ch3 brand positioning

7/29/2019 CH3 Brand Positioning

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3.1

CHAPTER 3:CHAPTER 3:BRAND POSITIONING & VALUESBRAND POSITIONING & VALUES


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3.2

Brand PositioningBrand Positioning

Is at the heart of the marketingIs at the heart of the marketingstrategystrategy

. . . the act of designing the. . . the act of designing thecompanys offer and image so that itcompanys offer and image so that itoccupies a distinct and valued placeoccupies a distinct and valued place

in the target customers minds.in the target customers minds.Philip KotlerPhilip Kotler


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3.3

Determining a frame ofDetermining a frame of

referencereference What are the ideal points-of-parityWhat are the ideal points-of-parity

and points-of-difference brandand points-of-difference brandassociations vis--vis theassociations vis--vis thecompetition?competition?

Marketers need to know:Marketers need to know: Who the targetWho the target consumerconsumer isis Who the mainWho the main competitorscompetitors areare How the brand isHow the brand is similarsimilar to theseto these

competitorscompetitors

How the brand isHow the brand is differentdifferent from themfrom them


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3.4

Target MarketTarget Market

AA marketmarketis the set of all actual andis the set of all actual andpotential buyers who have sufficientpotential buyers who have sufficientinterest in, income for, and access tointerest in, income for, and access to

a product.a product. Market segmentationMarket segmentation divides thedivides the

market into distinct groups ofmarket into distinct groups of

homogeneous consumers who havehomogeneous consumers who havesimilar needs and consumersimilar needs and consumerbehavior, and who thus requirebehavior, and who thus requiresimilar marketing mixes.similar marketing mixes.

Market segmentation requiresMarket segmentation requires


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3.5

Example of theExample of the

toothpaste markettoothpaste market Four mainFour main

segments:segments:

1.1. Sensory:Sensory: SeekingSeeking

flavor and productflavor and productappearanceappearance

2.2. Sociables:Sociables:SeekingSeeking

brightness ofbrightness ofteethteeth

3.3. Worriers:Worriers:Seeking decaySeeking decaypreventionprevention

4.4. Independent:Independent:
http://graphicshunt.com/funny/images/big_toothed_baby-12021.htm


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3.6

Criteria forCriteria for

SegmentationSegmentation Identifiability:Identifiability:Can we easily identify theCan we easily identify the

segment?segment? Size:Size: Is there adequate sales potential inIs there adequate sales potential in

the segment?the segment? Accessibility:Accessibility: Are specialized distributionAre specialized distribution

outlets and communication mediaoutlets and communication media

available to reach the segment?available to reach the segment?

ResponsivenessResponsiveness:: How favorably will theHow favorably will thesegment respond to a tailored marketingsegment respond to a tailored marketingprogram?program?


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3.7

Nature of CompetitionNature of Competition

Deciding to targetDeciding to targeta certain type ofa certain type ofconsumer oftenconsumer oftendefines the naturedefines the nature

of competitionof competition Do not defineDo not define

competition toocompetition too

narrowlynarrowly e.g.:e.g.: a luxury gooda luxury good

with a strong hedonicwith a strong hedonicbenefit like stereobenefit like stereoequipment mayequipment may

compete as muchcompete as muchwith a vacation aswith a vacation as
http://www.savagechickens.com/2010/04/competitive.html


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3.8

Points-of-ParityPoints-of-Parity

and Points-of-Differenceand Points-of-Difference Points-of-differencePoints-of-difference

(PODs) are attributes(PODs) are attributesor benefits thator benefits thatconsumers stronglyconsumers strongly

associate with aassociate with abrand, positivelybrand, positivelyevaluate, and believeevaluate, and believethat they could notthat they could notfind to the samefind to the same

extent with aextent with acompetitive brand.competitive brand. Points-of-parityPoints-of-parity

associationsassociations (POPs),(POPs),on the other hand, areon the other hand, are

not necessarily uniquenot necessarily unique


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3.9

Brand PositioningBrand Positioning

GuidelinesGuidelines Two key issues in arriving at theTwo key issues in arriving at the

optimal competitive brandoptimal competitive brand

positioning are:positioning are:

Defining and communicating theDefining and communicating thecompetitive frame of referencecompetitive frame of reference

Choosing and establishing points-of-Choosing and establishing points-of-

parity and points-of-differenceparity and points-of-difference

fi i d i i


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3.10

Defining and CommunicatingDefining and Communicatingthe Competitive Frame ofthe Competitive Frame of

ReferenceReference Defining aDefining acompetitive framecompetitive frameof reference for aof reference for a

brand positioning isbrand positioning isto determineto determinecategorycategorymembership.membership.

