Brand Positioning and Values
Where we have been <ul><li>We understand </li></ul><ul><ul><li>Brand equity and the psychology behind it </li></ul></ul><u...
Identifying and establishing Brand Positioning <ul><li>The Integrated Brand Model </li></ul><ul><ul><li>Six elements that ...
Brand Positioning <ul><li>Brand Positioning </li></ul><ul><ul><li>Brand positioning is all about identifying the optimal l...
First Steps <ul><li>The first step is to identify and establish Brand positioning and brand values (Keller) </li></ul><ul>...
Proper Positioning <ul><li>Proper positioning </li></ul><ul><ul><li>Clarifies what the Brand is all about </li></ul></ul><...
Example: Pepsi One <ul><li>Millions in R&D for ingredient Ace-K (artificial sweetener) </li></ul><ul><li>37,000 hours to d...
Pepsi One Brand Conveyors: Then and now <ul><li>Full flavored, healthy alternative to regular cola </li></ul><ul><li>“ Onl...
In order to Position a Brand… <ul><li>… you must decide </li></ul><ul><ul><li>Who the Target Consumer is </li></ul></ul><u...
Target Market Segmentation <ul><li>A market segment should have similar knowledge structures and brand knowledge </li></ul...
Toothpaste Segmentation <ul><li>Four main segments </li></ul><ul><li>Sensory segment </li></ul><ul><ul><li>Flavor and prod...
Target Market Segmentation <ul><li>Which works better? Behavioral </li></ul><ul><ul><li>Easier to match perceptions (right...
Advantages of demographic segmentation <ul><li>Demographic segmentation is well known, easier to buy media on that basis <...
Criteria for a Segment <ul><li>Identifiability </li></ul><ul><ul><li>Can the segment be easily identified? </li></ul></ul>...
Segmentation Example <ul><li>Mobil’s 5 types of gasoline buyers </li></ul><ul><ul><li>Price Drivers </li></ul></ul><ul><ul...
The Competition <ul><li>Market Segments define competitors </li></ul><ul><ul><li>They are targeting the same segments  </...
Baskin-Robbins Competitive analysis <ul><li>Original Tagline: </li></ul><ul><ul><li>31 Flavors </li></ul></ul><ul><li>100 ...
Part 3: POP and POD <ul><li>POD (Point of Difference) </li></ul><ul><ul><li>Strong, favorable, unique brand associations <...
Part 3: POP and POD <ul><li>POP (Point of Parity) </li></ul><ul><ul><li>Associations that are shared with other brands </l...
Similar concepts <ul><li>Unique Selling Proposition (USP; Reeves and Bates) </li></ul><ul><ul><li>Advertisers should give ...
POP AND POD: BMW over the years 1971 1975 1985 1991 <ul><li>International </li></ul><ul><li>Desirability </li></ul><ul><li...
Managerial Issues <ul><li>How do I begin to position my Brand? </li></ul><ul><ul><li>Communicate category membership </li>...
Sneaky psychology sidebar - Exemplars <ul><li>Memory is modeled in a hierarchical was as well </li></ul><ul><ul><li>Exempl...
Ways to convey category membership (cont): Comparison to Exemplars <ul><li>Thus, two strategies: </li></ul><ul><ul><li>Cre...
Nuts and Bolts <ul><li>How do I decide on my PODs and POPs? </li></ul><ul><li>POPs </li></ul><ul><ul><li>Analysis of categ...
Managerial issues <ul><li>Criteria for POD </li></ul><ul><ul><li>Desirability </li></ul></ul><ul><ul><ul><li>Must be Relev...
Establish POP and POD in marketplace <ul><li>Difficulty: Many attributes that make up POP and PODs are negatively opposed ...
Defining Values and Principle <ul><li>You already know how to do this </li></ul><ul><ul><li>Your values and principle are ...
Principles a la Keller: What makes a good Principle? <ul><li>Three components </li></ul><ul><ul><li>Emotional component (C...
