TOP 10 Learning Questions for
Chapter 10 Crafting the Brand Positioning
Maneka B. Malibago
September 2011
manekamalibago.blogspot.com
1. ______ are associations consumers view as
essential to a legitimate and credible
offering within a certain product or service
category; while ______ are associations
designed to negate competitors’ points-of-
difference.
A. Competitive points-of-parity; category points-of-parity
B. Competitive points-of-difference; category points-of-parity
C. Category points-of-difference; competitive points-of-parity
D. Category points-of-parity; competitive points-of-parity
E. Category points-of-parity; category points-of-difference
2manekamalibago.blogspot.com
POPs are associations not necessarily
unique to the brand but may be shared
with other brands.
3manekamalibago.blogspot.com
Category Points-of-Parity
Associations consumers view as essential to a legitimate and credible offering within a certain product or service category
2 Basic Forms of Associations
Competitive Points-of-Parity
Associations designed to negate competitor’s points-of-difference
4manekamalibago.blogspot.com
Category Points-of-Parity
Associations consumers view as essential to a legitimate and credible offering within a certain product or service category
2 Basic Forms of Associations
Competitive Points-of-Parity
Associations designed to negate competitor’s points-of-difference
For an offering to achieve a POP,
customers must believe the brand
is “good enough."
Choose the right association!
1. ______ are associations consumers view
as essential to a legitimate and credible
offering within a certain product or
service category; while ______ are
associations designed to negate
competitors’ points-of-difference.
A. Competitive points-of-parity; category points-of-parity
B. Competitive points-of-difference; category points-of-parity
C. Category points-of-difference; competitive points-of-parity
D. Category points-of-parity; competitive points-of-parity
E. Category points-of-parity; category points-of-difference
5manekamalibago.blogspot.com
2. __________ is when companies have
better-trained employees, while _______
is when companies craft powerful,
compelling images.
A. Personnel differentiation; Image differentiation
B. Personnel training; Image enhancing
C. Personnel differentiation; Image enhancing
D. Human Resource differentiation ; Image differentiation
E. Human Resource training ; Image differentiation
6manekamalibago.blogspot.com
Brands can be differentiated
thru…
7manekamalibago.blogspot.com
Personnel Differentiation
Channel Differentiation
Image Differentiation
Differentiation Strategies
8manekamalibago.blogspot.com
Companies can have better-
trained employees…
Quality People, Quality
in Everything we do
SGV & Co.
SGV employee
Personnel Differentiation
9manekamalibago.blogspot.com
Companies can effectively and efficiently
design their distribution channels…
ensogo metrodeal
Shakey’s Online Delivery
Channel Differentiation
10manekamalibago.blogspot.com
Companies can craft powerful,
compelling images…
Regency Hotel
For the extreme
adventures
Image Differentiation
Tanduay
For the sexy endorsers
Companies can gain strong competitive
advantage …
11manekamalibago.blogspot.com
Better-trained Employees
Effective & EfficientChannels
Compelling images
Excellent Reputation!
Personnel Differentiation
Channel Differentiation
Image Differentiation
2. __________ is when companies have a
better-trained employees, while _______
is when companies craft powerful,
compelling images.
A. Personnel differentiation; Image differentiation
B. Personnel training; Image enhancing
C. Personnel differentiation; Image enhancing
D. Human Resource differentiation ; Image differentiation
E. Human Resource training ; Image differentiation
12manekamalibago.blogspot.com
3. __________aims at increasing the
product’s functional performance;
while ____________ aims at increasing
the product’s aesthetic appeal.
A. Feature improvement; style improvement
B. Quality improvement; feature improvement
C. Quality improvement; style improvement
D. Feature improvement; quality improvement
E. Style improvement ; feature improvement
13manekamalibago.blogspot.com
There are ways to change the
course for a brand…
14manekamalibago.blogspot.com
Product Modification
Quality Improvement
Feature Improvement
Style Improvement
superior
Relevant features
Style
There are ways to change the
course for a brand…
15manekamalibago.blogspot.com
Product Modification
Quality Improvement
superior
Increasing the product’s functional performance
New & improved Sunsilk
There are ways to change the
course for a brand…
16manekamalibago.blogspot.com
Product Modification
Feature Improvement
Relevant features
aggressive new 3D tread pattern was developed for unparallel traction on any surface and weather condition
Sandugo --- Grappler™ Outsole
Adding new features that expands performance
There are ways to change the
course for a brand…
17manekamalibago.blogspot.com
Product Modification
Style Improvement
Style
New Simot-Sulit Bottles
Increasing product’s aesthetic appeal
18manekamalibago.blogspot.com
Product Modification
Quality Improvement
superior
Increasing the product’s functional performance
New & improved Sunsilk
Companies must find ways to offer new
value to customers with its existing
products/services
Quality = Excellent Performance !
