Markman visual model chap 10 crafting the brand positioning
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Markman visual model chap 10 crafting the brand positioning

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    Markman visual model chap 10 crafting the brand positioning Markman visual model chap 10 crafting the brand positioning Presentation Transcript

    • Crafting the Brand Positioning: A Visual Model (Chapter 10) Raymund C. PiñonMarketing Management V57 VCoach Bong De Ungria
    • Marketing Task #4BUILDING STRONG BRANDSCrafting the Brand Positioning
    • ObjectivesAt the end of this presentation, the participants should be able to 1. Understand how firms can choose and communicate an effective positioning in the market 3. See how brands are differentiated 5. Appreciate how different marketing strategies are appropriate at each stage of the product life cycle 7. Understand the implications of market evolution for marketing strategies
    • Outline Developing and Communicating a Positioning Strategy  Competitive Frame of Reference  Points-of-Difference and Points-of-Parity Differentiation Strategies Product Life-Cycle Strategies
    • The 4th Task of Marketing is…
    • Developing and Communicating a Positioning StrategyAll marketing strategy is built on STP Segmentation – discover different needs and groups in the marketplace Targeting – identify groups it can satisfy in a superior way Positioning – positions its offering so that the target market recognizes the firm’s distinctive offering & image
    • What is Positioning?Act of designing an offer and image to occupya distinctive place in the minds of the target market
    • Positioning results in The creation of a A persuasive REASON WHY the target market should buy the product
    • PositioningExamples of Customer-Focused Value Propositions Langhap Sarap  Food offered by Jollibee caters to Filipino taste Pera padala  Makakarating ang padala mo We have it all for you  Convenient shopping experience in SM’s one-stop shop because it provides all you need under one roof World’s safest pain reliever  Biogesic is safe even for pregnant women
    • PositioningStarts with… A Competitive Frame of Reference And then looks at Points-of-Difference and Points-of-Parity
    • Positioning So Start with a Competitive Frame of Reference by1st Identifying the Product’s Category Membership  Define Customer Target Market and  Define Nature of Competition  Products and services competing for same target segment  Substitute products and services
    • PositioningThen Looking at Points-of DifferencesPOD – attributes or benefits that consumers… Strongly associate with a brand Positively evaluate Believe are unique to the brand or could not be found to the same extent in other brands  Energizer – longest lasting battery  Louis Vuitton – most stylish handbag
    • Fun place for family to be together Prompt friendly service and for children to play McDoClean pleasant modern facilities Food kids love and are affordable Ned Roberto (Marketing Guru) Manny Paquiao (Pambansang Kamao)
    • Positioningand also at Points-of-ParityPOP – attribute or benefit associations not unique to the brand but may in fact be shared with other brands2 Types of POPs are: Category POPs = Competitive POPs
    • PositioningCategory POPs are: Associations essential to a legitimate and credible offering within a category Necessary, but not sufficient, condition for brand choice  Soap must be able to clean  A doctor must have medical training and license to practice
    • PositioningCompetitive POPs are  Associations designed to negate a competitor’s POD   Brand “breaks even” on areas where competitors are trying to create an advantage Consumers must believe brand is “good enough” on an attribute or benefit x
    • PositioningTo Establish Category Membership Marketers must inform consumers of a brand’s category membership  Announcing category benefits  Cherifer – tangkad sagad  Enervon C - protektodo  Comparing to exemplars  The Rolls Royce of the banking industry  Elvis Presley of the Philippines  Relying on the product descriptor  Ford Freestyle “Space Wagon”  Ateneo Graduate School of Business
    • PositioningIn Choosing POPs and PODs, we need to considerFor PODs Desirability  Relevant and Important  Distinctive and superior  Believable, credible, compelling Deliverability of promise  Feasibility  Design and offer support desired associations  Communicability  Compelling reason to believe  Understandable rationale why brand can deliver desired benefits  Verifiable evidence or proof points  Sustainability  Preemptive  Defensible  Difficult to attack
    • PositioningIn Choosing POPs, consider  Need for category membership  Create competitive POPs to negate competitors’ PODs
    • PositioningMarketers must choose which level of aBrand’s POD to highlight Functional Psycho- Benefits Social Instrumental Attributes Emotional and (What a - Promil Benefits Terminal brand does) contains (Self-Image Values - Promotes taurine Social Image) - My children Brain development - I’m a will love me good Mom This? This? Or this? This?
