SlideShare a Scribd company logo
..
 .    .
      .
..
. .
•
..
.
.
   .
 Millions in R&D for
  ingredient Ace-K (artificial
  sweetener)
 37,K hours to design the
  can
 100 Million Marketing
  budget
 Original Target Market
    20-30 yo Males who did not
     like taste of diet colas
.
.
Brand Positioning:
An act of designing the company’s offer and image so
  that it occupies a distinct and valued in the target
  customer’s mind.

Finding a proper ‘location’ in the minds of a group of
   consumers or market segment so that they think
   about a product or service in the ‘right’ or desired way.
.
It is at the heart of the marketing strategy
.

The act of designing the company’s offer and
 image so that it occupies a distinct and valued
 place in the target customer’s minds.
.
.
.
.
    Marketers need to know:

      Who the target consumer is
      Who the main competitors are
      How the brand is similar to these competitors
      How the brand is different from them
.
.


    Four main segments
    • Sensory segment
       – Flavor and product
         appearance
    • Sociable                 Flavor, Brightness
       – Brightness of teeth
    • Worriers
       – Decay Prevention
    • Independent                                   3 stripes, one for
       – Low Price                                  each of the 3 main
                                Decay Prevention    segments
.
.
.
.   Consumer                                 Business-to-business
    Segmentation Bases                       Segmentation Bases

    • Behavioral                              Nature of good
       – E.g. user status                         E.g. Semi-finished
    • Demographic                             Buying condition
       – E.g, age, income                         E.g. Location
    • Psychographic                           Demographic
       – E.g. values, lifestyle                   E.g. SIC code
    • Geographic                                  No of employees
       – E.g, local, regional, interna            Sales volume
         tional
.
. • Identifiability: Can we easily identify the
  segment?
• Size: Is there adequate sales potential in the
  segment?
• Accessibility: Are specialized distribution outlets
  and communication media available to reach the
  segment?
• Responsiveness: How favorably will the segment
  respond to a tailored marketing program?
.
. • Deciding to target a certain type of consumer
    often defines the nature of competition
  • Do not define competition too narrowly
   – Ex: a luxury good with a strong hedonic benefit
     like stereo equipment may compete as much with
     a vacation as with other durable goods like
     furniture
.
.
.
. • Points-of-difference (PODs) are attributes or
    benefits that consumers strongly associate
    with a brand, positively evaluate, and believe
    that they could not find to the same extent
    with a competitive brand.
  • Points-of-parity associations (POPs): on the
    other hand, these are not necessarily unique
    to the brand but may in fact be shared with
    other brands.
.
.
.
. • Defining a competitive frame of reference for
    a brand positioning is to determine category
    membership.
  • The preferred approach to positioning is to
    inform consumers of a brand’s membership
    before stating its point of difference in
    relationship to other category members.
.
.Desirability criteria (consumer perspective)
   Personally relevant
   Distinctive and superior
   Believable and credible
Deliverability criteria (firm perspective)
   Feasible
   Profitable
   Pre-emptive, defensible, and difficult to attack
.
 .
                                                                           1991

                                            1985
                     1975
     1971
                                                              • Affluence, exclusivity
                                                              • Fun to drive
                                   • Affluence, exclusivity
                                   • Fun to drive

                  • Fun to drive
                  • Economical
• International
• Desirability
.
•    Price and quality
 .
•    Convenience and quality
•    Taste and low calories
•    Efficacy and mildness
•    Power and safety
•    Ubiquity and prestige
•    Comprehensiveness (variety) and simplicity
•    Strength and refinement
.
 .
• Establish separate marketing programs
• Leverage secondary association (e.g., co-brand)
• Re-define the relationship from negative to
   positive
.
.• Set of abstract concepts or phrases that
   characterize the five to ten most important
   dimensions of the mental map of a brand
• Relate to    points-of-parity   and   points-of-
  difference
• Mental map  Core brand values  Brand mantra
.
.•   Built upon core brand values
 •   Makes a core brand promise
 •   Heart and soul of brand
 •   3-5 word phrases
 •   Generates spirit of the brand
 •   Helps position the brand
.
• An articulation of the “heart and soul” of the
 . brand
• similar to “brand essence” or “core brand
   promise”
• Short three- to five-word phrases that capture
   the irrefutable essence or spirit of the brand
   positioning and brand values
• Considerations
  – Communicate
  – Simplify
  – Inspire
.
.
.
 • Brand function - nature of product or
. service; performance, entertainment

