EMB 520: Ch 10 crafting the brand positioning 14e

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10Crafting the Brand Positioning
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Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-2
Chapter Questions
•How can a firm develop and establish an effective positioning in the market?
•How do marketers identify and analyze competition?
•How are brands successfully differentiated?
•What are the differences in positioning and branding with a small business? Marketing StrategySegmentation--group of customers wantsSegmentation--who share a similar set of needs and wants
Targetingsatisfied in a superior way
Targeting—consumer that can be satisfied Positioninga distinctive place in the minds of the target market
Positioning—a Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-3
Positioning
•Positioning is the act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market.
–The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm
–A good brand positioning helps guide marketing strategy
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Positioning
At Olive Garden Restaurants, ―When You’re Here, You’re Family.‖
•The full mix of benefits upon which a brand is positioned
–More for more
–More for the same
–Same for less
–Less for much less
–More for less
Value PropositionsCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-6

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Value Propositions
•Perdue Chicken
–More tender golden chicken at a moderate premium price
•Domino’s
–A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-7Value Proposition
―Much more for much more‖ value proposition: Häagen- Dazs offers its super- premium ice cream at a price never before charged.
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What a Good Positioning Can Do?
•Positioning helps guide marketing strategies and clarifies the following:
–What is a brand all about?
–How is it similar to competitive brands?
–How is it unique to competitive brands?
–Why should customers purchase & use the brand?
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•Positioning Statement sates the product’s membership in a category and then shows its PoDfrom other members of the category.
Positioning Statement
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Example: Positioning Statement
Mountain Dew: To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine.
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•Positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions
Positioning Map
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3Positioning Map for Large Luxury SUVsCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-14
Some well-Positioned Brands
Close Up
Fresh Breath, Confidence
Pepsi
Fun, Excitement, Young Generation
Raymonds
Complete Man
Aspirin
Faster Relief From Pain
Woodland
Tough Shoes
Dettol
Antiseptic
Fair andLovely
Fairness
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The W’s of Brand PositioningCadbury’s Perk
Against Whom?
(Nestle’sKitkat)
For Whom? 20-30 Yrs (M/F)
When?
Anytime
Why?
To satisfy in between meals hunger
Where?
Anywhere
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-16Developing and Establishinga Brand Positioning
•Positioning requires that marketers define and communicate PoPsand PoDs
•Specifically, deciding on a positioning requires:
(1)Determining a CFoRby identifying the target market and relevant competition,
(2)Identifying the optimal PoPsand PoDsbrand associations given that FoR,
(3)Creating a brand mantra to summarize the positioning and essence of the brand.
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-17
Developing and Establishinga Brand Positioning
TABLE 10.1 Examples of Value Propositions
Company and Product
Target Customers
Key Benefits
Price
Value Proposition
Perdue (chicken)
Quality- conscious consumers
of chicken
Tenderness
10% premium
More tender golden chicken at a
moderate premium price
Volvo (station wagon)
Safety- conscious upscale
families
Durability and safety
20% premium
The safest, most durable wagon in
which your family can ride
Domino’s (pizza)
Convenience- minded pizza
lovers
Delivery speed and
good quality
15% premium
A good hot pizza, delivered promptly
to your door, at a moderate price
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-18Determining a Competitive Frame of Reference (CFoR)
•The CFoRdefines which other brands a brand competes with, and which brands should be the focus of competitive analysis.
•Decisions about CFoRare closely linked to:
–Target market decisions
–Competitive analysis
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Target Market Decisions
•Target market determines the nature of competition because………
•Target markets vary in BK structures resulting in different perceptions and preferences
–Understanding target markets helps determine which brand associations should be held, which is strong, favorable, and unique
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-20Competitive Analysis: Identifying Competitors
•A good starting point in defining a CFoRfor brand positioning is to determine category membership
•Examine competition from both an industryand a marketpoint of view
–The market concept of competition reveals a broader set of actual and potential competitors
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Competitive Analysis: Analyzing Competitors
•Gather information about each competitor’s real and perceived S/W, objectives and strategies
•Once main competitors are identified, ask:
–What is each competitor seeking in the marketplace?
–What drives each competitor’s behavior?
–If it is a division of a parent company, for which objective is the parent company running it?
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-22Table 10.2 Customer Ratings of Competitors
Table: shows the results of a company survey that asked customers to rate its three competitors, A, B, and C, on five attributes.
Identifying Optimal PoDs and PoPs
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
–FedEx—guaranteed overnight delivery
–Nike—performance
–Lexus—quality
POPs
•Attributes or benefitsthat are not necessarily unique to the brand but may be shared with other brands
–Category—travel agency must be able to make air and hotel reservations, etc.
–Competitive—Miller Litebeer—taste great
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-24Criteria to Determine PoDsDesirableto Consumers
Deliverableby the Company
Differentiatingfrom CompetitorsRelevantBelievableFeasibleCommunicableSustainableCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-25
Distinctive and superior to relevant competitors

