3.1CHAPTER 3:CHAPTER 3:BRAND POSITIONING & VALUESBRAND POSITIONING & VALUESKevin Lane KellerKevin Lane KellerTuck School of BusinessTuck School of BusinessDartmouth CollegeDartmouth College
3.2Brand PositioningBrand Positioning Is at the heart of the marketing strategyIs at the heart of the marketing strategy ““. . . the act of designing the company’s offer and. . . the act of designing the company’s offer andimage so that it occupies a distinct and valuedimage so that it occupies a distinct and valuedplace in the target customer’s minds.”place in the target customer’s minds.”Philip KotlerPhilip Kotler
3.3Determining a frame of referenceDetermining a frame of reference What are the ideal points-of-parity and points-What are the ideal points-of-parity and points-of-difference brand associations vis-à-vis theof-difference brand associations vis-à-vis thecompetition?competition? Marketers need to know:Marketers need to know: Who the target consumer isWho the target consumer is Who the main competitors areWho the main competitors are How the brand is similar to these competitorsHow the brand is similar to these competitors How the brand is different from themHow the brand is different from them
3.4Target MarketTarget Market AA marketmarket is the set of all actual and potentialis the set of all actual and potentialbuyers who have sufficient interest in, incomebuyers who have sufficient interest in, incomefor, and access to a product.for, and access to a product. Market segmentationMarket segmentation divides the market intodivides the market intodistinct groups of homogeneous consumers whodistinct groups of homogeneous consumers whohave similar needs and consumer behavior, andhave similar needs and consumer behavior, andwho thus require similar marketing mixes.who thus require similar marketing mixes. Market segmentation requires making tradeoffsMarket segmentation requires making tradeoffsbetween costs and benefits.between costs and benefits.
3.5Example of theExample of the toothpastetoothpastemarketmarket Four main segments:Four main segments:1.1. Sensory:Sensory: Seeking flavor and product appearanceSeeking flavor and product appearance2.2. Sociables:Sociables: Seeking brightness of teethSeeking brightness of teeth3.3. Worriers:Worriers: Seeking decay preventionSeeking decay prevention4.4. Independent:Independent: Seeking low priceSeeking low price
3.6Criteria for SegmentationCriteria for Segmentation Identifiability:Identifiability: Can we easily identify the segment?Can we easily identify the segment? Size:Size: Is there adequate sales potential in theIs there adequate sales potential in thesegment?segment? Accessibility:Accessibility: Are specialized distribution outletsAre specialized distribution outletsand communication media available to reach theand communication media available to reach thesegment?segment? ResponsivenessResponsiveness: How favorably will the segment: How favorably will the segmentrespond to a tailored marketing program?respond to a tailored marketing program?
3.7Nature of CompetitionNature of Competition Deciding to target a certain type of consumerDeciding to target a certain type of consumeroften defines the nature of competitionoften defines the nature of competition Do not define competition too narrowlyDo not define competition too narrowly Ex:Ex: a luxury good with a strong hedonic benefit likea luxury good with a strong hedonic benefit likestereo equipment may compete as much with astereo equipment may compete as much with avacation as with other durable goods like furniturevacation as with other durable goods like furniture
3.8Points-of-ParityPoints-of-Parityand Points-of-Differenceand Points-of-Difference Points-of-differencePoints-of-difference (PODs) are attributes or(PODs) are attributes orbenefits that consumers strongly associate with abenefits that consumers strongly associate with abrand, positively evaluate, and believe that theybrand, positively evaluate, and believe that theycould not find to the same extent with acould not find to the same extent with acompetitive brand.competitive brand. Points-of-parity associationsPoints-of-parity associations (POPs), on the other(POPs), on the otherhand, are not necessarily unique to the brand buthand, are not necessarily unique to the brand butmay in fact be shared with other brands.may in fact be shared with other brands.
3.9Brand Positioning GuidelinesBrand Positioning Guidelines Two key issues in arriving at the optimalTwo key issues in arriving at the optimalcompetitive brand positioning are:competitive brand positioning are: Defining and communicating the competitiveDefining and communicating the competitiveframe of referenceframe of reference Choosing and establishing points-of-parity andChoosing and establishing points-of-parity andpoints-of-differencepoints-of-difference
3.10Defining and Communicating theDefining and Communicating theCompetitive Frame of ReferenceCompetitive Frame of Reference Defining a competitive frame of reference for aDefining a competitive frame of reference for abrand positioning is to determine categorybrand positioning is to determine categorymembership.membership. The preferred approach to positioning is toThe preferred approach to positioning is toinform consumers of a brand’s membershipinform consumers of a brand’s membershipbefore stating its point of difference inbefore stating its point of difference inrelationship to other category members.relationship to other category members.
