Monthly Archives: January 2017

What is positioning

In this post you’ll learn a  little about positioning.

In marketing online or offline the goal is always to bring to the mind of the prospect the idea that the product or service we are providing is the best solution for his/her problem. Often enough though, when introduced to a new product/service, the prospect tends to reject it without even thinking deeper on the subject. And as crazy as it may sound, many will still do it even if the later is better in terms of price and efficacy. The reason for this is something called positioning.

What is  positioning?

Positioning is an idea that states that the first in the mind of the prospect will be the one with the most influence for the rest of the prospect’s lifetime  unless a reason for the opposite is given. Didn’t get it?

ok. In simpler words: if you are the first in your niche to advertise your product to a specific prospect, your product will be the one he/she will take as the #1 unless you break his/her trust. Its that simple. This explains why sometimes the public tends to hold on to old brands even if there are way, way better products out there for them. The brand/product they are holding on to was the first to occupy their minds. That brand/product kind of has a special place in the heart of the prospect you’re trying to sell to.

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This idea can be verified in many other parts of life. Examples are: the first person you ever dated, the first person you had sex with, the most read book in the world(the bible), your first car…and essentially all firsts you can possibly imagine.

It is easy to remember each of the above when asked, but it gets harder when someone asks us about the name of the  3rd …4rth.. or 5th person we dated, or third most read book in the planet? The highest mountain in the planet is the mount Everest, but what about the second highest?

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For your first car for example, research shows that you’re more likely to hold on to its brand for the rest of your life. The same happens to the brand of your deodorant. That’s why deodorant brands advertise more for young people instead of the older who already their deodorant brand set.

If you happen to be in a niche where the majority of the public already have a brand imprinted in their minds, the book below suggests you to look for a new and not crowded niche. If you’re a manufacturer of cars for example, and everybody is in the luxurious and expensive cars, you could be the first to occupy the position of inexpensive cars. Remember: the first one to occupy the mind is never forgotten.

Positioning: The battle for your mind by Al Ries and Jack Trout

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This is a good reading on the topic of positioning that I definitely recommend if you want to get a deeper understanding of the subject. The book is also available is audio version on audible.com if you find it hard to read a book from cover to cover 🙂

It is all about knowledge and experience 😉

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Compounding

In this post I’ll talk about the effect of compounding in work and life in general.

 

Change is a need common to all humans. We are all used to the idea of change. Better yet, a big change. Some times our behavior and habit require it. Like the moments we feel ourselves walking in circles and everything seems to be the same.

We hear about change with politicians, when they want our votes and trust, we hear about change on the TV shows, radio, songs, even in the words of the ones close to us.

For the ones who had lost their freedom change meant regaining it. For the ones who are bored, change is, well… anything that does not resemble sameness.

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Like any other things such as success, love and happiness, Hollywood tricked us one more time. We got used to the idea that to change all we need is to want to change. We all wait for the magic moment something inspiring will happen and our lives will change forever. And we uncover our destiny. Our  true purpose. That idea of change is for an adult  what a fairy tale is to a child. A mere illusion. Don’t fall for it.

The compounding effect

Slow and steady growth over a long period of time. That’s what compounding is all about. In the beginning the growth is unnoticeable and if you are the kind the needs immediate results this can be frustrating. A good example widely used to explain the power of the compounding effect is with money. Imagine a very wealthy person comes and makes two offers to you. He either gives you 1 million dollars today or a dollar that doubles its value every day for 6 months. Which one do you choose? The first? The second?

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If your caught up distracted, the 1 million dollar offer might be the most appealing. But if you pay close attention to both, you’ll notice that in two days your 1 dollar will be worth $ 4 and in three $8, in 4 $16, in 5 days $32 and by day 20 over $1.048.576. That’s the power of compounding in its purest form.

 

Skills and habits work pretty much like the dollar you receive today and grow slowly over  a period of time. Because the process can be very slow the majority of people find it hard acquire new skills. If skills where money, a skill would have the worth of, let’s say $0.000001. For you to start noticing significant changes it takes time. But if you wait long enough the results can be astonishing.

Habits are formed virtually all the time. Each new activity you take is physically influencing the wiring of your brain. In other words: your brain is being rewired all the time. We are in constant change even if we don’t notice it. As the famous value investor Warren Buffet once said:

“Habits are to light to be felt until they are too heavy to be broken”

It’s said by scientists that if you hold on to an activity for at least 3 weeks straight, the odds that this activity will become a life time habit increases dramatically.

 

The compound effect: the book

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The book “the compounding effect” written by Darren Hardy explains in great detail the compounding effect. The idea that one can develop a skill over time in an exponential manner is not new but the author puts it in a way that it changes your perspective about. It’s like being shown how to use a wheel in a different way. Definitely a really good experience.

 

It’s all about knowledge and experience 😉

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