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Brand Positioning
By : Prof. Deepa R., LLIM
Reference : Strategic advertising management by Larry Percy and Richard Elliot
Sub-topics
• Understanding brand positioning (topic 4)
• Understanding target audience in terms of market structure (topic 3)
• Use of partitioning method to structure the market
• Tools and methods of positioning
• Using advertising to communicate right positioning
Prof. Deepa R. LLIM, 2014
2
Positioning
• David Jobber – the choice of ‘target market’, where we want to
compete and differential advantage, how we wish to compete
• Peter Doyle – positioning strategy is the choice of target market
segments which determine where the business competes and the
choice of differential advantage, which dictates how it competes.
Prof. Deepa R. LLIM, 2014
3
Positioning requires
Identification and selection of right target audience
Choice of differential advantage
Prof. Deepa R. LLIM, 2014
4
Identifying and Defining the Market
• How consumers see the market therefore how and why consumers behave as
they do
• Cross –elasticity between products
• Perceived similarity – how similar consumers perceive the brands in a particular
category to be
• Perceived similarity  foundation of category need  positioning in marketing
communication
Prof. Deepa R. LLIM, 2014
5
Consumer Mapping of Soft Drinks
Prof. Deepa R. LLIM, 2014
6
Pepsi
Coke
ThumpsUp
7Up
Sprite
Appy Fizz
Mirinda
Fanta
Hierarchical Market Definition / Partitioning
Product
Category
Sub-
category
Sub-
category
division
Brand Brand Brand
Sub-
category
division
Sub-
category
Prof. Deepa R. LLIM, 2014
7
Bases for Partitions
Based on consumers views
1. Type of product
2. End benefit
3. Usage situation
4. Brand name
Questions with respect to these
characteristics
1. What kind of a product is a soft
drink?
2. Why do you drink a soft drink?
3. When do you drink a soft drink ?
4. What are the differences among
various brands of soft drinks?
Prof. Deepa R. LLIM, 2014
8
Bases for Hierarchical Partitioning of Soft
Drinks in India
Prof. Deepa R. LLIM, 2014
9
Product Characteristics
• Aerated / non aerated
• Cola based / un-cola
End-benefits
• Refreshment
• Quench thirst
• Mixing with liquor
Usage situation
• Accompany lunch/
dinner
• Celebration / party/
entertainment
• During discussion /
meeting
• Deodorant market
• Soaps
Prof. Deepa R. LLIM, 2014
10
Summary of market structure
• Identifying the market where a brand will compete  category
where the brand competes  category need
• Consumers buy products/ brands to satisfy their needs
• Brands exist to satisfy those needs
• A consumer driven definition of market is essential for the
development of effective advertising strategy
Prof. Deepa R. LLIM, 2014
11
Positioning requires
Identification and selection of right target audience
Choice of differential advantage
Prof. Deepa R. LLIM, 2014
12
Seeking Differential Advantage
Prof. Deepa R. LLIM, 2014
13
Prof. Deepa R. LLIM, 2014
14
What is it?
What does it
offer?
Brand
Awareness
Brand
Attitude
Prof. Deepa R. LLIM, 2014
15
What is it?
Category
need
Brand’s
market
position
Centrally
Differentially
Prof. Deepa R. LLIM, 2014
16
What does it
offer
Relative to
competition
User
Product
Brand
Benefits
User Oriented Position
• User is the focus, user characteristics is the message
• Brand is marketed to a specific segment satisfying their particular need
• E.g. Raymond
• Used when underlying purchase motivation is social appeal – social
rewards e.g. Vaseline Moisturiser
• With this positioning approach, a brand reminds consumers of how they
would feel in using / displaying their brand
• E.g. luxury cars, fashion brands
• E.g. Johnson and Johnson’s baby wipes
Prof. Deepa R. LLIM, 2014
17
Prof. Deepa R. LLIM, 2014
18
Product Benefit Oriented Positioning
• Product is the hero of the positioning and it is defined by the specific
benefits related to the product and not the user
• Product characteristics are the message
Prof. Deepa R. LLIM, 2014
19
Prof. Deepa R. LLIM, 2014
20
Prof. Deepa R. LLIM, 2014
21
What does it
offer
Relative to
competition
User
Product
Brand
Benefits
Selecting the Appropriate Benefit
• Benefits reflect the underlying motivation (why a consumer is buying the
brand)
• Considerations in selecting the right benefit for communication
1. Benefit which is important to the target audience influencing purchase
2. Benefit that can be delivered better than other brands
3. The brand can deliver it (consumers believe / persuaded to believe the
