Brand Positioning Decisions

Positioning “The art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition.”

Market Positioning Strategy Concerns the final decision of the market(s) in which firms wish to compete, combined with specific elements of the marketing mix designed to fulfill the respective needs of the market(s). Guiding principle and direction for: Product Price Distribution Marketing communications

Market Position The reaction of the market to the firm’s marketing programs. The intended or unintended consumer beliefs of the organization’s efforts, not the current or past strategic plans of marketing managers.

Illustration of Market Positioning Strategy Figure 5-1

Brand Positioning Strategy Relates to the intended image of a product or brand relative to a competing brand for a given competitive space as defined by certain product market or category characteristics. A key decision prior to determining the most effective selling message of the advertising or the IMC. Brand Positioning Strategy  Part of the overall advertising or IMC plan. Brand Position  Exists in the minds of the target audience.

Brand Position Illustration By Attributes Figure 5-2

Brand Position Illustration By Benefits Figure 5-3

Brand Positioning Strategy Via Brand Attitude Salient Beliefs Beliefs concerning specific attributes or benefits that are activated and form the basis of an attitude.

Multiattribute Attitude Model Importance (1-10) Rating: My Brand Competitor 1 Competitor 2 Overall A rating of 1 is the lowest or most poor score, 10 is the best

Cars – Compact SUV’s 9 7 8 6 5 Overall 223 251 Power Interior Space Attribute Importance Rating: My Brand - CRV Toyota RAV4 Mazda Power 9 7 Interior Space 8 6 4 WD Style 5 Overall 223 251

Attitude Change Strategies Increase or change the strength or belief rating of a brand on an important attribute Change consumers’ perceptions of the importance or value of an attribute Add a new attribute to the attitude formation process Change perceptions of belief ratings for a competing brand

Brand Positioning Strategy Options Options via Consumer and Competition Positioning by Product Attributes and Benefits Positioning by Product Attributes and Benefits Positioning by Price/Quality Positioning by Price/Quality Positioning by Use or Application Positioning by Use or Application Positioning by Product User Positioning by Product User Repositioning Repositioning Positioning by Competitor Positioning by Competitor Positioning by product attribute/benefit—setting a product apart by stressing a specific characteristic or benefit offered. Positioning by price/quality—in this strategy price/quality characteristics are stressed. For example, some products set themselves apart by assuming a very high price/quality association, while others become "price products." Positioning by use or application—how a product is to be used may in itself lead to a positioning strategy. The shoe industry example offered in the text, and products such as Arm and Hammer baking soda and Black & Decker have capitalized on this strategy. Positioning by product user—in this strategy the product is positioned at a particular group of users. The Valvoline example (Exhibit 5-8) demonstrates this strategy in practice. Positioning by competitor—focus on directly communicating attributes and benefits with another competitor. Repositioning—declining sales or changes in market conditions may lead a firm to reposition. An example of successful repositioning is Olay which was originally aimed at an older woman demographic. Procter and Gamble acquired the brand and repositioned it to younger women with a multitude of skin care products. Note that the word “Oil” as in Oil of Olay disappeared as well. This is a reflection of the repositioning strategy. Positioning by product class—the Via Rail example provided in the text in reflects this strategy in which the product is positioned against others that while not exactly the same, provide the same class of benefits. Positioning by Product Class

Brand Positioning Strategy Decision Process Identify Competitors Identify Competitors Assess Consumers’ Perceptions of Competitors Assess Consumers’ Perceptions of Competitors Determine Competitors’ Positions Determine Competitors’ Positions Analyze the Consumers’ Preferences Analyze the Consumers’ Preferences Make the Brand Positioning Strategy Decision Make the Brand Positioning Strategy Decision Monitor the Position

Implications Brand positioning strategy decision is an important requirement for: Setting the overall strategy for advertising. Content of the advertising message. Creative strategy. Tactics.

Advertising Creativity The ability to generate fresh, unique and appropriate ideas that can be used as solutions to communication problems. Artists “Only artistic value and originality count” Suits “Its not creative unless it sells”

Absolut’s Advertising Represents Synergy Between Creative and Media

Creative Challenge The job of the creative team is challenging: Every marketing situation is different, and each campaign or advertisement may require a different creative approach. Guidelines have been developed for creating effective advertising, but there is no magic formula.

Young’s View of the Creative Process Getting Raw Material, Data, Immersing One's Self in the Problem to Get the Background. Immersion Getting Raw Material, Data, Immersing One's Self in the Problem to Get the Background. Immersion Ruminating on the Data Acquired, Turning It This Way and That in the Mind. Digestion Ruminating on the Data Acquired, Turning It This Way and That in the Mind. Digestion Ceasing Analysis and Putting the Problem Out of Conscious Mind for a Time. Incubation Ceasing Analysis and Putting the Problem Out of Conscious Mind for a Time. Incubation A Sudden Inspiration or Intuitive Revelation About a Potential Solution. Illumination A Sudden Inspiration or Intuitive Revelation About a Potential Solution. Illumination Studying the Idea, Evaluating It, and Developing It for Practical Usefulness. Verification

Wallas’ View of the Creative Process Illumination Seeing the Solution Preparation Gathering Information Preparation Gathering Information The Creative Process Incubation Setting Problem Aside Verification Refining the Idea Verification Refining the Idea Incubation Setting Problem Aside

Getting Creative Input Use the product to become familiar with it! Use the product to become familiar with it Listen to what people are talking about! Read anything related to the product or market! Listen to what people are talking about Read anything related to the product or market Ask everyone involved for information! Ask everyone involved for information Work in and learn about the client’s business

Marketing Research Methods Employed to Probe Consumers’ Minds

Verification and Revision of Ideas Evaluate Ideas Generated Evaluate Ideas Generated Objective Reject Inappropriate Ideas Reject Inappropriate Ideas Give Them Final Expression Refine Remaining Ideas Refine Remaining Ideas Give Them Final Expression Directed Focus Groups Directed Focus Groups Techniques Message Communication Studies Message Communication Studies Viewer Reaction Profiles Portfolio Tests Portfolio Tests