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  1. 1. Marketing Management, 12/e A South Asian Perspective 11 Crafting the Brand Positioning
  2. 2. Chapter Questions <ul><li>How can a firm choose and communicate an effective positioning in the market? </li></ul><ul><li>How are brands differentiated? </li></ul><ul><li>What marketing strategies are appropriate at each stage of the product life cycle? </li></ul><ul><li>What are the implications of market evolution for marketing strategies? </li></ul>
  3. 3. Marketing Strategy <ul><li>Segmentation </li></ul><ul><li>Targeting </li></ul><ul><li>Positioning </li></ul>
  4. 4. Positioning Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
  5. 5. Value Propositions <ul><li>Perdue Chicken </li></ul><ul><ul><li>More tender golden chicken at a moderate premium price </li></ul></ul><ul><li>Domino’s </li></ul><ul><ul><li>A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price </li></ul></ul>
  6. 6. Table 11.1: Examples of Value Propositions Demand States and Marketing Tasks A good hot pizza, delivered to your door door within 30 minutes of ordering, at a moderate price 15% premium Delivery speed and good quality Convenience-minded pizza lovers Domino’s (pizza) The safest, most durable wagon in which your family can ride 20% premium Durability and safety Safety-conscious “upscale” families Volvo (station wagon) Value Proposition Price Benefits Target Customers Company and Product
  7. 7. Writing a 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.
  8. 8. Defining Associations <ul><li>Points-of-difference (PODs) </li></ul><ul><li>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 </li></ul><ul><li>Points-of-parity (POPs) </li></ul><ul><li>Associations that are not necessarily unique to the brand but may be shared with other brands </li></ul>
  9. 9. Conveying Category Membership <ul><li>Announcing category benefits - Dove </li></ul><ul><li>Comparing to exemplars – Dainik Jagaran </li></ul><ul><li>Relying on the product descriptor </li></ul><ul><ul><li>Khushbudar Antiseptic Cream – Boroline </li></ul></ul>
  10. 10. Consumer Desirability Criteria for PODs <ul><li>Relevance – World’s First Car – not relevant </li></ul><ul><li>Distinctiveness – Zero Calorie Sweetener </li></ul><ul><li>Believability - Complan </li></ul>
  11. 11. Deliverability Criteria for PODs <ul><li>Feasibility </li></ul><ul><li>Communicability </li></ul><ul><li>Sustainability </li></ul>
  12. 12. Examples of Negatively Correlated Attributes and Benefits <ul><li>Low-price vs. High quality </li></ul><ul><li>Taste vs. Low calories </li></ul><ul><li>Nutritious vs. Good tasting </li></ul><ul><li>Efficacious vs. Mild </li></ul><ul><li>Powerful vs. Safe </li></ul><ul><li>Strong vs. Refined </li></ul><ul><li>Ubiquitous vs. Exclusive </li></ul><ul><li>Varied vs. Simple </li></ul>
  13. 13. Addressing Negatively Correlated PODs and POPs <ul><li>Present separately </li></ul><ul><li>Leverage equity of another entity </li></ul><ul><li>Redefine the relationship </li></ul><ul><li>NIRMA SUPER </li></ul>
  14. 14. Differentiation Strategies <ul><li>Product (FastLoan) </li></ul><ul><li>Personnel (Ranbaxy) </li></ul><ul><li>Channel (Eureka Forbes) </li></ul><ul><li>Image (Taj, Tata) </li></ul>
  15. 15. Product Differentiation <ul><li>Product form (RalispraY </li></ul><ul><li>Features (VIP) </li></ul><ul><li>Performance (Fevicol) </li></ul><ul><li>Conformance (Colgate) </li></ul><ul><li>Durability (Rajddot) </li></ul><ul><li>Reliability (Maruti) </li></ul><ul><li>Style (Fiat) </li></ul><ul><li>Design (Sony T 100) </li></ul><ul><li>Delivery (Fed Exp) </li></ul><ul><li>Installation </li></ul><ul><li>Customer consulting (Dr. Batra) </li></ul><ul><li>Maintenance (GM) </li></ul>
  16. 16. Identity and Image Identity: The way a company aims to identify or position itself Image: The way the public perceives the company or its products
  17. 17. Product Life Cycle <ul><li>Introduction </li></ul><ul><li>Growth </li></ul><ul><li>Maturity </li></ul><ul><li>Decline </li></ul>
  18. 18. Facts about Life Cycles <ul><li>Products have a limited life. </li></ul><ul><li>Product sales pass through distinct stages. </li></ul><ul><li>Profits rise and fall at different stages. </li></ul><ul><li>Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each stage. </li></ul>
  19. 19. Summary of product Life-cycle Characteristics, Objectives & Strategies Declining number Stable number beginning to decline Growing number Few Competitors Laggards Middle majority Early adopters Innovators Customers Declining profits High profits Rising profits Negative Profits Low cost per customer Low cost per customer Average cost per customer High cost per customer Costs Decline sales Peak sales Rapidly rising sales Low sales Sales Characteristics Decline Maturity Growth Introduction
  20. 20. Reduce to minimal level Increase to encourage brand switching Reduce to take advantage of heavy customer demand Use heavy sales promotion to entice trial Sales promotion Reduce to level needed to retain hard-core loyals Stress brand differences and benefits Build awareness and interest in the mass market Build product awareness among early adopters and dealers Advertising Go selective: phase out unprofitable outlets Build more intensive distribution Build intensive distribution Build selective distribution Distribution Cut price Price to match or best competitors’ Price to penetrate market Charge cost-plus Price Phase out weak Diversify brands and items models Offer product extensions, service, warranty Offer a basic product Strategic product Reduce expenditure and milk the brand Maximize profit while defending market share Maximize market share Create product awareness and trial Market Obectives
  21. 21. Actions Especially for Decline <ul><li>MM- Shampoo, Revital </li></ul><ul><li>PM- Listrile, </li></ul><ul><li>MPM </li></ul>
  22. 22. Market Evolution Stages <ul><li>Emergence </li></ul><ul><li>Growth </li></ul><ul><li>Maturity (Market Spe, Market Consolidation, Market Fragmentation) </li></ul><ul><li>Decline (Market Shrinkage & Dissolution) </li></ul>
  23. 23. Emerging Markets <ul><li>Latent </li></ul><ul><li>Single-niche </li></ul><ul><li>Multiple-niche </li></ul><ul><li>Mass-market </li></ul>