MARKETING MANAGEMENT

12th edition

Chapter 9
Crafting the Brand
Positioning
Marketing Strategy

Segmentation

Targeting

Positioning

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 Positioning

Act of designing the company’s

offering and image to occupy
a distinctive place in the mind of
the target market.

Positioning starts with product….

But positioning is not what your do to a product.
Positioning is what you
do to the mind of the PROSPECT
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Value Propositions

• Domino’s Pizza
– A good hot pizza, delivered to your door
within 30 minutes of ordering, at a
moderate price
• Target Consumer: Convenience-minded pizza lovers
• Benefit: Delivery speed and good quality
• Price: 15% premium
• Value Proposition: A good hot Pizza, delivered to your door
within 30 minutes of ordering, at a moderate price
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 Competitive Frame of Reference

• Competitive Frame of Reference is to determine

the category membership- The product or sets of
products with which a brand competes and which
function as close substitutes.
Domino’s Pizza and Frozen Pizza Market

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Competitive Frame of Reference

Frozen Pizza

Normal Pizza
Points of Parity (POP) and
Points of differences (POD)
Point of Difference  A particular attribute or
dimension of a brand which a group of consumers
likes and perceives as the uniqueness of the brand.

Point of Parity  a particular dimension or attribute

or a brand which a group of consumers believe
that is ‘good enough’ or meet their basic
expectations.

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 Point of Difference Vs. Points of Parity
• Point of Difference: The attributes consumers strongly
associates with a brand, positively evaluate, and believe
that they could not find to the same extent with a
competitive brand.
• FedEx (Guaranteed Overnight Delivery)
• Nike (Performance)

10-8
 Consumer Desirability Criteria for PODs

Desirable to consumer: Target consumers must find the

POD personally relevant and important. eg: Westin Stamford Hotel
in Singapore advertised that it was the world’s tallest hotel.

Desirable by company: Must have internal resource

and commitment and profitability to create and maintain
brand association. VISA

Differentiating from competitor: Distinct and superior to

relevant competitors. Eg. GP 3G in Bangladesh

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 Deliverability Criteria for PODs

Feasibility: The product or service design and

marketing offering must be support the desired
association. REAL CHANGE

Communicability: What factual or verifiable evidence

or proof points can be given as support of believability.
Eg. Wrinkle Control Cream……Fair and Lovely…….Veet

Sustainability: Is the positioning preemptive,

defensible and difficult to attack? Sustainable positioning of
Prada, Hermes

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 Point of Difference Vs. Points of Parity
• Point of Parity: That are not necessarily unique to the brand
but may in fact be shared with other brands.
– Category POP: They represent necessary condition for
brand choice. For example; Consumer may not choose a travel
agent unless it is able to make air ticket, hotel reservation and can
give advise about leisure package….etc. This POP may change over
time due to technological advances, consumer trend or legal
development.

– Competitive POP: designed to overcome perceived

weaknesses of the brand. In the eyes of consumer. If a
brand can ‘break-even’ in those areas where the
competitors are trying to find an advantage and can
achieve advantages in other areas, the brand should in a
strong- and perhaps unbeatable-competitive position.

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 Product Differentiation

• Product form (Size) • Style

• Features (functions) • Design (laptop mouse)
• Performance • Ordering ease
• Conformance (Panasonic • Delivery (30 minutes delivery)
energy saving)
• Installation (CAT Installation)
• Durability
• Customer training
• Reliability
• Customer consulting
(Nazma Metal 10 years)
• Reparability • Maintenance
(Spare parts availability)

Air Asia Airlines with low prices 10-12

Personnel Differentiation

• Singapore Airlines enjoys excellent reputation in

large part because of its flight attendants.
• IBM people are professional
• McDonald’s people are courteous

Channel Differentiation
• CAT dealers found more locations than
competitors dealers.
• DELL and AVON is direct marketing channel

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Image Differentiation

• Image is the way the public perceives the

company and its products. Effective identity does:
– Product’s character and value proposition
– Character in distinctive way
– Emotional power beyond a mental image

IBM MEANS SERVICE

TOYOTA MEANS LOW COST EFFICIENT CAR

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Image Differentiation

10-15
Image Differentiation

10-16