BRAND POSITIONING

3.1
Brand Positioning

Is 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

3.2
 Positioning Strategies
Positioning Strategy

1. By Attributes/benefits

2. By Use/Application

3. By User

4. By Product Category

5. By Price / Quality

6. By Competitor

7. By Cultural Symbol
3.3
 Positioning Strategies
Positioning Strategy Examples
1. By Attributes/benefits a. Preference by L'Oréal. It cost a little
more, but I’m worth it,

2. By Use/Application b. Revlon - Feel Like A Woman

3. By User c. Master card is accepted at more
restaurants than any other card

4. By Product Category d. Opel – German Engineering

5. By Price / Quality e. Enjoy the ‘summer chill with Nescafé
cold coffee

6. By Competitor f. 7 up is the Uncola. It’s lighter and

more refreshing.

7. By Cultural Symbol g. Bajaj – Distinctly Ahead 3.4

 IDENTIFYING AND
ESTABLISHING
BRAND POSITIONING

3.5
 Class Activity
Positioning of Toothpaste Brands - India

Claims
Value
Target Made / Competito
Brand Benefits Price Propositi RTB Similarities
market Differenti rs
on
ation

3.6
Identifying and Establishing
Brand Positioning
◦ Who the target consumer is

◦ Who the main competitors are

◦ How the brand is similar to these

competitors (PoP)

◦ How the brand is different from them (PoD)

3.7
 1. Target Market
◦ Market - all actual and potential buyers who have
sufficient interest in, income for, and access to a
product.

◦ Market segmentation - distinct groups of

homogeneous consumers who have similar needs
and consumer behavior,

◦ Market segmentation requires making tradeoffs

between costs and benefits.
3.8
Segmentation Bases
Behavior
Segmentation

Psychographics
Measurable Consumer
Characteristics
Demographics

Geodemographics

9
Steps in the Market
Segmentation Process
◦ Market segmentation:
◦ Identify bases (e.g., behavior, demographics) to segment the
market
◦ Develop profiles of resulting segments
◦ Market targeting:
◦ Develop measures of segment attractiveness
◦ Select the target segment(s)
◦ Market positioning:
◦ Develop positioning for each target segment
◦ Develop marketing mix for each target segment
12
2. Define Competitors (Frame
of Reference)
◦ Deciding to target a certain type of consumer
often defines the nature of competition

◦ Defining a competitive frame of reference - is to

determine category membership.

◦ Brand must inform consumers of a category

membership before stating PoDs

3.15
2. Define Competitors cont…

◦ Indirect competition
◦ Do not define competition too narrowly

◦ Ex: a luxury good with a strong hedonic benefit like stereo

equipment may compete as much with a vacation as with
other durable goods like furniture

◦ Multiple frame of references

3.16
3. Points-of-Parity (PoP)

◦ are not unique to the brand but may in

fact be shared with other brands.
◦ Category

◦ Competitive

◦ Correlational

◦ Zone of tolerance

3.17
PoP Cont..

PoP establishes Category Membership.

Three main ways

1. Communicating Category Benefits

2. Exemplars

3. Products Descriptor
3.18
4. Points-of-Difference (PoD)

◦ are attributes or benefits that consumers

strongly associate with a brand, positively
evaluate, and believe that they are
unique.
◦ Performance attributes
◦ Performance benefits
◦ Imagery associations

3.19
Correlational PoPs & PoDs
(Attribute and Benefit Trade-offs)

◦ Price and quality

◦ Taste and low calories

◦ Taste and nutrition

◦ Efficacy and mildness, Power and safety

◦ Ubiquity and prestige/exclusive

◦ Comprehensiveness (variety) and simplicity

3.20
Strategies
(Attribute and Benefit Trade-offs)

◦ Establish separate marketing programs

◦ Leverage secondary association (e.g., co-brand)

◦ Re-define the relationship from negative to

positive

3.21
Choosing POP’s & POD’s
◦ Desirability criteria (consumer perspective)
◦ Relevant

◦ Believable and credible

◦ Differentiation Criteria (consumer perspective)

◦ Distinctive and superior

◦ Deliverability criteria (firm perspective)

◦ Feasible, Profitable

◦ Communicable

◦ Sustainable (defensible, and difficult to attack)

3.22