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Session7 handout

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Session7 handout

  1. 1. Brand Positioning and Values
  2. 2. Where we have been <ul><li>We understand </li></ul><ul><ul><li>Brand equity and the psychology behind it </li></ul></ul><ul><ul><li>A function of awareness, strength, favorability, and uniqueness of the nodes and links in memory </li></ul></ul><ul><li>BE is created in a progressive fashion </li></ul><ul><ul><li>Establish proper Brand Identity </li></ul></ul><ul><ul><li>Create Brand meaning </li></ul></ul><ul><ul><li>Elicit positive Brand responses </li></ul></ul><ul><ul><li>Forge strong Brand relationship </li></ul></ul>
  3. 3. Identifying and establishing Brand Positioning <ul><li>The Integrated Brand Model </li></ul><ul><ul><li>Six elements that define a brand </li></ul></ul><ul><ul><ul><li>Unified </li></ul></ul></ul><ul><ul><ul><li>Leverage each other </li></ul></ul></ul><ul><ul><ul><li>Brand Drivers a function of Organization Drivers </li></ul></ul></ul><ul><ul><li>These six elements serve as a “roadmap” to our Brand Equity model </li></ul></ul><ul><ul><ul><li>At every step, we can figure out what to do from our Brand and Organization Drivers </li></ul></ul></ul>
  4. 4. Brand Positioning <ul><li>Brand Positioning </li></ul><ul><ul><li>Brand positioning is all about identifying the optimal location in our customers’ minds for our Brand and our competitors </li></ul></ul><ul><ul><li>Proper positioning makes it easier to facilitate understanding of our Brand </li></ul></ul><ul><li>Taken to its’ logical conclusion, you might think of the Principle as an indicator of a brand’s position </li></ul>
  5. 5. First Steps <ul><li>The first step is to identify and establish Brand positioning and brand values (Keller) </li></ul><ul><li>Positioning is the foundation for creating and fostering the desired knowledge and perceptions of your customers </li></ul><ul><ul><li>remember our 3 types of associations in memory? </li></ul></ul><ul><ul><li>We can really only manage one (positive), can respond to a second (negative), and have no control over the third (idiosyncratic) </li></ul></ul>
  6. 6. Proper Positioning <ul><li>Proper positioning </li></ul><ul><ul><li>Clarifies what the Brand is all about </li></ul></ul><ul><ul><li>How it is both unique and similar to competitive brands </li></ul></ul><ul><ul><li>Why customers should purchase and use the Brand </li></ul></ul>
  7. 7. Example: Pepsi One <ul><li>Millions in R&D for ingredient Ace-K (artificial sweetener) </li></ul><ul><li>37,000 hours to design the can </li></ul><ul><li>100 Million Marketing budget </li></ul><ul><li>Original Target Market </li></ul><ul><ul><li>20-30 yo Males who did not like taste of diet colas </li></ul></ul>
  8. 8. Pepsi One Brand Conveyors: Then and now <ul><li>Full flavored, healthy alternative to regular cola </li></ul><ul><li>“ Only one has it all” </li></ul><ul><li>“ True cola taste, one calorie” </li></ul><ul><li>“ Tastes like regular cola” </li></ul><ul><li>Celeb: Tom Green </li></ul><ul><li>“ Breakthru Sweetener” </li></ul><ul><li>“ Too good to be one calorie, but it is” </li></ul><ul><li>Celeb: Kim Katrell </li></ul><ul><ul><li>Better for 20-30 yos? </li></ul></ul>
  9. 9. In order to Position a Brand… <ul><li>… you must decide </li></ul><ul><ul><li>Who the Target Consumer is </li></ul></ul><ul><ul><li>Who your main competitors are </li></ul></ul><ul><ul><li>How the Brand is similar to your competitors </li></ul></ul><ul><ul><li>How the Brand is different from your competitors </li></ul></ul><ul><li>Where do you get this information? </li></ul><ul><ul><li>Your BRAND INVENTORY!! </li></ul></ul>
  10. 10. Target Market Segmentation <ul><li>A market segment should have similar knowledge structures and brand knowledge </li></ul><ul><ul><li>Similar knowledge structures might mean similar perceptions and beliefs about your Brand </li></ul></ul><ul><li>There are 2 ways to segment </li></ul><ul><ul><li>Descriptive: characteristics of the individuals in the market </li></ul></ul><ul><ul><li>Behavioral: grouped by how individuals in the market perceive or use the product </li></ul></ul>
  11. 11. Toothpaste Segmentation <ul><li>Four main segments </li></ul><ul><li>Sensory segment </li></ul><ul><ul><li>Flavor and product appearance </li></ul></ul><ul><li>Sociables </li></ul><ul><ul><li>Brightness of teeth </li></ul></ul><ul><li>Worriers </li></ul><ul><ul><li>Decay Prevention </li></ul></ul><ul><li>Independent </li></ul><ul><ul><li>Low Price </li></ul></ul>3 stripes, one for each of the 3 main segments Flavor, Brightness Decay Prevention
