Markma Group 4 Presentation Chapter 10 Crafting the Brand Positioning
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Transcript of Markma Group 4 Presentation Chapter 10 Crafting the Brand Positioning
MARKETING MANAGEMENT
GROUP # 4
Chapter 10:
Crafting the Brand Positoning
Crisostomo, Kathleen Lizette
Jongco, Kristoffer
Piñon, Raymund
Siton, Galicano
Crafting the Brand Positioning
Kristoffer Z. Jongco
Marketing management
Outline
What is Brand/Branding and Positioning Choosing & communicating effective
positioning in market Differentiating brands Marketing strategies for stages of product life
cycle
Marketing evolution
Brand and Branding
Brand: A name, term, sign, symbol, or a combination, intended to identify the goods or services of one seller or group of sellers and to differentiate them from competitors
Branding: Providing goods and services with the power of the brand
Advantages of Strong Brands
• Improved perceptions of product performance
• Greater loyalty• Less vulnerability
to competitive marketing actions
• Less vulnerability to crises
• Larger margins• More inelastic
consumer response• Greater trade
cooperation• Increased marketing
communications effectiveness
• Possible licensing opportunities
Defining Associations
Points-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
Points-of-parity (POPs)
• Associations that are not necessarily unique to the brand but may be shared with other brands
Brand Positioning
Act of designing the company’s offering and image to occupy a distinctive place in the
mind of the target market
Choosing and Communicating an Effective Positioning in the Market
How to choose good elements: • Memorable• Meaningful• Likeable• Transferable• Adaptable
How Brands are Differentiated Product
How Brands are Differentiated Product
Personnel
How Brands are Differentiated Product
Personnel
Channel
How Brands are Differentiated Product
Personnel
Channel
Image
Product Differentiation
• Product form• Features• Performance• Conformance• Durability• Reliability• Reparability
• Style• Design• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance
Personnel Differentiation
• Better trained • Competent • Trustworthy• Friendly & respectful• Reliable• Responsible• Good communicator
Channel Differentiation
• Coverage• Expertise
• Performance
Image Differentiation
• Establish character and value proposition
• Convey in a distinctive way• Deliver emotional power
Product Life Cycles Stages
Stages in the Product Life Cycle1st Stage
Growth
Stable
Stages in the Product Life Cycle2nd Stage
Declining Maturity
Stages in the Product Life Cycle3rd Stage
Appropriate Marketing Strategies:1st Strategy
Improve Quality
Distribution
Appropriate Marketing Strategies:2nd Strategy
Advertising
Appropriate Marketing Strategies:3rd Strategy
Sales Promotion
Appropriate Marketing Strategies:4th Strategy
Services
Appropriate Marketing Strategies:5th Strategy
Attract Customers
Appropriate Marketing Strategies:Increasing Sales Volume
Appropriate Marketing Strategiesfor stages of product life cycle
Stages:Growth; Stable; Decaying Maturity
Improve quality Distribution Advertising Sales Promotion Services
Attract
Market Evolution Stages:1st Stage
• Emergence
• Growth
Market Evolution Stages:2nd Stage
• Maturity
Market Evolution Stages:3rd Stage
Market Evolution Stages:4th Stage
• Decline
Market Evolution 4 Stages
• Emergence
• Growth
• Maturity
• Decline
Summary
What is a Brand, Branding & Positioning? How to choose and communicate effective
positioning Brand Differentiation The different marketing strategies Evolution of marketing
Communicate Effective Positioning
Brand Differentiation Marketing Strategies
Market Evolution
Product
Personnel
Channel
Image
Emergence-Growth-Maturity-Decline
Product Life Cycle
Improve quality Distribution Advertising Sales PromotionServices
Attract
Growth, Stable, Decaying Maturity
Crafting the Brand Positioning:
A Visual Model (Chapter 10) Raymund C. Piñon
Marketing Management V57
VCoach Bong De Ungria
Marketing Task #4BUILDING STRONG BRANDS
Crafting the Brand Positioning
ObjectivesAt the end of this presentation, the participants should be able to
1. Understand how firms can choose and communicate an effective positioning in the market
2. See how brands are differentiated
3. Appreciate how different marketing strategies are appropriate at each stage of the product life cycle
4. Understand the implications of market evolution for marketing strategies
Outline
