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Crafting Effective Brand Positioning Through Market Evolution
1.
Crafting the Brand Positioning Marketing
Management, 13th ed 10
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
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