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1) Unique Selling Proposition (USP) Strategy
Back in the twenties, when the markets were booming, company strategy was less important. It was a time when company focused in its manufacturing capacity and productivity. Successful companies such as Ford and its famous "pipelining" had dominated the American industry for years to come. But in the late fifties, new technologies emerged and started to bring in competition. More and more companies found tougher to market their products, and lowered their inventories. They looked for a unique feature or benefit, as Rosser Reeves called it, the "Unique Selling Proposition" (USP). Then they depended on massive advertising to drive the idea, and subsequently set up a brand.
E.g. M & M's Chocolate. It was the first chocolate candy in the fifties. It quickly became the leading brand by promoting its USP - "The milk chocolate melts in your mouth, not in your hand".
2) Brand Image Strategy
Technology kept bringing more me-too products and me-too competitors. It was more and more difficult to find the USP, even it could, and it was not the one customer desired for. With the avalanche of me-too products, customers were educated to ignore the product feature. As a matter of fact, they realized that USP theory was not enough to handle the marketing predicament in the sixties.
Then the market entered brand image era. As David Ogilvy said, with the descending of me-too products, customers were no longer emphasizing on any specific product feature, but on the reputation or image. Company should focus its efforts to communicate the difference of brand, built up a unique desirable brand image with massive advertising, and subsequently enhanced the process of repeat-purchasing.
E.g. Before World War II, Marlboro Cigarette was promoted as a feminine brand. Then it adapted the image strategy, threw out the feminine image and changed to "cowboy". After years of promotion, Marlboro had successfully become No.1 selling cigarette in the world.
3)Positioning Strategy
As the image strategy swept through marketing community, the market flooded with repeated image and confused most consumers. In addition, new development in the society has brought the explosion of product, media and information. Consumers were overwhelming with over-volume information and it became harder to establish a distinctive brand. Entering the seventies, the marketing in USA gained less in its image strategy.
Positioning strategy, introduced by Jack Trout and Al Ries, overcame the marketing dilemma. These experts indicated; the consumer rejects any information that does not compute, and tend to choose particular brands outstanding in its category as they chose Coca-Cola in colas, Band-Aid in bandage and Volvo in car safety. The company had to shift its focus from the marketplace to consumers mind, and strive for the purpose of creating and securing a worthwhile position for its product. Once the product has set its special position among the products, consumers would certainly prefer to select that product for the product brand (position) representing that category or attribute.
E.g. In luxury car market, Mercedes = prestige; BMW = ultimate driving machine; Volvo = safety; Ferrari = speed.
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