The preferredThe preferredapproach toapproach topositioning is topositioning is to

inform consumersinform consumersof a brandsof a brands
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3.11

Choosing POPs & PODsChoosing POPs & PODs

Desirability criteriaDesirability criteria (consumer(consumer

perspective)perspective) Personally relevantPersonally relevant Distinctive and superiorDistinctive and superior Believable and credibleBelievable and credible

Deliverability criteriaDeliverability criteria (firm(firm

perspective)perspective) FeasibleFeasible ProfitableProfitable

Pre-emptive, defensible, and difficult toPre-emptive, defensible, and difficult to


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3.12

Attribute and Benefit Trade-Attribute and Benefit Trade-

offsoffs Price and qualityPrice and quality Convenience and qualityConvenience and qualityTaste and low caloriesTaste and low calories Efficacy and mildnessEfficacy and mildness Power and safetyPower and safety

Ubiquity and prestigeUbiquity and prestige Comprehensiveness (variety) andComprehensiveness (variety) and

simplicitysimplicity

Strength and refinementStrength and refinement


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3.13

Strategies to ReconcileStrategies to Reconcile

Attribute and BenefitAttribute and Benefit

Trade-offsTrade-offs Establish separate marketingEstablish separate marketing

programsprograms

Leverage secondary association (e.g.,Leverage secondary association (e.g.,co-brand)co-brand)

Re-define the relationship fromRe-define the relationship from

negative to positivenegative to positive


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3.14

Core Brand ValuesCore Brand Values

Set of abstract concepts or phrasesSet of abstract concepts or phrasesthat characterize the five to ten mostthat characterize the five to ten mostimportant dimensions of the mentalimportant dimensions of the mental

map of a brandmap of a brand

Relate to points-of-parity and points-Relate to points-of-parity and points-

of-differenceof-difference Mental mapMental map Core brand valuesCore brand values BrandBrand

mantramantra


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3.15

Brand MantrasBrand Mantras

An articulation of the heart and soulAn articulation of the heart and soulof the brandof the brand

similar to brand essence or coresimilar to brand essence or core

brand promisebrand promise Short three- to five-word phrases thatShort three- to five-word phrases that

capture the irrefutable essence or spiritcapture the irrefutable essence or spiritof the brand positioning and brandof the brand positioning and brandvaluesvalues

ConsiderationsConsiderations CommunicateCommunicate

SimplifySimplify


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3.16

Designing the BrandDesigning the Brand

MantraMantraThe termThe term brand functionsbrand functions describesdescribes

the nature of the product or servicethe nature of the product or serviceor the type of experiences or benefitsor the type of experiences or benefits

the brand provides.the brand provides.TheThe descriptive modifierdescriptive modifierfurtherfurther

clarifies its nature.clarifies its nature.TheThe emotional modifieremotional modifierprovidesprovides

another qualifieranother qualifierhow exactly doeshow exactly doesthe brand provide benefits, and inthe brand provide benefits, and in

what way?what way?

i i h dD i i th B d


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3.17

Designing the BrandDesigning the Brand

MantraMantra

Emotional

Modifier

Descriptive

Modifier

Brand

Functions

Nike Authentic Athletic Performance

DisneyFun Family Entertainment

Fun Folks Food
http://disneyworld.disney.go.com/wdw/indexhttp://www.mcdonalds.com/home.htmlhttp://www.mcdonalds.com/home.htmlhttp://disneyworld.disney.go.com/wdw/indexhttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=g_micChrome_dlogohttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=g_micChrome_dlogohttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=g_micChrome_dlogohttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=g_micChrome_dlogohttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=mchrome_homehttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=mchrome_homehttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=mchrome_homehttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=mchrome_homehttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=mchrome_homehttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=mchrome_homehttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=mchrome_homehttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=mchrome_homehttp://transfer.go.com/cgi/transfer.dll?srvc=dis&goto=http://disney.go.com/&name=mchrome_home


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3.18

Internal BrandingInternal Branding

Members of theMembers of theorganization areorganization areproperly alignedproperly aligned

with the brand andwith the brand andwhat it represents.what it represents.

