Marketing Management, 12/eA South Asian Perspective

11 Crafting the Brand

Positioning

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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?

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Marketing Strategy

Segmentation Targeting Positioning

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Positioning

Act of designing the company’soffering and image to occupy

a distinctive place in the mind ofthe target market.

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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

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Table 11.1: Examples of Value PropositionsDemand States and Marketing Tasks

Company and Product

Target Customers Benefits Price Value Proposition

Volvo

(station wagon)

Safety-conscious “upscale” families

Durability and safety

20% premium

The safest, most durable wagon in which your family can ride

Domino’s (pizza)

Convenience-minded pizza lovers

Delivery speed and good quality

15% premium

A good hot pizza, delivered to your door door within 30 minutes of ordering, at a moderate price

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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.

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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

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Conveying Category Membership Announcing category benefits - Dove Comparing to exemplars – Dainik Jagaran Relying on the product descriptor

Khushbudar Antiseptic Cream – Boroline

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Consumer Desirability Criteria for PODs Relevance – World’s First Car – not

relevant Distinctiveness – Zero Calorie Sweetener Believability - Complan

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Deliverability Criteria for PODs

Feasibility Communicability Sustainability

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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

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Addressing Negatively Correlated PODs and POPs

Present separately Leverage equity of another entity Redefine the relationship

NIRMA SUPER

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Differentiation Strategies

Product (FastLoan) Personnel (Ranbaxy) Channel (Eureka Forbes) Image (Taj, Tata)

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Product Differentiation

Product form (RalispraY

Features (VIP) Performance (Fevicol) Conformance

(Colgate) Durability (Rajddot) Reliability (Maruti)

Style (Fiat) Design (Sony T 100) Delivery (Fed Exp) Installation Customer consulting

(Dr. Batra) Maintenance (GM)

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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

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Product Life Cycle

Introduction Growth Maturity Decline

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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.

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Summary of product Life-cycle Characteristics, Objectives & Strategies

Introduction Growth Maturity Decline

Characteristics

Sales Low sales Rapidly rising sales

Peak sales Decline sales

Costs High cost per customer

Average cost per customer

Low cost per customer

Low cost per customer

Profits Negative Rising profits High profits Declining profits

Customers Innovators Early adopters Middle majority Laggards

Competitors Few Growing number

Stable number beginning to decline

Declining number

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Market Obectives

Create product awareness and trial

Maximize market share

Maximize profit while defending market share

Reduce expenditure and milk the brand

Strategic product

Offer a basic product

Offer product extensions, service, warranty

Diversify brands and items models

Phase out weak

Price Charge cost-plus Price to penetrate market

Price to match or best competitors’

Cut price

Distribution Build selective distribution

Build intensive distribution

Build more intensive distribution

Go selective: phase out unprofitable outlets

Advertising Build product awareness among early adopters and dealers

Build awareness and interest in the mass market

Stress brand differences and benefits

Reduce to level needed to retain hard-core loyals

Sales promotion

Use heavy sales promotion to entice trial

Reduce to take advantage of heavy customer demand

Increase to encourage brand switching

Reduce to minimal level

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Actions Especially for Decline

MM- Shampoo, Revital PM- Listrile, MPM

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Market Evolution Stages

Emergence Growth Maturity (Market Spe, Market

Consolidation, Market Fragmentation) Decline (Market Shrinkage & Dissolution)

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Emerging Markets

Latent Single-niche Multiple-niche Mass-market