Developing and Communicating a Positioning Strategy Competitive Frame of Reference Points-of-Difference and Points-of-Parity
Differentiation Strategies
Product Life-Cycle Strategies
Developing and Communicating a Positioning Strategy
All marketing strategy is built on STP
Segmentation – discover different needs and groups in the marketplace
Targeting – identify groups it can satisfy in a superior way
Positioning – positions its offering so that the target market recognizes the firm’s distinctive offering & image
What is Positioning?Act of designing an offer and image to occupy a distinctive place in the minds of the target market
Positioning results in
The creation of a
A persuasive REASON WHY the target market should buy the product
Positioning Examples of Customer-Focused Value Propositions
Langhap Sarap Food offered by Jollibee caters to Filipino taste
Pera padala Makakarating ang padala mo
We have it all for you Convenient shopping experience in SM’s one-stop
shop because it provides all you need under one roof
World’s safest pain reliever Biogesic is safe even for pregnant women
PositioningThe Starting Point
1. Competitive Frame of Reference
2. Points-of-Difference and Points-of-Parity
PositioningThe Starting Point: Competitive Frame of Reference
Category Membership Define Customer Target Market
Define Nature of Competition Products and services competing
for same target segment Substitute products and services
PositioningThe Starting Point: Points-of Difference
POD – attributes or benefits that consumers… Strongly associate with a brand
Positively evaluate
Believe are unique to the brand or could not be found to the same extent in other brands
Energizer – longest lasting battery
Louis Vuitton – most stylish handbag
McDo
Fun place for family to be togetherand for children to play
Clean pleasant modern facilities Food kids love and are affordable
Prompt friendly service
Ned Roberto (Marketing Guru) Manny Paquiao (Pambansang Kamao)
PositioningThe Starting Point: Points-of-Parity
POP – attribute or benefit associations not unique to the brand but may in fact be shared with other brands
Category POPs
Competitive POPs
=
PositioningThe Starting Point: Points-of-Parity
Category POPs
Associations essential to a legitimate and credible offering within a category
Necessary, but not sufficient, condition for brand choice
Soap must be able to clean
A doctor must have medical training and license to practice
PositioningThe Starting Point: Points-of-Parity
Competitive POPs
Associations designed to negate a competitor’s POD
Brand “breaks even” on areas where competitors are trying to create an advantage
Consumers must believebrand is “good enough” onan attribute or benefit
x
PositioningEstablishing Category Membership
Marketers must inform consumers of a brand’s category membership Announcing category benefits
Cherifer – tangkad sagad Enervon C - protektodo
Comparing to exemplars The Rolls Royce of the banking industry Elvis Presley of the Philippines
Relying on the product descriptor Ford Freestyle “Space Wagon” Ateneo Graduate School of Business
PositioningChoosing POPs and PODsFor PODs
Desirability Relevant and Important
Distinctive and superior
Believable, credible, compelling
Deliverability of promise Feasibility
Design and offer support desired associations
Communicability Compelling reason to believe Understandable rationale why brand can deliver desired benefits Verifiable evidence or proof points
Sustainability Preemptive Defensible Difficult to attack
PositioningChoosing POPs and PODs
For POPs
Need for category membership
Create competitive POPs to negate competitors’ PODs
PositioningLevels of Brand’s POD
Attributes- Promil containstaurine
FunctionalBenefits (What a
brand does)- Promotes
Braindevelopment
Psycho-Social
EmotionalBenefits
(Self-ImageSocial Image)
- I’m a good Mom
Instrumental and
TerminalValues
- My children will love me
PositioningPositioning Statement
To (Target group and need)
Children who are undernourished due to poor appetite
Our(Brand)
Appebon
Is(Concept)
Is a complete vitamin-mineral formulation with an appetite stimulant
That(what POD is or does)
Provides needed nourishment and stimulates children’s appetite because it contains 5 mg of buclizine HCl
DifferentiationTo avoid the commodity trap Competitive advantage
A company’s ability to perform in one or more ways that competitors cannot or will not match
Leverageable advantage Advantage a company can use as springboard to new
advantages