Crucial for serviceCrucial for servicecompaniescompanies
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3.19

Brand AuditBrand Audit

Externally, consumer-focusedExternally, consumer-focusedassessementassessement A comprehensive examination of aA comprehensive examination of a

brand involving activities to assessbrand involving activities to assessthe health of the brand, uncover itsthe health of the brand, uncover itssources of equity, and suggest wayssources of equity, and suggest waysto improve and leverage that equityto improve and leverage that equity

It includes brand vision, mission,It includes brand vision, mission,promise, values, position, personality,promise, values, position, personality,and performanceand performance


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3.20

Importance of Brand AuditsImportance of Brand Audits

Understand sources of brand equityUnderstand sources of brand equity Firm perspectiveFirm perspective

Consumer perspectiveConsumer perspective

Set strategic direction for the brandSet strategic direction for the brand Recommend marketing programs toRecommend marketing programs to

maximize long-term brand equitymaximize long-term brand equity


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3.21

Brand Audit StepsBrand Audit Steps

Brand inventoryBrand inventory(supply side)(supply side)

Brand exploratoryBrand exploratory(demand side)(demand side)
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3.22

Brand InventoryBrand Inventory

A current comprehensiveA current comprehensiveprofileprofile ofofhow all the products and services soldhow all the products and services soldby a company are branded andby a company are branded and

marketed:marketed: Brand elementsBrand elements Supporting marketing programsSupporting marketing programs

Profile of competitive brandsProfile of competitive brands POPs and PODsPOPs and PODs Brand mantraBrand mantra


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3.23

Brand Inventory (Cont.)Brand Inventory (Cont.)

Suggests theSuggests the basesbases for positioning thefor positioning thebrandbrand

OffersOffers insightsinsights to how brand equityto how brand equity

may be better managedmay be better managed AssessesAssesses consistencyconsistencyin messagein message

among activities, brand extensions,among activities, brand extensions,

and sub-brands in order to avoidand sub-brands in order to avoidredundancies, overlaps, and consumerredundancies, overlaps, and consumerconfusionconfusion


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3.24

Brand ExploratoryBrand Exploratory

Provides detailed information as toProvides detailed information as tohow consumers perceive the brand:how consumers perceive the brand: AwarenessAwareness

FavorabilityFavorability Uniqueness of associationsUniqueness of associations

Helps identify sources of customer-Helps identify sources of customer-

based brand equitybased brand equity Uncovers knowledge structures for theUncovers knowledge structures for the

core brand as well as its competitorscore brand as well as its competitors


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3.25

Suggested Brand AuditSuggested Brand Audit

OutlineOutline Brand audit objectives, scope, and approachBrand audit objectives, scope, and approach Background about the brand (self-analysis)Background about the brand (self-analysis) Background about the industriesBackground about the industries

Consumer analysis (trends, motivation,Consumer analysis (trends, motivation,perceptions, needs, segmentation, behavior)perceptions, needs, segmentation, behavior)

Brand inventoryBrand inventory

Elements, current marketing programs, POPs,Elements, current marketing programs, POPs,PODsPODs

Branding strategies (extensions, sub-brands, etc.)Branding strategies (extensions, sub-brands, etc.) Brand portfolio analysisBrand portfolio analysis

Competitors brand inventoryCompetitors brand inventory


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Brand Audit Outline (Cont.)Brand Audit Outline (Cont.)

Brand exploratoryBrand exploratory Brand associationsBrand associations Brand positioning analysisBrand positioning analysis Consumer perceptions analysis (vs. competition)Consumer perceptions analysis (vs. competition)

Summary of competitor analysisSummary of competitor analysis SWOT analysisSWOT analysis Brand equity evaluationBrand equity evaluation Strategic brand managementStrategic brand management

recommendationsrecommendations

ch3 brand positioning

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