Markma Group 4 Presentation  Chapter 10 Crafting the Brand Positioning
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Grp 4 Presentation Crafting the Brand Positioning

Grp 4 Presentation Crafting the Brand Positioning

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  • Product Differentiation will always include:Style, design, Delivery, Installation, Maintenance.Also will include Features comformance reliability and product form
  • Basic Model of a Product Life CycleDeveloping a product to last longer in a cycle – sustainabilityMoving forward with a cycle-recycle patternAdvanced pattern of a product cycle.
  • The picture evolves what marketing should do to a product lifecycle after maturity
  • Because market mature and sometimes consolidate their own brand, some markets become yours and vice versa. – what happened between smart and sun cellular

Markma Group 4 Presentation  Chapter 10 Crafting the Brand Positioning Markma Group 4 Presentation Chapter 10 Crafting the Brand Positioning Presentation Transcript

  • MARKETING MANAGEMENT GROUP # 4 Chapter 10:Crafting the Brand Positoning Crisostomo, Kathleen Lizette Jongco, Kristoffer Piñon, Raymund Siton, Galicano
  • Crafting the Brand Positioning Kristoffer Z. Jongco Marketing management
  • Outline What is Brand/Branding and Positioning Choosing & communicating effective positioning in market Differentiating brands Marketing strategies for stages of product life cycle Marketing evolution
  • Brand and BrandingBrand: A name, term, sign, symbol, or a combination, intended to identify the goods or services of one seller or group of sellers and to differentiate them from competitorsBranding: Providing goods and services with the power of the brand
  • Advantages of Strong Brands• Improved • Larger margins perceptions of • More inelastic product consumer response performance • Greater trade• Greater loyalty cooperation• Less vulnerability • Increased marketing to competitive communications marketing actions effectiveness• Less vulnerability • Possible licensing to crises opportunities
  • Defining Associations Points-of- Points-of-parity difference (PODs) (POPs) • Attributes or benefits • Associations that are consumers strongly not necessarily unique associate with a to the brand but may brand, positively be shared with other evaluate, and believe brands they could not find to the same extent with a competitive brand
  • Brand Positioning Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market
  • Choosing and Communicating anEffective Positioning in the Market How to choose good elements: •Memorable •Meaningful •Likeable •Transferable •Adaptable
  • How Brands are Differentiated Product
  • How Brands are Differentiated Product Personnel
  • How Brands are Differentiated Product Personnel Channel
  • How Brands are Differentiated Product Personnel Channel Image
  • Product Differentiation• Product form • Style• Features • Design• Performance • Ordering ease• Conformance • Delivery• Durability • Installation• Reliability • Customer training• Reparability • Customer consulting • Maintenance
  • Personnel Differentiation •Better trained •Competent •Trustworthy •Friendly & respectful •Reliable •Responsible •Good communicator
  • Channel Differentiation •Coverage •Expertise •Performance
  • Image Differentiation •Establish character and value proposition •Convey in a distinctive way •Deliver emotional power
  • Product Life Cycles Stages
  • Stages in the Product Life Cycle 1st Stage Growth
  • Stages in the Product Life Cycle 2nd Stage Stable
  • Stages in the Product Life Cycle 3rd Stage Declining Maturity
  • Appropriate Marketing Strategies: 1st Strategy Improve Quality
  • Appropriate Marketing Strategies: 2nd Strategy Distribution
  • Appropriate Marketing Strategies: 3rd Strategy Advertising
  • Appropriate Marketing Strategies: 4th Strategy Sales Promotion
  • Appropriate Marketing Strategies: 5th Strategy Services
  • Appropriate Marketing Strategies: Increasing Sales Volume Attract Customers
  • Appropriate Marketing Strategies for stages of product life cycle Stages: Growth; Stable; Decaying MaturityImprove quality Distribution Advertising Sales Promotion Services Attract
  • Market Evolution Stages: 1st Stage• Emergence
  • Market Evolution Stages: 2nd Stage• Growth
  • Market Evolution Stages: 3rd Stage• Maturity
  • Market Evolution Stages: 4th Stage• Decline
  • Market Evolution 4 Stages• Emergence• Growth• Maturity• Decline
  • Summary What is a Brand, Branding & Positioning? How to choose and communicate effective positioning Brand Differentiation The different marketing strategies Evolution of marketing
  • Communicate Effective Positioning Brand Differentiation Marketing Strategies Product Life Cycle Growth, Stable, Decaying MaturityProduct Market Evolution Personnel Improve quality Distribution Advertising Sales Promotion Services Channel Image Attract Emergence-Growth-Maturity-Decline
  • 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 2. See how brands are differentiated 3. Appreciate how different marketing strategies are appropriate at each stage of the product life cycle 4. 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
  • 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
  • PositioningThe Starting Point1. Competitive Frame of Reference2. Points-of-Difference and Points-of-Parity
  • PositioningThe Starting Point: Competitive Frame of ReferenceCategory Membership  Define Customer Target Market  Define Nature of Competition  Products and services competing for same target segment  Substitute products and services
  • PositioningThe Starting Point: Points-of DifferencePOD – 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)
  • PositioningThe Starting Point: Points-of-ParityPOP – attribute or benefit associations not unique to the brand but may in fact be shared with other brands Category POPs = Competitive POPs
