The First 50 years and the Next 50 Years of the Positioning Theory

 

In 1969, Jack Trout introduced the Positioning Theory to the world. In 1981, the book Positioning: The Battle for Your Mind was published, which Trout aptly called “the game of today”. In 1994, Trout & Partners Spain was founded, and it was the first branch overseas. In 2002, Trout & Partners China Co., Ltd was established and headquartered in Shanghai, China. Now, T&P has established branches in 31 countries and regions.

Today, in 2019, Trout and Partners (T&P) is able to remain incisive in a society crowded by information and is able to become the global leader in strategic positioning, and we could not do it without invaluable efforts of T&P global partners.

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The Positioning Theory’s 50th Anniversary Global Summit was held at The Peninsula Hotel Shanghai on the 24th of September 2019. More than two hundred Chinese entrepreneurs, eight global partners, and members of Trout’s family were invited to the summit to share their insights. Eleven esteemed entrepreneurs, who are industry leaders in China, shared their experience leveraging positioning theory to advance their business. At the end of the event, professor Qiren Zhou from the National School of Development, at Peking University, made remarkable closing commentary to provide constructive feedback on all eleven cases.

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Professor Zhou pointed out that the power of the prospect’s mind drives the division of labor, while positioning stimulates resource allocation in an enterprise. While expanding the study of Positioning Theory, people started realizing the crucial importance of the prospect’s mind and shifting the main focus from internal operations to external perceptions. Professor Zhou also acknowledged the enormous potential of Chinese companies in the global market and encouraged entrepreneurs to take a step back and examine the bigger picture.

Delong Deng, the global president of T&P and chairman of T&P China, delivered the opening remarks by sharing The Principle of Positioning. He elaborated on Immanuel Kant’s transcendental philosophy from the perspective of not only philosophy, but through the lenses of physics, management, and the history of technology. Moreover, he also noted that the core determinant in business operations is to - “know what you are selling”. Deng said the answer to success is winning the prospect’s mind and making people realize your value in an overcommunicated society with jammed messages. To succeed, enterprises need to use “Outside-In” thinking and coordinate all the resources around their designated strategic positioning. In short, positioning not only drives strategy but also leads to sustainability, which will eventually benefit the company.

Raúl Peralba, our partner from Spain, and Eugene Kadushin, our partner from Russia, shared their experiences of how the Positioning Theory helped enterprises from Spain, Russia, and the UK, across different industries, including telecommunications, internet, finance, public administration and other fields.

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As Trout said, T&P China obtains the mission of “aiding China’s economic transformation”. Now, it is the new turning point of the era. Deng stated the key issue that stops China from accelerating the economic transition is the failure of resource allocation caused by misinterpretation of consumers’ mind.

The Positioning Theory is indeed the critical factor that establishes sustainable comparative advantages and promotes the development progress of companies. We hope to see that positioning will help more enterprises to become the leader in their industries in the next 50 years.

 
T&P North America