10 Crafting the Brand Positioning Marketing Management 13

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10 Crafting the Brand Positioning Marketing Management, 13 th ed

10 Crafting the Brand Positioning Marketing Management, 13 th ed

Chapter Questions • How can a firm choose and communicate an effective positioning in

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? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -2

What is Positioning? Positioning is the act of designing the company’s offering and image

What is Positioning? Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -3

Value Propositions • Perdue Chicken • More tender golden chicken at a moderate premium

Value Propositions • Perdue Chicken • More tender golden chicken at a moderate premium price • Domino’s • A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -4

Competitive Frame of Reference Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Competitive Frame of Reference Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -5

Defining Associations Points-of-parity Points-of-difference (PODs) (POPs) • Attributes or benefits • Associations that consumers

Defining Associations Points-of-parity Points-of-difference (PODs) (POPs) • Attributes or benefits • Associations that consumers strongly are not necessarily associate with a unique to the brand, positively but may be shared evaluate, and believe with other brands they could not find to the same extent with a competitive brand Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -6

PODs and POPs Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10

PODs and POPs Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -7

Establishing Category Membership • This “four-in-one entertainment solution” from Konica failed to establish category

Establishing Category Membership • This “four-in-one entertainment solution” from Konica failed to establish category membership Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -8

Conveying Category Membership Announcing category benefits Comparing to exemplars Relying on the product descriptor

Conveying Category Membership Announcing category benefits Comparing to exemplars Relying on the product descriptor Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -9

Consumer Desirability Criteria for PODs Relevance Distinctiveness Believability Copyright © 2009 Pearson Education, Inc.

Consumer Desirability Criteria for PODs Relevance Distinctiveness Believability Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -10

Deliverability Criteria for PODs Feasibility Communicability Sustainability Copyright © 2009 Pearson Education, Inc. Publishing

Deliverability Criteria for PODs Feasibility Communicability Sustainability Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -11

Examples of Negatively Correlated Attributes and Benefits • Low-price vs. High quality • Taste

Examples of Negatively Correlated Attributes and Benefits • Low-price vs. High quality • Taste vs. Low calories • Nutritious vs. Good tasting • Efficacious vs. Mild • Powerful vs. Safe • Strong vs. Refined • Ubiquitous vs. Exclusive • Varied vs. Simple Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -12

Addressing negatively correlated PODs and POPs • Present separately • Leverage equity of another

Addressing negatively correlated PODs and POPs • Present separately • Leverage equity of another entity • Redefine the relationship Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -13

Differentiation Strategies Product Personnel Channel Image Copyright © 2009 Pearson Education, Inc. Publishing as

Differentiation Strategies Product Personnel Channel Image Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -14

Product Differentiation • • Product form Features Performance Conformance Durability Reliability Reparability • •

Product Differentiation • • Product form Features Performance Conformance Durability Reliability Reparability • • Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -15

Personnel Differentiation: Singapore Airlines Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Personnel Differentiation: Singapore Airlines Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -16

Channel Differentiation Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -17

Channel Differentiation Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -17

Image Differentiation Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -18

Image Differentiation Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -18

Claims of Product Life Cycles • Products have a limited life • Product sales

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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -19

Figure 10. 1 Sales and Product Life Cycle Copyright © 2009 Pearson Education, Inc.

Figure 10. 1 Sales and Product Life Cycle Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -20

Figure 10. 2 Common Product Life-Cycle Patterns Copyright © 2009 Pearson Education, Inc. Publishing

Figure 10. 2 Common Product Life-Cycle Patterns Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -21

Figure 10. 3 Style, Fashion, and Fad Life Cycles Copyright © 2009 Pearson Education,

Figure 10. 3 Style, Fashion, and Fad Life Cycles Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -22

The Pioneer Advantage Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10

The Pioneer Advantage Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -23

Figure 10. 4 Long-Range Product Market Expansion Strategy Copyright © 2009 Pearson Education, Inc.

Figure 10. 4 Long-Range Product Market Expansion Strategy Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -24

Strategies for Sustaining Rapid Market Growth • Improve product quality, add new features, and

Strategies for Sustaining Rapid Market Growth • Improve product quality, add new features, and improve styling • Add new models and flanker products • Enter new market segments • Increase distribution coverage • Shift from product-awareness advertising to product-preference advertising • Lower prices to attract the next layer of pricesensitive buyers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -25

Stages in the Maturity Stage Growth Stable Copyright © 2009 Pearson Education, Inc. Publishing

Stages in the Maturity Stage Growth Stable Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Decaying maturity 10 -26

Marketing Product Modifications • Quality improvements • Feature improvements • Style improvements Copyright ©

Marketing Product Modifications • Quality improvements • Feature improvements • Style improvements Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -27

Marketing Program Modifications Prices Distribution Advertising Sales promotion Services Copyright © 2009 Pearson Education,

Marketing Program Modifications Prices Distribution Advertising Sales promotion Services Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -28

Ways to Increase Sales Volume • • Convert nonusers Enter new market segments Attract

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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -29

A Product in Decline Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

A Product in Decline Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -30

Market Evolution Stages Emergence Growth Maturity Decline Copyright © 2009 Pearson Education, Inc. Publishing

Market Evolution Stages Emergence Growth Maturity Decline Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -31

Emerging Markets Latent Single-niche Multiple-niche Zibbie Zone is one of several Mass-market virtual worlds

Emerging Markets Latent Single-niche Multiple-niche Zibbie Zone is one of several Mass-market virtual worlds tied to toys. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -32

Figure 10. 5 Maturity Strategies Copyright © 2009 Pearson Education, Inc. Publishing as Prentice

Figure 10. 5 Maturity Strategies Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -33

Marketing Debate ü Do brands have finite lives? Take a position: 1. Brands cannot

Marketing Debate ü Do brands have finite lives? Take a position: 1. Brands cannot be expected to last forever. or 2. There is no reason for a brand to ever become obsolete. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -34

Marketing Discussion ü What strategies do firms use to try to position themselves on

Marketing Discussion ü What strategies do firms use to try to position themselves on the basis of pairs of attributes and benefits? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -35