BPM

STRATEGIC MARKETING
MANAGEMENT
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Session 6

 Questions regarding Learning Guide and/or

assessments
 Online Activities
 Chapter 2
 Activity 1: Brand Awareness
 Activity 2: Brand Positioning

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Strategic Brand Management: Building,
Measuring, and Managing Brand Equity
Fifth Edition

Chapter 2
Customer-Based Brand
Equity and Brand Positioning

Copyright
Copyright ©Pearson
© 2013 2020,Education,
2013, Inc.
2008 Pearson
Publishing Education,
as Prentice Hall. Inc. All Rights Reserved
Learning Objectives
2.1 Define customer-based brand equity
2.2 Outline the sources and outcomes of customer-based brand
equity
2.3 Identify the four components of brand positioning
2.4 Describe the guidelines in developing a good brand positioning
2.5 Explain brand mantras and how they should be developed

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Customer-Based Brand Equity

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 Defining Customer Based Brand Equity
(CBBE)
 Approaches brand equity from the perspective of the
consumer
 Stresses that the power of a brand lies in what
resides in the minds and hearts of customers
 Differential effect that brand knowledge has on
consumer response to the marketing of that brand
 https://www.coca-colacompany.com/au/brands.html

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Strong Brands
 Brands that have been market leaders in their
categories for decades
 Any brand is vulnerable and susceptible to poor
brand management

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Figure 2.1- Marketing Advantages of
Strong Brands

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Brand Equity as a Bridge

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To Sum up ...
 Consumer's perception of the brand plays a key
role in determining the worth of the brand
 Brand equity offers guidance to interpret past
marketing performance and design future
marketing programs
 Other factors that influence brand success and
equity are:
 Employees,suppliers, and channel members
 Media and government

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Identifying and Establishing Brand
Positioning

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Basic Concepts
 Brand positioning
 Act of designing the company’s offer and image so that
it occupies a distinct and valued place in the target
customers’ minds
 Finding the proper “location” in the minds of consumers
or market segment
 Allows consumers to think about a product or service in
the “right” perspective
Good Brand Positioning helps guide marketing strategy by
clarifying what a brand is all about, how it is unique and how
is is similar to competitive brands and why consumers should
purchase and use it.
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Target Market
 Market segmentation: Divides the market into
distinct groups of homogeneous consumers who have
similar needs and consumer behavior
 Involves identifying segmentation bases and criteria
 Criteria
 Identifiability
 Size
 Accessibility
 Responsiveness

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Figure 2.3 - Consumer Segmentation
Bases

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Figure 2.4 - Business-to-Business
Segmentation Bases

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Figure 2.5 - Hypothetical Examples
of Funnel Stages and Transitions

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Positioning Guidelines

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Defining and Communicating the Competitive Frame
of Reference
 Communicating category benefits:
 Marketers use product benefits to announce category
membership
 Exemplars:
 Well-known, noteworthy brands in a category can also be
used as exemplars to specify a brand’s category membership
 Product descriptor:
 Product descriptor that follows a brand name is often a very
compact means of conveying category origin

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Nature of Competition
 Competitive analysis
 Indirect competition
 Multiple frames reference

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Points-of-difference associations
• Attributes or benefits that consumers strongly
associate with a brand, positively evaluate, and
believe that:
• Theycannot be found to the same extent with a
competitive brand. They are either:
• Functional-performance related considerations, or
• Abstract-imagery related considerations.
• Example: IKEA, Dyson

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Choosing Points-of-Difference
 A brand must offer a compelling and credible reason for
choosing it over the other options:
 What attribute or benefit can serve as point-of-difference?

 Desirability criteria
 Deliverability criteria
 Differentiation criteria

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 Points- of-parity associations
• Attributes shared with other brands.
• Three types of associations are:

• Category points-of-parity: Necessary conditions for brand

choice. E.g. expected bank services
• Competitive points-of-parity: Associations designed to
negate competitors’ points-of-difference. Break-even in those
areas where its competitors have advantages and try to
achieve its own advantages in some other areas.
• Correlational points-of-parity: Potential negative associations
that arise from the existence of other, more positive
associations for the brand. E.g. brand is inexpensive but still
great quality such as Sunbeam
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Points of Parity and Points of Difference

A marketer must arrive at the proper positioning,

which requires establishing the correct points-of-
difference and points-of-parity associations:
 Points-of-difference (P O Ds):
Formally defined as attributes or benefits that
consumers strongly associate with a brand
 Points-of-parity associations:
Not necessarily unique to the brand but may be
shared with other brands
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Points-of-parity versus points-of-difference

 Unless certain points-of-parity can be achieved to

overcome potential weaknesses, points-of-difference may
not even matter.
 There is a “zone” or “range of tolerance or acceptance”
with points-of-parity.
 Points-of-parity are easier to achieve than points-of-
differences.
 low price vs. high quality  Powerful vs. safe
 Taste vs. low calories  Strong vs. refined
 Nutritious vs. good taste  Ubiquitous vs. exclusive
 Effective vs. mild  Varied vs. simple