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5Two Basic Forms PoPsAssociations
Category PoPs
–They represent necessary-but not sufficient-conditions for brand choice
–They may change over time due to technological advances, legal developments, or consumer trends
–They exist minimally at the generic and mostly at the expected product levels
–They are critical when a brand launches a brand extension into a new category
Competitive PoPs
–They are designed to either negate competitors’ perceived PoDsor negate a perceived vulnerability of the brand as a result of its own PoDs
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-26PoPs Vs. PoDs
•To achieve PoPon an attribute, a sufficient number of consumers must believe the brand is ―good enough‖ on that dimension
•PoPdoes not need the brand to be equal to competitive brands but it has a range of tolerance
•Tougher to establish PoDthan PoP
•The key to positioning is not so much achieving a PoDas achieving PoPs!
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-27POP versus PODVisa’sPODinthecreditcardcategoryisthatitisthemostwidelyavailablecard,whichunderscoresthecategory’smainbenefitofconvenience.AmericanExpress,ontheotherhand,hasbuiltBEbyhighlightingtheprestigeassociatedwiththeuseofitscard. Multiple Frames of Reference
•Marketers identify more than one actual or potential CFoR, if competition widens or the firm plans to expand into new categories
–For example, Starbucks could define very distinct sets of competitors, suggesting different possible POPs and PODs as a result
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Straddle Positioning
•Occasionally, a company can straddle two FoRswith one set of PoDsand PoPs. In these cases, the PoDsfor one category become PoPsfor the other and vice versa
–Fore example, Subwayis positioned as offering healthy, good-tasting sandwiches
oPOP on taste and a POD on health with respect to quick- serve restaurants such as McDonald’s
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-30Choosing POPs and PODs
•Marketers focus on brand benefits in choosing the PoPsand PoDsthat make up their brand positioning
–For choosing specific benefits as POPs and PODs to position a brand, perceptual maps may be useful.
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6Fig:10.1 (a) Hypothetical Beverage Perceptual Map: Current PerceptionsCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-32Fig:10.1 (b) Hypothetical Beverage Perceptual Map: Possible Repositioning for Brand A
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Brand Mantras
•A brand mantra is an articulation of the heart and soul of the brand and is closely related to ―brand essence‖ and ―core brand promise.‖
–Brand mantras are short, 3-to 5-word phrases that capture the spirit of the brand positioning.
•Defining a brand mantra helps determine:
a)the intent of the brand positioning
b)the way firms would like consumers to think about the brand.
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-34The Purpose of Brand Mantras
•To ensure that all employees and all external marketing partners understand what the brand is most fundamentally to represent with consumers so they can adjust their actions accordingly.
–Internally, Nike marketers adopted the three-word brand mantra, ―authentic athletic performance,‖ to guide their marketing efforts.
Designing a Brand Mantra
•A brand mantra is designed with internal purposes in mind, while a brand slogan is an external translation that attempts to creatively engage consumers.
•Although Nike’s internal mantra was ―authentic athletic performance,‖ its external slogan was ―Just Do It.‖
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-36Three Key Criteria for a Brand MantraCommunicate
Simplify
Inspire
–Category and set of the brand boundary
–Memorable (short, crisp and vivid in meaning)
–Personally meaningful and relevant to employeesCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-37

