ba324 week4 brand positioning and values 10

BA324

Brand Positioning and Values

Strategic Brand Management

Strategic Brand Managementinvolves the design andimplementation of marketing programs and activities to build, measure, and manage brand equity

Strategic Brand Management

Process

Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra

Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations

Brand Value ChainBrand auditsBrand trackingBrand equity management system

Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization

KEY CONCEPTSSTEPS

Grow and SustainBrand Equity

Identify and EstablishBrand Positioning and Values

Plan and Implement Brand Marketing Programs

Measure and InterpretBrand Performance

“The development and communications of a distinct and valued offering, answering the needs of the target segment, RELATIVE TO COMPETITION”. (Ries and Trout):

Positioning Is at the heart of the marketing strategy

“. . . the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.” (Philip Kotler)

Brand Positioning

Proper positioning makes it easier to facilitate understanding of brand

• Clarifies what the brand is all about

• How it is both unique and similar to competitive brands

• Why customers should purchase and use the Brand

Brand Positioning

Marketers need to know:– Who the target consumer is– Who the main competitors are – How the brand is similar to these

competitors – How the brand is different from them

In order to Position a Brand…

1. Define competitive frame of reference– Target market (Who the target consumer is)

– Nature of competition (Who the main competitorsare)

2. Define desired brand knowledge structures– Points-of-parity (How the brand is similar to these

competitors)• necessary

• competitive

– Points-of-difference (How the brand is different fromthese competitors)

• strong, favorable, and unique brand associations

Target Market

A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.

Market segmentation divides the market into distinct groups of homogenous consumers who have similar needs, characteristics, or behavior who might require marketing mixes.

Criteria for a Segment

• Identifiability: Can the segment be easily identified?

• Size: It is big enough to bother? Large and profitable enough to serve

• Accessibility: Are distribution outlets and media available to us to reach the segment? Segments can be effectively reached and served Need exposure to media; predictable shopping behavior.

• Responsiveness: How favorably will the segment respond to a tailored marketing program? (this one is tough to quantify)

• Differentiable: Respond differently.

• Actionable: Effective programs can be developed.

Target Market Segmentation

• A market segment should have similar knowledge structures and brand knowledge– Similar knowledge structures might mean

similar perceptions and beliefs about brand

• There are 2 ways to segment– Descriptive: characteristics of the individuals

in the market– Behavioral: grouped by how individuals in

the market perceive or use the product

•• Geographical segmentationGeographical segmentation : : Marketing mixes are customized geographically

•• Demographic segmentationDemographic segmentation: : Demographics are related to needs and usage rates .Most popular segmentation. Why?

•• Psychographic segmentationPsychographic segmentation: : Lifestyle, social class, and personality-based segmentation

•• Behavioral segmentationBehavioral segmentation: : Benefits, Usage, Loyalty. - i.e. preferences.

Segmenting Consumer Markets

Marketing Segmentation

Toothpaste Segmentation

Four main segments• Sensory segment

– Flavor and product appearance

• Sociables– Brightness of teeth

• Worriers– Decay Prevention

• Independent– Low Price

Signal aromatic

Ipana Active White

Colgate CavityProtection

Segmentation

ExampleMobil’s 5 types of gasoline buyers

– Price Drivers %20• Not brand loyal, driven by price, has been focus for years

– Road Warriors %16• Upper income, MA Men, 25-50k/year, buy food and services

with credit card (Premium gas)

– True Blues %16• Brand loyal, Mid income, pay with cash

– Generation F3 %27• Fuel, food, fast: half under 25 yo, in and out quickly

– Homebodies %21• Soccer moms using whatever is on their route

Nature of Competition

Competitive analysis considers a whole host of factors – including the resources, capabilities, and likely intentions of various others firms – in order for for marketers to choose markets where consumers can be profitably served.

Do not define competition too narrowly!

Points-of-Parity

and Points-of-Difference• Points-of-difference (PODs) are

attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand.

• Points-of-parity associations (POPs), on the other hand, are not necessarily unique to the brand but may in fact be shared with other brands.

POD (Points of Difference)

• Strong, favorable, unique brand associations• May be any kind of attribute or benefit

• Two types of PODs– Attribute Based

• Functional, performance related differences(e.g. Sony’s electronic products have “consumer friendly”technological features, such as television sets with a button tohelp misplaced remotes)

– Image Based• Affective, experiential, brand image related

differences(e.g. The western imagery of Marlboro cigarettes or the fact that British Airways is advertised as the “world’s favorite airline”)

POP (Point of Parity)

• Associations that are shared with other brands

• Two types– Category: attributes that are required

to include your product as a member of that category

– Competitive: POP that negate your competitors PODs

POPs can be “good enough”, but PODs should be “superior”

Similar concepts

• Unique Selling Proposition (USP; Reeves and Bates)– Advertisers should give a compelling reason to

buy a product that competitors could not match

• Sustainable Competitive Advantage (SCA)• The advantage of delivering superior value in the

marketplace for a prolonged period of time• Further, SCAs can result from any component of the

firm

Similar concepts

• Unique Selling Proposition examples– Head & Shoulders: "You get rid of

dandruff – Domino's Pizza: "You get fresh, hot

pizza delivered to your door in 30 minutes or less."

