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Craftingthe Brand Positioning

Marketing ManagementA South Asian Perspective

11

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Chapter Questions

How can a firm choose andcommunicate an effective positioning inthe market?

How are brands differentiated?

What marketing strategies areappropriate at each stage of theproduct life cycle?

What are the implications of marketevolution for marketing strategies?

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What is Positioning?

Positioning is the act of designing thecompanys offering and image to

occupy a distinctive place in the mind of

the target market.

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Value Propositions

Scorpio, Mahindra and Mahindra

A vehicle that provides the luxury andcomfort of a car, and the adventure and

thrills of an SUV Dominos

A good hot pizza, delivered to your door

within 30 minutes of ordering, at amoderate price

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Defining Associations

Points-of-difference(PODs) Attributes or benefits

consumers stronglyassociate with a brand,positively evaluate, andbelieve they could not find

to the same extent with acompetitive brand

E.g. Apple(design),Nike

( performance ) ,Lexus

( Quality )

Points-of-parity(POPs) Associations that are

not necessarilyunique to the brandbut may be sharedwith other brands

E.g. Savlon enteringantiseptic marketdominated by dettol

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PODs and POPs

Visa versus American Express: Am express built its credit card brandwith appeals based on prestige & now defends itself against visa &other competitors by increasing the number of merchants that acceptthe card.

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Establishing Category Membership

This four-in-oneentertainmentsolution from

Konica failed toestablish categorymembership

Marketers must inform consumers of a brands categorymembership . For e.g. Lakme is leading brand ofcosmetics , Raymonds is leading brand of mens formal

wear

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Conveying Category Membership(How) ?

Announcing category benefitsE.g. Antacids announcing efficacy

Comparing to exemplars

E.g. Tommy Hilfiger associating withCalvin Klein

Relying on the product

descriptorE.g. Fords vehicle called Free style

was designated as Sports Wagon& also to differentiate from its other

models

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Consumer Desirability Criteria for PODs

RelevanceE.g. Westin Stanford hotel

Singapore is the tallest hotel inthe world

DistinctivenessE.g. Splendour overtook Equal as it

differentiate a pdct derived fromsugar without the drawbacks

BelievabilityE.g. Mountain Dew claims it ismore energizing & supports

claim by higher level of caffeine

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Deliverability Criteria for PODs

Feasibility

CommunicabilityE.g. Nivea wrinkle control cream

SustainabilityE.g. fashion brands like Prada,Hermes etc

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Examples of Negatively CorrelatedAttributes and Benefits

Low-price vs.High quality

Taste vs. Lowcalories

Nutritious vs.

Good tasting Efficacious vs.

Mild

Powerful vs. Safe

Strong vs.

Refined Ubiquitous vs.

Exclusive

Varied vs. Simple

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Differentiation Strategies

Product

ChannelE.g.Godrej Natures Basket

ImageE.g. Marlboro,Van Heusen

PersonnelE.g. Singapore Airlines

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Product Differentiation

Product form

Features

Performance

Conformance

Durability

Reliability

Reparability

Style

Design

Ordering ease

Delivery

Installation

Customer training

Customer consulting

Maintenance

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Personnel Differentiation:Singapore Airlines

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Natures

Basket

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Image Differentiation

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Claims of Product Life Cycles

Products have a limited life

Product sales pass through distinctstages each with different challengesand opportunities

Profits rise and fall at different stages

Products require different strategies ineach life cycle stage

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Figure 11.1 Sales andProduct Life Cycle

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Figure 11.2 CommonProduct Life-Cycle Patterns

E.g. Small kitchenappliances likehandheld mixers& bread makers

E.g. Pharmaceuticalproducts first cycle ,then another promotionpush , next cycle

E.g. Sales of nylon showedscalloped because of useslike parachutes, hosiery,shirts, tires, carpeting etc

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Figure 11.3 Style, Fashion, andFad Life Cycles

Appears in clothing,art , homes etc

Fashion cycle hard topredict .E.g. Automobilesbecome smaller it becomes

less comfortable

Fads come quickly &decline very fast

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The Pioneer Advantage

Wikipedia, the webs first & most popular reader created encyclopedia,may soon face competition from second-in-the market Citizendium , a

similar site created by Wikipedia's founder

http://www.wikipedia.com/

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Figure 11.4 Long-Range ProductMarket Expansion Strategy

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Strategies for SustainingRapid Market Growth

Improve product quality, add new features,and improve styling

Add new models and flanker products

Enter new market segments

Increase distribution coverage

Shift from product-awareness advertising to

product-preference advertising Lower prices to attract the next layer of price-

sensitive buyers

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Stages in the Maturity Stage

Growth StableDecayingmaturity

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Marketing Product Modifications

Qualityimprovements

Featureimprovements

Style improvements

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Ways to Increase Sales Volume

Convert nonusers

Enter new market segments

Attract competitors customers

Have consumers use the product onmore occasions

Have consumers use more of the

product on each occasion Have consumers use the product in

new ways

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Market Evolution Stages

Emergence Growth

Maturity Decline

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Emerging Markets

Latent

Single-niche

Multiple-niche

Mass-market

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Figure 11.5 Maturity Strategies

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Marketing Debate

Do brands have finite lives?

Take a position:

1. Brands cannot be expected to lastforever.

or

2. There is no reason for a brand toever become obsolete.

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Marketing Discussion

What strategies do firms use totry to position themselves on the

basis of pairs of attributes andbenefits?