10 crafting the brand positioning 1. 10-2 chapter questions how can a firm choose and communicate an...
TRANSCRIPT
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?
10-4
Positioning
Act of designing the company’s
offering and image to occupy
a distinctive place in the mind of
the target market.
10-6
Value Propositions
Perdue ChickenMore 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
10-7
Writing a Positioning Statement
Mountain Dew: To young, activesoft-drink consumers who have
little time for sleep, Mountain Dewis the soft drink that gives you
more energy than any other brandbecause it has the
highest level of caffeine.
10-8
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
10-9
Conveying Category Membership
Announcing category benefits
Comparing to exemplars
Relying on the product descriptor
10-12
Choosing POPs and PODs
Relevance Distinctiveness Believability
Westin-Stamford Singapore: The World’s Tallest Hotel
10-14
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
10-15
Addressing Negatively Correlated PODs and POPs Present separately Leverage equity of another entity Redefine the relationship
10-20
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
10-21
Product Differentiation
Product form Features Performance Conformance Durability Reliability Reparability
Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance
Brand Positioning create/maintain a unique representation of the
brand in customers’ mind to stimulate choice of that brand
positioning = more in the mind than in the market advertising adds value to a product by changing our
perception, rather than the product itself creating added intangible value, without changing the
product it is not about laboring, engineering, raw material
“marketing blunder of the century”• Coca cola underestimated the intangible,
symbolic value to the target audience of the original product
• Coca-Cola executives announced the return of the original formula on July 10, 1985
– after 79 days (April 23 - July10), the original-recipe Coke was back on the market as “Coca-Cola Classic.”
children’s taste test (3- to 5-year-old) one-quarter of a McDonald's hamburger
partially wrapped in a white McDonald's wrapper showing the McDonald's logos and the word Hamburger in brown
the other wrapped identically in a matched plain white wrapper of the same size and material a Chicken McNugget
in a white McDonald's bag with a red arches logo and the phrase Chicken McNuggets in blue the other in a matched plain white bag
McDonald's french fries in a white bag with a McDonald's yellow arches and smile logo on a red background and the words "We
love to see you smile" in blue on yellow along the edge in a matched plain white bag
3 ounces of 1% fat milk in a white McDonald's cup with lid and straw in a matched plain white cup with lid and straw
2 "baby" carrots placed on top of a McDonald's french fries bag on top of a matched plain white bag
Robinson, T, Borzekowski, D., Matheson, D., Kraemer, H.(2007). Effects of fast food branding on young children’s taste preferences. Archives of Pediatrics & Adolescent Medicine, 161 (8), 792-797
summary
“brands” (intangible attributes) may transform “products” (tangible attributes) brands have intrinsic product qualities
ABS, high performing engines
brands have extrinsic representational qualities (“badge value”)
fulfilling emotional and psychological needs wearing a swatch ≠ wearing a rolex
brand positions exist in people’s head/hearts marcoms can greatly influence brand positions
10-32
Facts about Life Cycles
Products have a limited life. Product sales pass through distinct
stages. Profits rise and fall at different stages. Products require different marketing,
financial, manufacturing, purchasing, and human resource strategies in each stage.
10-33
Marketing Program Modifications
Prices Distribution Advertising Sales promotion Services
Panadol’s Ad by Ogilvy
10-34
The Product Life Cycle: Critique
Life-cycle patterns are too variable in shape and duration.
Marketers can seldom tell what stage the product is in.
PLC stage should be a dependent variable which is determined by marketing programs; it is not an independent variable to which companies should adapt their marketing programs.
10-35
Market Evolution Stages(a market-oriented picture of a product/a firm) Emergence Growth Maturity Decline
Developing Value Proposition for Business Markets*)
10-37
Customers may only look at
price, and not listen to your sales pitch
*) Anderson, James C., James. A. Narus, and Wouter van Rossum (2006), “Customer Value Propositions in Business Markets, HBR, March.
Types of Value Proposition
1. ALL BENEFITS
Pitfall: Many or even most of the benefits may be Points-of-Parity -- with those of the next best alternatives (competitors) – diluting the effect of the few genuine Points-of Difference.
10-38
Types of Value Proposition
2. FAVORABLE POINTS-OF-DIFFERENCE Answering the question of: “Why should our
firm purchase your offering instead of your competitor’s?”
Pitfall: Assuming that favorable points of difference must be valuable for the customer.
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Types of Value Proposition
3. RESONATING FOCUS Value Proposition which contains the critical issues in
customer’s business, is simple yet powerfully captivating.
Superior on few elements that matter most to target customers.
Demonstrating and documenting the value of this superior performance, and communicating it in a way that conveys a sophisticated understanding of the customer’s business priorities.
10-40
Distinctive Value Proposition (Resonating Value Proposition)
A Point-of-Parity (what customers may mistakenly presume to be a POD favoring a competitor’s offering).
Several Points-of-Difference Also: Points-of-Contention (elements where
supplier and customer disagree how their performance compares with those of the next best alternatives).
10-41