08-08-2017

Chapter
10
Crafting the
Brand Positioning

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Learning Objectives
1. How can a firm develop and establish an effective
positioning in the market?
2. How do marketers identify and analyze
competition?
3. How are brands successfully differentiated?
4. How do firms communicate their positioning?
5. What are some alternative approaches to
positioning?
6. What are the differences in positioning and
branding for a small business?
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Developing a Brand Positioning

• Positioning
– The act of designing a
company’s offering and
image to occupy a
distinctive place in the
minds of the target
market
– Value proposition

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• The goal is to locate the brand in the minds of

consumers to maximize the potential benefit to the firm

• One result of positioning is the successful creation of a

customer-focused value proposition, a cogent reason
why the target market should buy a product or service.

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Value proposition

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Competitive Frame
of Reference
• Competitive frame of reference
– Defines which other brands a brand competes
with and which should thus be the focus of
competitive analysis
– Identifying and analyzing competitors

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Competitive Frame
of Reference

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Points-of-Difference
and Points-of-Parity
• Points-of-difference
(PODs)
– Attributes/benefits that
consumers strongly
associate with a brand,
positively evaluate,
and believe they could
not find to the same
extent with a
competitive brand
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Points-of-Difference

• POD criteria

Desirable

Deliverable

Differentiating

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Points-of-Parity
• Points-of-parity (POPs)
– Attribute/benefit associations that are not
necessarily unique to the brand but may in
fact be shared with other brands

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Points-of-Difference
and Points-of-Parity
• Hyundai
– POD : Affordable pricing
– POP : Quality and design

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Points-of-Difference
and Points-of-Parity
• POP forms

Category

Correlational

Competitive

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Pop vs. pod

• Multiple Frames of
Reference

• Straddle Positioning

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Straddle positioning

• Luxury and
performance

> POD’s are

• Chevy : Luxury
• Cadillac : Performance

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Points-of-Difference
and Points-of-Parity
• Choosing specific
POPs and PODs
– Competitive
advantage
– Means of
differentiation
– Perceptual map
– Emotional
branding
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Points-of-Difference
and Points-of-Parity
• Brand mantras

Communicate

Simplify

Inspire

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Establishing a Brand Positioning

• Communicating category membership

Announcing category benefits

Comparing to exemplars

Relying on product descriptor

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Brand-positioning
bull’s-eye : Starbucks

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Communicating
POPs and PODs
• Negatively correlated attributes/benefits

 Low price vs. high quality

 Taste vs. low calories
 Powerful vs. safe
 Ubiquitous vs. exclusive
 Varied vs. simple

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MONITORING COMPETITION
• Variables in assessing
potential competitors
– Share of market
– Share of mind
– Share of heart

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ALTERNATIVE APPROACHES
TO POSITIONING
• Brand narratives and
storytelling
– Setting
– Cast
– Narrative arc
– Language
• Cultural branding

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Positioning/Branding
for A Small Business
• Find compelling product
performance advantage
• Focus on building one or
two strong brands based
on one or two key
associations
• Encourage product trial in
any way possible
• Develop cohesive digital
strategy to make the brand
“bigger and better”
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• Create buzz and a loyal
brand community
• Employ a well-integrated
set of brand elements
• Leverage as many
secondary associations as
possible
• Creatively conduct low-cost
marketing research
10-27

Thank you

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