 • Descriptive modifier - specific functions;
   athletic performance, family entertainment

 • Emotional modifier - how brand delivers
   benefits; authentic, fun
.
. • The term brand functions describes the nature
    of the product or service or the type of
    experiences or benefits the brand provides.
  • The descriptive modifier further clarifies its
    nature.
  • The emotional modifier provides another
    qualifier—how exactly does the brand provide
    benefits, and in what way?
.
.            Emotional        Descriptive    Brand
              Modifier         Modifier     Functions


              Authentic         Athletic    Performance
    Nike


                Fun             Family      Entertainment
    Disney


                Fun              Folks         Food
.
.
.
Externally, consumer-focused assessment
.
A comprehensive examination of a brand
 involving activities to assess the health of the
 brand, uncover its sources of equity, and
 suggest ways to improve and leverage that
 equity

It includes brand vision, mission, promise,
 values, position, personality, and performance
.
 Understand sources of brand equity
.
  Firm perspective
  Consumer perspective


Set strategic direction for the brand

Recommend marketing programs to maximize
 long-term brand equity
.
.
Brand inventory (supply side)

Brand exploratory (demand side)
.
A current comprehensive profile of how all the
.
  products and services sold by a company are
  branded and marketed:
  Brand elements
  Supporting marketing programs
  Profile of competitive brands
  POPs and PODs
  Brand mantra
.
Suggests the bases for positioning the brand
.

Offers insights to how brand equity may be
 better managed

Assesses consistency in message among
 activities, brand extensions, and sub-brands in
 order to avoid redundancies, overlaps, and
 consumer confusion
.
Provides detailed information as to how
.
  consumers perceive the brand:
  Awareness
  Favorability
  Uniqueness of associations
Helps identify sources of customer-based brand
 equity
Uncovers knowledge structures for the core
 brand as well as its competitors
.
 Brand audit objectives, scope, and approach
 .
 Background about the brand (self-analysis)
 Background about the industries
 Consumer analysis (trends, motivation, perceptions,
   needs, segmentation, behavior)
 Brand inventory
   Elements, current marketing programs, POPs, PODs
   Branding strategies (extensions, sub-brands, etc.)
   Brand portfolio analysis
   Competitors’ brand inventory
   Strengths and weaknesses
.
 Brand exploratory
 .   • Brand associations
     • Brand positioning analysis
     • Consumer perceptions analysis (vs. competition)

