This document discusses strategies for crafting brand positioning. It explains key concepts like segmentation, targeting, positioning, and differentiation. Brand positioning requires determining the competitive frame of reference, identifying optimal points of parity and difference, and creating a concise brand mantra. Differentiation strategies aim to develop unique products/services and can be broad or focused depending on the target market.
This document discusses strategies for crafting brand positioning. It explains key concepts like segmentation, targeting, positioning, and differentiation. Brand positioning requires determining the competitive frame of reference, identifying optimal points of parity and difference, and creating a concise brand mantra. Differentiation strategies aim to develop unique products/services and can be broad or focused depending on the target market.
This document discusses strategies for crafting brand positioning. It explains key concepts like segmentation, targeting, positioning, and differentiation. Brand positioning requires determining the competitive frame of reference, identifying optimal points of parity and difference, and creating a concise brand mantra. Differentiation strategies aim to develop unique products/services and can be broad or focused depending on the target market.
CRAFTING BRAND POSITIONING Category Membership - products or sets
of products with which a brand competes
Segmentation - Dividing the market into a and which function as substitutes. distinct group of customers using a segmentation process. Frame of reference Competitors Targeting - Determining which group to focus your marketing efforts on. Cola Pepsi, Thumps up Positioning - Creating product positioning and marketing mix that is most likely to appear to Carbonated Beverage 7up, Sprite the selected audience. Softdrink Slice, Maaza
Brand - name, term sign, symbol intended to Non-alcoholic Chocolate milk,
identify the goods or services of one seller or Beverage energy drink group of sellers and to differentiate them for Beverage Wine, Beer competitors. Branning - Providing goods and services with Liquid Refreshment Water, Bisleri the power of the brand. Psychological A walk, yoga refreshment Developing & Establishing a brand Positioning
Positioning - act of designing a company's Analyzing Competitors - process of
offering and image to occupy a distinctive conducting SWOT analysis that includes a place in the minds of the target market. competitive analysis. Goal: To locate the brand in the mind of consumers to maximize the potential benefits Strengths - Weakness - Opportunities - to the firm. Threats Deciding on a positioning requires: - Determining the frame of reference Others: Customers’ ratings of competitors by identifying the target market and on key success factors relevant competition. - Identifying optimal points of parity Identifying optimal POP and POD and points of difference brand associations given that frame Point-of-difference - Attributes or benefits reference. that consumers strongly associate with a - Creating a brand mantra to brand, positively evaluate, and believe they summarize the positioning and could not find to the same extent with a essence of the brand competitive brand. Criteria for points-of-difference Determining a frame of reference - Desirability - Deliverability Competitive frame of reference - defines - Differentiability which other brands a brand competes with Points-of-parity - These are the attributes and therefore should be focus of competitive or benefit associations that are not analysis necessarily unique to the brand but may in - Identifying competitors fact be shared with other brands. - Analyzing Competitors Two Forms of POP Creating Brand Mantra ● Category Points of parity - Associations customers view as Brand mantra - A brand mantra is an essential to a legitimate credible articulation of the heart and soul of the offering within a certain product or brand and is closely related to other service category. branding concepts like “brand essence” and ● Competitive points of parity - “core brand promise”. Associations designed to negate a - Brand mantras are short, three-to- competitor’s point of difference. five-word phrases that capture the Value Proposition - It is a short statement irrefutable essence or spirit of the that communicates why buyers should brand positioning choose your products or services - A powerful brand mantra a business ● Straddle Positioning can easily standout in the marketing It is a common positioning technique place. used when a company tries to Ex. “Authentic Athletic Performance” - nike straddle between two frames of reference. Brand Slogan - A brand slogan is an [BMW through a well-crafted external translation that attempts to marketing program straddled creatively engage consumers. “Luxury” and “Performance” as both Ex. “Open Happiness” - Coca cola POD and POP] Multiple competitive frames of reference Designing Brand Mantra 1. Starbucks could define very distinct Communicate sets of competitors, suggesting - A good brand mantra should define different possible POPs and PODs the category (categories) of as a result: business for the brand and set the 2. Quick-serve restaurants and brand boundaries. It should also convenience shops (McDonald’s and clarify what is unique about the Dunkin’ Donuts). Intended PODS brand might be quality, image, experience, Simplify and variety; intended POPs might be - An effective brand mantra should be convenience and value. memorable. For that, it should be 3. Supermarket brands for home short, crisp, and vivid in meaning. consumption (Folgers and Inspire NESCAFÉ). Intended PODs might - Ideally, the brand mantra should be quality, image, experience, also stake out ground that is variety, and freshness; intended personally meaningful and relevant POPs might be convenience and to as many employees as possible value. 4. Local cafés. Intended PODs might be convenience and service quality; intended POPs might be quality, variety, price, and community. Additional Info: Note: For a brand to be effectively - A brand mantra is designed specifically positioned, customers must see any for employees but not customers competitive advantage as a customer - “Brand Function” The term explains what a advantage product or service provides to consumers i.e. benefits, experiences DIFFERENTIATION STRATEGY - “Emotional Modifier” The term explains how consumers should feel about the Differentiation strategy - is a marketing brand. approach which “urges” businesses to - “Descriptive Modifier” The term further develop a unique product or service. The describes whom the brand is basically for word unique means that a product/service i.e. athlete, family must be able to differentiate itself from its competitors. Ex. 2 basic ways to choose differentiation strategy ● Broad differentiation strategy (BDS) - A company usually adopts the broad differentiation strategy when it wants to target a wide range of customers. ● Focused differentiation strategy (FDS) - A firm following this strategy will target a specific niche/segment of the market. A firm may target one or multiple Differentiation Strategy segments. But, the firm will have to make - Marketers must start with the belief custom products for different markets. that you can differentiate anything Principal Subjects Types of Differentiation strategy with - Employee Differentiation examples: - Image Differentiation Product Differentiation - This is the most - Channel Differentiation visible or noticeable type of differentiation - Service Differentiation strategy. Generally, consumers differentiate a product by its physical appearance. Competitive Advantage - It is a company’s ability to perform in Service Differentiation - means creating a 1 or more ways that competitors unique way to serve customers. Well, every can’t match. the company serves its customers, so what Leverage Advantage can be different. There are several factors in - Is the one that a company can use servicing your customers, such as order as a springboard to new processing, customer service method, etc. advantages. Customer Advantage Distribution differentiation - A company - Is an advantage that a customer may differentiate itself from a cluster of sees in the company offering. competitors through a distribution differentiation strategy. It is impossible for every company to manufacture a product COMPETITION DYNAMICS and then make it available to dealers, distributors, retailers, etc., with its own Competitive Dynamics - Set of actions as distribution channels. well as reactions of companies taking part in a competitive business environment Relationship Differentiation - Another way comprising multiple rivals and stakeholders. for businesses to differentiate themselves is - actions taken by companies define by creating impeccable customer competitive dynamics as each firm takes relationships. From sales representatives to decisions and actions to strengthen its employees, technical service competitive position relatively in the market. representatives to CSR, a company can - includes a continuous process in differentiate itself by a relationship which multiple rivals are trying to gain a differentiation strategy. competitive edge over others through a series of actions and responses. Image Differentiation - It means creating a - Competitive responses are taken to reputable and differentiable image of counter the effects of a competitor’s yourbrand. A company can only do that by competitive action. mastering all departments such as product Example: One of the best examples to study quality, customer service, product competitive dynamics is the current performance, etc. smartphone industry where the life cycle of products has become very less and each Price Differentiation - Price differentiation, competitor is pushed to take competitive also termed price discrimination, is a actions in response to others or become differentiation strategy that involves irrelevant in the marketplace. charging different prices for the same product. Total Market & Market Share
Benefits of Differentiation Strategy Expand Total Market
- Reduction in price competition - Uniqueness in products - Higher profit margins - Customer loyalty - Minimum or no substitutes
Reason for differentiation strategy to fail
- Attributes with little value - Easier to copy - Over differentiation - Fail to understand the customer Defend Market Share - When market leaders expand the total size of their total market, then they have to defend their business from the competitors’ attacks 6 Types of defending Market Strategies Mobile Defense - Leaders defend their - Position defense market territory and expand their business - Flank Defense into new areas. - Counter-offensive strategy - Mobile Defense Contraction Defense - When a company - Contraction Defense finds it difficult to hold the bigger market in - Preemptive Defense the long term, the company creates a list of - Shotgun attack its weaker areas, and then withdrawing from - Pervasive distribution those weak markets.
Position Defense - Management decides Competing Effectively
to strengthen its position in one or more markets that the company is targeting Market Followers currently. The company focuses on the “A company that is not the leading company single market and offers the product in order in a particular market but that chooses to to meet the needs of the market. keep its position rather than competing in a forceful way to increase its share of the Flank Defense - Means that the company market.” should take precautionary measures not only to protect its current domain but also its Market Follower Strategy weaker areas. Imitation of products, and services of the market leaders. Most prominent in this type Preemptive Defense - Similar to the quote of strategy are shoes, clothes, and bags. "Prevention is much better than cure". You start attacking the competitors before they - "a company that sells a product or could get a chance to attack you. service that few other companies provide". Shotgun attack For example they only provide products for - it’s when you randomly attack all the Sports, so they only sell sport equipment. competitors, instead of attacking any one of Another example, their target customers are them. gamers so they only provide computer Pervasive distribution parts, gaming accessories etc. - it’s when you cover a big portion of the market and attack the competitors in Their strategy is to focus on just one part of terms of low pricing. When you follow such the market and thrive there attacking strategies, then it would keep the competitors busy defending their market position.
Counter Offensive Strategy - Attacking
your enemy when he attacks you. When competitors attack the market leader, then he attacks back in order to protect his position in the market. Product Life Cycle - It’s one of the first things a consumer Decline - reduce the expenditure for considers when deciding whether or promoting, reduce the outlets of selling, not to acquire your goods or service. and implements sale prices to boost customer sales. Pricing strategies - It refers to the processes and methodologies businesses Maturity - modify your market and enter new use to set prices for their products and markets. Modification of services. If pricing is how much you charge products or improving existing features and for your products, then product pricing qualitie strategy is how you determine what that amount should be. Growth - improve product quality and improve product features or support Importance: services 1. helps solidify your position by building trust with your customers. Introduction - establish brand identity, 2. as well as meeting your business goals. partner with the right firms to promote your product, and provide samples and Pricing strategies aren’t necessarily about trials to key target markets. profit margins, despite common opinion. For example, you can want to keep the price of Economic downturn - is part of the an item or service low to keep your share of economic cycle, i.e., the natural fluctuation the market and keep competitors out. of the economy between periods of growth and contraction. Economic Downturn Characteristic of pricing strategy occurs commonly because of oversupply and uncertainty. - Winning pricing strategy - Marketing was not taught to be implemented only during a decline.Even if Portrays value the economy is at its best state, Marketing convinces customers to buy must be utilized and maximized to generate Gives your customers confidence in your a greater growth. product
- Weak pricing strategy
DEVELOPING PRICING STRATEGIES AND PROGRAMS Doesn’t accurately portray the value of your Pricing product - It is defined as the amount of money Makes customers feel uncertain about that you charge for your products buying - It is a term used to describe the Targets the wrong customers decision-making process before you value a product or service. Types of pricing strategies - It must communicate how much you Penetration pricing - The penetration pricing care about your brand, product, and strategy consists of setting a much lower customers to your potential price than competitors to earn initial sales. consumers. These low prices can draw in new customers and divert revenue from competitors. Skimming pricing - In this type of pricing product at hand fluctuates on a daily or strategy, prices drop as products end their even hourly basis. life cycle and become less relevant. Businesses that sell high-tech or novelty Economy Pricing - This type of pricing products typically use price skimming. strategy usually goes hand-in-hand with low production costs. High-low pricing - High-low pricing is similar to skimming, except the price drops at a Freemium pricing - Freemium pricing offers different rate. With the high-low pricing a basic product or service for free, then method, the price of a product drops encourages customers to upgrade to the significantly all at once rather than at a paid, premium version to access more gradual pace. features or choices.
