504 9 branding positioning

7/28/2019 504 9 Branding Positioning

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What is Positioning?

The act of designing the companys offering andimage to occupy a distinctive place in the minds ofthe target market.

Result is the creation of a customer-focused value

proposition:A cogent reason why the target market should buy theproduct.


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Competitive Frame of

ReferenceCategory membershipthe products or sets of

products with which a brand competes and whichfunction as close substitutes.

Need to understand consumer behavior and theconsideration sets consumers use in making brandchoices.


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Establishing Category

MembershipAnnouncing category benefits

Comparing to exemplars

Relying on the product descriptor


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Key Criteria for Points-

of-DifferenceDesirability Criteria

Relevance

Distinctiveness

Believability

Deliverability Criteria

Feasibility

Communicability

Sustainability


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Differentiation

StrategiesCompetitive advantagea companys ability to

perform in one or more ways that competitors cantor wont match.

Few are sustainable, but a leverageable advantage can

be used as a springboard to new advantages.Focus on building competitive advantages as customeradvantages.


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Product Differentiation

Form

Features

Customization

Performance quality

Conformance quality

Durability

Reliability

Repairability

Style

Design


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Service Differentiation

Ordering ease

Delivery

Installation

Customer training

Customer consulting

Maintenance and repair

Returns


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Other Dimensions of

DifferentiationPersonnel

Channel

Image


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Five Forces that DetermineMarketing Attractiveness

Industry competitors

Potential entrants

Substitutes

Buyers

Suppliers


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Threats Posed By These

ForcesThreat of intense segment rivalry.

Threat of new entrants.

Threat of substitute products.

Threat of buyers growing bargaining power.

Threat of suppliers growing bargaining power.


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Industry and Market

Views of CompetitionIndustrya group of firms that offers a product or classof products that are close substitutes for each other.

Classified by:

Number of sellers

Degree of product differentiation

Presence or absence of entry, mobility, and exit barriers

Cost structureDegree of vertical integration

Degree of globalization


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Analyzing Competitors

Strategies

Objectives

Strengths

Weaknesses


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Competitor Strengths

and WeaknessesShare of market

Share of mind

Share of heart


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Selecting Competitors

Strong vs. weakmost companies aim at weak

competitors.Close vs. distantmost companies compete with therivals that resemble them the most.

Good vs. badgood competitors play byindustry rules, make realistic assumptions, set

reasonable prices, and favor a healthy industry.


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Competitive Strategies

Leader

Challenger

Follower

Nicher


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If you are a Market Leader,

you will want toExpand the total market

Defend market share

Expand market share


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If you are a Market Leader,how to expand total market?

Market-penetration strategy

New-market segment strategy

Geographical-expansion strategy


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If you are a Market Leader, howto defend your market share

Position defense

Flank defense

Preemptive defense

Counteroffensive defense

Mobile defense

Contraction defense


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If you are a Market Leader, howto expand your market share

Factors to consider before pursuing:

The possibility of provoking antitrust action

Economic cost

Pursuing the wrong marketing activities

The effect of increased market share on actual andperceived quality


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Market Challengers

Attack StrategiesFrontal attack

Flank attack

Encirclement attack

Bypass attack

Guerilla warfare


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Market-Followers

StrategiesCounterfeiter

Cloner

Imitator

Adapter


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Specialized Niche Roles

End-user

Vertical-level

Customer-size

Specific-customer

Geographical

Product or product-line

Product-feature

Job-shop

Quality-price

Service

Channel


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504 9 branding positioning

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