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Markma Group 4 Presentation Chapter 10 Crafting the Brand Positioning

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Grp 4 Presentation Crafting the Brand Positioning

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Markma Group 4 Presentation Chapter 10 Crafting the Brand Positioning

  1. 1. MARKETING MANAGEMENT GROUP # 4 Chapter 10:Crafting the Brand Positoning Crisostomo, Kathleen Lizette Jongco, Kristoffer Piñon, Raymund Siton, Galicano
  2. 2. Crafting the Brand Positioning Kristoffer Z. Jongco Marketing management
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. Brand Positioning Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market
  8. 8. Choosing and Communicating anEffective Positioning in the Market How to choose good elements: •Memorable •Meaningful •Likeable •Transferable •Adaptable
  9. 9. How Brands are Differentiated Product
  10. 10. How Brands are Differentiated Product Personnel
  11. 11. How Brands are Differentiated Product Personnel Channel
  12. 12. How Brands are Differentiated Product Personnel Channel Image
  13. 13. Product Differentiation• Product form • Style• Features • Design• Performance • Ordering ease• Conformance • Delivery• Durability • Installation• Reliability • Customer training• Reparability • Customer consulting • Maintenance
  14. 14. Personnel Differentiation •Better trained •Competent •Trustworthy •Friendly & respectful •Reliable •Responsible •Good communicator
  15. 15. Channel Differentiation •Coverage •Expertise •Performance
  16. 16. Image Differentiation •Establish character and value proposition •Convey in a distinctive way •Deliver emotional power
  17. 17. Product Life Cycles Stages
  18. 18. Stages in the Product Life Cycle 1st Stage Growth
  19. 19. Stages in the Product Life Cycle 2nd Stage Stable
  20. 20. Stages in the Product Life Cycle 3rd Stage Declining Maturity
  21. 21. Appropriate Marketing Strategies: 1st Strategy Improve Quality
  22. 22. Appropriate Marketing Strategies: 2nd Strategy Distribution
  23. 23. Appropriate Marketing Strategies: 3rd Strategy Advertising
  24. 24. Appropriate Marketing Strategies: 4th Strategy Sales Promotion
  25. 25. Appropriate Marketing Strategies: 5th Strategy Services
  26. 26. Appropriate Marketing Strategies: Increasing Sales Volume Attract Customers
  27. 27. Appropriate Marketing Strategies for stages of product life cycle Stages: Growth; Stable; Decaying MaturityImprove quality Distribution Advertising Sales Promotion Services Attract
  28. 28. Market Evolution Stages: 1st Stage• Emergence
  29. 29. Market Evolution Stages: 2nd Stage• Growth
  30. 30. Market Evolution Stages: 3rd Stage• Maturity
  31. 31. Market Evolution Stages: 4th Stage• Decline
  32. 32. Market Evolution 4 Stages• Emergence• Growth• Maturity• Decline
  33. 33. Summary What is a Brand, Branding & Positioning? How to choose and communicate effective positioning Brand Differentiation The different marketing strategies Evolution of marketing
  34. 34. 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
  35. 35. Crafting the Brand Positioning: A Visual Model (Chapter 10) Raymund C. PiñonMarketing Management V57 VCoach Bong De Ungria
  36. 36. Marketing Task #4BUILDING STRONG BRANDSCrafting the Brand Positioning
  37. 37. 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
  38. 38. Outline Developing and Communicating a Positioning Strategy  Competitive Frame of Reference  Points-of-Difference and Points-of-Parity Differentiation Strategies Product Life-Cycle Strategies
  39. 39. 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
  40. 40. What is Positioning?Act of designing an offer and image to occupya distinctive place in the minds of the target market
  41. 41. Positioning results in The creation of a A persuasive REASON WHY the target market should buy the product
  42. 42. 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
  43. 43. PositioningThe Starting Point1. Competitive Frame of Reference2. Points-of-Difference and Points-of-Parity
  44. 44. 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
  45. 45. 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
  46. 46. 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)
  47. 47. 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
  48. 48. 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
  49. 49. 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
  50. 50. 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
  51. 51. 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
  52. 52. PositioningChoosing POPs and PODsFor POPs  Need for category membership  Create competitive POPs to negate competitors’ PODs
  53. 53. 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
  54. 54. 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
  55. 55. 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
  56. 56. 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
  57. 57. 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
  58. 58. 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
  59. 59. 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
  60. 60. 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
  61. 61. 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
  62. 62. 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
  63. 63. 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
  64. 64. 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?
  65. 65. 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
  66. 66. 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
  67. 67. 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
  68. 68. +POP POD= +
  69. 69. Crisostomo, Kathleen Lizette C.MARKMAChapter 10 – Crafting the Brand Positioning
  70. 70. Positioning is the act of designingthe company’s offering and imageto occupy a distinctive place in the mind of the target market.
  71. 71. 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
  72. 72. Criteria for PODs:Desirable: * Relevance * Distinctiveness * Believability
  73. 73. Criteria for PODs:Desirable: * Relevance * Distinctiveness * BelievabilityDeliverable: * Feasibility * Communicability * Sustainability
  74. 74. Differentiation Strategies Product
  75. 75. Differentiation Strategies Personnel Product
  76. 76. Differentiation Strategies Personnel Channel Product
  77. 77. Differentiation Strategies Personnel Channel Product Image
  78. 78. Product Life Cycle Claims:
  79. 79. Product Life Cycle Claims:Products have a limitedlife
  80. 80. Product Life Cycle Claims: Products have a limited lifeProduct sales passthrough distinctstages each withdifferent challengesand opportunities
  81. 81. Product Life Cycle Claims: Products have a limited lifeProduct sales passthrough distinctstages each withdifferent challengesand opportunities Profits rise and fall at different stages
  82. 82. 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
  83. 83. Product Life Cycle MarketingStrategies
  84. 84. Product Life Cycle MarketingStrategies •Introduction stage- slow growth in minimalprofits.-if successful, theproduct enters a grossstage marked by rapidsales growth andincreasing profits
  85. 85. 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
  86. 86. 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
  87. 87. Product Life Cycle MarketingStrategies • Decline stage - Identify the truly weak products and develop a strategy for each or phase out
  88. 88. The Maturity Stage Stable DecayingGrowth Maturity STAGES
  89. 89. The Maturity Stage Stable DecayingGrowth Maturity STAGES PRODUCT MODIFICATIONS 2012 Toyota Prius-C Hybrid 1. Quality Sedan 2. 3. Features Sedan
  90. 90. The Maturity Stage PROCESS Stable MODIFICATIONS DecayingGrowth Maturity STAGES PRODUCT MODIFICATIONS2012 Toyota Prius-C Hybrid Sedan 1. Quality 2. 3. Features Sedan
  91. 91. Galicano, Siton Markma V57
  92. 92. Crafting The Brand Positioning
  93. 93. Defining Association Why they are similar and Why they are so different
  94. 94. Deliverability and DesirabilityCriteria of PODS Feasible Relevance Communicability Distinctiveness Believability Sustainability
  95. 95. Differentiation Strategies Product Personnel Channel Image
  96. 96. Product Lifecycle1 24 3
  97. 97. 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
  98. 98. Emerging and MaturingMarkets Them ThemNew He New He You You Old She Old She It It
  99. 99. 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

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