1.  2007 Thomson South-Western Marcom Positioning Chapter Five

2. 2 Positioning In Theory: Creating Meaning A brand’s positioning represents the key feature, benefit, or image that it stands for in the target audience’s collective mind. The attribute / benefit of the brand which is most strongly and robustly recalled

3. The Multi Attribute Attitude Model Brand beliefs = Attribute x strength of its association with brand Importance of attribute moderates belief strength Sum of moderated beliefs = attitude to brand Interpretation –According to the direction of the scale –Relative to attitude measures for competing brands Multi Attribute Attitude Modeling (MAAM) 3

4. The MAAM 4 n A b =  b i e i i = 1 A b = attitude toward brand b i = belief about the relationship between brand and attribute i e i = attribute importance weight i n = number of salient attributes

5. 5 Meaning Transfer: From Culture to Object to Consumer Through socialization, people learn cultural values, form beliefs, and become familiar with the physical manifestations, or artifacts, of these values and beliefs.

6. 6 Meaning Transfer: From Culture to Object to Consumer The consumer approaches all advertisements as texts to be interpreted.

7. Meaning Transfer 7

8. 8

9. 9 Advertisements Illustrating Contextual Meaning

10. 10 The consumer infers that this product will help him or her get in shape and maintain a healthy regimen.

11. 11 Positioning in Practice: The Nuts and Bolts Brand positioning is essential to a successful Marcom program. A good positioning statement should: –Reflect a brand’s competitive advantage –Motivate customers to action

12. 12 Positioning Statement A positioning statement for a brand is the central idea that encapsulates a brand’s meaning and distinctiveness compared to other brands. BRAND (_______) STANDS FOR _______________

13. A Communication problem BRAND (_______) STANDS FOR _______________ –As planned and stated by the marketer –As understood by the consumer If the two match – ideal situation If they do not match – communication problem 13

14. 14 Outcomes of Proposed Positioning

15. 15 Loser Characterizes a proposed positioning where the brand possesses no competitive advantage and the basis for the positioning is not enough to motivate consumers to want the brand.

16. 16 Swimming Up the River (SUTR) A proposed positioning represents a competitive advantage for a trivial product feature or benefit, and does not give the consumer compelling reasons to want the brand. Any effort will be hard work with little progress

17. 17 Promote Competitors Does not reflect a competitive advantage but does represent an important reason for making brand selection decisions in the product category. Any effort would basically serve other brand selection decisions in the same category.

18. 18 Winner Brand is positioned on a product feature or benefit for which the product has an advantage over competitors and which gives consumers a persuasive reason for trying the brand.

19. 19 Benefit Positioning Positioning with respect to brand benefits can be accomplished by appealing to any of three categories of needs. Experiential NeedsSymbolic NeedsFunctional Needs

20. 20 An Appeal to Functional Needs Products that attempt to fulfill the consumer’s consumption- related problems

21. 21 An Appeal to Symbolic Needs Products that potentially fulfill a consumer’s desire for self-enhancement, group membership, affiliation, altruism, and belongingness

22. 22 Positioning Based on Symbolic Needs

23. 23 Attribute Positioning A brand can be positioned in terms of a particular attribute or feature, provided that the attribute represents a competitive advantage and can motivate customers to purchase that brand rather than a competitive offering.

24. 24 An Example of Product- Related Positioning

25. 25 Non-Product Related: Usage and User Imagery Brands can also be positioned in terms of their unique usage symbolism or with respect to the people who use them.

26. 26 Positioning Via Attributes: Non- Product- Related Usage Imagery

27. 27 Examples of Repositioning a Brand “ Flame-Broiled” Vs. “Fire-Grilled” “Oil of Olay” to Olay

28. IMPLEMENTING POSITIONING Understanding the buying process 28

29. 29 Involvement – Experience Matrix High experienceLow experience High involvementBRAND LOYALTY EXTENDED PROBLEM SOLVING Low involvementHABIT / VARIETY SEEKING LIMITED PROBLEM SOLVING Consumer Buying Strategies

30. 30 A Basic Strategy Ready Reckoner Prod uct Invol veme nt Product Categor y Experie nce ExamplesBuying Strateg y Used Decision Process Hierarchy of effects Critical Factor Influencing Purchase Behavior Most Important IMC Options HighLowFirst time buyers in a relatively expensive product category, e.g. house, stocks, insurances, vacations, etc. Extended Problem Solving RationalAw>Att>Int>BehCustomized Solutions; guarantees Personal Selling High Frequent buyers in a relatively expensive product category e.g. airline tickets, cars Brand Loyalty Mostly Rational; Some Emotiona l Int>Beh>Att>IntPositive Reinforceme nt / Reward Direct Mail / Email LowHighFrequent buyers in a relatively inexpensive product category e.g. groceries, milk, household products Habit / Variety Seeking Emotiona l Aw>Beh>Att>IntPoint of SalePOP, Packaging Low First time buyers in a relatively inexpensive product category e.g. someone learning to rollerblade for the first time. Restricte d Problem Solving Mostly Emotiona l; Some Rational Aw>Beh>Att>IntFree Trials, Sampling Sales Promotion

31. IMPLEMENTING POSITIONING The FCB Grid 31

32. 32 The FCB Grid (Vaughn 1980, 1986)

33. IMPLEMENTING POSITIONING The Rossiter Percy grid 33

34. 34 The Rossiter-Percy Grid (1997)