19manekamalibago.blogspot.com
Product Modification
Style Improvement
Style
New Simot-Sulit Bottles
Increasing product’s aesthetic appeal
Companies must find ways to offer new
value to customers with its existing
products/services.
Style = Aesthetic !
3. __________aims at increasing the
product’s functional performance
while ____________ aims at increasing
the product’s aesthetic appeal.
A. Feature improvement; style improvement
B. Quality improvement; feature improvement
C. Quality improvement; style improvement
D. Feature improvement; quality improvement
E. Style improvement ; feature improvement
20manekamalibago.blogspot.com
4. Which of the following is true?
A. The typical approach to positioning is to inform competitors of a brand’s membership before stating its point-of-difference.
B. There are four main ways to convey a brand’s category membership.
C. Announcing category benefits is not among the main ways to convey a brand’s category membership.
D. The product descriptor that follows the brand name is often a concise means of conveying category membership.
E. Unfamiliar brands in a category can also help a brand
specify its category membership.
21manekamalibago.blogspot.com
What is positioning?
22manekamalibago.blogspot.com
Positioning is… company
andto occupy
designing offer
image
minds of target market
Positioning requires determination
of…
23manekamalibago.blogspot.com
Competitive Frame of Reference
Points-of-Parity
Points-of-Difference
1
2
3
24manekamalibago.blogspot.com
First, communicate by establishing
category membership thru…
3 Ways of Communicating Category Membership
Announcing category benefits
Comparing to exemplars
Relying on the product descriptor
Communicate to the customers!!!
25manekamalibago.blogspot.com
Announcing category benefits
to reassure consumers that a brand will deliver on the fundamental reason for using a category, marketers frequently use benefits to announce category membership
Communicating the benefits of the
products/services
26manekamalibago.blogspot.com
Comparing to exemplars
Compare to established leaders
in the same category
Well-known, noteworthy brands in a category can help a brand specify its category membership
VS
27manekamalibago.blogspot.com
Relying on the product descriptor
The product descriptor that follows the brand name is often a concise means of conveying category origin.
Sandugo All-Terrain Adventure Sandals
Proper product descriptor to
convey category membership
28manekamalibago.blogspot.com
Relying on the product descriptor
The product descriptor that follows the brand name is often a concise means of conveying category origin.
Sandugo All-Terrain Adventure Sandals
Proper product descriptor to
convey category membership!
Directly relate to the product!
4. Which of the following is true?
A. The typical approach to positioning is to inform competitors of a brand’s membership before stating its point-of-difference.
B. There are four main ways to convey a brand’s category membership.
C. Announcing category benefits is not among the main ways to convey a brand’s category membership.
D. The product descriptor that follows the brand name is often a concise means of conveying category membership.
E. Unfamiliar brands in a category can also help a brand
specify its category membership.
29manekamalibago.blogspot.com
5. Which of the following is false?
A. All marketing strategy is built on STP – segmentation, targeting, and positioning.
B. Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market.
C. The result of positioning is the successful creation of a company-focused value proposition.
D. Positioning requires that similarities and differences between brands be defined and communicated.
E. Everyone in the organization should understand the brand positioning and use it as context for making decisions.
30manekamalibago.blogspot.com
All marketing strategy is built on
STP
31manekamalibago.blogspot.com
Segmentation
Targeting
Positioning
What is positioning?
32manekamalibago.blogspot.com
Positioning is… company
andto occupy
designing offer
image
minds of target market
A good brand positioning….
33manekamalibago.blogspot.com
results to successful creation of a customer-focused value proposition
requires that similarities and differences between brands be defined and communicated
Everyone in the organization should understand the brand positioning and use it as context for making decisions.
A good brand positioning….
34manekamalibago.blogspot.com
results to successful creation of a customer-focused value proposition
requires that similarities and differences between brands be defined and communicated
Everyone in the organization should understand the brand positioning and use it as context for making decisions.
Always think of the target customers & its value to them!
5. Which of the following is false?
A. All marketing strategy is built on STP – segmentation, targeting, and positioning.
B. Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market.