Customer advantage Competitive advantage that is seen by customer as an
advantage to themselves
DifferentiationDeriving Fresh Insights to Differentiate
The Consumption Chain Examining customers’ entire experience
with a product or service to uncover opportunities to position offerings in ways no one thought possible
McMillan & McGath Questionnaire To derive consumer-based
points of differentiation
DifferentiationDimensions
Product design Swatch – colorful, fashionable watches Subway – healthy alternative to fast foods
Personnel Differentiation Better-trained employees
Channel Differentiation More effective and efficient design of
distribution channels’ coverage, expertise and performance
Image Differentiation Craft powerful, compelling images Marlboro Man
Product Life Cycle Marketing Strategies
Introduction Slow sales growth Heavy expenditure Non-existent profits
Growth Rapid market acceptance Substantial profit improvement
Maturity Slowdown in sales growth Acceptance y most potential buyers Stabilized or decreased profits Increased competition
Decline Sales decline Profits erode
Product Life Cycle Marketing StrategiesMarketing Strategy is about STP
A company’s POSITIONING and DIFFERENTIATION strategy must change as products, markets and competitors change
over the PRODUCT LIFE CYCLE
SWOTSWOT
SWOT
SWOT
Product Life Cycle Marketing Strategies
SWOT
Key Issues:• Pioneer 1st to market with new product vs. late entrant with better product• Heavy investments in product, technology, market, channel development• Market entry strategy with high risks and uncertainty
Product Life Cycle Growth Stage Marketing Strategies
SWOT
• New entrants come in with new product features and expanded distribution• Customer base expands from innovators to early adopters• Sales increase, prices remain or fall, promo expense and profits increase• Company improves product quality, adds new features and improves styling• Adds new models and flankers, enters new segments, • Increases distribution coverage and enters new channels• Shifts from product awareness advertising to product preference advertising• Lowers prices to attract next layer of price-sensitive buyers
Product Life Cycle Maturity Stage Marketing Strategies
SWOT
• Sales growth rate slows, flattens then declines• No new distribution channels, market is saturated, future growth organic• Customer starts switching to other products• New competitive forces – emerge of new categories or blue oceans• Sales decline cause overcapacity and leads to fierce competition for market shares • Price wars, increased promo spending, increased R&D spend• Exit of weaker competitors and dominance of a few large competitors: quality leader,
cost leader, service leader and a few nichers
Product Life Cycle Maturity Stage Marketing Strategies
SWOT
Ways to change the course of a brand during maturity stage• Market modification - expand market:
Volume = Expand # of brand users x increase usage rate per user
• Product modification: Improve quality, features, style
• Market program modification: pricing, distribution, advertising, trade and consumer promotions, personal selling, services
Product Life Cycle Decline Stage Marketing Strategies
SWOT
• Sales decline due to technological advances, changes consumer preferences, increased domestic and foreign competition
• Industry overcapacity, price cuts, profit erosion• Companies exit the market, reduce products offered, withdraw smaller segments and
weaker trade channels • Cut promotional budget and lower prices further• Sustain product? Modify marketing strategy? Drop product?• Harvest – maintain sales, cut costs. • Divest – Sell or liquidate?
Market Evolution Latent market
Diffused preference Single-niche strategy Multiple-niche strategy Mass-market strategy
Emergence stage
Growth stage
Maturity stage Market fragmentation Market consolidation
Decline stage
Market EvolutionMarketing Strategy is about STP
Firms must visualize a market’s evolutionary path as it is affected by new needs, technology, competitors, channels and other developments. A company’s POSITIONING and DIFFERENTIATION
strategy must change to keep pace with market developments
SWOTSWOT
SWOTSWOT
Summary
1. How firms choose and communicate an effective positioning in the market
2. How brands are differentiated
3. How different marketing strategies are appropriate at each stage of the product life cycle
4. Implications of market evolution for marketing strategies
+
POP
+POD
=
Crisostomo, Kathleen Lizette C.