35. IMPLEMENTING POSITIONING Perceptual Mapping 35

36. Perceptual Mapping A representation of the consumers’ mind space with the position of brands in this mind space. When considering more than two dimensions – Multi-Dimensional Scaling – a statistical procedure for determining clusters of similar brands. 36

37. 37 High price Low price PowerHigh mpg ferrari camaro firebird Prius Insight Civic Accord Acura Mercedes BMW Ford fiesta The Perceptual Map – Cars – attribute based

38. The Perceptual Map Cars – benefit based 38 For younger people For older people prestige savings volvo Rolls Bentley Ford festiva ferrari mercedes Camry Accord Corolla Civic BMW

39. Information from the map Which brands compete with each other Strategy implications 39

40. Information from the map How is every brand perceived on each attribute – the current positioning –Tylenol – –Excedrin – Strategy implications 40

41. Information from the map Length of attribute line Strategy implications 41

42. Information from the map Angle between lines –Smaller angles – –Larger angles – Strategy implications 42

43. Information from the map Brand located close to the center (origin) e.g. Panadol 43

44. IMPLEMENTING POSITIONING CPM vs. HEM 44

45. 45 Implementing Positioning Consumer Processing Model (CPM): information and choice are seen as a rational, cognitive, systematic and reasoned process. Hedonic, Experiential Model (HEM): views consumers’ processing of marcom messages and behavior as driven by emotions in pursuit of fun, fantasies and feeling.

46. 46 Comparison of the CPM and HEM Models

47. 47 The Consumer Processing Model (CPM)CPMCPM

48. 48 Stage 1: Consumer Information Processing Exposure to information Consumers come in contact with the marketer’s message Gaining exposure is a necessary but insufficient for communication success “The truth effect”: repeated exposure to a message increases the likelihood that the receiver will believe it to be true. A function of key managerial decisions regarding the size of the budget and the choice of media and vehicles

49. 49 The 8 Stages of Consumer Information ProcessingCPMCPM

50. 50 Stage 2: Paying Attention Focus on and consider a message to which one has been exposed Highly selective

51. 51 Stage 2: Paying Attention To attract consumers’ attention and avoid selectivity: Create messages that truly appeal to their needs for product-relevant information

52. 52 The 8 Stages of Consumer Information ProcessingCPMCPM

53. 53 Stage 3: Comprehension Understand and create meaning out of stimuli and symbols Interpreting stimuli involves perceptual encoding

54. 54 Perceptual Encoding 1. Feature analysis: I nitial stage whereby a receiver examines the basic features of a stimulus 2. Active synthesis: Beyond examining physical features, the context or situation plays a major role in what meaning is acquired

55. 55 Selective Perception: Each individual is likely to perceive images in different ways

56. 56 Miscomprehension 1.Messages themselves are sometimes misleading or unclear. 2.Consumers are biased by their own preconceptions and thus “see” what they choose to see 3.Processing of advertisements often takes place under time pressures and noisy circumstances.

57. 57 The 8 Stages of Consumer Information ProcessingCPMCPM

58. 58 Stage 4: Agreement Comprehension by itself does not ensure that the message influences consumers’ behavior Agreement depends on –whether the message is credible –whether the information is compatible with the values that are important to the consumer.

59. 59 The 8 Stages of Consumer Information ProcessingCPMCPM

60. 60 The 8 Stages of Consumer Information ProcessingCPMCPM

61. 61 Retention and Search/Retrieval of Stored Information These two information processing stages, retention and information search and retrieval, both involve memory factors related to consumer choice

62. 62 Elements of Memory Memory Memory involves the related issues of what consumers remember about marketing stimuli and how they access and retrieve information when making consumption choices

63. 63 Elements of Memory Sensory stores(SS): – Information is rapidly lost unless attention is allocated to the stimulus Short-Term Memory(STM): – Limited processing capacity –Information not thought about or rehearsed will be lost in 30 seconds or less

64. 64 Elements of Memory Long-Term Memory (LTM): –A virtual storehouse of unlimited information –Information is organized into coherent and associated cognitive units called schemata, memory organization packets, or knowledge structures –The marketer’s job is to provide positively valued information that consumers will store in LTM

65. 65 A Consumer’s Knowledge Structure for the VW Beetle

66. 66 Two Types of Learning Strengthening of linkages among specific memory concepts –repeating claims, presenting them in a more concrete fashion and being creative in conveying a product’s features Establishing entirely new linkages

67. 67 Information that is learned and stored in memory only impacts consumer choice behavior when it is searched and retrieved Retrieval is facilitated when new information is linked with another concept that is well known and easily accessed Dual-Coding Theory: Pictures are represented in memory in verbal as well as visual form, whereas words are less likely to have visual representations. Search and Retrieval of Information

68. 68 The 8 Stages of Consumer Information ProcessingCPMCPM

69. 69 The 8 Stages of Consumer Information Processing

70. 70 A CPM Wrap-Up The rational consumer processing model (CPM) and the hedonic, experiential model (HEM) are not mutually exclusive.

71. 71 The HEM perspective People often consume products for the fun of it or in the pursuit of amusement, fantasies, or sensory simulation Products are subjective symbols that precipitate feelings and promise fun and the possible realization of fantasies The communication of HEM-relevant products emphasizes nonverbal content or emotionally provocative words and is intended to generate images, fantasies, and positive emotions and feelings

72. 72 CPM vs. HEM An advertisement exemplifying the HEM approach