brand can deliver)
Prof. Deepa R. LLIM, 2014
22
The Expectancy –Value Model of Attitude
• A person's attitude towards an object is the sum of all the things they
believe about it, weighted by how important each of those things are o
them
• E.g. Person’s attitude towards Cadbury Dairy Milk will be the sum of its
perceived characteristics and how important they are to what motivates
that person to buy a chocolate bar
Prof. Deepa R. LLIM, 2014
23
Expectancy Value Model of Attitude for
Chocolate
Prof. Deepa R. LLIM, 2014
24
Importance Belief Importance X Belief
Chocolate 3 3 9
Wafer 1 0 0
Caramel 1 0 0
Smoothness 2 3 6
Gifting / Sharing 2 3 6
Inexpensive 3 3 9
Indulgence 2 3 6
Total 36
Comparative Expectancy Value Model of
Attitude for two Chocolate Bars
Prof. Deepa R. LLIM, 2014
25
Importance Belief
Importance X
Belief
Belief
Importance X
Belief
Cadbury
Dairy Milk
Cadbury Dairy
Milk
Five Star Five Star
Chocolate 3 3 9 2 6
Wafer 1 0 0 0 0
Caramel 1 0 0 3 3
Smoothness 2 3 6 2 4
Gifting / Sharing 2 3 6 1 2
Inexpensive 3 3 9 3 9
Indulgence 2 3 6 2 4
Total 36 28
Prof. Deepa R. LLIM, 2014
26
Importance Belief
Cadbury
Dairy Milk
Five Star Silk Galaxy Amul Snickers
Chocolate 3 3 2 3 3 2 3
Wafer 1 0 0 0 0 0 0
Caramel 2 0 3 0 0 0 3
Smoothness 2 3 2 3 3 1 1
Gifting /
Sharing
2 3 1 2 1 1 1
Inexpensive 3 3 3 1 2 2 3
Indulgence 2 3 2 3 2 1 2
Positioning options
• Reinforcing or building a uniqueness for your brand on important benefits
• Capitalizing upon competitive weakness on important benefits
• Emphasizing important benefits your brand delivers better than others
• Increasing the importance of benefits your brand delivers better than
others (if not already seen as essential)
• Decreasing the importance of benefits your brand does not deliver better
than others
Prof. Deepa R. LLIM, 2014
27
Benefit Focus
• How to focus on or emphasize the benefit in marketing communication
Prof. Deepa R. LLIM, 2014
28
Attribute
• An objective component of a product
(anti-bacterial etc.)
Characteristic
• A subjective claim about a product (easy
to use, tastes great)
Emotion
• A feeling associated with the product
(excitement, Relief)
Motivation
associated
with
purchase
Benefit Focus options
Prof. Deepa R. LLIM, 2014
29
• Attribute only e.g. Disprine dissolves in seconds
• Subjective characteristics without support e.g. White Tone powder, 5Star
• Attribute supports the subjective characteristics e.g. Dove ¼ moisturiser
• Negative emotions resolved by subjective characteristics e.g. Tide Naturals
Negative
Motivation
• Subjective characteristics leads to emotions e.g. Cadbury silk
• Pure emotions e.g. Cadbury Dairy Milk
Positive
Motivation
Effective Positioning
Prof. Deepa R. LLIM, 2014
31
1. Define and Select target market
• Market partitioning to analyse market structure
1. Type of the product
2. End benefits
3. Usage situation
4. Brand name
Prof. Deepa R. LLIM, 2014
32
2. Seeking Differential Advantage
1. Make initial positioning decisions
• What is it? - With regard to the product category – Central versus
differentiated
• What does it offer ?- With regard to other brands
• User - marketing to a specific segment / social approval is primary purchase
motivation
• Product orientation – all other cases
Prof. Deepa R. LLIM, 2014
33
2. Select appropriate benefit (use of Expectancy model of attitude)
• Benefit are important to the target audience
• The brand can deliver
• Can be delivered better than other brands
3. Use correct benefit focus (Attribute/ Characteristic/ Emotion)
• When purchase motivation is negative  focus on the benefits (attribute of the
product / subjective claim / characteristic )
• When the purchase motivation is positive  emphasise is on emotional
consequences
Prof. Deepa R. LLIM, 2014
34
Positioning options
• Reinforcing or building a uniqueness for your brand on important benefits
• Capitalizing upon competitive weakness on important benefits
• Emphasizing important benefits your brand delivers better than others
• Increasing the importance of benefits your brand delivers better than
others (if not already seen as essential)
• Decreasing the importance of benefits your brand does not deliver better
than others
Prof. Deepa R. LLIM, 2014
35
• Device the positioning for advertising of
Burger King /
KitKat Dark Chocolate /
Henko Matic
Prof. Deepa R. LLIM, 2014
36

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Brand Positioning

