11 Crafting the Brand Positioning Marketing Management 13
11 Crafting the Brand Positioning Marketing Management, 13 th 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? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -2
Defining Associations Points-of-difference Points-of-parity (PODs) (POPs) • Attributes or benefits • Associations that are consumers strongly 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 • Category POP e. g. , the same extent with Travel Agency has to make hotel & travel a competitive brand reservations (Apple design, Nike • Competitive POP e. g. , Performance, Lexus Savlon vs. Detol quality) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -3
Conveying Category Membership Announcing category benefits (Laziza Kheer Mix in desert category) Comparing to exemplars (Mixer associating itself with Tang) Relying on the product descriptor (BMW-luxury and performance) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -4
Consumer Desirability Criteria for PODs Relevance (One hotel stating the world’s tallest-not relevant for tourists) Distinctiveness (Splenda sugar overtook Equal because made of sugar without any side effects) Believability (Mountain Dew is more energizing soft drink by emphasizing higher levels of caffeine) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -5
Deliverability Criteria for PODs Feasibility (GM had to work very hard by changing consumer perception about Cadillac as youthful brand) Communicability (Proof points. Nivea wrinkle control crème) Sustainability (Visa, American Express more sustainable vs. Fashion industry) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -6
Differentiation Strategies (Competitive Advantage) Product (Microsoft, Southwest Airline) Channel (Eureka Forbes Vacuum Cleaner-direct to home channel) Personnel (Singapore Airline) Image (Marlboro's. Macho cowboy, Commander Safeguard) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -7
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 -8
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 -9
Figure 10. 1 Sales and Product Life Cycle Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -10
Figure 10. 2 Common Product Life-Cycle Patterns Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -11
Figure 10. 3 Style, Fashion, and Fad Life Cycles Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -12
Figure 10. 4 Long-Range Product Market Expansion Strategy Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -13
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 -14
Stages in the Maturity Stage Growth (Sales growth starts to decline, no new channels to fill, new competitive force emerge) Stable (Sales flatten on saturation basis, future growth depends on population growth & replacement ) Decaying Maturity (sales slow down creating over capacity. Competitors scramble to find niches, start advertising & consumer promotions. R&D to come up with line extensions. Weak competitors withdraw) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -15
Product Modification • Quality improvement: Stronger, bigger or better (chakki atta in Pakistan) • Feature improvement: Size, weight, materials, additives & accessories (Provide free publicity & generate sales force and distributor enthusiasm) • Style improvement: Improve product esthetic sense (new car models) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -16
Marketing Program Modifications Prices (Price cuts? What sort or Price increase? ) Distribution (Toyo Nasic, Omroc & Nova) Advertising (Increase ads, change message) Sales promotion (What sort of promotions? ) Services (Delivery, after sales, credit) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -17
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 -18
Market Evolution Stages Emergence Growth Maturity Decline Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -19
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 -20
Figure 10. 5 Maturity Strategies Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10 -21
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