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7Establishing Brand Positioning
•After determining the brand positioning strategy, marketers should communicate it to everyone in the organization so it guides their words and actions.
•One helpful schematic to do so is a brand- positioning bull’s-eye.
–Constructing a bull’s-eye for the brand ensures that no steps are skipped in its development.
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-38Constructing a Brand Positioning Bull’s-Eye
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Communicating Category Membership
•Three main ways to convey a brand’s category membership
–Announcing category benefits
–Comparing to exemplars(well-known, noteworthy brands in a category)
–Relying on the product descriptor(a concise means of conveying category origin)
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-40Communicating PoPs and PoDs
•One common difficulty in creating a strong, competitive brand positioning
–Many of the attributes/benefits that make up the PoPsand PoDsare negatively correlated.
•The best approach clearly is to develop a product that performs well on both dimensions
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Examples of Negatively Correlated Attributes and Benefits
•Low-price vs. High quality
•Taste vs. Low calories
•Nutritious vs. Good tasting
•Powerful vs. Safe
•Strong vs. Refined
•Ubiquitous vs. Exclusive
•Varied vs. Simple
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-42Approaches to Address Attribute or Benefit Trade-Offs
•Present separately
–Launch 2 different marketing campaigns, each devoted to a different brand attribute
•Leverage equity of another entity
–Brands can link themselves to any kind of entity that possesses the right kind of equity
•Redefine the relationship
–Although difficult, try to convince consumers that the relationship is positive
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8Differentiation Strategies
•To build a strong brand and avoid the commodity trap, marketers differentiate their offerings with CA
–CA is a company’s ability to perform in one or more ways that competitors cannot
–Few CAs are sustainable, rather they are leverageablei.e. a company can use as a springboard to new advantages
–CA should be viewed as customer advantages
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Affordable
AffordableSuperiorSuperiorProfitableProfitablePreemptivePreemptiveDistinctiveDistinctiveImportantImportant
Communicable
Characteristics of CAsCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-45Progressive gained a CA in the mid-1990s when it became one of the first auto insurance companies to sell direct consumers via the internet by providing competitive quotes online.
Progressive’s Competitive Advantage
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-46Means of DifferentiationEmployeeChannelImageServices
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Employees
Channel
Image
Services
Competence
Coverage
Symbols
Reliability
Courtesy
Expertise
Media
Resilience
Credibility
Performance
Atmosphere
Innovativeness
Reliability
Events
Responsiveness
Physical Plant
Means of Differentiation
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-48Employee Differentiation: Singapore AirlinesCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-49

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9Channel DifferentiationCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-50Image DifferentiationCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-51Emotional Branding
•A brand positioning should have both rational and emotional components
–A good positioning should contain PoDsand PoPsthat appeal both to the head and to the heart.
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Brand Consultant Marc Gobé’s3 Specific traits of Emotional BrandsStrong people-focused corporate cultureDistinctive communication style
Compelling emotional hook
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-53Market Share, Mind Share, and Heart Share
•A firm should analyze 3variables when analyzing potential threats posed by competitors
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-54Brand Narratives and StorytellingCopyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-55

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For Review
How can a firm develop and establish an effective positioning in the market?
How do marketers identify and analyze competition?
How are brands successfully differentiated?
What are the differences in positioning and branding with a small business?
Copyright © 2013Pearson Education, Inc. Publishing as Prentice Hall10-56