1. Crafting the Brand Positioning10
Crafting the Brand Positioning
Marketing Management, 13th ed

2. 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?
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3. Marketing Strategy
Segmentation-- group of customers who share a similar set of needs and wants
Targeting—consumer that can be satisfied in a superior way
Positioning—a distinctive place in the minds of the target market

4. Positioning
Act of designing the company’s
offering and image to occupy
a distinctive place in the mind of
the target market.

5. Positioning

6. Writing a Positioning Statement
Mountain Dew: To young, active
soft-drink consumers who have
little time for sleep, Mountain Dew
is the soft drink that gives you
more energy than any other brand
because it has the highest level of
caffeine.

7. Value Propositions Perdue Chicken Domino’s
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
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8. 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
FedEx—guaranteed overnight delivery
Nike—performance
Lexus—quality
Miller Lite Beer—one-third less calories
Points-of-parity (POPs)
Associations that are not necessarily unique to the brand but may be shared with other brands
Category—travel agency must be able to make air and hotel reservations, etc.
Competitive—Miller Lite beer—taste great

9. Conveying Category Membership
Announcing category benefits--able to deliver on the fundamentals reason for using a category (e.g., Brownie mix)
Comparing to exemplars--used category membership parity (e.g., Tommy Hilfiger introduction compared its brand to Calvin Klein)
Relying on the product descriptor--communicate unique position (e.g., In order for Ford to communicate a vehicle that had the attributes of an SUV, a minivan, and a station wagon and avoid association with its “Explorer and Country Squire models,” labeled the vehicle “Freestyle” to designated it as a “sports wagon”
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10. Consumer Desirability Criteria for PODs
Relevance--personally relevant and important
Distinctiveness--superior (Splenda overtook Equal and Sweet ‘n Low)
Believability--credible
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11. Deliverability Criteria for PODs
Feasibility—must be able to create
Communicability—consumers must be able to understand benefits
Sustainability—preemptive and defensible positioning
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12. Examples of Negatively Correlated Attributes and Benefits
Low-price vs. High quality
Taste vs. Low calories
Nutritious vs. Good tasting
Powerful vs. Safe
Strong vs. Refined
Ubiquitous vs. Exclusive
Varied vs. Simple
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13. Addressing negatively correlated PODs and POPs
Present separately
Leverage equity of another entity
Redefine the relationship
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14. Differentiation Strategies
Channel—more effectively and efficiently design distribution channel coverage, expertise, and performance.
Personnel—better trained employees
Image—crafting of powerful, compelling images (e.g., Marlboro, Hyatt Regency Hotels—atrium lobbies)
Product
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15. Product Differentiation
Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
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16. Identity and Image
Identity:
The way a
company aims
to identify or
position itself
Image:
The way the
public perceives
the company or
Its products

17. Personnel Differentiation: Singapore Airlines

18. Image Differentiation

19. Product Life Cycle

20. 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
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21. 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
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22. Typical Changes in Marketing Variables over the Product Life Cycle

23. Stages in the Maturity Stage
Growth
Stable
Decaying maturity
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24. Common PLC Patterns: a) small kitchen appliances, b) new drugs, c) new uses or users--nylon

25. Style, Fashion, and Fad Life Cycles: a) distinctive mode of expression, b) currently accepted or popular style, c) fashions that come and go quickly

26. Marketing Product Modifications
Quality improvements—increasing functional performance
Feature improvements—adding new features—size, weight, materials, additives and accessories
Style improvements—increasing the product’s esthetic appeal
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27. Marketing Program Modifications
Prices
Distribution
Advertising
Sales promotion
Services

28. 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
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29. Market Evolution Stages
Emergence
Growth
Maturity
Decline
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30. Emerging Markets
Latent
Single-niche
Multiple-niche
Mass-market

31. Market fragmentation stage—focus on different segments of the market
Maturity Strategies
Market fragmentation stage—focus on different segments of the market
Market consolidation stage—emergence of a new attribute that has strong appeal
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32. Product in Decline

33. All marketing strategy is built on STP
Study Question 1
All marketing strategy is built on STP
segmentation, targeting, and ________.
Positioning
Product
Planning
Promotion
performance
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34. Study Question 2 A starting point in defining a competitive frame
of reference for a brand positioning is to
determine ________the products or sets of
products with which a brand competes and
which function as close substitutes.
functional membership
competitive field
category membership
value membership
demand field
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35. Study Question 3 The preferred approach to positioning is to
inform consumers of a brand’s membership
before stating its ________.
point-of-parity
point-of-difference
point of conflict
point of weakness
point of reference
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36. Study Question 4 Marketers must decide at which level to anchor the
brand’s points-of-differences. At the lowest level are
________. For example, Dove soap can talk about the
fact that it is one-quarter cleansing cream.
brand values
brand attributes
brand benefits
brand specifications
brand partitions
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37. Study Question 5 ________ is a company’s ability to perform in
one or more ways that competitors cannot or
will not match.
Positioning
Deliverability
Competitive advantage
Distribution
Differentiation
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall