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Crafting the Brand Positioning

.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 | Crafting the Brand Positioning Marketing Management, 13th ed 10 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? What is Positioning? Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Value Propositions Perdue Chicken More 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 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 Conveying Category Membership Announcing category benefits Comparing to exemplars Relying on the product descriptor Consumer Desirability Criteria for PODs Relevance Distinctiveness Believability Deliverability Criteria for PODs Feasibility Communicability Sustainability 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 Addressing negatively correlated PODs and POPs Present separately Leverage equity of another entity Redefine the relationship Differentiation Strategies Product Channel Personnel Image Product Differentiation Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance Claims of Product Life Cycles 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 Strategies for Sustaining Rapid 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 Stages in the Maturity Stage Growth Stable Decaying maturity Marketing Product Modifications Quality improvements Feature improvements Style improvements Marketing Program Modifications Prices Distribution Advertising Sales promotion Services Ways to Increase Sales Volume Convert nonusers Enter new market segments Attract competitors’ customers Have consumers use the product on more occasions Have consumers use more of the product on each occasion Have consumers use the product in new ways Market Evolution Stages Emergence Growth Maturity Decline Emerging Markets Latent Single-niche Multiple-niche Mass-market Maturity Strategies Market fragmentation stage Market consolidation stage