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10

Crafting the Brand Positioning

Marketing Management, 13th ed

Chapter Questions
How can a firm choose and communicate an effective positioning in the market? How are brands differentiated? What marketing strategies are appropriate at each stage of the product life cycle? What are the implications of market evolution for marketing strategies?
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Positioning

Act of designing the companys offering and image to occupy a distinctive place in the mind of the target market.

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Competitive frame of reference


The product or set of products with which a brand competes and which function as close subsistute. Category membership: The product or set of product with which a brand competes and which function as close substitutes.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Definition
Points-of-difference (PODs) Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand FedExguaranteed overnight delivery Nikeperformance Lexusquality Miller Lite Beeronethird less calories
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Points-of-parity (POPs) Associations that are not necessarily unique to the brand but may be shared with other brands Categorytravel agency must be able to make air and hotel reservations, etc. CompetitiveMiller Lite beertaste great

Establishing Category Membership


The typical approach to positioning is to inform consumer of a brand, member before stating its POD. Consumer should understand what the brand stands for.
Straddle positioning: occasionally, a company will try to straddle two frames of reference.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Announcing category benefits--able to deliver on the fundamentals reason for using a category Comparing to exemplars--used category membership parity Relying on the product descriptor-communicate unique position

Communicating Category Membership

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Choosing POP or POD


Point of Parity are driven by the need of Category Membership Marketer must decide at which level to anchor the brand, Point of Difference. At the lowest level are the brand attributes, then comes the Brand benefits and at the top are the Brand Values

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Consumer Desirability Criteria for Point of Difference

Relevance--personally relevant and important Distinctiveness--superior (Splenda overtook Equal and Sweet n Low) Believability--credible
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Creating POP and POD


One common difficulty in creating a strong competitive brand positioning is that many of the attributes or benefits that make up the point of parity and point of difference are negatively correlated. Inexpensive vs. highest quality

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Creating POP and POD


One common difficulty in creating a strong competitive brand positioning is that many of the attributes or benefits that make up the point of parity and point of difference are negatively correlated. Inexpensive vs. highest quality

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Consumer Desirability Criteria for Point of Difference

Relevance--personally relevant and important Distinctiveness--superior (Splenda overtook Equal and Sweet n Low) Believability--credible
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Deliverability Criteria for Point of Difference

Feasibilitymust be able to create Communicabilityconsumers must be able to understand benefits Sustainabilitypreemptive and defensible positioning
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Examples of Negatively Correlated Attributes and Benefits

Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting
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Powerful vs. Safe Strong vs. Refined Ubiquitous vs. Exclusive Varied vs. Simple

Differentiation Strategies
Competitive Advantage:- is a companys ability to perform in one or more ways that competitors cannot or will not match. Leverage-able advantage:- is one that company can use as a spring board to new advantages. Customer advantage:- it wont be customer advantage if customers dont value speed
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-15

Differentiation Strategies
Channelmore effectively and efficiently design distribution channel coverage, expertise, and performance. Personnelbetter trained employees Imagecrafting of powerful, compelling images (e.g., Marlboro, Hyatt Regency Hotelsatrium lobbies)

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Claims of Product Life Cycles


Products have a limited life Product sales pass through distinct stages each with different challenges and opportunities Profits rise and fall at different stages Products require different strategies in each life cycle stage

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Product life cycle


Introduction: slow sales growth, profit is non existent Growth: rapid market acceptance, substantial profit improvement Maturity: slow down sales growth, profit stabilize or decline. Decline: downward drift and profit wears away.
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-18

Style fashion and fad


Style: basic and distinctive mode of expression appearing in a field of human endeavor Fashion: currently accepted or popular style. Fad: fashion that come quickly into public view, adopted with great zeal, peak early and decline very fast.
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-19

Product Differentiation
Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance

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Product Life Cycle

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Marketing Strategies: introduction Stage


Its time to roll out a new product. Work out the technical problems Fill dealer pipelines Gain consumer acceptance Sales growth tends to be slow in the intro stage. The advertising expense is more in the intro stage Firm focus on those buyers who are the most ready to buy Target higher income group because cost is higher Company must decide when to enter the market if company introduce superior quality technology or brand strength
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-22

1. Marketing strategy growth stage


Add new product feature Flanker products New market segments Increase its distribution coverage Product awareness advertising Price sensitive buyers

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Market Strategies: Maturity Stage


At this point rate of sales growth slow down. Growth: no distribution channel to fill Stable: most potential consumer have tried the product Decaying: competition appear and sales slow down Market program modification Product modification

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Marketing Product Modifications


Quality improvementsincreasing functional performance Feature improvementsadding new featuressize, weight, materials, additives and accessories Style improvementsincreasing the products esthetic appeal

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Marketing Program Modifications

Prices
Distribution Advertising
Sales promotion

Services
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Marketing strategy decline stage


Sales decline for a number of reasons.
Technological advances Shift in consumer taste and increased domestic and foreign competition R&D manufacturing and finance Plant and equipment investment Some companies drop the product

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Market Evolution Stages


Emergence Growth Maturity Decline

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Ways to Increase Sales Volume


Convert nonusers Enter new market segments Attract competitors customers Have consumers use the product on more occasions Have consumers use more of the product on each occasion Have consumers use the product in new ways
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