Get documents about "Crafting the Brand Positioning - 11
Shared by: skillfulyards
-
Stats
- views:
- 49
- posted:
- 4/5/2012
- language:
- English
- pages:
- 3
Document Sample
Marketing Management
By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha
logo copy.tif
SUMMARY by
Chapter 11
Crafting the Brand Positioning
This chapter illustrates how a firm can choose an effective positioning in the market and
differentiate its brand. It describes the various strategies a firm can employ at each stage of a
products life cycle and finally shows the implications of Market evolution for marketing
strategies.
Positioning:
Positioning is the act Developing and Communicating a Positioning
of designing the Strategy
company’s offering
Category Membership: products or set of products with which the brand
and image to occupy
competes and which function as close substitutes.
a distinctive place in
the minds of the Points of Difference (POD): Attributes or benefits consumers strongly
target market. associate with a brand, positively evaluate and believe they could not find to the same extent
Positioning requires in another brand.
determining on a Points of Parity (POP): They are associations that are not unique to the brand
frame of reference but in fact maybe shared with other brands. It has two forms:
based on the • Category Points of Parity: Associations customers view as essential to a legitimate and
credible offering within a certain product or service category.
following factors:
• Competitive Points of Parity: Associations designed to negate a competitor’s points-
1. Identifying the of-difference.
target market.
2. Analyzing the Choosing POPs and PODs
POPs: They are driven by the needs of category membership (to create category POPs) and the
competition.
necessity of negating competitors’ PODs (to create competitive PODs)
PODs: The following two criteria are considered while choosing POP’s
Desirability Criteria Deliverability Criteria
Relevance Feasibility
Distinctiveness Communicability
Believability Sustainability
Chapter 11 - Crafting the Brand Positioning
Establishing category membership
The typical approach to positioning is to inform consumers about a brands category
membership before stating its points of difference. Initial advertising often concentrates on
create brand awareness and subsequent advertising attempts to craft the Brand Image.
Differentiating Strategies
Competitive Advantages
It is a company’s ability to perform in 1 or more ways that competitors can’t match. Two
sustainable competitive advantages are:
Straddle • Leverageable Advantage: is one that a company can use as a springboard to new
advantages
Positing: • Customer Advantage: is an advantage that a customer sees in the company’s
offering
It is a common
positioning technique
used when a
Dimensions to differentiate Market Offerings
• Personnel differentiation: Better trained employees E.g. smartly dresses flight
company tries to
attendants of Kingfisher Airlines.
straddle between two • Channel Differentiation: more effectively and efficiently designed channels,
frames of reference. coverage, expertise and performance.
E.g. BMW through a • Image differentiation: Companies can craft powerful compelling images. E.g.
well crafted Marlboro’s “macho cowboy” image.
marketing program
straddled ‘Luxury’ Product Lifestyle Marketing Strategies
and ‘Performance’ as Most product life-cycle curves are portrayed as bell shaped curves.
both POD and POP.
A company’s positioning and differentiation strategy must change as the product, market and
competitors change over the product life cycle (PLC).
Chapter 11 - Crafting the Brand Positioning
Trends
Summary of Product Lifecycle Characteristics,
Objectives and Strategies
Introduction Growth Maturity Decline
Characteristics
Sales Low Sales Rapidly rising Peak Sales Declining Sales
sales
Maturity: Costs High Cost per Average Cost per Low cost per Low cost per
customer customer customer customer
When the
Profits Negative Rising Profits High Profits Declining Profits
competitors cover all Customers Innovators Early Adopters Middle majority Laggards
major segments of Marketing
the market maturity Objectives
Create product Maximize market Maximize profit Reduce
stage occurs.
awareness and share while defending expenditure and
Competitors invade trial market share milk the brand
each others profits Strategies
and as market growth Product Offer a basic Offer product Diversify brands Phase out weak
product extensions, and items models products
slows down, market service, warranty
splits into finer Price Charge cost-plus Price to penetrate Price to match or Cut price
market best competitors’
segments and market
Distribution Build selective Build Intensive Build more Go selective: phase
segmentation occurs. distribution distribution intensive out unprofitable
This is often followed distribution outlets
Advertising Build product Build awareness Stress brand Reduce to level
by market
awareness and interest in differences and needed to retain
consolidation caused among early mass market benefits hard-core loyals
adopters
by the emergence of
Sales Promotion Use heavy sales Reduce to take Increase to Reduce to
a new attribute that promotion to advantage of encourage brand minimum level
has greater appeal. entice trial heavy consumer switching
demand
Mature markets
swing between
Market Evolution
fragmentation and
• Emergence: Before a market materializes it exists as a latent market. Here the
consolidation. entrepreneur has three options:
1. Single Niche Strategy: Design a product to meet preferences of 1 segment of the
market
2. Multiple-Niche Strategy: Launch 2 or more products simultaneously to capture 2 or
more parts of the market
3. Mass Market Strategy: Design a product for the middle of the Market
• Maturity
• Decline: Eventually demand for the current products will begin to decrease because
either:
1. Society’s total need level declines
2. New Technology replaces the old