when prices are set higher than the rest of brings customers to your store to buy a the market to create perceived value, highly discounted product (the loss leader). quality, or luxury. While they’re there, they might buy other full-price items they didn’t plan on—which Psychological pricing - Psychological pricing should more than make up for the loss of strategies play on the psychology of the original product. consumers by slightly altering price, product placement, or product packaging. How to set the price
Bundle pricing - Bundle pricing is a type of 1. Determine your business goals
promotional pricing where two or more 2. Know your target market similar products or services are sold 3. Deciding your pricing objectives together for one price. 4. Positioning 5. Work out your costs Competitive pricing - The competitive 6. Profitability pricing strategy sets the price of your 7. Competitors products or services at the current market 8. Think about other factors rate. Your pricing is determined by all other products in your industry, which helps you DESIGNING AND MANAGING stay competitive if your business is in a INTEGRATED MARKETING saturated industry. COMMUNICATION
Cost-plus pricing - Cost-plus pricing Marketing Communication - means by
involves taking the amount it costs you to which firms attempt to inform, persuade, make the product and increasing that and remind consumers, directly or indirectly, amount by a set percentage to determine about the products and brands they sell. the final price. Marketing Communication Mix Dynamic pricing - Dynamic pricing matches 1. Advertising the current market demand for a product. 2. Sales Promotion Also known as demand pricing, this pricing 3. Events and Experience strategy most often occurs when the 4. Public relation and publicity 5. Direct Marketing 6. Interactive Marketing purchasers for the purpose of making 7. Word-of-mouth Marketing presentations, answering questions, and 8. Personal Selling procuring orders.
1. Advertising - Any paid form of Communication Process Models
nonpersonal presentation and promotion of ● Macro Model ideas, goods or services by an identified sponsor via print media, broadcast media, network media, electronic and display media. 2. Sales promotion - A variety of short- term incentives to encourage trial or purchase of a product or service including consumer promotions ,trade promotions, and business and sales force promotions. ● Micro Model 3. Events and experiences - Company- sponsored activities and programs designed to create daily or special brand-related interactions with consumers, including sports, arts, entertainment as well as less formal activities 4. Public relations and publicity - .A variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications. Developing Effective Communications 5. Direct Marketing - Use of mail, telephone, fax, e-mail, or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects. 6. Interactive Marketing - Online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services. 7. Word-of-mouth Marketing - People-to- people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. 8. Personal Selling - Face-to-face interaction with one or more prospective Identify Target Audience - target audience is a critical influence neighbors, friends, family members, on the communicator's decisions about and associates talking to target what to say, how, when, where, and to buyers. whom. 2. Integration of Communications Communication Objectives Channels Category Need - Establishing a product or - Although personal communication is service category as necessary often more effective than mass to remove or satisfy a perceived communication, mass media might be the discrepancy between a current major means of stimulating personal motivational state and a desired communication. motivational state. - Mass communications affect personal attitudes and behavior through a Brand Awareness - Fostering the two step process. Ideas often flow from consumer's ability to recognize or radio, television, and print to opinion recall the brand within the category, in leaders, and from population groups. these sufficient detail to make a to less media-involved purchase.
Brand Attitude - Helping consumers Total marketing communications budget
evaluate the brand's perceived ability to meet a currently relevant need. Affordable Method - Set the promotion budget at what Brand Purchase Intention - Moving they think the company can afford consumers to decide to purchase the Percentage of sales method brand or take purchase-related action. - Set promotion expenditures at a specified percentage of sales (either current Design the communication or anticipated) or of the sales price. Set the - Message Strategy promotion budget to achieve share-of-voice - Creative Strategy parity with competitors. - Message Source Objective and task Method - The objective-and-task method calls Select communication channels upon marketers to develop promotion 1. Personal Communications Channels budgets by defining specific objective, involve two or more persons communicating determining the tasks that must be directly. They derive their effectiveness from performed to achieve these objectives, and individualized presentation and feedback. estimating the costs of performing these The kinds of personal communications tasks. The sum of these costs is the channels are: proposed promotion budget. - Advocate channels consist of company salespeople contacting buyers in Factors in setting the marketing the target market. communications mix - Expert channels consist of - Type product market independent experts making statements to - Buyer readiness stage target buyers. - Product life cycle stage - Social channels consist of Managing integrated marketing communications - is a concept of marketing communications planning that recognizes the added value of a comprehensive plan and evaluates the strategic roles of a variety of communications disciplines such as general advertising, direct marketing, sales promotion, public relations, etc; skillfully combining these disciplines to provide clarity, consistency, and maximum impact through the smooth integration of messages.
It involves: - Coordinating Media - Implementing Imc (Integrated marketing communication)
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