Chapter 3 Brand Positioning
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Transcript of Chapter 3 Brand Positioning
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Chapter 3
Brand Positioning
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“It is better to be first in the MIND,
than be first in MARKETPLACE”
Al Ries & Jack Trout
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BRAND CONCEPTSIdentifying & Establishing Brand Positioning
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Brand Positioning
• Is at the heart of marketing strategy
• “. . . the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.”
Philip Kotler
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Determining a Frame of Reference
• CBBE models require a frame of reference to determine Brand Positioning
• What are the ideal points-of-parity and points-of-difference of brand associations vis-à-vis the competition?
• Marketers need to know:– Who the target consumer is– Who the main competitors are – How the brand is similar to these competitors – How the brand is different from them
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TARGET MARKETWho the Target Consumer is?
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Target Market
• A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.
• Market segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes.
• Market segmentation requires making tradeoffs between costs and benefits.
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Example of the toothpaste market
• Four main segments:1. Sensory: Seeking flavor and product appearance
2. Sociables: Seeking brightness of teeth
3. Worriers: Seeking decay prevention
4. Independent: Seeking low price
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Criteria for Segmentation
• Identifiability: Can we easily identify the segment?
• Size: Is there adequate sales potential in the segment?
• Accessibility: Are specialized distribution outlets and communication media available to reach the segment?
• Responsiveness: How favourably will the segment respond to a tailored marketing programme?
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NATURE OF COMPETITIONWho the Main Competitors are?
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Nature of Competition• Deciding to target a certain type of consumer
often defines the nature of competition– Competition can take place on other bases like
• Channel of distribution• Resources• Capabilities• Intentions of other firms etc.
• Do not define competition too narrowly– Sales of apparel industry may decline because of
increase spending by consumers on home furnishings etc.
• Product category structure
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POINTS OF PARITY &POINTS OF DIFFERENCE
How the Brand is Similar & Different to These Competitors ?
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Point of Difference
• Points-of-difference (PODs) are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand.– USP (Rosser Reeves; Ted Bates Advertising Agency)– Sustainable Competitive Advantage (SCA)
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Point of Parity
• Points-of-parity associations (POPs), on the other hand, are not necessarily unique to the brand but may in fact be shared with other brands. – Category Point of Parity
• Represent necessary, but not necessarily sufficient conditions for brand choice. (Bank - account types, deposit boxes, travelers checks, ATMs etc)
– Competitive Points of Parity• Those associations designed to negate
competitors point of difference.
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Positioning Guidelines
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Positioning Guidelines
• Two key issues in arriving at the optimal competitive brand positioning are:– Defining and communicating the competitive
frame of reference
– Choosing and establishing points-of-parity and points-of-difference
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DEFINING AND COMMUNICATING THE COMPETITIVE FRAME OF REFERENCE
Positioning Guidelines
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Defining and Communicating the Competitive Frame of Reference
• Defining a competitive frame of reference for a brand positioning is to determine category membership.
• The preferred approach to positioning is to inform consumers of a brand’s membership before stating its point of difference in relationship to other category members.
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Choosing POD’s
• Desirability criteria (consumer perspective)– Personally relevant
• Target consumers must find the POD personally relevant and important.
– Distinctiveness• POD must be distinctive and superior
– Believability• POD must be believable and credible
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Choosing POD’s
• Deliverability criteria (firm perspective)– Feasible
• Can firms actually create POD
– Communicability• Consumer’s perception of the brand and the resulting brand
association.
– Sustainability• Is the positioning pre-emptive, defensible, and difficult to
attack
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ATTRIBUTE & BENEFIT TRADEOFF
Establishing POP & POD
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Attribute and Benefit Trade-offs
• Many attributes of benefits that make up POP & POD are negatively correlated– Price and quality– Convenience and quality– Taste and low calories– Efficacy and mildness– Power and safety– Ubiquitous and prestige– Comprehensiveness (variety) and simplicity– Strength and refinement
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Strategies to Reconcile Attribute and Benefit Trade-offs• Establish separate marketing programs
– Head and Shoulders (Zero Dandruff, and beautiful hair)
• Leverage secondary association (e.g., co-brand, brand ambassadors)
• Re-define the relationship from negative to positive
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Thank you for your patience
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Designing the Brand Mantra
• The term brand functions describes the nature of the product or service or the type of experiences or benefits the brand provides.
• The descriptive modifier further clarifies its nature.
• The emotional modifier provides another qualifier—how exactly does the brand provide benefits, and in what way?
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3.28
Designing the Brand Mantra
EmotionalModifier
Descriptive
Modifier
BrandFunctions
Nike Authentic Athletic Performance
Disney Fun Family Entertainment
Fun Folks Food
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Internal Branding
• Members of the organization are properly aligned with the brand and what it represents.
• Crucial for service companies
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Brand Audit
• Externally, consumer-focused assessement• A comprehensive examination of a brand
involving activities to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity
• It includes brand vision, mission, promise, values, position, personality, and performance
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Importance of Brand Audits
• Understand sources of brand equity– Firm perspective– Consumer perspective
• Set strategic direction for the brand• Recommend marketing programmes to maximize
long-term brand equity
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Brand Audit Steps
• Brand inventory (supply side)
• Brand exploratory (demand side)
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Brand Inventory
• A current comprehensive profile of how all the products and services sold by a company are branded and marketed:– Brand elements– Supporting marketing programs– Profile of competitive brands– POPs and PODs– Brand mantra
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Brand Inventory (Cont.)
• Suggests the bases for positioning the brand• Offers insights to how brand equity may be better
managed• Assesses consistency in message among
activities, brand extensions, and sub-brands in order to avoid redundancies, overlaps, and consumer confusion
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Brand Exploratory
• Provides detailed information as to how consumers perceive the brand:– Awareness– Favorability– Uniqueness of associations
• Helps identify sources of customer-based brand equity
• Uncovers knowledge structures for the core brand as well as its competitors
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Suggested Brand Audit Outline• Brand audit objectives, scope, and approach• Background to the brand (self-analysis)• Background to the industries• Consumer analysis (trends, motivation, perceptions, needs,
segmentation, behaviour)• Brand inventory
– Elements, current marketing programmes, POPs, PODs– Branding strategies (extensions, sub-brands, etc.)– Brand portfolio analysis– Competitors’ brand inventory– Strengths and weaknesses
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Brand Audit Outline (Cont.)
• Brand exploratory– Brand associations– Brand positioning analysis– Consumer perceptions analysis (vs. competition)
• Summary of competitor analysis• SWOT analysis• Brand equity evaluation• Strategic brand management recommendations