  12. 12. Target Market Segmentation <ul><li>Which works better? Behavioral </li></ul><ul><ul><li>Easier to match perceptions (right/wrong) or beliefs (right/wrong) with strategy (reinforce/change). </li></ul></ul><ul><ul><li>Many times, behavior and descriptive go hand in hand </li></ul></ul><ul><li>Demographics may be basis of targeting, but tend to represent some underlying behavioral reason </li></ul><ul><ul><li>In some cases, demographics may mask underlying differences </li></ul></ul>
  13. 13. Advantages of demographic segmentation <ul><li>Demographic segmentation is well known, easier to buy media on that basis </li></ul><ul><li>However, with the emergence of non-traditional media, this advantage is getting smaller </li></ul><ul><ul><li>Web ads can target by demographics traditionally difficult to access </li></ul></ul><ul><ul><ul><li>AA, Asian Americans, College students </li></ul></ul></ul>
  14. 14. Criteria for a Segment <ul><li>Identifiability </li></ul><ul><ul><li>Can the segment be easily identified? </li></ul></ul><ul><li>Size </li></ul><ul><ul><li>It is big enough to bother? </li></ul></ul><ul><li>Accessibility </li></ul><ul><ul><li>Are distribution outlets and media available to us to reach the segment? </li></ul></ul><ul><li>Responsiveness </li></ul><ul><ul><li>How favorably will the segment respond to a tailored marketing program? (this one is tough to quantify) </li></ul></ul>
  15. 15. Segmentation Example <ul><li>Mobil’s 5 types of gasoline buyers </li></ul><ul><ul><li>Price Drivers </li></ul></ul><ul><ul><ul><li>Not brand loyal, driven by price, has been focus for years </li></ul></ul></ul><ul><ul><li>Road Warriors </li></ul></ul><ul><ul><ul><li>Upper income, MAMen, 25-50k/year, buy food and services with credit card (Premium gas) </li></ul></ul></ul><ul><ul><li>True Blues </li></ul></ul><ul><ul><ul><li>Brand loyal, Mid income, pay with cash </li></ul></ul></ul><ul><ul><li>Generation F3 </li></ul></ul><ul><ul><ul><li>Fuel, food, fast: half under 25 yo, in and out quickly </li></ul></ul></ul><ul><ul><li>Homebodies </li></ul></ul><ul><ul><ul><li>Soccer moms using whatever is on their route </li></ul></ul></ul>
  16. 16. The Competition <ul><li>Market Segments define competitors </li></ul><ul><ul><li>They are targeting the same segments  </li></ul></ul><ul><li>Don’t be too narrow in your definition of competitors </li></ul><ul><li>Consider Sprite </li></ul><ul><ul><li>Product Type (non-cola soft drinks) </li></ul></ul><ul><ul><li>Product Category (all soft drinks) </li></ul></ul><ul><ul><li>Product Class (all beverages) </li></ul></ul>
  17. 17. Baskin-Robbins Competitive analysis <ul><li>Original Tagline: </li></ul><ul><ul><li>31 Flavors </li></ul></ul><ul><li>100 M$ facelift in late 1990s </li></ul><ul><li>Expanded from Ice cream </li></ul><ul><ul><li>Frozen coffee drinks </li></ul></ul><ul><ul><li>Fruit Smoothies </li></ul></ul><ul><li>Perceived competitors </li></ul><ul><ul><li>Starbucks </li></ul></ul><ul><ul><li>Jamba Juice </li></ul></ul><ul><ul><li>TCBY </li></ul></ul><ul><ul><li>(and still Dairy Queen) </li></ul></ul>
  18. 18. Part 3: POP and POD <ul><li>POD (Point of Difference) </li></ul><ul><ul><li>Strong, favorable, unique brand associations </li></ul></ul><ul><ul><li>May be any kind of attribute or benefit </li></ul></ul><ul><li>Two types of PODs </li></ul><ul><ul><li>Attribute Based </li></ul></ul><ul><ul><ul><li>Functional, performance related differences </li></ul></ul></ul><ul><ul><li>Image Based </li></ul></ul><ul><ul><ul><li>Affective, experiential, brand image related differences </li></ul></ul></ul>
  19. 19. Part 3: POP and POD <ul><li>POP (Point of Parity) </li></ul><ul><ul><li>Associations that are shared with other brands </li></ul></ul><ul><li>Two types </li></ul><ul><ul><li>Category: attributes that are required to include your product as a member of that category </li></ul></ul><ul><ul><li>Competitive: POP that negate your competitors PODs </li></ul></ul><ul><li>POPs can be “good enough”, but PODs should be “superior </li></ul>