C. The result of positioning is the successful creation of a company-focused value proposition.
D. Positioning requires that similarities and differences between brands be defined and communicated.
E. Everyone in the organization should understand the brand positioning and use it as context for making decisions.
35manekamalibago.blogspot.com
6. Which of the following is false?
A. Products have a limited life.
B. Product sales pass through distinct stages.
C. Profits rise and fall at different stages of the product life cycle.
D. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life-cycle stage.
E. All products exhibit a bell-shaped product life cycle curve.
36manekamalibago.blogspot.com
Claims of Product Life Cycles (PLC)
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
37manekamalibago.blogspot.com
Common Product Life-Cycle
Patterns (Alternate Patterns)
38manekamalibago.blogspot.com
(a) Growth-Slump-Maturity Pattern
(b) Cycle-Recycle Pattern
(c) Scalloped Pattern
Not all products exhibit a bell-shaped PLC
39manekamalibago.blogspot.com
(a) Growth-Slump-Maturity Pattern
(b) Cycle-Recycle Pattern
(c) Scalloped Pattern
Not all products exhibit a bell-shaped PLC
The bell shaped curve is not always the case indicative of a product!
6. Which of the following is false?
A. Products have a limited life.
B. Product sales pass through distinct stages.
C. Profits rise and fall at different stages of the product life cycle.
D. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life-cycle stage.
E. All products exhibit a bell-shaped product life cycle curve.
40manekamalibago.blogspot.com
7. Which of the following is true?
A. All studies indicate that the market pioneer gains the greatest advantage.
B. The introduction stage is marked by a rapid climb in sales.
C. The maturity stage normally lasts longer than the previous stage and poses big challenges to marketing management.
D. The growth stage divides into three phases: growth, stable, and decaying.
E. As sales and profits drop, all firms withdraw from the market.
41manekamalibago.blogspot.com
Products has a life cycle divided
into 4 stages…
42manekamalibago.blogspot.com
2nd
1st
3rd4th
seedling
Growing plant
Mature plant
Withered plant
43manekamalibago.blogspot.com
INTRODUCTION
1st
seedling
Most studies indicate that the market pioneer gains the greatest advantage
To be first can be rewarding…
Sources of Pioneer Advantage:
Users recall pioneer’s brand name if satisfied
Establishes the attributes the product should possess
Captures more users since center of the market
More effective marketing spending and enjoy higher rates of consumer repeat purchases
Product Life-Cycles (PLC) : Introduction Stage
Companies must sustain rapid
growth…
44manekamalibago.blogspot.com
GROWTH
2nd
Growing plant
Marked by rapid climb in salesEarly adopters like the productAdditional consumers start buyingNew competitors enter, attracted by
opportunitiesNew product features & expand
distribution
Characteristics:
Product Life-Cycles (PLC) : Growth Stage
Faced by trade-off between high market share and high current profit
Lasts longer than previous stages
and possess big challenges…
45manekamalibago.blogspot.com
MATURITY
3rd
Mature plant
Product Life-Cycles (PLC) : Maturity Stage
3 Phases of Maturity Stage
1. Growth
Sales growth starts to declineNo new distribution channelNew competitive forces emerge
2. Stable
Sales flatten due to market saturation
Lasts longer than previous stages
and possess big challenges…
46manekamalibago.blogspot.com
MATURITY
3rd
Mature plant
Product Life-Cycles (PLC) : Maturity Stage
3 Phases of Maturity Stage
Some companies abandon weaker products to concentrate on more profitable and new
products.
3. Decaying maturity
Absolute level of sales starts to decline
Customers begin switching to other products
The appropriate strategy depends on
the industry’s relative attractiveness
and the company’s competitive strength
47manekamalibago.blogspot.com
DECLINE
4th
5 Options
1. Increase firm’s investment 2. Maintain the firm’s investment level 3. Decrease the firm’s investment level
selectively4. Harvesting the firm’s investment5. Divesting the business quickly
Withered plant
As sales and profits drop, some firms withdraw from the market.
Lasts longer than previous stages
and possess big challenges…
48manekamalibago.blogspot.com
MATURITY
3rd
Mature plant
Product Life-Cycles (PLC) : Maturity Stage
3 Phases of Maturity Stage
Some companies abandon weaker products to concentrate on more profitable and new
products.
3. Decaying maturity
Absolute level of sales starts to decline
Customers begin switching to other products
7. Which of the following is true?
A. All studies indicate that the market pioneer gains the greatest advantage.
B. The introduction stage is marked by a rapid climb in sales.
C. The maturity stage normally lasts longer than the previous stage and poses big challenges to marketing management.
D. The growth stage divides into three phases: growth, stable, and decaying.
E. As sales and profits drop, all firms withdraw from the market.
49manekamalibago.blogspot.com
8. Which of the following is not among
the characteristics of the introduction
stage?