 Summary of competitor analysis

 SWOT analysis

 Brand equity evaluation

 Strategic brand management recommendations

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Chap 3, brand positioning

  • 1. .. . . . .. . . • ..
  • 2. .
  • 3. . .  Millions in R&D for ingredient Ace-K (artificial sweetener)  37,K hours to design the can  100 Million Marketing budget  Original Target Market  20-30 yo Males who did not like taste of diet colas
  • 4. . . Brand Positioning: An act of designing the company’s offer and image so that it occupies a distinct and valued in the target customer’s mind. Finding a proper ‘location’ in the minds of a group of consumers or market segment so that they think about a product or service in the ‘right’ or desired way.
  • 5. . It is at the heart of the marketing strategy . The act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.
  • 6. . .
  • 7. . . Marketers need to know: Who the target consumer is Who the main competitors are How the brand is similar to these competitors How the brand is different from them
  • 8. . . Four main segments • Sensory segment – Flavor and product appearance • Sociable Flavor, Brightness – Brightness of teeth • Worriers – Decay Prevention • Independent 3 stripes, one for – Low Price each of the 3 main Decay Prevention segments
  • 9. . .
  • 10. . . Consumer Business-to-business Segmentation Bases Segmentation Bases • Behavioral  Nature of good – E.g. user status  E.g. Semi-finished • Demographic  Buying condition – E.g, age, income  E.g. Location • Psychographic  Demographic – E.g. values, lifestyle  E.g. SIC code • Geographic  No of employees – E.g, local, regional, interna  Sales volume tional
  • 11. . . • Identifiability: Can we easily identify the segment? • Size: Is there adequate sales potential in the segment? • Accessibility: Are specialized distribution outlets and communication media available to reach the segment? • Responsiveness: How favorably will the segment respond to a tailored marketing program?
  • 12. . . • Deciding to target a certain type of consumer often defines the nature of competition • Do not define competition too narrowly – Ex: a luxury good with a strong hedonic benefit like stereo equipment may compete as much with a vacation as with other durable goods like furniture
  • 13. . .
  • 14. . . • Points-of-difference (PODs) are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. • Points-of-parity associations (POPs): on the other hand, these are not necessarily unique to the brand but may in fact be shared with other brands.
  • 15. . .
  • 16. . . • Defining a competitive frame of reference for a brand positioning is to determine category membership. • The preferred approach to positioning is to inform consumers of a brand’s membership before stating its point of difference in relationship to other category members.
  • 17. . .Desirability criteria (consumer perspective) Personally relevant Distinctive and superior Believable and credible Deliverability criteria (firm perspective) Feasible Profitable Pre-emptive, defensible, and difficult to attack
  • 18. . . 1991 1985 1975 1971 • Affluence, exclusivity • Fun to drive • Affluence, exclusivity • Fun to drive • Fun to drive • Economical • International • Desirability
  • 19. . • Price and quality . • Convenience and quality • Taste and low calories • Efficacy and mildness • Power and safety • Ubiquity and prestige • Comprehensiveness (variety) and simplicity • Strength and refinement
  • 20. . . • Establish separate marketing programs • Leverage secondary association (e.g., co-brand) • Re-define the relationship from negative to positive
  • 21. . .• Set of abstract concepts or phrases that characterize the five to ten most important dimensions of the mental map of a brand • Relate to points-of-parity and points-of- difference • Mental map  Core brand values  Brand mantra
  • 22. . .• Built upon core brand values • Makes a core brand promise • Heart and soul of brand • 3-5 word phrases • Generates spirit of the brand • Helps position the brand
  • 23. . • An articulation of the “heart and soul” of the . brand • similar to “brand essence” or “core brand promise” • Short three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values • Considerations – Communicate – Simplify – Inspire
  • 24. . .
  • 25. . • Brand function - nature of product or . service; performance, entertainment • Descriptive modifier - specific functions; athletic performance, family entertainment • Emotional modifier - how brand delivers benefits; authentic, fun
  • 26. . . • The term brand functions describes the nature of the product or service or the type of experiences or benefits the brand provides. • The descriptive modifier further clarifies its nature. • The emotional modifier provides another qualifier—how exactly does the brand provide benefits, and in what way?
  • 27. . . Emotional Descriptive Brand Modifier Modifier Functions Authentic Athletic Performance Nike Fun Family Entertainment Disney Fun Folks Food
  • 28. . .
  • 29. . Externally, consumer-focused assessment . A comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity It includes brand vision, mission, promise, values, position, personality, and performance
  • 30. .  Understand sources of brand equity . Firm perspective Consumer perspective Set strategic direction for the brand Recommend marketing programs to maximize long-term brand equity
  • 31. . . Brand inventory (supply side) Brand exploratory (demand side)
  • 32. . A current comprehensive profile of how all the . products and services sold by a company are branded and marketed: Brand elements Supporting marketing programs Profile of competitive brands POPs and PODs Brand mantra
  • 33. . Suggests the bases for positioning the brand . Offers insights to how brand equity may be better managed Assesses consistency in message among activities, brand extensions, and sub-brands in order to avoid redundancies, overlaps, and consumer confusion
  • 34. . Provides detailed information as to how . consumers perceive the brand: Awareness Favorability Uniqueness of associations Helps identify sources of customer-based brand equity Uncovers knowledge structures for the core brand as well as its competitors
  • 35. .  Brand audit objectives, scope, and approach .  Background about the brand (self-analysis)  Background about the industries  Consumer analysis (trends, motivation, perceptions, needs, segmentation, behavior)  Brand inventory  Elements, current marketing programs, POPs, PODs  Branding strategies (extensions, sub-brands, etc.)  Brand portfolio analysis  Competitors’ brand inventory  Strengths and weaknesses
  • 36. .  Brand exploratory . • Brand associations • Brand positioning analysis • Consumer perceptions analysis (vs. competition)  Summary of competitor analysis  SWOT analysis  Brand equity evaluation  Strategic brand management recommendations