Framework for Marketing Management International Edition 9 Crafting the Brand Positioning and Competing Effectively 1

© 2012 Pearson Education 9-2 Chapter Questions  How can a firm develop and establish an effective positioning?  How are brands successfully differentiated?  How do marketers identify and analyze competition?  How can market leaders, challengers, followers, and nichers compete effectively?

What is Positioning? © 2012 Pearson Education 9-3

© 2012 Pearson Education 9-4 Value Propositions  Perdue Chicken  More tender golden chicken at a moderate premium price  Domino’s  A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

Competitive Frame of Reference © 2012 Pearson Education 9-5

© 2012 Pearson Education 9-6 Defining Associations Points-of-difference Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Points-of-parity Associations that are not necessarily unique to the brand but may be shared with other brands

Point-of-Difference Criteria © 2012 Pearson Education 9-7 Desirable Deliverable Differentiating

POP versus POD © 2012 Pearson Education 9-8

Figure 9.1a Perceptual Map: Current Perceptions © 2012 Pearson Education 9-9

Figure 9.1b Perceptual Map: Possibilities © 2012 Pearson Education 9-10

Brand Mantras © 2012 Pearson Education 9-11

Designing a Brand Mantra © 2012 Pearson Education 9-12 Communicate Simplify Inspire

© 2012 Pearson Education 9-13 Conveying Category Membership  Announcing category benefits  Comparing to exemplars  Relying on the product descriptor

Differentiation Strategies © 2012 Pearson Education 9-14

Dimensions of Differentiation © 2012 Pearson Education 9-15 Employee Channel Image Services

Emotional Branding © 2012 Pearson Education 9-16 Strong culture Communication style Emotional hook

Figure 9.1 Hypothetical Market Structure © 2012 Pearson Education 9-17

Expanding the Total Market © 2012 Pearson Education 9-18

New Ways to Use a Brand © 2012 Pearson Education 9-19

Protecting Market Share © 2012 Pearson Education 9-20 Responsive anticipation Creative anticipation

Types of Defense Strategies © 2012 Pearson Education 9-21

© 2012 Pearson Education 9-22 Market Challenger Strategies  Define the strategic objective and opponents  Choose a general attack strategy  Choose a specific attack strategy

© 2012 Pearson Education 9-23 General Attack Strategies  Frontal attack  Flank attack  Encirclement attack  Bypass attack  Guerilla warfare

Specific Attack Strategies  Price discounts  Lower-priced goods  Value-priced goods  Prestige goods  Product proliferation  Product innovation  Improved services  Distribution innovation  Manufacturing-cost reduction  Intensive advertising promotion © 2012 Pearson Education 9-24

Market Follower Strategies © 2012 Pearson Education 9-25

Market Nicher Strategies © 2012 Pearson Education 9-26

Niche Specialist Roles  End-User Specialist  Vertical-Level Specialist  Customer-Size Specialist  Specific-Customer Specialist  Geographic Specialist  Product-Line Specialist  Job-Shop Specialist  Quality-Price Specialist  Service-Specialist  Channel Specialist © 2012 Pearson Education 9-27

For Review  How can a firm develop and establish an effective positioning?  How are brands successfully differentiated?  How do marketers identify and analyze competition?  How can market leaders, challengers, followers, and nichers compete effectively? © 2012 Pearson Education 9-28