  • PositioningThe Starting Point: Points-of-ParityCategory POPs  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
  • PositioningThe Starting Point: Points-of-ParityCompetitive POPs  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
  • PositioningEstablishing 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
  • PositioningChoosing POPs and PODsFor 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
  • PositioningChoosing POPs and PODsFor POPs  Need for category membership  Create competitive POPs to negate competitors’ PODs
  • PositioningLevels of Brand’s POD Functional Psycho- Benefits Social InstrumentalAttributes 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
  • PositioningPositioning 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 POD is or does) stimulates children’s appetite because it contains 5 mg of buclizine HCl
  • DifferentiationTo avoid the commodity trap 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
  • DifferentiationDeriving Fresh Insights to Differentiate 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
  • DifferentiationDimensions 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 Cycle Marketing Strategies  Introduction  Slow sales growth  Heavy expenditure  Non-existent profits  Growth  Rapid market acceptance  Substantial profit improvement  Maturity  Slowdown in sales growth  Acceptance y most potential buyers  Stabilized or decreased profits  Increased competition  Decline  Sales decline  Profits erode
  • Product Life Cycle Marketing StrategiesMarketing Strategy is about STP SWOTSWOT A company’s POSITIONING and DIFFERENTIATION strategy must change as products, markets and competitors change over the PRODUCT LIFE CYCLE
  • Product Life Cycle 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 • 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 • 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 Evolution 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 EvolutionMarketing Strategy is about STP SWOT 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
  • Summary1. How firms choose and communicate an effective positioning in the market2. How brands are differentiated3. How different marketing strategies are appropriate at each stage of the product life cycle4. Implications of market evolution for marketing strategies
  • +POP POD= +
  • Crisostomo, Kathleen Lizette C.MARKMAChapter 10 – Crafting the Brand Positioning
  • Positioning is the act of designingthe company’s offering and imageto occupy a distinctive place in the mind of the target market.
  • 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 Points-of-parity (POPs) Associations that are not necessarily unique to the brand but may be shared with other brands
  • Criteria for PODs:Desirable: * Relevance * Distinctiveness * Believability
  • Criteria for PODs:Desirable: * Relevance * Distinctiveness * BelievabilityDeliverable: * Feasibility * Communicability * Sustainability
  • Differentiation Strategies Product
  • Differentiation Strategies Personnel Product
  • Differentiation Strategies Personnel Channel Product
  • Differentiation Strategies Personnel Channel Product Image
  • Product Life Cycle Claims:
  • Product Life Cycle Claims:Products have a limitedlife
  • Product Life Cycle Claims: Products have a limited lifeProduct sales passthrough distinctstages each withdifferent challengesand opportunities
  • Product Life Cycle Claims: Products have a limited lifeProduct sales passthrough distinctstages each withdifferent challengesand opportunities Profits rise and fall at different stages
  • Product Life Cycle Claims: Products have a limited lifeProduct sales passthrough distinctstages each withdifferent challengesand opportunities Profits rise and fall at different stages Products require different strategies in each life cycle stage
  • Product Life Cycle MarketingStrategies
  • Product Life Cycle MarketingStrategies •Introduction stage- slow growth in minimalprofits.-if successful, theproduct enters a grossstage marked by rapidsales growth andincreasing profits
  • Product Life Cycle MarketingStrategies •Growth Stage-Improve product quality - Add new product features, models -Enter new markets –Increase distribution coverage - Shift from product- awareness advertising to product-preference
  • Product Life Cycle Marketing Strategies • Maturity Stage-Improve product quality - Add new product features, models -Enter new markets –Increase distribution coverage - Shift from product- awareness advertising to product-preference
  • Product Life Cycle MarketingStrategies • Decline stage - Identify the truly weak products and develop a strategy for each or phase out
  • The Maturity Stage Stable DecayingGrowth Maturity STAGES
  • The Maturity Stage Stable DecayingGrowth Maturity STAGES PRODUCT MODIFICATIONS 2012 Toyota Prius-C Hybrid 1. Quality Sedan 2. 3. Features Sedan
  • The Maturity Stage PROCESS Stable MODIFICATIONS DecayingGrowth Maturity STAGES PRODUCT MODIFICATIONS2012 Toyota Prius-C Hybrid Sedan 1. Quality 2. 3. Features Sedan
  • Galicano, Siton Markma V57
  • Crafting The Brand Positioning
  • Defining Association Why they are similar and Why they are so different
  • Deliverability and DesirabilityCriteria of PODS Feasible Relevance Communicability Distinctiveness Believability Sustainability
  • Differentiation Strategies Product Personnel Channel Image
  • Product Lifecycle1 24 3
  • Marketing ProgramModifications and Evolution Ways to Increase Sales Volume  Use product in new ways  Use product in many occasion  Use many product in many occasions
  • Emerging and MaturingMarkets Them ThemNew He New He You You Old She Old She It It
  • Relevance Feasible Communicability Product Association Cycle Distinctiveness Believability Brand Craft Emerging Sustainability Maturing Them ThemNew He New He You You Old SheOld She It It