Kotler_ch11 Crafting Brand Positioning

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    Crafting

    the Brand Positioning

    Marketing Management, 13thed

    10

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    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?

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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-3

    What is Positioning?

    Positioning is the act of designing thecompanys offering and image to

    occupy a distinctive place in the mind of

    the target market.

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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-4

    Value Propositions

    Perdue Chicken

    More tender golden chicken at a moderate

    premium price

    Dominos

    A good hot pizza, delivered to your door

    within 30 minutes of ordering, at a

    moderate price

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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-5

    Defining Associations

    Points-of-difference(PODs)

    Attributes or benefits

    consumers stronglyassociate with a

    brand, positively

    evaluate, and believe

    they could not find to

    the same extent with

    a competitive brand

    Points-of-parity

    (POPs)

    Associations that

    are not necessarilyunique to the brand

    but may be shared

    with other brands

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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-6

    Conveying Category Membership

    Announcing category benefits

    Comparing to exemplars

    Relying on the product descriptor

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    Consumer Desirability Criteria forPODs

    Relevance

    Distinctiveness

    Believability

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    Deliverability Criteria for PODs

    Feasibility

    Communicability

    Sustainability

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    Examples of Negatively CorrelatedAttributes and Benefits

    Low-price vs.

    High quality

    Taste vs. Lowcalories

    Nutritious vs.

    Good tasting Efficacious vs.

    Mild

    Powerful vs. Safe

    Strong vs.

    Refined Ubiquitous vs.

    Exclusive

    Varied vs. Simple

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

    Addressing negatively correlatedPODs and POPs

    Present separately

    Leverage equity of another entity

    Redefine the relationship

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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-11

    Differentiation Strategies

    Product

    Channel

    Personnel Image

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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-12

    Product Differentiation

    Product form

    Features

    Performance

    Conformance

    Durability

    Reliability

    Reparability

    Style

    Design

    Ordering ease

    Delivery

    Installation

    Customer training

    Customer consulting

    Maintenance

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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-13

    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 ineach life cycle stage

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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-14

    Strategies for SustainingRapid 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

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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-15

    Stages in the Maturity Stage

    Growth

    Stable

    Decaying maturity

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    Marketing Product Modifications

    Quality improvements

    Feature improvements

    Style improvements

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    Marketing Program Modifications

    Prices

    Distribution

    Advertising Sales promotion

    Services

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    Ways to Increase Sales Volume

    Convert nonusers

    Enter new market segments

    Attract competitors customers

    Have consumers use the product onmore occasions

    Have consumers use more of the

    product on each occasion Have consumers use the product in

    new ways

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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-19

    Market Evolution Stages

    Emergence

    Growth

    Maturity Decline

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    Emerging Markets

    Latent

    Single-niche

    Multiple-niche Mass-market

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    Maturity Strategies

    Market fragmentation stage

    Market consolidation stage