  • 1. Brand Positioning By : Prof. Deepa R., LLIM Reference : Strategic advertising management by Larry Percy and Richard Elliot
  • 2. Sub-topics • Understanding brand positioning (topic 4) • Understanding target audience in terms of market structure (topic 3) • Use of partitioning method to structure the market • Tools and methods of positioning • Using advertising to communicate right positioning Prof. Deepa R. LLIM, 2014 2
  • 3. Positioning • David Jobber – the choice of ‘target market’, where we want to compete and differential advantage, how we wish to compete • Peter Doyle – positioning strategy is the choice of target market segments which determine where the business competes and the choice of differential advantage, which dictates how it competes. Prof. Deepa R. LLIM, 2014 3
  • 4. Positioning requires Identification and selection of right target audience Choice of differential advantage Prof. Deepa R. LLIM, 2014 4
  • 5. Identifying and Defining the Market • How consumers see the market therefore how and why consumers behave as they do • Cross –elasticity between products • Perceived similarity – how similar consumers perceive the brands in a particular category to be • Perceived similarity  foundation of category need  positioning in marketing communication Prof. Deepa R. LLIM, 2014 5
  • 6. Consumer Mapping of Soft Drinks Prof. Deepa R. LLIM, 2014 6 Pepsi Coke ThumpsUp 7Up Sprite Appy Fizz Mirinda Fanta
  • 7. Hierarchical Market Definition / Partitioning Product Category Sub- category Sub- category division Brand Brand Brand Sub- category division Sub- category Prof. Deepa R. LLIM, 2014 7
  • 8. Bases for Partitions Based on consumers views 1. Type of product 2. End benefit 3. Usage situation 4. Brand name Questions with respect to these characteristics 1. What kind of a product is a soft drink? 2. Why do you drink a soft drink? 3. When do you drink a soft drink ? 4. What are the differences among various brands of soft drinks? Prof. Deepa R. LLIM, 2014 8
  • 9. Bases for Hierarchical Partitioning of Soft Drinks in India Prof. Deepa R. LLIM, 2014 9 Product Characteristics • Aerated / non aerated • Cola based / un-cola End-benefits • Refreshment • Quench thirst • Mixing with liquor Usage situation • Accompany lunch/ dinner • Celebration / party/ entertainment • During discussion / meeting
  • 10. • Deodorant market • Soaps Prof. Deepa R. LLIM, 2014 10
  • 11. Summary of market structure • Identifying the market where a brand will compete  category where the brand competes  category need • Consumers buy products/ brands to satisfy their needs • Brands exist to satisfy those needs • A consumer driven definition of market is essential for the development of effective advertising strategy Prof. Deepa R. LLIM, 2014 11
  • 12. Positioning requires Identification and selection of right target audience Choice of differential advantage Prof. Deepa R. LLIM, 2014 12
  • 13. Seeking Differential Advantage Prof. Deepa R. LLIM, 2014 13
  • 14. Prof. Deepa R. LLIM, 2014 14 What is it? What does it offer? Brand Awareness Brand Attitude
  • 15. Prof. Deepa R. LLIM, 2014 15 What is it? Category need Brand’s market position Centrally Differentially
  • 16. Prof. Deepa R. LLIM, 2014 16 What does it offer Relative to competition User Product Brand Benefits
  • 17. User Oriented Position • User is the focus, user characteristics is the message • Brand is marketed to a specific segment satisfying their particular need • E.g. Raymond • Used when underlying purchase motivation is social appeal – social rewards e.g. Vaseline Moisturiser • With this positioning approach, a brand reminds consumers of how they would feel in using / displaying their brand • E.g. luxury cars, fashion brands • E.g. Johnson and Johnson’s baby wipes Prof. Deepa R. LLIM, 2014 17
  • 18. Prof. Deepa R. LLIM, 2014 18
  • 19. Product Benefit Oriented Positioning • Product is the hero of the positioning and it is defined by the specific benefits related to the product and not the user • Product characteristics are the message Prof. Deepa R. LLIM, 2014 19
  • 20. Prof. Deepa R. LLIM, 2014 20
  • 21. Prof. Deepa R. LLIM, 2014 21 What does it offer Relative to competition User Product Brand Benefits
  • 22. Selecting the Appropriate Benefit • Benefits reflect the underlying motivation (why a consumer is buying the brand) • Considerations in selecting the right benefit for communication 1. Benefit which is important to the target audience influencing purchase 2. Benefit that can be delivered better than other brands 3. The brand can deliver it (consumers believe / persuaded to believe the brand can deliver) Prof. Deepa R. LLIM, 2014 22
