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Crafting
the Brand Positioning
Marketing Management, 13th
ed
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-2
Chapter Questions
• How can a firm choose and
communicate an effective positioning in
the market?
• How are brands differentiated?
• What marketing strategies are
appropriate at each stage of the
product life cycle?
• What are the implications of market
evolution for marketing strategies?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-3
What is Positioning?
Positioning is the act of designing the
company’s offering and image to
occupy a distinctive place in the mind
of the target market.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-4
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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-5
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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-6
Conveying Category Membership
• Announcing category benefits
• Comparing to exemplars
• Relying on the product descriptor
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-7
Consumer Desirability Criteria for
PODs
• Relevance
• Distinctiveness
• Believability
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-8
Deliverability Criteria for PODs
• Feasibility
• Communicability
• Sustainability
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-9
Examples of Negatively Correlated
Attributes and Benefits
• Low-price vs.
High quality
• Taste vs. Low
calories
• Nutritious vs.
Good tasting
• Efficacious vs.
Mild
• Powerful vs. Safe
• Strong vs.
Refined
• Ubiquitous vs.
Exclusive
• Varied vs. Simple
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-10
Addressing negatively correlated
PODs and POPs
• Present separately
• Leverage equity of another entity
• Redefine the relationship
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-11
Differentiation Strategies
• Product
• Channel
• Personnel
• Image
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-12
Product Differentiation
• Product form
• Features
• Performance
• Conformance
• Durability
• Reliability
• Reparability
• Style
• Design
• Ordering ease
• Delivery
• Installation
• Customer training
• Customer consulting
• Maintenance
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-13
Claims of Product Life Cycles
• Products have a limited life
• Product sales pass through distinct
stages each with different challenges
and opportunities
• Profits rise and fall at different stages
• Products require different strategies in
each life cycle stage
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-14
Strategies for Sustaining
Rapid Market Growth
• Improve product quality, add new features,
and improve styling
• Add new models and flanker products
• Enter new market segments
• Increase distribution coverage
• Shift from product-awareness advertising to
product-preference advertising
• Lower prices to attract the next layer of price-
sensitive buyers
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-15
Stages in the Maturity Stage
• Growth
• Stable
• Decaying maturity
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-16
Marketing Product Modifications
• Quality improvements
• Feature improvements
• Style improvements
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-17
Marketing Program Modifications
• Prices
• Distribution
• Advertising
• Sales promotion
• Services
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-18
Ways to Increase Sales Volume
• Convert nonusers
• Enter new market segments
• Attract competitors’ customers
• Have consumers use the product on
more occasions
• Have consumers use more of the
product on each occasion
• Have consumers use the product in
new ways
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-19
Market Evolution Stages
• Emergence
• Growth
• Maturity
• Decline
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-20
Emerging Markets
• Latent
• Single-niche
• Multiple-niche
• Mass-market
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-21
Maturity Strategies
• Market fragmentation stage
• Market consolidation stage

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Crafting Effective Brand Positioning Through Market Evolution

  • 2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-2 Chapter Questions • How can a firm choose and communicate an effective positioning in the market? • How are brands differentiated? • What marketing strategies are appropriate at each stage of the product life cycle? • What are the implications of market evolution for marketing strategies?
  • 3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-3 What is Positioning? Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
  • 4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-4 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
  • 5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-5 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
  • 6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-6 Conveying Category Membership • Announcing category benefits • Comparing to exemplars • Relying on the product descriptor
  • 7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-7 Consumer Desirability Criteria for PODs • Relevance • Distinctiveness • Believability
  • 8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-8 Deliverability Criteria for PODs • Feasibility • Communicability • Sustainability
  • 9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-9 Examples of Negatively Correlated Attributes and Benefits • Low-price vs. High quality • Taste vs. Low calories • Nutritious vs. Good tasting • Efficacious vs. Mild • Powerful vs. Safe • Strong vs. Refined • Ubiquitous vs. Exclusive • Varied vs. Simple
  • 10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-10 Addressing negatively correlated PODs and POPs • Present separately • Leverage equity of another entity • Redefine the relationship
  • 11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-11 Differentiation Strategies • Product • Channel • Personnel • Image
  • 12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-12 Product Differentiation • Product form • Features • Performance • Conformance • Durability • Reliability • Reparability • Style • Design • Ordering ease • Delivery • Installation • Customer training • Customer consulting • Maintenance
  • 13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-13 Claims of Product Life Cycles • Products have a limited life • Product sales pass through distinct stages each with different challenges and opportunities • Profits rise and fall at different stages • Products require different strategies in each life cycle stage
  • 14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-14 Strategies for Sustaining Rapid Market Growth • Improve product quality, add new features, and improve styling • Add new models and flanker products • Enter new market segments • Increase distribution coverage • Shift from product-awareness advertising to product-preference advertising • Lower prices to attract the next layer of price- sensitive buyers
  • 15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-15 Stages in the Maturity Stage • Growth • Stable • Decaying maturity
  • 16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-16 Marketing Product Modifications • Quality improvements • Feature improvements • Style improvements
  • 17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-17 Marketing Program Modifications • Prices • Distribution • Advertising • Sales promotion • Services
  • 18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-18 Ways to Increase Sales Volume • Convert nonusers • Enter new market segments • Attract competitors’ customers • Have consumers use the product on more occasions • Have consumers use more of the product on each occasion • Have consumers use the product in new ways
  • 19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-19 Market Evolution Stages • Emergence • Growth • Maturity • Decline
  • 20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-20 Emerging Markets • Latent • Single-niche • Multiple-niche • Mass-market
  • 21. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-21 Maturity Strategies • Market fragmentation stage • Market consolidation stage