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Chapter 3

Brand Positioning and Values

Brand Positioning
Brand positioning is the act of designing the company s offer and image so that it occupies a distinct and valued place in the target customer s minds.

Positioning is the heart of Marketing Strategy.


Competitive Frame of Reference

Positioning requires determining a Target Market and Nature of Competition.

For positioning it is necessary to decide:

1. 2. 3. 4. Who the target consumer is Who the main competitors are How the brand is similar to these competitor (POP) How the brand is different from these competitors (POD)

Target Market
A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.
Market consist of all the consumers with sufficient motivation, ability and opportunity to buy the product.

Market Segmentation
Market segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes.

Example of the toothpaste market

Four main segments:
1. Sensory: Seeking flavor and product appearance 2. Sociables: Seeking brightness of teeth 3. Worriers: Seeking decay prevention 4. Independent: Seeking low price

Criteria for Segmentation

Identifiability: Can we easily identify the segment? Size: Is there adequate sales potential in the segment? Accessibility: Are specialized distribution outlets and communication media available to reach the segment? Responsiveness: How favorably will the segment respond to a tailored marketing program?

Model Segment
Based on consumer strength of commitment, model divides the consumer into four groups. Convertible


Point of Parity and Points of Difference

Once appropriate positioning has been fixed by defining the target market and nature of competition, the basis of positioning can be defined. Proper Positioning requires establishing correct points of difference and points of parity.

Points of Difference (PODs)

PODs: are strong, favorable and unique brand associations. PODs may involve performance attribute. PODs also involve imagery associations (e.g., Western imagery of Marlboro Cigarettes or the fact that British Airline) is advertised as World Favorite Airline).

PODs can also be created on overall superior quality along with as low cost provider etc.

Points of Parity (POPs)

Points of parity are those associations that are not unique to the brand and in fact be shared by other brands. POPs comes in two forms 1. Category Point of Parity. 2. Competitive Point of Parity.

Category POPs
Category POPs are those associations that consumer view as being necessary to be a credible offering. Category POP may change overtime because of Technological advancement or because of consumer trends. Category POPs become especially critical when a brand launches a brand extension into a new category.

Competitive POPs

Competitive POPs are those associations that are designed to negate competitors PODs.

Brand Positioning Guide Lines

Two key issues in arriving at the optimal competitive brand positioning are:
Defining and communicating the competitive frame of reference

Choosing and establishing points-of-parity and points-of-difference

Defining and Communicating the Competitive Frame of Reference

Defining a competitive frame of reference for a brand positioning is to determine category membership.

The preferred approach to positioning is to inform consumers of a brands membership before stating its point of difference in relationship to other category members.

Choosing POPs & PODs

Desirability criteria (consumer perspective)
Personally relevant Distinctive and superior Believable and credible

Deliverability criteria (firm perspective)

Feasible Communicability Sustainability (Pre-emptive, defensible, and difficult to attack)

Establishing POP & POD

strong positioning Creating establishing right POPs and PODs. requires

At times attributes that make POP and POD are negatively correlated.

Establishing POP & POD

Approaches to deal with negative correlation Separate the Attributes Leverage Equity of Another Entity Redefine the Relationship

Defining and Establishing Core Brand Values

Core Brand Values Core brand values are set of abstract associations that characterize 5 to 10 most important dimensions of a brand. OR What the brand stand for .

Structural Process to Identify Core Brand Values 1. 2.


Create a detail mental map of a brand. Create categories of associations according to how they are related. Mental map Core brand values Brand mantra

Brand Mantras
An articulation of the heart and soul of the brand similar to brand essence or core brand promise.
Short three- to five-word phrases that capture

the irrefutable essence or spirit of the brand positioning and brand values .

Designing the Brand Mantra

Brand Mantra is divided into three terms The emotional modifier provides another qualifier how exactly does the brand provide benefits, and in what way? The descriptive modifier further clarifies its nature. The term brand functions describes the nature of the product or service.

Designing the Brand Mantra

Considerations when designing Brand Mantra Communicate Simplify Inspire

Brand Mantras
Nike: Authentic Athletic Performance Disney: Fun Family Entertainment Ritz-Carlton: Ladies & Gentlemen Serving Ladies & Gentlemen

Designing the Brand Mantra

Emotional Modifier Descriptive Modifier

Brand Functions










Brand Audit
A comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage its equity .
It includes brand vision, mission, promise, values, position, personality, and performance.

Brand Audit
Importance of Brand Audits 1. Understand sources of brand equity. From the Firm Perspectives. From the Consumer Perspective. 2. Set strategic direction for the brand. 3. Recommend marketing program to maximize long term brand equity.

Brand Audit
Steps in Brand Audit

1. Brand Inventory 2. Brand Exploratory

Suggested Brand Audit Outline

Brand audit objectives, scope, and approach

Background about the brand (self-analysis) Background about the industries Consumer analysis (trends, motivation, perceptions, needs, segmentation, behavior)

Suggested Brand Audit Outline

Brand inventory
Elements, current marketing programs, POPs, PODs Branding strategies (extensions, sub-brands, etc.) Brand portfolio analysis Competitors brand inventory Strengths and weaknesses

Suggested Brand Audit Outline

Brand exploratory
Brand associations Brand positioning analysis Consumer perceptions analysis (vs. competition)

Summary of competitor analysis

SWOT analysis Brand equity evaluation

Strategic brand management recommendations