  • 23. The Expectancy –Value Model of Attitude • A person's attitude towards an object is the sum of all the things they believe about it, weighted by how important each of those things are o them • E.g. Person’s attitude towards Cadbury Dairy Milk will be the sum of its perceived characteristics and how important they are to what motivates that person to buy a chocolate bar Prof. Deepa R. LLIM, 2014 23
  • 24. Expectancy Value Model of Attitude for Chocolate Prof. Deepa R. LLIM, 2014 24 Importance Belief Importance X Belief Chocolate 3 3 9 Wafer 1 0 0 Caramel 1 0 0 Smoothness 2 3 6 Gifting / Sharing 2 3 6 Inexpensive 3 3 9 Indulgence 2 3 6 Total 36
  • 25. Comparative Expectancy Value Model of Attitude for two Chocolate Bars Prof. Deepa R. LLIM, 2014 25 Importance Belief Importance X Belief Belief Importance X Belief Cadbury Dairy Milk Cadbury Dairy Milk Five Star Five Star Chocolate 3 3 9 2 6 Wafer 1 0 0 0 0 Caramel 1 0 0 3 3 Smoothness 2 3 6 2 4 Gifting / Sharing 2 3 6 1 2 Inexpensive 3 3 9 3 9 Indulgence 2 3 6 2 4 Total 36 28
  • 26. Prof. Deepa R. LLIM, 2014 26 Importance Belief Cadbury Dairy Milk Five Star Silk Galaxy Amul Snickers Chocolate 3 3 2 3 3 2 3 Wafer 1 0 0 0 0 0 0 Caramel 2 0 3 0 0 0 3 Smoothness 2 3 2 3 3 1 1 Gifting / Sharing 2 3 1 2 1 1 1 Inexpensive 3 3 3 1 2 2 3 Indulgence 2 3 2 3 2 1 2
  • 27. Positioning options • Reinforcing or building a uniqueness for your brand on important benefits • Capitalizing upon competitive weakness on important benefits • Emphasizing important benefits your brand delivers better than others • Increasing the importance of benefits your brand delivers better than others (if not already seen as essential) • Decreasing the importance of benefits your brand does not deliver better than others Prof. Deepa R. LLIM, 2014 27
  • 28. Benefit Focus • How to focus on or emphasize the benefit in marketing communication Prof. Deepa R. LLIM, 2014 28 Attribute • An objective component of a product (anti-bacterial etc.) Characteristic • A subjective claim about a product (easy to use, tastes great) Emotion • A feeling associated with the product (excitement, Relief) Motivation associated with purchase
  • 29. Benefit Focus options Prof. Deepa R. LLIM, 2014 29 • Attribute only e.g. Disprine dissolves in seconds • Subjective characteristics without support e.g. White Tone powder, 5Star • Attribute supports the subjective characteristics e.g. Dove ¼ moisturiser • Negative emotions resolved by subjective characteristics e.g. Tide Naturals Negative Motivation • Subjective characteristics leads to emotions e.g. Cadbury silk • Pure emotions e.g. Cadbury Dairy Milk Positive Motivation
  • 31. 1. Define and Select target market • Market partitioning to analyse market structure 1. Type of the product 2. End benefits 3. Usage situation 4. Brand name Prof. Deepa R. LLIM, 2014 32
  • 32. 2. Seeking Differential Advantage 1. Make initial positioning decisions • What is it? - With regard to the product category – Central versus differentiated • What does it offer ?- With regard to other brands • User - marketing to a specific segment / social approval is primary purchase motivation • Product orientation – all other cases Prof. Deepa R. LLIM, 2014 33
  • 33. 2. Select appropriate benefit (use of Expectancy model of attitude) • Benefit are important to the target audience • The brand can deliver • Can be delivered better than other brands 3. Use correct benefit focus (Attribute/ Characteristic/ Emotion) • When purchase motivation is negative  focus on the benefits (attribute of the product / subjective claim / characteristic ) • When the purchase motivation is positive  emphasise is on emotional consequences Prof. Deepa R. LLIM, 2014 34
  • 34. Positioning options • Reinforcing or building a uniqueness for your brand on important benefits • Capitalizing upon competitive weakness on important benefits • Emphasizing important benefits your brand delivers better than others • Increasing the importance of benefits your brand delivers better than others (if not already seen as essential) • Decreasing the importance of benefits your brand does not deliver better than others Prof. Deepa R. LLIM, 2014 35
  • 35. • Device the positioning for advertising of Burger King / KitKat Dark Chocolate / Henko Matic Prof. Deepa R. LLIM, 2014 36