Crafting the Brand Positioning11Marketing ManagementA South Asian Perspective, 13th ed

Chapter QuestionsHow 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?

Positioning of Caf Coffee Day

What is Positioning?Positioning is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market.

Value PropositionsScorpio, Mahindra and MahindraA vehicle that provides the luxury and comfort of a car, and the adventure and thrills of an SUV DominosA good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

Defining AssociationsPoints-of-difference (PODs)Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brandPoints-of-parity(POPs)Associations that are not necessarily unique to the brand but may be shared with other brands

PODs and POPs

Establishing Category MembershipThis four-in-one entertainment solution from Konica failed to establish category membership

Conveying Category MembershipAnnouncing category benefitsComparing to exemplarsRelying on the product descriptor

Consumer Desirability Criteria for PODsRelevanceDistinctivenessBelievability

Deliverability Criteria for PODsFeasibilityCommunicabilitySustainability

Examples of Negatively Correlated Attributes and BenefitsLow-price vs. High qualityTaste vs. Low caloriesNutritious vs. Good tastingEfficacious vs. MildPowerful vs. SafeStrong vs. RefinedUbiquitous vs. ExclusiveVaried vs. Simple

Addressing negatively correlated PODs and POPsPresent separatelyLeverage equity of another entityRedefine the relationship

Differentiation StrategiesProductChannelImagePersonnel

Product DifferentiationProduct formFeaturesPerformanceConformanceDurabilityReliabilityReparabilityStyleDesignOrdering easeDeliveryInstallationCustomer trainingCustomer consultingMaintenance

Personnel Differentiation: Singapore Airlines

Natures Basket

Image Differentiation

Claims of Product Life CyclesProducts have a limited lifeProduct sales pass through distinct stages each with different challenges and opportunitiesProfits rise and fall at different stages Products require different strategies in each life cycle stage

Figure 11.1 Sales and Product Life Cycle

Figure 11.2 Common Product Life-Cycle Patterns

Figure 11.3 Style, Fashion, and Fad Life Cycles

The Pioneer Advantage

Figure 11.4 Long-Range Product Market Expansion Strategy

Strategies for Sustaining Rapid Market GrowthImprove product quality, add new features, and improve stylingAdd new models and flanker productsEnter new market segmentsIncrease distribution coverageShift from product-awareness advertising to product-preference advertisingLower prices to attract the next layer of price-sensitive buyers

Stages in the Maturity StageGrowthStableDecayingmaturity

Marketing Product ModificationsQuality improvementsFeature improvementsStyle improvements

Marketing Program ModificationsPricesDistributionAdvertisingSales promotionServices

Ways to Increase Sales VolumeConvert nonusersEnter new market segmentsAttract competitors customersHave consumers use the product on more occasionsHave consumers use more of the product on each occasionHave consumers use the product in new ways

A Product in Decline

Market Evolution StagesEmergenceGrowthMaturityDecline

Emerging MarketsLatentSingle-nicheMultiple-nicheMass-market

Figure 11.5 Maturity Strategies

Marketing DebateDo brands have finite lives?

Take a position:Brands cannot be expected to last forever.

or

2. There is no reason for a brand to ever become obsolete.

Marketing DiscussionWhat strategies do firms use totry to position themselves on thebasis of pairs of attributes andbenefits?