- Slides: 26
Objectives of the Class To grasp the essence of the concept of a BRAND To get understanding of what positioning is To get theoretical knowledge about practical procedure of brand positioning To comprehend where and how the concept of a BRAND fits within a wider context of marketing function
WHAT IS A BRAND? An orange. . . is an orange. . . is just an orange. Unless, of course, that orange happens to be a SUNKIST, a name eighty percent of consumers know and trust -Russell L. Hanlin, CEO, Sunkist Growers 3
The Definition I “A brand is a name, term, sign, symbol or design, or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competition. ” American Marketing Association 4
The Definition II “. . . A brand is a collection of perceptions in consumer’s mind. . . ” Paul Feldwick 5
Definition III A brand is A continuous collection Of functional, emotional and self expressive Promises To a target audience That are unique and important These promises are actively communicated thruogh the 4 P (product, price, place, promo) 6
The key to branding is that consumers perceive differences among brands in a product category 8
Creating perceived differences Branded product may be Physical good Place, person Organization, idea Brands create competitive advantages By product performance (Sony, Gillette, 3 M) Non-product-related means (Coca-Cola, Calvin Klein) Associations By creating perceived differences between products through branding, marketers create value 9
How to brand a product? To brand a product it is necessary to give consumers a LABEL for the product (identification) And to provide a MEANING for the brand to consumers (i. e. here’s what this particular product can do for you and why it is special and different from other brand name products) Branding involves creating mental structures and helping consumers organize their knowledge about products/services in a way that clarifies their decision making and, in the process provides value to the firm. 10
What is Positioning? The act of designing the company’s image and value offer so that the target customers understand appreciate what the company stands for in relation to its competitors. P Kotler
What is Positioning? Positioning is the choice of target market segments which determines where the business competes, and the choice of differential advantage which dictates how it competes. P Doyle
Positioning “Positioning starts with a product. A piece of merchandise, a service, a company, or even a person… But positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect. ” Ries and Trout
Positioning: Stage 1 Target Audience • Whom this brand is attributed to? Category need • What product category the brand belongs to? Main offer • What does the brand offer to the consumer?
Positioning: Stage 2 What are the benefits of our brand? Do these benefits distinguish our brand from competition? How many of these benefits should we mention in our message? • How and/or why consumer would benefit from using our brand? • Are the benefits of our brand • Important to the consumer? • Unique in the product category? • Does our brand really deliver on these benefits? • • 1? 2? 3? All of them?
Positioning: Stage 3 Attribute Benefit Emotion • The focal length of the lense is 9 -18 mm • The wide-angle lense • Ability to take panoramic pictures • Take ALL your impressions with you • Your most beautiful landscapes • Grasp the glory of an architecture
Example: Potato Chips 1 • Thick chip 2 • Better tasting because it’s thick 3 • Better tasting 4 • Better tasting (previously dissatisfied) 5 • Fun because it’s better tasting 6 • Just fun John R. Rossiter, Larry Percy, Advertising Communications & Promotion Management, 1998, Mc. Graw Hill
The Key Output of Positioning: Positioning Statement “For ________ , the _________ offers [Highest Ranked Segment [Product Family Name] _____________________ because [Highest Weighted Benefit] ________________________. ” [Competitive advantage company possesses]
Positioning Statement Examples EXAMPLE : AVIS “For business people who rent cars, Avis is the company who will provide the best service because the employees own the company. ” EXAMPLE : HOME DEPOT “For do-it-yourselfers, Home Depot offers the best prices because we are the largest building supply company. ” EXAMPLE : BODY SHOP “For people seeking wellness, the Body Shop offers the most natural bath and cosmetic products because we are the most environmentally friendly cosmetics company. ” EXAMPLE : SOUTHWEST AIRLINES “For short-route travelers, Southwest Airlines offers the best prices with reasonable and dependable service because we don’t charge customers for amenities. ”
Manufactured Goods Positioning Statements
Unique Positioning Checklist Customer Checklist Strongly Disagree Strongly Agree 1. Target customers can comprehend it 1 2 3 4 5 2. Target customers will find it memorable 1 2 3 4 5 3. Target customers will find it believable 1 2 3 4 5 4. Target customers will find it relevant to their needs 1 2 3 4 5 1. We have the resources to attain this position 1 2 3 4 5 2. It is flexible enough to allow us some room to maneuver in the future 1 2 3 4 5 Organization Checklist 3. We can ultimately reach to multiple segments with this positioning statement 4. This positioning statement is consistent with our core competencies.
Unique Positioning Checklist Strongly Disagree Competition Checklist Strongly Agree 1. Competition will concede this position 1 2 3 4 5 2. This is distinctive from the competition’s positioning statement 1 2 3 4 5 3. It would be hard for an existing competitor to match this positioning statement 4. It would be hard for a potential competitor to match this positioning statement Scoring: 55 -60 Outstanding 50 -54 Excellent 42 -49 Acceptable <42 Unacceptable
Questions: What is the positioning of this product in the market? Write the positioning statement for this product
Marketing Mix Decisions The concept of a BRAND trancends all parts of Marketing Mix
Reading Pickton, D. and Broderick, A. (2005) Integrated Marketing Communications Prentice Hal, Chapters related to branding and positioning De Pelsmacker, P. Geuens, M. , and Van Den Bergh , J. (2004) Marketing Communications, Prentice Hall, London, Chapters related to branding and positioning Fill, C. (2005) Marketing Communications Prentice Hall, London, Chapters related to branding and positioning