MARKMA
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
mind of the target market.
Defining Associations:Points-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 brandPoints-of-parity (POPs)Associations that are not necessarily unique to the brand but may be shared with other brands
Criteria for PODs:
* Relevance* Distinctiveness* Believability
Desirable:
Criteria for PODs:
* Relevance* Distinctiveness* Believability
* Feasibility* Communicability* Sustainability
Desirable:
Deliverable:
Differentiation Strategies
Product
Differentiation Strategies
Product
Personnel
Differentiation Strategies
Product
Personnel
Channel
Differentiation Strategies
Product
Personnel
Channel
Image
Product Life Cycle Claims:
Product Life Cycle Claims:
Products have a limited life
Product Life Cycle Claims:
Products have a limited life
Product sales pass through distinct stages each with different challenges and opportunities
Product Life Cycle Claims:
Products have a limited life
Product sales pass through distinct stages each with different challenges and opportunities
Profits rise and fall at different stages
Product Life Cycle Claims:
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
Product Life Cycle Marketing Strategies
Product Life Cycle Marketing Strategies
• Introduction stage - slow growth in minimal profits.- if successful, the product enters a gross stage marked by rapid sales growth and increasing profits
Product Life Cycle Marketing Strategies
• Growth Stage- Improve product
quality - Add new product
features, models- Enter new markets –Increase distribution
coverage- Shift from product-
awareness advertising to product-preference
Product Life Cycle Marketing Strategies
• Maturity Stage- Improve product
quality - Add new product
features, models- Enter new markets –Increase distribution
coverage- Shift from product-
awareness advertising to product-preference
Product Life Cycle Marketing Strategies
• Decline stage- Identify the truly weak products and develop a
strategy for each or phase out
The Maturity Stage
Growth
Stable
Decaying Maturity
STAGES
The Maturity Stage
Growth
Stable
Decaying Maturity
STAGES
PRODUCT MODIFICATIONS
2012 Toyota Prius-C Hybrid Sedan1. Quality 2.
Features3.
Sedan
The Maturity Stage
Growth
Stable
Decaying Maturity
STAGES
PRODUCT MODIFICATIONS
2012 Toyota Prius-C Hybrid Sedan1. Quality 2.
Features3.
Sedan
PROCESS MODIFICATIONS
P.A.D.S.S.Prices
Advertising
DistributionSales
PromotionServices
Maturity Stages: Growth, Stable, Maturity
Decline
Maturity Stage: Product Modification
Product Life Cycle Marketing Strategies: Introduction, Growth,
Maturity, Decline
Limited Life
Defined Stages
Rise and Fall of ProfitsDifferent Strategies in Each Life Cycle
Differentiation Strategies
Product Life Cycle Claims:
Image
Product
Personnel
Channel
Criteria for PODs
Desirable
Deliverable
SUMMARY PAGE
Galicano, Siton
Markma V57
Crafting The Brand Positioning
Defining Association
Why they are similar and Why they are so different
Deliverability and Desirability Criteria of PODS
Relevance
BelievabilityDistinctiveness
Communicability
Sustainability
Feasible
Differentiation Strategies
Product Personnel
Channel Image
Product Lifecycle
1 2
34
Marketing Program Modifications and Evolution Ways to Increase
Sales Volume Use product in new
ways Use product in many
occasion Use many product in
many occasions
Emerging and Maturing Markets
You
Them
He
She
It
Old
New
You
Them
He
She
It
Old
New
You
Them
He
She
It
Old
New
You
Them
He
She
It
Old
New
Relevance
BelievabilityDistinctiveness
Communicability
Sustainability
Feasible
Product Cycle
Emerging
Maturing
Brand Craft
Association