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10

Crafting the Brand Positioning

Marketing Management, 13th ed

Chapter Questions
• How can a firm choose and communicate an effective positioning in the market? • How are brands differentiated? • What marketing strategies are appropriate at each stage of the product life cycle? • What are the implications of market evolution for marketing strategies?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-2

Publishing as Prentice Hall 10-3 . Inc. Copyright © 2009 Pearson Education.What is Positioning? Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

delivered to your door within 30 minutes of ordering.Value Propositions • Perdue Chicken • More tender golden chicken at a moderate premium price • Domino’s • A good hot pizza. Publishing as Prentice Hall 10-4 . at a moderate price Copyright © 2009 Pearson Education. Inc.

Defining Associations Points-of-parity Points-of-difference (PODs) (POPs) • Attributes or benefits • Associations that consumers strongly are not necessarily associate with a unique to the brand brand. positively but may be shared evaluate. and believe with other brands they could not find to the same extent with a competitive brand Copyright © 2009 Pearson Education. Inc. Publishing as Prentice Hall 10-5 .

Inc. Publishing as Prentice Hall 10-6 .Conveying Category Membership • Announcing category benefits • Comparing to exemplars • Relying on the product descriptor Copyright © 2009 Pearson Education.

Consumer Desirability Criteria for PODs • Relevance • Distinctiveness • Believability Copyright © 2009 Pearson Education. Inc. Publishing as Prentice Hall 10-7 .

Deliverability Criteria for PODs • Feasibility • Communicability • Sustainability Copyright © 2009 Pearson Education. Publishing as Prentice Hall 10-8 . Inc.

Refined • Ubiquitous vs.Examples of Negatively Correlated Attributes and Benefits • Low-price vs. High quality • Taste vs. Publishing as Prentice Hall 10-9 . Safe • Strong vs. Good tasting • Efficacious vs. Exclusive • Varied vs. Simple Copyright © 2009 Pearson Education. Mild • Powerful vs. Inc. Low calories • Nutritious vs.

Addressing negatively correlated PODs and POPs • Present separately • Leverage equity of another entity • Redefine the relationship Copyright © 2009 Pearson Education. Publishing as Prentice Hall 10-10 . Inc.

Differentiation Strategies • • • • Product Channel Personnel Image Copyright © 2009 Pearson Education. Publishing as Prentice Hall 10-11 . Inc.

Product Differentiation • • • • • • • Product form Features Performance Conformance Durability Reliability Reparability • • • • • • • • Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance 10-12 Copyright © 2009 Pearson Education. Inc. Publishing as Prentice Hall .

Inc.Claims of Product Life Cycles • Products have a limited life • Product sales pass through distinct stages each with different challenges and opportunities • Profits rise and fall at different stages • Products require different strategies in each life cycle stage Copyright © 2009 Pearson Education. Publishing as Prentice Hall 10-13 .

Inc.Strategies for Sustaining Rapid Market Growth • Improve product quality. Publishing as Prentice Hall 10-14 . add new features. and improve styling • Add new models and flanker products • Enter new market segments • Increase distribution coverage • Shift from product-awareness advertising to product-preference advertising • Lower prices to attract the next layer of pricesensitive buyers Copyright © 2009 Pearson Education.

Stages in the Maturity Stage • Growth • Stable • Decaying maturity Copyright © 2009 Pearson Education. Publishing as Prentice Hall 10-15 . Inc.

Inc. Publishing as Prentice Hall 10-16 .Marketing Product Modifications • Quality improvements • Feature improvements • Style improvements Copyright © 2009 Pearson Education.

Publishing as Prentice Hall 10-17 . Inc.Marketing Program Modifications • • • • • Prices Distribution Advertising Sales promotion Services Copyright © 2009 Pearson Education.

Ways to Increase Sales Volume • • • • Convert nonusers Enter new market segments Attract competitors’ customers Have consumers use the product on more occasions • Have consumers use more of the product on each occasion • Have consumers use the product in new ways Copyright © 2009 Pearson Education. Publishing as Prentice Hall 10-18 . Inc.

Publishing as Prentice Hall 10-19 .Market Evolution Stages • • • • Emergence Growth Maturity Decline Copyright © 2009 Pearson Education. Inc.

Publishing as Prentice Hall 10-20 . Inc.Emerging Markets • • • • Latent Single-niche Multiple-niche Mass-market Copyright © 2009 Pearson Education.

Maturity Strategies • Market fragmentation stage • Market consolidation stage Copyright © 2009 Pearson Education. Inc. Publishing as Prentice Hall 10-21 .

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