Eighteen: Mapping Business Topology
Information in itself is of little value, and has little meaning unless it is related to something else. The authors use "topology" to mean the context in which data exists, which makes it relevant.
In that way, seemingly objective details become subjective in the way they are valued. Of particular relevance to a brand is the context in which customers, rather than the company, consider it. But before getting into that, the authors wish to discuss topology in a general sense.
The Value of Comparison
The nature of human knowledge is its context. In the west, a thing is described by the way in which it is similar or different to other things; and in the east, it is described by the environment of which it is perceived to be a part.
Businesses likewise consider themselves as being similar to other firms, and it can often be observed that there are similarities among even dissimilar businesses. Consider that an airline and a theater are very different, but share a common problem: they sell tickets to an experience that exists in a specific space in time - and any empty seats are an irrecoverable loss. In that sense they have similar goals and similar problems, and can learn from one another.
Consider also that meat and cars are completely different industries, but Henry Ford recognized that the problem of selling cars was due to the labor-intensive means of manufacturing them. He took his inspiration for the automotive assembly line from Chicago meatpacking plants and the efficient way that beef carcasses were cut down.
Business "Flavors"
One popular business writer has suggested that businesses generally come in three flavors: those that are operationally excellent, those that are price competitive, or those that have an intimate relationship with customers. While businesses dream of being good in every regard, the fact is that there are inherent contradictions - such that actions that support one flavor undermine the others.
Other authors have chimed in that there are other kinds of business. A business may choose to pursue dominance in distribution (Starbucks may not be the best or the cheapest but it is available everywhere), or they may seek to dominate a given channel (when people shop online, many think "Amazon" to the exclusion of any other retailer).
Developing an intimate personal relationship, which is the path the authors favor, requires a shift in thinking, from mass market to "selling small," which involves making a personal connection with each customer. This is contrary to efficiencies of scale that are leveraged or created by other approaches, and generally means foregoing opportunities that create immediate sales in favor of those that create a high level of loyalty and advocacy, ultimately getting more revenue from each customer over a longer period of time.
The Role of Competition
Another important element of topology is understanding the competitive landscape. You may identify a brilliant opportunity for selling your products - but there may be other competitors crowding that patch of land, and you will get more customers with less expense if you seek a thinly-populated position.
Also, every brand/product combination is a different position to a different market. Consider that an automotive dealership competes with other dealers on the sale of a car, competes with banks for its financing program, and competes with many local garages for maintenance and repairs. It is also considered differently by the residential consumer, the small business, and larger businesses. If that were the extent of its markets and products, it is competing on nine different landscapes.
In some instances, a brand may find more success in some venues than it does in others, and ultimately decide to quit some playing fields and focus on the ones in which it has the greatest profitability.
The Value of Topology to Persuasion Architecture
Firms who have not previously considered topology may be opening a Pandora's box by doing so - recognizing that they are placing the greatest emphasis on championing the least valued features of the least popular products to the least productive market segments. It is entirely possible a brand will discover it is fighting in the wrong field, or using the wrong tactics. In such instances, dramatic change may be necessary.
For marketing purposes, topology provides us the ability to see a company from the perspective of the customer - what is actually known and believed about a brand rather than that which the brand wishes people believed or knew about it - so that market perception, rather than insider opinions, drive the messaging.