– Olay: "You get younger-looking skin"

– FedEx: "Your package absolutely, positively has to get there overnight"

– M&M's: "The milk chocolate melts in your mouth, not in your hand"

Identifying & Choosing

POP’s & POD’s

• Desirability criteria (consumer perspective)

– Relevance (Personally relevant)

– Distinctiveness (Distinctive and superior)– Believability (Believable and credible)

• Deliverability criteria (firm perspective)

– Feasibility

– Profitability

– Communicability

– Sustainability

Core Brand Associations

(Values)

• Set of abstract concepts (Attributes andbenefits) or phrases that characterize the 5-10 most important dimensions of the mental map of a brand.

• Relate to points-of-parity and points-of-difference

• Mental Map � Core Brand Values � Brand Mantra

Nike Mental Map

NIKE

Clothing

American

Expensive

Competition

Aggresissive

Irreverent

Cool

QualityInnovationAir

Technology

Michael Jordan

ShoesTennis

Basketball

Top Athletes

Running

Apple Mental Map

A brand mantra is an articulation of the “heart and soul” of the brand.

– Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values.

Brand Mantras

• Brand Functions

• Descriptive Modifier

• Emotional Modifier

Designing the Brand Mantra

FoodFolksFun

EntertainmentFamilyFunDisney

PerformanceAthleticAuthenticNike

BrandFunctions

DescriptiveModifier

EmotionalModifier

Positioning Statement

Provides the underlying platform for communications, reflecting the company's/brand's value proposition.

Address:

• definition—how the company defines its business or how the brand defines its competitive set; who we are and what we do;

• differentiation—what makes the company/brand special; how we do it; and

• deliverables—benefit delivered to its customers.

Positioning Template

• To: ____target market____________

• ______Our brand________________

• Is The:_Frame of reference_______

• That:___Unique owned Benefit____

• Because:___Reason to believe____

Fundamentals of Positioning…

• Target Customers: Describe the segment they’re in with relevant dimensions

• Frame of Reference: What goal will be served by the target by consuming the brand. What is the category of consideration/key competitor /consumer goal defining the category?

• Point of Difference: What distinguishes you from other offerings in the competitive set?

• Reasons to Believe: Compelling evidence that your claim of difference is true…

Positioning Statement Example:

• To the tradesman who uses his power tools to make a living and cannot afford downtime on the job (target),

• DeWalt professional power tools (frame of reference)

• are more dependable than other brands of professional power tools (point of difference)

• because they are engineered to the brand’s historic high quality standards and are backed by Black and Decker’s extensive service network and guarantee to repair or replace any tool within 48 hours (reasons to believe).

Some Positioning Examples…

For those who do creative things with computers,

_______________________

Is the desktop computer they know will be a user-friendly creative computer, compares with MS-Dos computers

To highly social young adults who areconcerned about fresh breath, Colgate Fresh Confidence is the gel toothpaste thatdelivers long-lasting fresh breath.

Four elements for an effective

positioning

To (core target), (brand name) is the(competitive reference point) that (brand payoff)

–To the PC user, the IOMEGA Zip drive is the portable storage device that is most cost effective.

Positioning Elements

–To young, active soft-drink consumers who have little time for sleep, Red Bull is the soft drink that gives you more energy than any other brand because it has the highest levelof caffeine.

Positioning Statement

For homemakers, Dow Bathroom Products are the easy way to get a great clean shine for your tub, tile and toilet. That’s because only Dow Bathroom Products contain scrubbing bubbles that cut through dirt and grime clean to the shine!

Brand Positioning Statement

For those suffering from a cold, Comtrex offers four different relief formulas that treat and work against your specific cold ailments.


For cold sufferers, Contac offers 12 hours of continuous relief from congestion and sinus pressure thanks to it’s time-release technology.


For consumers ages 16-35, Crest Whitestripswhiten teeth five times better than the leading paint-on whitening gel. That’s because Crest’s gel-coated strips hold the peroxide on teeth longer, to whiten stains below the tooth surface.


For women ages 25-55, Loreal RevitaliftAnti-wrinkle and firming cream reduces facial wrinkles and firms your skin.

NO REASON

WHY!


For “Green”consumers seeking healthy foods free from pesticides, chemical or preservatives, Seeds of Change frozen entrée’s taste great. 100% of our ingredients are grown organically and are not only healthy for you, but also our planet.


ba324 week4 brand positioning and values 10

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