Market positioning superpositioning and copositioning
As stated in Chapter 2, market positioning is the act of communicating a distinct position in the marketplace. It is the attempt to distinguish design professionals from other service providers in the minds of existing and potential clients. It is not simply an image making exercise: market positioning must relate
to realizable benefits to the client. In other words, clients must know the real difference between design services and the services offered by other professions.
In the case of architects, for example, the profession aspires to represent both the interests of the client, the end user and society as well as taking a lead role in the construction process. In many ways the continuing pivotal role of the architect between client and industry is crucial if the quality of building and the built environment is to be maintained. However, the in-built contradictions and inconsistencies of this market positioning create confusion and misunderstanding in a profession which is struggling to establish a marketing culture. Architects have to compete with a growing range of service providers and have to demonstrate the uniqueness and difference of their service. However, the profession appears unable or unwilling to articulate exactly what the differences are and what are the benefits to the client. It is suggested that the reticence and inability are in part due to the market positioning adopted by the profession. It is hard to market a service when the profession wants to be all things to all people. On what basis are clients expected to demonstrate their preferences for architects? Is the profession sending a consistent and clearly defined positioning message to the market? What is required is a better articulation of the services offered by architects not only in terms of benefits to the client but also in terms of market positioning. Cogent and consistent market positioning is the key to success in the market place for both architects and engineers.
In a scenario plan, market positioning is defined by the interrelationship between the driving forces, predetermined elements and critical uncertainties that shape and form the practice and the target market. Coxe et al. [13] have identified two key driving forces whose interrela tionship is felt to provide 'a rational basis for understanding why some firms succeed by doing things one way while others can be equally successful doing things quite differently'. One driving force is the 'process for executing projects and delivering results for clients'. This driving force is termed the design technology. The second driving force is the organizational and operational philosophy of the practice leaders and is given the term 'organizational values'. The two driving forces are then juxtaposed in a 'superpositioning matrix' (see Fig. 3.4).
Organizational values are shown as a continuum between practice led businesses whose primary concern is the delivery of their respective professional service and business centred practices whose main aim is operate a business that happens to be a design consultancy. One of the common instant assumptions is that the business centred practice is commercially successful and the practice centred business is making a financial loss. Not true. Organizational values are not an instant indicator of financial success or failure. The main determinant is how these values relate to the target market.
The vertical axis of design technologies is split into three parts. Strong delivery practices concentrate on the routine execution and delivery of commissions. Strong service practices offer managed services for more complex projects. And strong idea practices that offer creative design, technical innovation and a high level of build quality. The suggestion is that the design ideas and technical innovations of strong ideas practices are adapted and customized to suit the clients of strong service practices and the most practical and functional elements are eventually incorporated into the work of strong delivery practices. The combined effect of reduced lead times for the design and construction of buildings and improvement information has resulted in a quicker transition from strong ideas to strong delivery. The result is that the middle band of strong service practices is being squeezed between strong ideas and strong delivery practices that are beginning to redefine their position in the marketplace.
Within the matrix, a series of observations are then made about common practice profiles for each of six boxes. The observations come under eight headings:
%u25A0 project process and decision making:
%u25A0 organization structure and decision making;
%u25A0 leadership and management;
%u25A0 sales messages and type of clients;
%u25A0 marketing approach and marketing organization;
%u25A0 pricing and profit;
%u25A0 leadership and management;
%u25A0 rewards to the principals.
Suggested master strategies are given each composite type under similar headings. The practice profiles and master strategies that are developed in the book Success Strategies for Design Professionals contain a wealth of insight and accurate observation and should be read by every architect and engineer in private practice. This book can only touch upon some of the key observations.
Eric Schneider [26] notes that:
Many but not all of Coxe's findings based on their US research are supported by our own UK observations. For example, 'practice centred strong ideas' firms tend to have creative direction from the partners; their staff tend to be attracted by the reputation of the firm and/or by internal connections; and their clients tend to be or to have key individuals as top level decision-makers or patron-managers. Likewise, larger, 'strong services practices' tend to attract staff more comfortable with a more corporate structure, and often pay more and offer greater benefits. They also tend to allocated the coordination of marketing and new business development under one partner or director and have as their best clients major corporations with large projects, the execution of which the client will generally delegated after making the selection...
Two main weaknesses of the model are: first it assumes that for any one box only one set of factors will suit; and second it confuses a useful device for reflecting internal or peer group perceptions with a mapping or positioning matrix based on client needs and perceptions—i.e. it is not a useful market position device.
|
Routinized culture |
Low |
Low-medium |
Medium |
|
Service culture |
Low-medium |
Medium |
Medium-high |
|
Innovative culture |
Medium |
Medium-high |
High |
Local National International
Geographical orientation Fig. 3.5 Market position risk profile. Source: Medley Smith [27].
Local National International
Geographical orientation Fig. 3.5 Market position risk profile. Source: Medley Smith [27].
Schneider's comments on the inadequacies of superpositioning matrix are valid. Despite the shortcomings, however, the superpositioning matrix represents a quantum leap forward in the way design professionals are able to articulate their situation. In the context of scenario planning, the superpositioning matrix can be a significant building block in the process.
The two driving forces identified in the superpositioning matrix might not be those that you would choose as the most important for your practice. For example, your main concerns might be about the impact of demographic trends (predetermined elements) on your target market or your ability to manage risk (critical uncertainties). You might want to take account of predetermined elements and critical uncertainties as well as driving forces. For example, Medley Smyth [27] has developed a market position risk profile for flagship urban regeneration projects (see Fig. 3.5). In this case, geographical coverage refers to the extent of the market from which investment and consumption will be attracted for an individual building development.
The superpositioning matrix can therefore be adapted to take account of driving forces, pre-determined elements and critical uncertainties as well as other key factors relating to the practice, a sector or an individual project.
Always remember that it is your story. Do not be too concerned about the apparent intricacies of scenario planning and
superpositioning. At the end of the day they are only a means to an end. You might, for example, find that your practice positioning varies in several areas of operation. This is common. The variations are likely to be a reflection of how your practice has grown and what opportunities have been pursued. What is important is that these variations are recognized in the scenario planning process and in the subsequent strategic mapping. The scenario plans will tell you where you are now and the options for where you want to be in the future. Strategic mapping tells you what you need to do to get there.
The other important aspect of positioning and superpositioning is co-positioning. Co-positioning is the recognition and resolution of differing market positions. This may be required within a single practice, between two or more individual practices or between different divisions of a larger practice. For example, a large engineering practice operating in several countries might decide that it wants to develop a supportive network of offices that offer a similar service. Staff from each of the offices have a series of meetings, technical aspects are discussed in depth, mutual technologies are agreed and a programme of cooperation and research is outlined. However, when the chance comes to deliver the combined service, the system does not work well. There has been no recognition that some of the offices are positioned differently in the marketplace. The difference in client perceptions and expectations for each office has not been taken into account and result is a mismatch at the point of delivery. The same argument applies to two or more architectural practices that want to network either formally or informally. Each practice must relate its market position to the other practice or practices if the cooperation is to work effectively.
Continue reading here: Synthesis and relationship marketing
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