    • PositioningThe outcome of the process of creating a valueproposition is a Positioning StatementTo Children who are undernourished due(Target group and need) to poor appetiteOur Appebon(Brand)Is Is a complete vitamin-mineral(Concept) formulation with an appetite stimulantThat Provides needed nourishment and(what the POD is or does) stimulates children’s appetite because it contains 5 mg of buclizine HCl
    • DifferentiationTo avoid the commodity trap, we consider Competitive advantage  A company’s ability to perform in one or more ways that competitors cannot or will not match Leverageable advantage  Advantage a company can use as springboard to new advantages Customer advantage  Competitive advantage that is seen by customer as an advantage to themselves
    • DifferentiationTo derive fresh insights to differentiate ourbrand we can use tools such as The Consumption Chain  Examining customers’ entire experience with a product or service to uncover opportunities to position offerings in ways no one thought possible McMillan & McGath Questionnaire  To derive consumer-based points of differentiation
    • DifferentiationSome Dimensions we can use to differentiate are Product design  Swatch – colorful, fashionable watches  Subway – healthy alternative to fast foods Personnel Differentiation  Better-trained employees Channel Differentiation  More effective and efficient design of distribution channels’ coverage, expertise and performance Image Differentiation  Craft powerful, compelling images  Marlboro Man
    • Product Life CycleDescribes an analogy of the stages of life of a productthat is similar to natural biological stages of living things  Birth  Slow sales growth  Heavy expenditure  Non-existent profits  Growth  Rapid market acceptance  Substantial profit improvement  Maturity  Slowdown in sales growth  Acceptance by most potential buyers  Stabilized or decreased profits  Increased competition  Decline  Sales decline  Profits erode
    • Product Life Cycle Marketing StrategiesRecall that Marketing Strategy is about STPSo examine your brand’s STP at different stages in the PLC SWOT SWO OT T SWSWOT A company’s POSITIONING and DIFFERENTIATION strategy must change as products, markets and competitors change over the PRODUCT LIFE CYCLE
    • Product Life CycleIntroduction Stage Marketing StrategiesSWOT Key Issues: • Pioneer 1st to market with new product vs. late entrant with better product • Heavy investments in product, technology, market, channel development • Market entry strategy with high risks and uncertainty
    • Product Life CycleGrowth Stage Marketing Strategies O T SW • New entrants come in with new product features and expanded distribution • Customer base expands from innovators to early adopters • Sales increase, prices remain or fall, promo expense and profits increase • Company improves product quality, adds new features and improves styling • Adds new models and flankers, enters new segments, • Increases distribution coverage and enters new channels • Shifts from product awareness advertising to product preference advertising • Lowers prices to attract next layer of price-sensitive buyers
    • Product Life CycleMaturity Stage Marketing Strategies SWOT •Sales growth rate slows, flattens then declines • No new distribution channels, market is saturated, future growth organic • Customer starts switching to other products • New competitive forces – emerge of new categories or blue oceans • Sales decline cause overcapacity and leads to fierce competition for market shares • Price wars, increased promo spending, increased R&D spend • Exit of weaker competitors and dominance of a few large competitors: quality leader, cost leader, service leader and a few nichers
    • Product Life CycleMaturity Stage Marketing Strategies SWOT Ways to change the course of a brand during maturity stage • Market modification - expand market: Volume = Expand # of brand users x increase usage rate per user • Product modification: Improve quality, features, style • Market program modification: pricing, distribution, advertising, trade and consumer promotions, personal selling, services
    • Product Life CycleDecline Stage Marketing Strategies SW O T • Sales decline due to technological advances, changes consumer preferences, increased domestic and foreign competition • Industry overcapacity, price cuts, profit erosion • Companies exit the market, reduce products offered, withdraw smaller segments and weaker trade channels • Cut promotional budget and lower prices further • Sustain product? Modify marketing strategy? Drop product? • Harvest – maintain sales, cut costs. • Divest – Sell or liquidate?
    • Market EvolutionMarkets also go through life cycle stages Latent market  Diffused preference  Single-niche strategy  Multiple-niche strategy  Mass-market strategy Emergence stage Growth stage Maturity stage  Market fragmentation  Market consolidation Decline stage
    • Market EvolutionReview Brand’s STP at each stage of the Market’s Evolution SWOT SWO T OT SW SWOT Firms must visualize a market’s evolutionary path as it is affected by new needs, technology, competitors, channels and other developments. A company’s POSITIONING and DIFFERENTIATION strategy must change to keep pace with market developments
    • In SummaryWe discussed…1. How firms choose and communicate an effective positioning in the market3. How brands are differentiated5. How different marketing strategies are appropriate at each stage of the product life cycle7. Implications of market evolution for marketing strategies
    • 4th Task of Marketing? S Product Life Cycle T P – Positioning Building Strong Brands!!! Crafting the Value Proposition Market Evolution Positioning changes w/ changing PLC and ME CompetitionMarket + Differentiation Positioning Avoid the commodity trap Statement: POP To POD = + HOW??? Our Is That Points of Parity Points of Difference