have a positioning problem.

3Your brand is underperforming against objectives

When your positioning is not suited to the market you are serving it will typically have a negative impact on the brand and sales power of your business.

Brand power refers to the notoriety or salience of your brand in the market that you operate in. There is a difference between awareness and notoriety – your market may know who you are but is your brand noteworthy? Sales power refers to the ability of your business to make a sale. If your business is underperforming against its brand and sales objectives, then you probably have a positioning problem.

If your business does not occupy a unique position in the mindset of your prospects it will significantly hinder your ability to make a sale, and ultimately grow your business.

Related: How to Create a Winning Mindset, to Crush the Competition

4Your positioning doesn’t reflect what you do

In today’s rapidly changing business world, the needs of your customers are constantly changing. To address these changing needs, business owners must change what they do to continue to serve the changing needs of their customers. Enter the pivot.

In most cases, this means a shift in strategy, but what you have then is a situation where your positioning no longer reflects what you do as a business, so if you haven’t addressed your positioning in the market in the last two years, then you probably have a positioning problem.

5You are competing on price

The importance of positioning is directly proportionate to the degree of competition in the market. As a market matures, more competitors enter the market which puts pressure on incumbents to maintain their market share. This manifest into things like declining volume sales and an ever-increasing margin squeeze.

To counteract this effect, the knee-jerk response is to react by competing on price and when that happens, it almost always ends in failure. But why compete on price when you can compete on value? A reworked positioning of your business in the marketplace is the conduit to the re-enforcement of value that you represent in the market and can change the perception of the market about your business.

Perception goes a long way to ensuring that you can continue to charge a premium for your products and services and remain ahead of a price hungry competitor. So, if you are competing on price and not value, then you probably have a positioning problem.

6Your communications do not support your positioning

There is nothing worse than a confused customer. If your messages from a sales and marketing perspective are not congruent across all channels it confuses the hell out of them because they are not on message; all your communications need to support the story that supports your positioning.

If your communications are fragmented, then you probably have a positioning problem.

7Your employees are not inspired by what you do

A business is simply a group a people working towards a common goal. Your positioning must act as a north star towards achieving that goal and should be easily understood, relatable and transferrable. If your employees are not inspired by what you do, then you probably have a positioning problem.

How Digital Kungfu Can Help

As a business owner, when you are working in your business you often cannot read the label from inside the bottle.

An objective view of your businesses needs to be painted using a combination of research, specialisation and differentiation methods to develop a highly effective positioning for your business that will make it distinctive and ridiculously attractive in the eyes of your prospects.


Digital Kungfu specialises in the helping business owners achieve just that. Our strategies combine research, strategy and implementation to deliver a market positioning that you can hang your hat with certainty.

Matt Brown is the CEO of Digital Kungfu a strategic business consultancy. He is also the host of the Matt Brown Show - a podcast empowering and entrepreneurs around the globe.

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Leading

Digital Leadership: Amplified & Magnified

Leadership is not changing. But it is being amplified and magnified through the use of digital media. Here’s how to use it to become a better leader.

Erik Kruger

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Digital Leadership

What does leadership look like in the digital age?

Fundamentally, leadership stays the same. The objective of leadership remains to paint a compelling vision of the future and to then rally others around creating it.

However, the visibility of leadership has changed thanks to the internet and social media.

Leaders should embrace the tools that come with this change because it allows them to communicate their vision more consistently, to truly lead from the front, and to be more human.

Related: How You Can Make Leadership Excellence An Effortless Effort

Communicate consistently

As a leader, you have the opportunity to consistently show up and communicate your vision and dedication to your followers. Digital has made this easy for you. All you need to do is simply choose the channel of communication that best suits your style and strengths.

Prefer writing? Jot down a weekly email or tweet that inspires or informs those around you.

Prefer talking? Record a quick video on your phone.

Great leaders understand the importance of communication.

How awesome that a leader’s voice can now extend beyond the boardroom and the annual letter to shareholders.

Truly lead from the front

Apart from the words that you use to communicate there is another intrinsic benefit to this consistent act. Your people see your commitment. The words you write become less important than the act of consistently showing up.

For the past few years I have written a daily email that goes out to over 17,000 subscribers. I often hear that the thing that inspires readers the most is not the words but the consistent action. You cannot fake it when you are leading with visibility. 

One thing that has always been true is that leaders need to lead by example. Never has it been truer than in a world where our actions are amplified and then magnified. It comes down to this. As leader, you cannot say one thing and do another. You shouldn’t have to.

If you are leading authentically then your actions and your words will live in perfect harmony. And the life that people see on Instagram will not clash with what they see in the boardroom.

An obscured leader cannot lead from the front. Leaders need to be visible.

Related: Leadership Hustle: A Modern View On Leadership

Be human

I often speak to incredible leaders who are afraid of embracing the digital era. Specifically, they fear “showcasing” themselves on social media. They do not want to come across as promotional, narcissistic, or flawed.

However, the opposite usually happens. When people get to see the other side of you they connect on a deeper level. You become human. And as a leader, this is a good thing to be.

Does this mean you should splash your entire life across the digital ecosystem?

No.

You still need to be selective. But it is ok to let people in to your world.

What next?

As a leader, you can make a profound impact that reverberates beyond the walls of your company. An impact that affects your employees, your customers, and even those watching you from the sidelines.

Digital media shines a spotlight on your leadership. Embrace it.

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Leading

Leadership Hustle: A Modern View On Leadership

‘Leadership hustle’ refers to the concept of analysing with great care what needs to be done as a Leader.

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“Actually, caring about the other person is the leverage in any conversation.” – Gary Vaynerchuk


Have a clear Vision. Do what you love. Now, go and do what is necessary to make your glorious Vision a reality. Sounds so simple! Sounds so cliché. Not so much……

It takes a lot of ‘hustle’ and serious staying power to fully unleash your inherent Leadership potential and to overcome several obstacles that appear on your path. Several opinions and definitions exist in terms of what Leadership really is. Within a modern context, considering factors such as generational gaps, differences in upbringing and schooling, political interference, technological advances, and market disruptions I will define leadership as:

“Continuously applying the required and adaptive skill set, to unite a diverse group of people in committed and sustained effort, with the aim to attain a collective Vision that they sincerely aspire to.

In reflecting on this statement concepts such as self-development, emotional intelligence, honing your craft, wisdom, building a sustainable culture of success, a high level of motivation and several other factors are cast under the spotlight.

Related: How Marius Meyer Is Defining What Excellent Leadership Really Means

‘Leadership hustle’ refers to the concept of analysing with great care what needs to be done as a Leader, then carefully deciding how it needs to be done, be willing to ‘pivot’ when things are not working, create a sustainable motivating climate, and then persevere with an extreme high level of commitment until your team realises your collective vision. If you are a true Leader this ‘hustle’ never stops. A critical part of your work as a Leader is to coach and create more Leaders in order to ensure a sustainable future for your business.

The ‘last trump’ has blown on supposed Leaders whom only use bonusses or disciplinary action as leverage to entice their team members to perform. People, generally speaking, want to feel that they are cared for and that they are working together to attain something higher than themselves.

Gary Vaynerchuk

Gary Vaynerchuk

A twenty-eight-year-old friend of mine recently stated that: “It is so not cool to Lead”. He was giving a voice to his perception of power hungry and self-serving leaders whom do not care for others. There are always individuals whose actions are not exemplary. Well, let me tell everyone of something that is very cool – First-hand experience of an individual or team that have unleashed their potential and now are masters of their craft and you had something to do with it as their leader/a leader.

As the abovementioned Gary Vaynerchuk quote alludes to – “Actually caring for the other person is the leverage in any conversation.” Leaders must sincerely care for their team members, if not they are just ‘ bosses’ that suck every ounce of energy out of their team members in order to be enriched.

The Author has heard a number of entrepreneurs complain that they have lost their businesses by caring too much for their employees and doing too much for them at the dire cost of their businesses and themselves in person. Their situations became untenable as according to them their team members performance did not even remotely match the effort of the entrepreneurs.

In part many challenges similar to the above example arise as a result of a transactional style of Leadership – “I do for you and you do for me”. Naturally even if no lip service is paid to the concept , there is, in most cases part of the Leader/Entrepreneurs’ consciousness that does expect something in return.

For the purposes of this article the concept of ‘Leadership Hustle’ moves in the opposite direction of a transactional style of Leadership, instead it fosters a collective consciousness and culture where the team jointly as servants of a higher vision do everything because they want to out of love for the cause as opposed to being forced to.

Related: Servant Leadership – Will You Serve?

This puts a demand on the team Leader to hire ‘the right people’ that are committed to the cause from the start. Easier said than done? Most certainly! The Leader would have to Hustle up! We as Leaders will have to be committed enough to learn through several mistakes until the most optimal HR model is created that serves our Vision. We would have to continuously and urgently refine our team selection, training processes, and positive feedback loops until we find the solution that offers us the best change to collectively attain our aspiring Vision.

The ‘People before profit culture’ strikes fear in the hearts of most Leaders and rightfully so. What if I focus so much on caring for people that our profits decrease dramatically?! Allow me to rephrase the statement –

‘The right people (doing the right things) before profit culture’ will ensure more profits in the long run than you could ever have foretold.

‘Leadership hustle’ does not mean I foreclose on all methods of control as a Leader, stop managing, and only Lead. ‘Hustle’ means that we as Leaders must put more focus on Leadership than management controls which in turn would make the daily management of our teams easier because as a result of the focus on Leadership we will generally deal with a more inspired, motivated, and engaged workforce.

Seeing Leadership as an ever-evolving journey of learning and adapting rather than a single event would save the reader an unmeasurable amount of frustration and failures. Whether we appreciate change or not it is being enforced upon us by, in part, the millennial generations’ general traits of being more entrepreneurial, being very inquisitive and challenging, and basically living online.

It will serve Leaders well to rather gain wisdom in terms of the varying needs of different generations within a single workforce as opposed to judging a certain generation to be more effective at work than the other. Caring for people means caring for all, and part of caring is being interested enough to understand them better.

