chapter fourteen market positioning and branding

Chapter Fourteen

Market Positioning and Branding

© 2008 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.2

Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

Positioning Creating a distinct image in the

mind of the consumer Who the firm is How the firm is different from the

competition How the firm can satisfy their wants

and needs Positioning is the perception the

customer has of the product offering




Positioning Pitfalls

Forced into a position by a strong competitor

Firm’s position is unclear to the customer

The firm has no position




Salience, Determinance, and Importance

In order to position, need to how customers perceive and place each

Salience Attributes that are “top of mind”

Determinance Attributes that actually determine the decision to

purchase a product Importance

Attributes that are important to the customer after the choice




Objective Positioning Creating an image of the product that

reflects physical characteristics and functional features

“The car is red” Ruth’s Chris Steakhouse

Very important and often used in hospitality

Can create a unique image and differentiate

Not effective when the feature is not unique




Subjective Positioning Creating a unique product image in the

mind of the customer based on subjective attributes

Attributes are not physical attributes of the product, but the customer’s mental perception of the product

Can occur automatically in the consumer Marketer hopes to control the positioning Marketer hope to create an image that

will be shared by consumers




Tangible Positioning Creating an intangible, subjective

image of a product based on a tangible feature of the product

Used in the hospitality industry as products reach commodity status

Morton’s positioning statement “When it rains, it pours”




Intangible Positioning Creating a tangible, objective image

based on an intangible aspect of the product

Consumers purchase tangibles (meals, hotel rooms) but we market intangibles

A hotel atrium The steak’s sizzle

Positioning is not brand perception alone, but how the image stands in relation to competing images




Effective Positioning The need to make the brand different

from other similar brands Positioning must promise the benefit

that the customer will receive Good positioning creates an image,

differentiates itself and promotes a benefit

Motel 6: “We’ll leave the light on for ya” Should clearly distinguishes from the

competition on factors important to the target market




Effective Positioning U.S. Army: An Army of

One U.S. Army: Be all that

you can be Marines: The Few, The

Proud, The Marines Toyota Today: Moving

Forward Toyota Old: Get the

feeling McDonald’s Today: I’m

Loving It. McDonald’s Old: You

Deserve a Break Today. Burger King: Have it

your way.

General Electric Today: Imagination at Work.

General Electric Old: We bring good things to life.

Microsoft Today: Your passion, our commitment.

Microsoft Old: Where do you want to go today?

Holiday Inn Express: Stay Smart.

Motel 6: We’ll leave the light on for ya.

Nike: Just do it.




Positioning’s Vital Role Positioning goes beyond

advertising Is a single-minded concept from

which everything flows Positioning is about creating a

marketing niche




Repositioning Changing the position or image in the

marketplace Reasons to reposition

Unsuccessful position Tried and failed to achieve a desired position Competitors have overcrowded the position Appeal to a new segment Add a new segment Increase the size of a segment Merging of properties




Branding and Positioning A brand is a well known product or

service of consistent quality available to consumers in multiple locations

Strong brands attract more franchises and higher revenues

Technology has had a significant impact on branding

Product consistency and the integrity of branded properties affects positioning of the entire brand




Hotel Restaurant Branding Outsourcing hotel F&B outlets is in some

cases more profitable Put brand names in house to avoid patrons

eating out at brands How it works

Hotel leases space for a flat fee or percentage of sales

Acquire and become a franchise Undertake a joint venture where the hotel and

restaurant share the costs and profits Hospitality and non-hospitality firms take

on joint ventures




Multiple Brands and Product Positioning Developed for growth purposes and

for market segments Also provides protection from the

competition against the single brand Different market segments may

include many of the same people, but for different purposes, different contexts or different times

Manage to avoid cannibalization Keep separate and distinct images




Discussion Give an example of a hospitality

firm whose advertising demonstrates tangible or intangible positioning.

chapter fourteen market positioning and branding

Documents

shoemaker shaw slide

pearson education

upper saddle river

marketing essentials

position slide

unique product image

product offering slide

shoemaker shaw salience