3.11Choosing POPChoosing POP’’s & PODs & POD’’ss Desirability criteria (consumer perspective)Desirability criteria (consumer perspective) Personally relevantPersonally relevant Distinctive and superiorDistinctive and superior Believable and credibleBelievable and credible Deliverability criteria (firm perspective)Deliverability criteria (firm perspective) FeasibleFeasible ProfitableProfitable Pre-emptive, defensible, and difficult to attackPre-emptive, defensible, and difficult to attack
3.12Attribute and Benefit Trade-offsAttribute and Benefit Trade-offs Price and qualityPrice and quality Convenience and qualityConvenience and quality Taste and low caloriesTaste and low calories Efficacy and mildnessEfficacy and mildness Power and safetyPower and safety Ubiquity and prestigeUbiquity and prestige Comprehensiveness (variety) and simplicityComprehensiveness (variety) and simplicity Strength and refinementStrength and refinement
3.13Strategies to ReconcileStrategies to ReconcileAttribute and Benefit Trade-offsAttribute and Benefit Trade-offs Establish separate marketing programsEstablish separate marketing programs Leverage secondary association (e.g., co-brand)Leverage secondary association (e.g., co-brand) Re-define the relationship from negative toRe-define the relationship from negative topositivepositive
3.14Core Brand ValuesCore Brand Values Set of abstract concepts or phrases thatSet of abstract concepts or phrases thatcharacterize the five to ten most importantcharacterize the five to ten most importantdimensions of the mental map of a branddimensions of the mental map of a brand Relate to points-of-parity and points-of-Relate to points-of-parity and points-of-differencedifference Mental mapMental map Core brand valuesCore brand values Brand mantraBrand mantra
3.15Brand MantrasBrand Mantras An articulation of the “heart and soul” of the brandAn articulation of the “heart and soul” of the brand similar to “brand essence” or “core brand promise”similar to “brand essence” or “core brand promise” Short three- to five-word phrases that capture theShort three- to five-word phrases that capture theirrefutable essence or spirit of the brandirrefutable essence or spirit of the brandpositioning and brand valuespositioning and brand values ConsiderationsConsiderations CommunicateCommunicate SimplifySimplify InspireInspire
3.16Designing the Brand MantraDesigning the Brand Mantra The termThe term brand functionsbrand functions describes the nature ofdescribes the nature ofthe product or service or the type of experiencesthe product or service or the type of experiencesor benefits the brand provides.or benefits the brand provides. TheThe descriptive modifierdescriptive modifier further clarifies its nature.further clarifies its nature. TheThe emotional modifieremotional modifier provides another qualifierprovides another qualifier—how exactly does the brand provide benefits,—how exactly does the brand provide benefits,and in what way?and in what way?
3.17Designing the Brand MantraDesigning the Brand MantraEmotionalEmotionalModifierModifierDescriptiveDescriptiveModifierModifierBrandBrandFunctionsFunctionsNikeNike AuthenticAuthentic AthleticAthletic PerformancePerformanceDisneyDisney FunFun FamilyFamily EntertainmentEntertainmentFunFun FolksFolks FoodFood
3.18Internal BrandingInternal Branding Members of the organization are properly alignedMembers of the organization are properly alignedwith the brand and what it represents.with the brand and what it represents. Crucial for service companiesCrucial for service companies
3.19Brand AuditBrand Audit Externally, consumer-focused assessmentExternally, consumer-focused assessment A comprehensive examination of a brandA comprehensive examination of a brandinvolving activities to assess the health of theinvolving activities to assess the health of thebrand, uncover its sources of equity, and suggestbrand, uncover its sources of equity, and suggestways to improve and leverage that equityways to improve and leverage that equity It includes brand vision, mission, promise, values,It includes brand vision, mission, promise, values,position, personality, and performanceposition, personality, and performance
3.20Importance of Brand AuditsImportance of Brand Audits Understand sources of brand equityUnderstand sources of brand equity Firm perspectiveFirm perspective Consumer perspectiveConsumer perspective Set strategic direction for the brandSet strategic direction for the brand Recommend marketing programs to maximizeRecommend marketing programs to maximizelong-term brand equitylong-term brand equity
3.22Brand InventoryBrand Inventory A current comprehensiveA current comprehensive profileprofile of how all theof how all theproducts and services sold by a company areproducts and services sold by a company arebranded and marketed:branded and marketed: Brand elementsBrand elements Supporting marketing programsSupporting marketing programs Profile of competitive brands myriadProfile of competitive brands myriad POPs and PODsPOPs and PODs Brand mantraBrand mantra
3.23Brand Inventory (Cont.)Brand Inventory (Cont.) Suggests theSuggests the basesbases for positioning the brandfor positioning the brand OffersOffers insightsinsights to how brand equity may be betterto how brand equity may be bettermanagedmanaged AssessesAssesses consistencyconsistency in message among activities,in message among activities,brand extensions, and sub-brands in order tobrand extensions, and sub-brands in order toavoid redundancies, overlaps, and consumeravoid redundancies, overlaps, and consumerconfusionconfusion
3.24Brand ExploratoryBrand Exploratory Provides detailed information as to howProvides detailed information as to howconsumers perceive the brand:consumers perceive the brand: AwarenessAwareness FavorabilityFavorability Uniqueness of associationsUniqueness of associations Helps identify sources of customer-based brandHelps identify sources of customer-based brandequityequity Uncovers knowledge structures for the core brandUncovers knowledge structures for the core brandas well as its competitorsas well as its competitors
3.25Suggested Brand Audit OutlineSuggested Brand Audit Outline Brand audit objectives, scope, and approachBrand audit objectives, scope, and approach Background about the brand (self-analysis)Background about the brand (self-analysis) Background about the industriesBackground about the industries Consumer analysis (trends, motivation, perceptions, needs,Consumer analysis (trends, motivation, perceptions, needs,segmentation, behavior)segmentation, behavior) Brand inventoryBrand inventory Elements, current marketing programs, POPs, PODsElements, current marketing programs, POPs, PODs Branding strategies (extensions, sub-brands, etc.)Branding strategies (extensions, sub-brands, etc.) Brand portfolio analysisBrand portfolio analysis CompetitorsCompetitors’’ brand inventorybrand inventory Strengths and weaknessesStrengths and weaknesses