BMGT 411: Chapter 9	
Crafting Brand Positioning
Chapter Questions
• How can a firm develop and establish an effective positioning?

• How are brands successfully differentia...
Brand Positioning Statement
• Positioning: The act of designing a company’s offering and image to
occupy a distinctive plac...
Examples
For (target audience), (brand name)
is the (frame of reference) that
delivers (benefit/point of
difference).
Examples
For (target audience), (brand name)
is the (frame of reference) that
delivers (benefit/point of
difference).
Examples
For (target audience), (brand name)
is the (frame of reference) that
delivers (benefit/point of
difference).
Examples
For (target audience), (brand name)
is the (frame of reference) that
delivers (benefit/point of
difference).

YOUR
...
Defining Associations
• Points-of-difference: Attributes or benefits consumers strongly associate
with a brand, positively ev...
Point-of-Difference Criteria for POD
• Desirable to Consumer: Consumers must see the brand association as
personally relev...
Figure 9.1a Perceptual
Map: Current
Perceptions
Brand Repositioning
Figure 9.1b Perceptual
Map: Possibilities
Brand Repositioning
Dimensions of Differentiation for Competitive
Employee
Channel
Image
Services
Employee Differentiation

!
• Better trained

• Superior customer service

• Often premium priced vs
competition
Channel Differentiation

!
•Channel coverage, convenience

• Makes buying easier

• More enjoyable

• More rewarding
Image Differentiation 

!
•Powerful brand images that
appeal to customers social and
psychological needs

• Often premium p...
Service Differentiation

!
•Delivering more effectively to
consumers

• Delivering more efficiently
Figure 9.1 

Hypothetical 

Market Structure
Protecting Market Share Continuous Innovation
Types of Defense Strategies - Market
Leaders
• Position Defense: Continuing to occupy the most desirable position
through ...
Types of Defense Strategies Market Leaders
• Counteroffensive Defense: Lowering prices so competitors cant
compete, even at...
General Attack Strategies - Challengers
• Frontal attack: Matches opponents product, price, and marketing (Usually
loses i...
Specific Attack Strategies
• Price discounts

• Lower-priced goods

• Value-priced goods

• Prestige goods

• Product proli...
Market Follower
Strategies
!
Market Nicher Strategies
• End-User Specialist

• Vertical-Level Specialist

• Customer-Size Specialist

• Specific-Custome...
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Bmgt 411 chapter_9

  1. 1. BMGT 411: Chapter 9 Crafting Brand Positioning
  2. 2. Chapter Questions • How can a firm develop and establish an effective positioning? • How are brands successfully differentiated? • How do marketers identify and analyze competition? • How can market leaders, challengers, followers, and nichers compete effectively?
  3. 3. Brand Positioning Statement • Positioning: The act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market • Positioning Statement or Value Propositions • For (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference). • Frame of Reference: The category the brand name competes in
  4. 4. Examples For (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference).
  5. 5. Examples For (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference).
  6. 6. Examples For (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference).
  7. 7. Examples For (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference). YOUR EXAMPLE
  8. 8. Defining Associations • Points-of-difference: 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: Associations that are not necessarily unique to the brand but may be shared with other brands
  9. 9. Point-of-Difference Criteria for POD • Desirable to Consumer: Consumers must see the brand association as personally relevant to them • Deliverable: The company must have resources to feasibly and profitably create and maintain the brand association in the minds • Ex: If Walmart promised great customer service • Differentiating from Competitors: Consumers must see the brand association as distinctive and superior to competitors
  10. 10. Figure 9.1a Perceptual Map: Current Perceptions Brand Repositioning
  11. 11. Figure 9.1b Perceptual Map: Possibilities Brand Repositioning
  12. 12. Dimensions of Differentiation for Competitive Employee Channel Image Services
  13. 13. Employee Differentiation ! • Better trained • Superior customer service • Often premium priced vs competition
  14. 14. Channel Differentiation ! •Channel coverage, convenience • Makes buying easier • More enjoyable • More rewarding
  15. 15. Image Differentiation ! •Powerful brand images that appeal to customers social and psychological needs • Often premium prices
  16. 16. Service Differentiation ! •Delivering more effectively to consumers • Delivering more efficiently
  17. 17. Figure 9.1 
 Hypothetical 
 Market Structure
  18. 18. Protecting Market Share Continuous Innovation
  19. 19. Types of Defense Strategies - Market Leaders • Position Defense: Continuing to occupy the most desirable position through marketing and continued innovation • Flank Defense: Developing brand extensions to compete at lower price points to try to meet attackers (Luv’s Diapers Vs Private Label) • Preemptive Defense: Announce new products at a pace competitors cannot keep up with
  20. 20. Types of Defense Strategies Market Leaders • Counteroffensive Defense: Lowering prices so competitors cant compete, even at a loss, while gaining profits off other products • Mobile Defense: Enters new territories or market diversifications • Contraction Defense: Letting go, or sunsetting unprofitable products to focus on more profitable ones
  21. 21. General Attack Strategies - Challengers • Frontal attack: Matches opponents product, price, and marketing (Usually loses in retail) • Flank attack: Targets underperforming geographic areas, or to serve uncovered market needs • Encirclement attack: Launching an attack in several areas at once, requires great resources • Bypass attack: Diversifying products, innovating, shifting messaging where challenger has advantage • Guerrilla warfare: Grassroots marketing efforts meant to surprise the market leader
  22. 22. Specific Attack Strategies • Price discounts • Lower-priced goods • Value-priced goods • Prestige goods • Product proliferation • Product innovation • Improved services • Distribution innovation • Manufacturing-cost reduction • Intensive advertising promotion
  23. 23. Market Follower Strategies !
  24. 24. Market Nicher Strategies • End-User Specialist • Vertical-Level Specialist • Customer-Size Specialist • Specific-Customer Specialist • Geographic Specialist • Product-Line Specialist • Job-Shop Specialist • Quality-Price Specialist • Service-Specialist • Channel Specialist

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