Related: Paddy Upton: People Centred Coaching

millennial-segment

The author was in the audience when Cliff Hazell, an agile coach at Spotify, delivered a guest speech at the 2016 African Lean management conference. During the Q&A session Cliff was asked how we should best engage the “millennial segment” of our workforce as Spotify is well known for its very modern, integrated, and very successful culture.

The first part of Cliffs’ answer was, at least to me, simple yet profound – “First of all you could start by stopping to call them Millennials!”

People in general are progressively starting to abhor labelling and a judgemental attitude. It has served Spotify very well to rather focus on utilizing their generally younger workforces’ entrepreneurial thinking and inquisitiveness to gain traction towards the companies collective Vision as opposed to an attitude of labelling and judging.

A paradigm shift that forms part of ‘the Leadership hustle ‘is to rather have non- judgemental Learning discussions than the traditional performance appraisals. To sum up this modern approach to Leadership we are asked to continuously learn and improve our skills and be flexible in our application of skills. In order to create sustainable success as Leaders we have to have an improved grasp on the generational differences within our teams. We have to develop the skill to utilize the strong points of each generation and person within our teams to gain traction to ultimately actualizing our collective Vision.

We have to be more and more inspiring Leaders as opposed to being ‘control freaks’, that is if we sincerely aim to create a ‘HIGH TECH-HIGH TOUCH (People orientated) environment for our teams.

GO FORTH AND HUSTLE!!!

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How Marius Meyer Is Defining What Excellent Leadership Really Means

In search of an enthusiastic advocate for Leadership standards in South-Africa look no further than Marius Meyer, CEO of the South African Board of Peoples’ Practices.

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In search of an enthusiastic advocate for Leadership standards in South-Africa look no further than Marius Meyer. Marius and his team along with all South-Africans face a complex, diverse and fast paced environment wherein a higher demand is placed on the general Leadership standards and skill levels of companies, organisations, entrepreneurs and the workforce at large.

As the CEO of the SA Board for People Practices (SABPP) he has identified this challenge related to the Leadership paradigm within South Africa as a priority. As a result of the absence of a Leadership standard there tends to be a lack of clarity on how Leadership can be defined and more importantly how Leadership principles can be effectively applied within diverse business sectors.

Related: 4 Leadership Lessons You Won’t Learn In Business School

The drive for profit can unfortunately lead to the neglect of the “people’s element” of organisations and businesses which ultimately can lead to severe sustainability problems. Growing in the wisdom that a business ecosystem comprises out of generational, philosophical, industry, and a plethora of other differences our Leaders must be highly skilled and their style must be flexible in order to make their teams successful.

Defining a Leadership Standard

Through the application of a Leadership standard the aim of the SA Board for People Practices is to create consensus on what excellent Leadership means. A logical yet challenging next step is to empower Leaders on all levels to acquire the skills necessary to Lead their team members towards a sustainable and successful future.

Marius believes that the traditional “top-down” structure of enforcing company values must be replaced with a culture of co-creating values. These values must then be embedded within the company culture to create a climate where all team members sincerely feel that they want to be part of something bigger than themselves.

The CEO of the SABPP alluded to the fact that the traditional norms of work have changed dramatically. The average “Millennial“ will work for between 15-20 different companies in his or her lifetime. Technology has enabled us to connect the dots between continents and therefore the location of work has become less important in general. Therefore, it is a core function of Leaders to adapt to our ever-changing work environment rapidly.

Marius’ personal values enables him to adapt to the vicissitudes of the environment within which he plies his trade are:

  • Professionalism – In his view this means to cultivate an environment of very good people skills, knowledge levels of your profession, and to act with respect.
  • Innovation – Foster a high level of awareness of how renewed ways of doing things can improve the effectiveness of your team and organisation.
  • Ethics – Always act in the best interest of your company and clients in an honest way, using your principles and values as a compass.
  • Competence – Always develop yourself. Keep up with the changes and demands of your industry.
  • Excellence – Even if it is just a simple e-mail to a client hold yourself to the highest standard of execution of every task.

Related: 25 Leadership Lessons From Millionaire Business Owners

Wise Words From Marius Meyer

He had the following wisdom to share with all aspiring South-African Leaders:

Start thinking big, we tend to think too small. A critical element of “thinking big” is to expand your network. In the realisation of the fact that nobody became successful purely by themselves the aspiring Leader must be willing to ask for mentorship and always consider his mentors advice carefully before he acts.

If mentorship takes the form of a low paid internship be willing to start at the bottom in order to grow. Build your confidence by constantly venturing outside of your “comfort zone” and by constructively applying the lessons that you learn through making honest mistakes. Build your basic management acumen by closely observing other excellent managers that produce positive results.

It is only possible to improve the general standard of Leadership in South-Africa if we stand together as leaders, entrepreneurs and workforce. The South African Leadership Standard will be launched on 26 October in Kyalami, Johannesburg. For more information, visit www.sabpp.co.za or follow SABPP on twitter @SABPP1  

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