  20. 20. Similar concepts <ul><li>Unique Selling Proposition (USP; Reeves and Bates) </li></ul><ul><ul><li>Advertisers should give a compelling reason to buy a product that competitors could not match </li></ul></ul><ul><ul><ul><li>What component of the IBM reflects this? </li></ul></ul></ul><ul><li>Sustainable Competitive Advantage (SCA) </li></ul><ul><ul><ul><li>The advantage of delivering superior value in the marketplace for a prolonged period of time </li></ul></ul></ul><ul><ul><ul><li>Further, SCAs can result from any component of the firm </li></ul></ul></ul><ul><ul><ul><ul><li>Similar to notion that Principle exists in every part of the firm </li></ul></ul></ul></ul>
  21. 21. POP AND POD: BMW over the years 1971 1975 1985 1991 <ul><li>International </li></ul><ul><li>Desirability </li></ul><ul><li>Fun to drive </li></ul><ul><li>Economical </li></ul><ul><li>Affluence, exclusivity </li></ul><ul><li>Fun to drive </li></ul><ul><li>Affluence, exclusivity </li></ul><ul><li>Fun to drive </li></ul>
  22. 22. Managerial Issues <ul><li>How do I begin to position my Brand? </li></ul><ul><ul><li>Communicate category membership </li></ul></ul><ul><ul><li>This is the “frame of reference”, where customers can activate what they know about the category and apply it to your POPs and PODs </li></ul></ul><ul><li>How? </li></ul><ul><ul><li>Communicate category benefits </li></ul></ul><ul><ul><li>Compare your product to exemplars </li></ul></ul><ul><ul><li>Rely on product descriptor </li></ul></ul>
  23. 23. Sneaky psychology sidebar - Exemplars <ul><li>Memory is modeled in a hierarchical was as well </li></ul><ul><ul><li>Exemplars can be real or amalgamated (prototypes) </li></ul></ul><ul><ul><li>Generated from experiences and exposures from the environment </li></ul></ul><ul><li>Exemplar example (heh) </li></ul><ul><ul><li>DRAW A PICTURE OF A CHAIR (THE FIRST THING THAT COMES TO MIND </li></ul></ul><ul><li>Compare your picture to your other team members </li></ul><ul><ul><li>Is it the same or different </li></ul></ul>
  24. 24. Ways to convey category membership (cont): Comparison to Exemplars <ul><li>Thus, two strategies: </li></ul><ul><ul><li>Created exemplar (not a real product) </li></ul></ul><ul><ul><li>Real exemplar (coke when talking about cola-based carbonated beverages) </li></ul></ul><ul><li>NOTE: Keller defines exemplars as </li></ul><ul><ul><li>Well known, noteworthy brands in a category </li></ul></ul><ul><li>Pepsi One example (after repositioning) </li></ul>
  25. 25. Nuts and Bolts <ul><li>How do I decide on my PODs and POPs? </li></ul><ul><li>POPs </li></ul><ul><ul><li>Analysis of category </li></ul></ul><ul><ul><ul><li>What attributes do all of my competitors have? I probably need to have those, or my competitors automatically have a POD </li></ul></ul></ul><ul><ul><ul><li>POPs get you included in category </li></ul></ul></ul><ul><li>PODs are more difficult </li></ul><ul><ul><li>Don’t use PODs that are product centric (dominate competition) but customer centric (uniquely address need of customer) </li></ul></ul>
  26. 26. Managerial issues <ul><li>Criteria for POD </li></ul><ul><ul><li>Desirability </li></ul></ul><ul><ul><ul><li>Must be Relevant </li></ul></ul></ul><ul><ul><ul><li>Must be Distinctive </li></ul></ul></ul><ul><ul><ul><li>Must be Believable </li></ul></ul></ul><ul><ul><li>Deliverability </li></ul></ul><ul><ul><ul><li>Feasibility </li></ul></ul></ul><ul><ul><ul><li>Communicability </li></ul></ul></ul><ul><ul><ul><li>Sustainability </li></ul></ul></ul>
  27. 27. Establish POP and POD in marketplace <ul><li>Difficulty: Many attributes that make up POP and PODs are negatively opposed </li></ul><ul><ul><li>Low price vs. High quality </li></ul></ul><ul><ul><li>Tastes Great vs. Less filling </li></ul></ul><ul><li>Separate the attributes </li></ul><ul><li>Leverage equity in another entity </li></ul><ul><li>Redefine the relationship </li></ul>
  28. 28. Defining Values and Principle <ul><li>You already know how to do this </li></ul><ul><ul><li>Your values and principle are part of your Org and Brand drivers!!! </li></ul></ul><ul><ul><li>Keller calls principle “Brand Mantra” </li></ul></ul><ul><li>Your Values, Principle, and position all are related </li></ul><ul><ul><li>NOTE: Keller says that associations are values, but we have a stricter definition of associations from the IBM </li></ul></ul>
  29. 29. Principles a la Keller: What makes a good Principle? <ul><li>Three components </li></ul><ul><ul><li>Emotional component (Comfortable) </li></ul></ul><ul><ul><li>Descriptive modifier (Casual) </li></ul></ul><ul><ul><li>Brand function (clothing) </li></ul></ul><ul><li>Other Examples </li></ul><ul><ul><li>Nike: Authentic, Athletic Performance </li></ul></ul><ul><ul><li>Fun Family Entertainment </li></ul></ul>
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