Crafting the Brand Positioning Marketing Management, 13 th ed 11.

Crafting the Brand Positioning

Marketing Management, 13th ed

11

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-2

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?


Defining AssociationsPoints-of-difference

(PODs)• Attributes or benefits

consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand (Apple design, Nike Performance, Lexus quality)

Points-of-parity

(POPs)• Associations that are

not necessarily unique to the brand but may be shared with other brands• Category POP e.g.,

Travel Agency has to make hotel & travel reservations

• Competitive POP e.g., Savlon vs. Detol


Conveying Category Membership

Announcing category benefits (Laziza Kheer Mix in desert category)

Announcing category benefits (Laziza Kheer Mix in desert category)

Comparing to exemplars (Mixer associating itself with Tang)

Comparing to exemplars (Mixer associating itself with Tang)

Relying on the product descriptor (BMW-luxury and

performance)

Relying on the product descriptor (BMW-luxury and

performance)


Consumer Desirability Criteria for PODs

Relevance (One hotel stating the world’s tallest-not relevant for tourists)

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)

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)

Believability (Mountain Dew is more energizing soft drink by emphasizing higher levels of

caffeine)


Deliverability Criteria for PODs

Feasibility (GM had to work very hard by changing consumer perception about

Cadillac as youthful brand)

Feasibility (GM had to work very hard by changing consumer perception about

Cadillac as youthful brand)

Communicability (Proof points-Nivea wrinkle control crème)

Communicability (Proof points-Nivea wrinkle control crème)

Sustainability (Visa, American Express more sustainable vs.

Fashion industry)

Sustainability (Visa, American Express more sustainable vs.

Fashion industry)


Differentiation Strategies (Competitive Advantage)

Product

(Microsoft,

Southwest Airline)

Channel (Eureka

Forbes Vacuum

Cleaner-direct to

home channel)

Image (Marlboro's-

Macho cowboy,

Commander Safeguard)

Personnel

(Singapore Airline)


Product Differentiation

• Product form• Features• Performance• Conformance• Durability• Reliability• Reparability

• Style• Design• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance


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


Figure 10.1 Sales and Product Life Cycle

Figure 10.2 Common Product Life-Cycle Patterns



Figure 10.3 Style, Fashion, and Fad Life Cycles


Figure 10.4 Long-Range Product Market Expansion Strategy


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 price-

sensitive buyers

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 tocome up with line extensions. Weak

competitors withdraw)

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)



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)


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


Market Evolution Stages

Emergence Growth

Maturity Decline


Emerging Markets

Latent

Single-niche

Multiple-niche

Mass-marketZibbie Zone is one of several

virtual worlds tied to toys


Figure 10.5 Maturity Strategies

Crafting the Brand Positioning Marketing Management, 13 th ed 11.

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