A. Low sales
B. High cost per customer
C. Early adopters
D. Innovators
E. Rising Profits
50manekamalibago.blogspot.com
51manekamalibago.blogspot.com
Summary of PLC Characteristics
Introduction Growth Maturity Decline
Sales Low sales Rapidly rising
sales
Peak sales Declining
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
numbers
Customers Innovators Early
adopters
Middle majority Laggards
Competitor Few Growing
number
Stable no.
beginning to
decline
Declining
number
52manekamalibago.blogspot.com
Early adopters influence others
(consumers) to buy the products.
Introduction Growth Maturity Decline
Sales Low sales Rapidly rising
sales
Peak sales Declining
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
numbers
Customers Innovators Early
adopters
Middle majority Laggards
Competitor Few Growing
number
Stable no.
beginning to
decline
Declining
number
Early adopters is a characteristics under growth stage!
8. Which of the following is not among
the characteristics of the introduction
stage?
A. Low sales
B. High cost per customer
C. Early adopters
D. Innovators
E. Rising Profits
53manekamalibago.blogspot.com
9. In a _____ pattern of the product life
cycle, sales pass through a
succession of life cycles based on the
discovery of new product
characteristics, uses, or users.
A. Growth-slump-maturity pattern
B. Cycle-recycle pattern
C. Petrified
D. Fashion
E. Scalloped PLC
54manekamalibago.blogspot.com
Products have a life cycle
divided into 4 stages…
55manekamalibago.blogspot.com
2nd
1st
3rd4th
seedling
Growing plant
Mature plant
Withered plant
Common Product Life-Cycle
Patterns
56manekamalibago.blogspot.com
(a) Growth-Slump-Maturity Pattern
(b) Cycle-Recycle Pattern
(c) Scalloped Pattern
Not all products exhibit a bell-shaped PLC
Characteristics of the patterns…
57manekamalibago.blogspot.com
(a) Growth-Slump-Maturity Pattern
(b) Cycle-Recycle Pattern
(c) Scalloped Pattern
Sales grow then fall to a sustained petrified level
Promotion then sales start declining then another promotion
Sales pass through a succession of life cycles
Use PLC to develop strategies!
Characteristics of the patterns…
58manekamalibago.blogspot.com
(a) Growth-Slump-Maturity Pattern
(b) Cycle-Recycle Pattern
(c) Scalloped Pattern
Sales grow then fall to a sustained petrified level
Promotion then sales start declining then another promotion
Sales pass through a succession of life cycles
There is succession of life cycles due to discoveries of new product characteristics, uses, or users! over
time!
9. In a _____ pattern of the product life
cycle, sales pass through a
succession of life cycles based on the
discovery of new product
characteristics, uses, or users.
A. Growth-slump-maturity pattern
B. Cycle-recycle pattern
C. Petrified
D. Fashion
E. Scalloped PLC
59manekamalibago.blogspot.com
10. __________ calls for gradually
reducing a product and business's
costs while trying to maintain sales.
A. Maintaining
B. Harvesting
C. Reduction
D. Divestment
E. Banishing
60manekamalibago.blogspot.com
A company may choose the
appropriate strategy in the Decline
phase…
61manekamalibago.blogspot.com
DECLINE
4th
Harvesting
It may consider…
Withered plant
calls for gradually reducing a product or business’ costs while trying to maintain sales
Cut R&D costs
Cut plant and equipment investment
A company may choose the
appropriate strategy in the Decline
Phase
62manekamalibago.blogspot.com
DECLINE
4th
Harvesting
It may consider…
Withered plant
Mature products warrant this strategy.
Substantially increase the company’s current cash flow
Harvesting the firm’s investment to
recover cash quickly….increasing
income while reducing costs!
63manekamalibago.blogspot.com
DECLINE
4th
Harvesting
It may consider…
Withered plant
calls for gradually reducing a product or business’ costs while trying to maintain sales
10. __________ calls for gradually
reducing a product and business's
costs while trying to maintain sales.
A. Maintaining
B. Harvesting
C. Reduction
D. Divestment
E. Banishing
64manekamalibago.blogspot.com
TOP 10 Learning Questions for
Chapter 10 Crafting the Brand Positioning
Maneka B. Malibago
September 2011
manekamalibago.blogspot.com