1. Chapter 7 Differentiation and Brand Positioning

2. Brand Positioning
Customer's perception of a brand or a product relative to their
needs
Comprises both competitive and customer need considerations

3. What they choose is better or cheaper
Differentiation
Preference of one product, good or service, over another
Reasons why consumers choose what they buy
What they choose is better or cheaper
Important in business strategies and marketing

4. Assessing product offering based on a set of objective physical
Physical Positioning
Assessing product offering based on a set of objective physical
characteristics
Limitations
Does not provide a complete picture of relative positions
Customers may perceive some of the brand characteristics differently
from how the marketers intended

5. Perceptual Positioning
Includes product presentation, past experiences and opinion of others

6. Exhibit 7.2 - Comparison of Physical and Perceptual Positioning Analysis

7. Kinds of Brand Attributes
Physical - Directly related to a single physical dimension
Complex physical - Used by consumers to evaluate
competitive offerings
Abstract - Influenced by physical characteristics
Not related in any direct way
Price - Implies high or low quality
Perceptual attributes must be considered in positioning most products.

8. Exhibit 7.4 - Steps in the Positioning Process

9. Exhibit 7.4 - Steps in the Positioning Process

10. Determinant Attributes
Features
Benefits
Parentage
Manufacturing process
Ingredients
Endorsements
Comparison
Proenvironment
Price/quality

11. Tools Used to Understand the Positioning of Products
Positioning grid: Visual representation of the positions of various products or brands in the competitive set in terms of two
determinant attributes
Also called perceptual maps
Value curve: Comprises more than just two dimensions that can be generated

12. Exhibit 7.6 - Perceptual Map of Women’s Clothing Retailers in Washington, D.C.
Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They? ” Babson College Retailing Research Reports, September 1990, as shown in Micheal Levy and Barton A. Weitz, Retailing Management (Burr Ridge, IL: Richard D. Irwin. 1992), p. 205.

13. Constraints Imposed by an Intense Position
Shift in the market environment cause customers to reduce the
importance they attach to an attribute
Difficulty in repositioning a brand with an intensely perceived
position on that attribute

14. Exhibit 7.8 - Value Curves for Neiman Marcus, J.C.Penney, and Sears
Value curves indicate how products within a category compare in terms of the level—high or low—of as many attributes as are relevant.

15. Market Positioning Analysis
Measuring customers’ preferences and locating them in the product space along with their perceptions of the positions of existing brands

16. Exhibit Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing the Ideal Points of a Segment of Consumers
Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.

17. Exhibit Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing Five Segments Based on Ideal Points
Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.

18. Guiding Development of Marketing Strategy
Common approaches
Positioning statement
Identifies the target market
States unique benefits of the product
Value proposition
Similar to positioning statement
Includes information about pricing relative to competitors
Both approaches reflect the unique selling proposition (USP) of the product

19. Exhibit Positioning Statement and Value Propositions for Volvo Automobiles in the United States
Unique selling proposition (USP): Basis on which the marketer intends to win competitive advantage by differentiating the product from others in its competitive space.
Positioning statement or value proposition states benefits that the user of the product will obtain.

20. Value created by establishing customer preference for one’s brand
Brand Equity
Value created by establishing customer preference for one’s brand
Maintaining brand value requires
Brand reinforcement
Brand Revitalization

21. Positioning Decisions in Global Markets
Globalization makes consumers understand:
What’s available elsewhere and see how it is positioned
Marketers will have to be careful that:
Marketing messages in one part of the world don’t conflict with established positioning in another

22. Caveats in Positioning Decision Making
Focus should be on delivering the benefits that matter most to the target customer
Tangible attributes of the good or service itself