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Updating Positions over Time (1 of 2)
 Generally, positioning should be fundamentally changed very
infrequently:
 And only when circumstances significantly reduce the
effectiveness of existing POPs and PODs
 Yet, positioning will evolve to better reflect market opportunities
or challenges
 POD or POP may be refined, added, or dropped as situations
dictate

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Updating Positions over Time (2 of 2)
 Laddering:
 Deepening the meaning of a brand to permit further expansion

 Often useful to explore underlying consumer motivations

 Reacting:
 Responding to competitive actions that threaten an existing
positioning
 Competitive actions are often directed at eliminating points-of-
difference to make them points-of-parity:
 Or to strengthen or establish new points-of-difference

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Developing a Good Positioning
 A good positioning:
 Has a foot in the present and a foot in the future:

 Needs to be somewhat aspirational so that the brand has room

to grow and improve
 Is careful to identify all relevant points-of-parity:

 Don’t overlook or ignore crucial areas where the brand is

potentially disadvantaged
 Should reflect a consumer point of view in terms of the benefits
that consumers derive from the brand
 Recognizes that a duality exists in the positioning of a brand:

 Rational and emotional components

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The 2020 Guide to Successful Brand Positioning
in Your Market
Positioning strategies
According to The Branding Journal, effective brand positioning
can be described as the extent to which a brand is perceived as
favorable, different, and credible in consumers’ minds.
Years ago, a soda company decided to do something different
with its taste and position itself as unique. Now, Coca-Cola is
reached for by millions around the world daily as a household
staple — and it's positioned in our minds as the gold standard of
soda..
.. Continue reading on https://blog.hubspot.com/sales/brand-
positioning-strategy

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Key Elements of Positioning Statement

For … [target market], Brand X is … [frame

of reference and subjective category
(point of parity)] that [point of difference]
because of … [reason to believe: USP or
insight].
The red phrase is VALUE PROPOSITION.

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Key Elements of Positioning Statement

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Key Elements of Positioning Statement: samples

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Ladder Technique

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Ladder Technique

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Ladder Technique

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Ladder Technique: Functional benefits

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Ladder Technique: Emotional benefits

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Ladder Technique: Car benefits

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Ladder Technique: Perceptual map

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Ladder Technique

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Ladder Technique

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Ladder Technique

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Ladder Technique

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Ladder Technique

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Some Approaches for Positionings

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Some Approaches for Positionings

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Some Approaches for Positionings

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To Sum up…
 To appropriately position a brand, marketers
should:
 Identify their target customers
 Analyze the type of competition they might face in the
identified market base
 Identify product features and associations that are
different or similar to their competitors

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To Sum up ...
 Brand positioning describes how a brand can
effectively compete against a specified set of
competitors
 A good product positioning should:
 Have a “foot in the present” and a “foot in the future”
 Identify all relevant points-of-parity

 Reflect a consumer point of view in terms of the

benefits that consumers derive
 Contain points-of-difference and points-of-parity that
appeal both to the “head” and the “heart”
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Brand Mantra

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Defining a Brand Mantra
 Brands may span multiple product categories and may have
multiple distinct—yet related—positionings
 As brands evolve and expand across categories:
 Marketers will want to craft a brand mantra that reflects the
essential heart and soul of the brand

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Brand Mantra
 Short, three-to five-word phrase:
 Captures the irrefutable essence or spirit of the brand
positioning
 Provides guidance about:
 What products to introduce under the brand

 What ad campaigns to run

 Where and how the brand should be sold

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Brand Mantra

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Implementing Brand Mantra
 A good brand mantra should provide:
 Brand functions: nature of the product or service or the type of

experiences or benefits the brand provides.

 Descriptive modifier: combined with brand functions, helps delineate the

brand boundaries.
 Emotional modifier: determines how a brand provides benefits and in
what ways.

 Implementing brand mantra:

 Should be developed at the same time as brand positioning.

 Requires more internal examination and involves input from a wider range

of company employees.
 Based on core brand associations, a brainstorming session can attempt to

identify PODs, POPs, and different brand mantra candidates.

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Implementing Brand Mantra

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To Sum up...
 A good brand mantra should:
 Communicate the category of the business to set the
brand boundaries and clarify what is unique about the
brand
 Be simple, crisp, and vivid

 Stake out ground that is personally meaningful and

relevant to as many employees as possible

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 Activity 2: Brand Positioning
Pick a category basically dominated by two main brands
(e.g., Coca Cola & Pepsi). Evaluate the positioning strategy
of each brand. Describe their target markets. What are
their main points-of-parity and points-of-difference? Have
they defined their positioning strategy correctly? How might
it be improved?
(20 minutes)
Note: Compare positioning strategies by comparing
company websites and marketing communication strategies.

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