brand positioning
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Crafting the Brand Positioning
Marketing ManagementAdrian Arsenal
Brand Positioning: The Cornerstone
• The brand strategy is the single most important item in all of marketing.
• It defines EVERYTHING about what your brand is to your consumer.
The act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market.
The goal is to locate a brand in the minds of consumers to maximize the potential benefit to the firm.
Brand Positioning: The Cornerstone
Defining Associations
Point of difference (POD) are those associations unique to the brand that are also strongly held and favorably evaluated by consumers.
Brand Attributes
Brand Benefits
Brand Values
Point of parity (POP) are those associations not necessarily unique to the brand but perhaps shared with other brands.
Category point of parity are associations consumer view as being necessary to a legitimate and credible product offering within a certain category.
Competitive point of parity are associations designed to negate competitors points-of-difference.
Defining Associations
Competitive Advantage
“Famous for their mouth-watering, hot, original glazed
doughnuts”
• The company’s ability to perform in one or more ways that competitors cannot match.
• The key to competitive advantage is relevant brand differentiation.
• Consumers must find something unique and meaningful about the market.
Product Life Cycle
Most product life-cycle curves are portrayed as bell-shaped and this curve is typically divided into four stages.
Product Life Cycle
Growth- rapid sales growth (market acceptance) and substantial profit improvement.
Maturity- sales growth slows and profits stabilize because of increased competition.
Introduction- slow sales growth and minimal profits (heavy expenses of product introduction.)
Decline- sales show a downward drift and profits erode
CHARACTERISTICS
Introduction Growth Maturity Decline
Sales Low sales Rapidly rising sales Peak sales Declining sales
Costs High cost per customer
Average cost per customer
Low cost per customer
Low cost per customerProfits Negative Rising profits High profits Declining Profits
Customers Innovators Early adopters Middle majority Laggards
Competitors Few Growing number Stable number beginning to decline
Declining number
Introduction Growth Maturity DeclineMarketing Objectives
Create product awareness and trial
Maximize market share
Maximize profit while defending
market share
Reduce expenditure and milk the brand
Product Life Cycle
STRATEGIES Introduction Growth Maturity DeclineProduct Offer a basic
productOffer product
extentions, service, warranty
Diversify brands and items models
Phase out weak products
Price charge cost-plus Price to penetrate the market
Price to match or best competitors
Cut price
Distribution Build selective distribution
Build intensive distribution
Build more intensive distribution
Go selective: Pahse out unprofitable
outletsAdvertising Build product
awareness among early adopters and
dealers
Build awareness and interest in the mass
market
Stress brand differencesand
benefits
Reduce to level needed to retain hard-core loyals
Sales Promotion Use heavy sales promotion to entice
trial
reduce to take advantage of heavy consumer demand
Increase to encourage brand
switching
Reduce to minimal level
Product Life Cycle
Positioning is not effective unless it sticks to the mind of the consumers. It is what’s the brand stands for and what the consumers can get out of what it stands for.