Chapter 10 Crafting the Brand Positioning Copyright 2016

Learning Objectives 1. 2. How can a firm develop and establish an effective positioning in the market? How do marketers identify and analyze competition? 3. How are brands successfully differentiated? 4. How do firms communicate their positioning? 5. 6. What are some alternative approaches to positioning? What are the differences in positioning and branding for a small business? Copyright © 2016 Pearson Education Ltd. 10 -2

Developing a Brand Positioning • Positioning – The act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market – Value proposition Copyright © 2016 Pearson Education Ltd. 10 -3

Value proposition Copyright © 2016 Pearson Education Ltd. 10 -4

Competitive Frame of Reference • Competitive frame of reference – Defines which other brands a brand competes with and which should thus be the focus of competitive analysis – Identifying and analyzing competitors Copyright © 2016 Pearson Education Ltd. 10 -5

Competitive Frame of Reference Copyright © 2016 Pearson Education Ltd. 10 -6

Points-of-Difference and Points-of-Parity • Points-of-difference (PODs) – Attributes/benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Copyright © 2016 Pearson Education Ltd. 10 -7

Points-of-Difference and Points-of-Parity • POD criteria Desirable Deliverable Differentiating Copyright © 2016 Pearson Education

Points-of-Difference and Points-of-Parity • Points-of-parity (POPs) – Attribute/benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands Copyright © 2016 Pearson Education Ltd. 10 -9

Points-of-Difference and Points-of-Parity • POP forms Category Correlational Competitive Copyright © 2016 Pearson Education

Pop vs. pod • Multiple Frames of Reference • Straddle Positioning Copyright © 2016

Points-of-Difference and Points-of-Parity • Choosing specific POPs and PODs – Competitive advantage – Means of differentiation – Perceptual map – Emotional branding Copyright © 2016 Pearson Education Ltd. 10 -12

Communicating POPs and PODs • Negatively correlated attributes/benefits ü Low price vs. high quality ü Taste vs. low calories ü Powerful vs. safe ü Ubiquitous vs. exclusive ü Varied vs. simple Copyright © 2016 Pearson Education Ltd. 10 -16

MONITORING COMPETITION • Variables in assessing potential competitors – Share of market – Share

Positioning/Branding for A Small Business • Find compelling product • performance advantage • Focus on building one or • two strong brands based on one or two key associations • • Encourage product trial in any way possible • Develop cohesive digital • strategy to make the brand “bigger and better” Create buzz and a loyal brand community Employ a well-integrated set of brand elements Leverage as many secondary associations as possible Creatively conduct low-cost marketing research Copyright © 2016 Pearson Education Ltd. 10 -19