9Crafting the Brand Positioning and Dealing with Competition

Chapter Questions

How can a firm choose and communicate an effective positioning?How are brands and offerings differentiated?How can a firm identify its primary competitors and analyze their strategies, objectives, strengths, and weaknesses?How can market leaders, challengers, followers, and nichers compete effectively?

9-2

What is Positioning?

9-3

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

Competitive Frame of Reference

9-4

Category Membership – the products or sets of products with which a brand competes and which function as close substitutes.

9-5

Conveying Category Membership

Announcing category benefitsComparing to exemplarsRelying on the product descriptor

9-6

Value Propositions

Perdue ChickenMore tender golden chicken at a moderate premium price

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

POP versus POD

9-7

9-8

Defining Associations (POD, POP)

Points-of-difference 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 Associations that are not necessarily unique to the brand but may be shared with other brands

Category POPs vs. Competitive POPs

Point-of-Difference Criteria

9-9

Desirable (relevant, desirable, believable)

Deliverable (feasible, communicable, sustainable)

Differentiating

Examples of Negatively Correlated Attributes and Benefits

Low-price vs. High qualityTaste vs. Low caloriesNutritious vs. Good tastingEfficacious vs. Mild

Powerful vs. SafeStrong vs. RefinedUbiquitous vs. ExclusiveVaried vs. Simple

9-10

Perceptual Map: Current Perceptions

9-11

Perceptual Map: Possibilities

9-12

Brand Mantras

9-13

Designing a Brand Mantra

9-14

Communicate

Simplify

Inspire

Constructing a Brand Positioning Bull’s-Eye

9-15

9-16

Product FormFeaturesCustomizationPerformance qualityConformance qualityDurabilityReliabilityRepairabilityStyle, design

ServicesOrdering easeDeliveryInstallationCustomer trainingCustomer consultingMaintenance and repairReturn and exchange policy

Differentiation Strategies

9-17

ChannelMarket coverageExpertiseChannel performance

ImageIdentityImage

Differentiation StrategiesPersonnel

CompetenceCourtesyCredibilityReliabilityResponsivenessCommunication

Five Forces Determining Market Attractiveness

9-18

Analyzing Competitors

9-19

StrategiesObjectivesStrengths and weaknesses

Industry Concept of CompetitionNumber of sellers and degree of differentiationEntry, mobility, and exit barriersCost structureDegree of vertical integrationDegree of globalization

9-20

Customer Ratings of Competitors

9-21

Hypothetical Market Structure

9-22

Market-Leader Strategies:Expanding the Total Market

9-23

New customers New usesMore usage

Market-Leader Strategies: Six Types of Defense Strategies

9-24

Market-Leader Strategies: Expanding Market SharePossibility of provoking antitrust actionEconomic costPursuing the wrong marketing-mix strategyThe effect of increased market share on actual and perceived quality

9-25

Market-Challenger Strategies

Define the strategic objective and opponentsChoose a general attack strategyChoose a specific attack strategy

9-26

Market-Challenger Attack Strategies

Frontal Attack

Encirclement Attack

Bypass Attack

Flank Attack

Guerrilla Warfare

9-27

Specific Attack Strategies

Price discountsLower-priced goodsValue-priced goodsPrestige goodsProduct proliferationProduct innovation

Improved servicesDistribution innovationManufacturing-cost reductionIntensive advertising promotion

9-28

Market-Follower Strategies

9-29

CounterfeiterClonerImitatorAdapter

Market-Nicher Strategies: Niche Specialist RolesEnd-User SpecialistVertical-Level SpecialistCustomer-Size SpecialistSpecific-Customer SpecialistGeographic Specialist

Product-Line SpecialistJob-Shop SpecialistQuality-Price SpecialistService-SpecialistChannel Specialist

9-30

Emotional Branding

9-31

Strong culture

Communication style

Emotional hook

Brand Narratives and Storytelling

9-32

Strengths and Weaknesses

Share of marketShare of mindShare of heart

9-33

Steps in BenchmarkingDetermine which functions or processes to benchmarkIdentify the key performance variables to measureIdentify the best-in-class companiesMeasure the performance of best-in-class companiesMeasure the company’s performanceSpecify programs/actions to close the gapImplement and monitor results

9-34

New Ways to Use a Brand

9-35

Protecting Market Share

Responsive anticipation

Creative anticipation

9-36

The Concept of Optimal Market Share

9-37

Other Competitive Strategies

Market Challengers

Market Nichers

Market Followers

9-38

Balancing Orientations

Competitor-centeredCustomer-centered

9-39