BUILDING STRONG BRANDS
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Transcript of BUILDING STRONG BRANDS
Part-4
BUILDING STRONG BRANDS
Chapter-10
CRAFTING THE BRAND POSITIONING
Positioning is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market
• The competitive frame of reference defines which other brands a brand competes with
• A starting point is to determine category membership—the products or sets of products with which a brand competes and which function as close substitutes.
• We can examine competition from both an industry and a market point of view. • An industry is a group of firms offering a product or class
of products that are close substitutes for one another. • Using the market approach, we define competitors as
companies that satisfy the same customer need.
Competitive Frame of Reference
Points-of-difference Points-of-Difference are attributes or benefits consumer strongly associate with a brand, positively, and believe they could not find to same extent with a competitive brand. Apple (design)
Points-of-Parity
-Points-of-Parity are association that are not necessarily unique to the brand but may in fact be shared with other brands.
-Category-Travel Agency-Competitive – Miller Lite Beer. “Everything You’ve
Always Wanted in a Beer….and Less”
Points-of-Difference VS Points-of-Parity
Widely Available Prestige
Increasing Availability
Point-of-Difference Criteria
Desirable
Deliverable
Differentiating
Conveying Category Membership
• Announcing category benefits• Comparing to exemplars• Relying on the product descriptor
Communicating POPs and PODs
Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match.
• Employee Differentiation-SG Airlines, GE
• Channel Differentiation-iPhone for Operators, Nokia for Open Channel
• Image Differentiation-Marlboro’s “macho cowboy”
• Services Differentiation-Zappos, SG Airlines
Differentiation Strategies
Chapter-11
COMPETITIVE DYNAMICS
Competitive Strategies for Market Leaders
• Expanding the Total Market- Leader gain most• New Customers• More Usage- Gillette
• Defending Current Market Share- continuous innovation• Position Defense• Flank Defense• Preemptive Defense-preannouncements• Counteroffensive Defense• Mobile Defense• Contraction Defense
ATTACKER
(2) Flank
(5) Mobile
(1)Position
DEFENDER
(6)Contraction(3)Preemptive
(6)Counteroffensive
Competitive Strategies for Market Leaders
• Increase Current Market Share- buying share is costly• Antitrust actions• Economic Cost• Wrong Marketing Activities• The effect of increased market share on actual perceived quality
Competitive Strategies for Market Challengers
• Defining the Strategic Objective and Opponents• It can attack the market leader• It can attack firms of its own size • It can attack small local and regional firms
• Choosing a General Attack Strategy• Frontal Attack• Flank Attack• Encirclement Attack• Bypass attack• Guerrilla Warfare
• Choosing a Specific Attack Strategy
Competitive Strategies for Market Followers
• Counterfeiter• Cloner• Imitator• Adaptor
Competitive Strategies for Market-Nicher
• Creating Niche• Expanding Niche• Protecting Niche
Balancing Customer and Competitor Orientations
Product Life-Cycle Marketing Strategies
1.Introduction2.Growth3.Maturity4.Decline
Product Life-Cycle- Patterns
1.Growth-Slump-Maturity Pattern- Kitchen Appliance, Mosquito bat???
2.Cycle-Recycle Pattern-New Drag3.Scalloped Pattern- Nylon
Product Life-Cycle
Style, Fashion, and Fad Life Cycle-Style is a basic and distinctive mode of expression appearing in a field of human endeavor. -Clothing ( Formal, casual, funky), Art ( realistic, Abstract)-Fashion is a currently accepted or popular style in a given field-Fads are fashions that come quickly into public view, are adopted with great zeal, peak early and decline very fast.
Marketing Strategies: Introduction Stage and the Pioneer Advantage
- Lead time of New Product development- Channel Fulfillment- Consumer acceptance- High Cost - Low sales - Low Profit
Consider the Pros and Cons of first mover
Marketing Strategies: Growth Stage
- Rapid Climb in sales- Low cost due to economy of scale- High profit
Points to focus
• Improve Product quality , add new feature• Add new models, flanker products• Enter new market segment• Increase distribution coverage• Product awareness to product-performance communication• Lower price for next layer consumers
Marketing Strategies: Mature Stage- Rate of Sales growth will slow- Normally last longer than previous stages- Most products are in this stage
The Maturity Stage divides into three phases
• Growth• Growth rate start to decline• Competition emerge
• Stable• Sales flatten• Sales growth depend on population growth
• Decaying maturity • Absolute level of sales starts to decline• Overcapacity in the industry thus price war
Cigarettes
Marketing Strategies: Mature Stage. Continue..
- “Big three” with high volume and low cost - Niche player with low volume high margin
Three ways to change the course1. Market Modification
• Number of Brand users• Usages rate per users
2. Product Modification• Quality Improvement• Feature Improvement• Style Improvement
3. Marketing Program Modification• 4 Ps
Marketing Strategies: Decline Stage.
- Technological Advance- Shifts in consumer taste- Price cutting , profit erosion
-Exit Barriers-Relative Attractiveness of Industry-Company's Competitive Strength
• Harvesting• Divesting