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Crafting the Brand Positioning
11 Crafting the Brand Positioning Marketing Management, 13th ed
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Chapter Questions How can a firm choose and communicate an effective positioning in the market? How are brands differentiated? What marketing strategies are appropriate at each stage of the product life cycle? What are the implications of market evolution for marketing strategies? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Defining Associations
Points-of-difference (PODs) 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 (Apple design, Nike Performance, Lexus quality) Points-of-parity (POPs) Associations that are not necessarily unique to the brand but may be shared with other brands Category POP e.g., Travel Agency has to make hotel & travel reservations Competitive POP e.g., Savlon vs. Detol Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Conveying Category Membership
Announcing category benefits (Laziza Kheer Mix in desert category) Comparing to exemplars (Mixer associating itself with Tang) Relying on the product descriptor (BMW-luxury and performance) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Consumer Desirability Criteria for PODs
Relevance (One hotel stating the world’s tallest-not relevant for tourists) Distinctiveness (Splenda sugar overtook Equal because made of sugar without any side effects) Believability (Mountain Dew is more energizing soft drink by emphasizing higher levels of caffeine) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Deliverability Criteria for PODs
Feasibility (GM had to work very hard by changing consumer perception about Cadillac as youthful brand) Communicability (Proof points-Nivea wrinkle control crème) Sustainability (Visa, American Express more sustainable vs. Fashion industry) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Differentiation Strategies (Competitive Advantage)
Product (Microsoft, Southwest Airline) Personnel (Singapore Airline) Channel (Eureka Forbes Vacuum Cleaner-direct to home channel) Image (Marlboro's- Macho cowboy, Commander Safeguard) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Product Differentiation
Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Claims of Product Life Cycles
Products have a limited life Product sales pass through distinct stages each with different challenges and opportunities Profits rise and fall at different stages Products require different strategies in each life cycle stage Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Figure 10.1 Sales and Product Life Cycle
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Figure 10.2 Common Product Life-Cycle Patterns
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Figure 10.3 Style, Fashion, and Fad Life Cycles
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Figure 10.4 Long-Range Product Market Expansion Strategy
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Strategies for Sustaining Rapid Market Growth
Improve product quality, add new features, and improve styling Add new models and flanker products Enter new market segments Increase distribution coverage Shift from product-awareness advertising to product-preference advertising Lower prices to attract the next layer of price-sensitive buyers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Stages in the Maturity Stage
Growth (Sales growth starts to decline, no new channels to fill, new competitive force emerge) Stable (Sales flatten on saturation basis, future growth depends on population growth & replacement ) Decaying Maturity (sales slow down creating over capacity. Competitors scramble to find niches, start advertising & consumer promotions. R&D to come up with line extensions. Weak competitors withdraw) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Product Modification Quality improvement: Stronger, bigger or better (chakki atta in Pakistan) Feature improvement: Size, weight, materials, additives & accessories (Provide free publicity & generate sales force and distributor enthusiasm) Style improvement: Improve product esthetic sense (new car models) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Marketing Program Modifications
Prices (Price cuts? What sort or Price increase?) Distribution (Toyo Nasic, Omroc & Nova) Advertising (Increase ads, change message) Sales promotion (What sort of promotions?) Services (Delivery, after sales, credit) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Ways to Increase Sales Volume
Convert nonusers Enter new market segments Attract competitors’ customers Have consumers use the product on more occasions Have consumers use more of the product on each occasion Have consumers use the product in new ways Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Market Evolution Stages
Emergence Growth Maturity Decline Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Emerging Markets Latent Single-niche Multiple-niche Mass-market
Zibbie Zone is one of several virtual worlds tied to toys Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Figure 10.5 Maturity Strategies
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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