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24/11/2014 1 Crafting the Brand Positioning Marketing Management, 13 th ed 10 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-2 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? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-3 Positioning Victoria’s Secret

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24/11/2014

1

Craftingthe Brand Positioning

Marketing Management, 13th ed

10

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-2

Chapter Questions

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

• How are brands differentiated?• What marketing strategies are

appropriate at each stage of theproduct life cycle?

• What are the implications of marketevolution for marketing strategies?

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-3

Positioning Victoria’s Secret

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-4

What is Positioning?

Positioning is the act of designing thecompany’s offering and image to

occupy a distinctive place in the mind ofthe target market.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-5

Value Propositions

• Perdue Chicken• More tender golden chicken at a moderate

premium price• Domino’s

• A good hot pizza, delivered to your doorwithin 30 minutes of ordering, at amoderate price

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-6

Competitive Frame of Reference

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-7

Defining Associations

Points-of-difference(PODs)

• Attributes or benefitsconsumers stronglyassociate with abrand, positivelyevaluate, and believethey could not find tothe same extent witha competitive brand

Points-of-parity(POPs)• Associations that

are not necessarilyunique to the brandbut may be sharedwith other brands

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-8

PODs and POPs

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-9

Establishing Category Membership

• This “four-in-oneentertainmentsolution” fromKonica failed toestablish categorymembership

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-10

Conveying Category Membership

Announcing category benefitsAnnouncing category benefits

Comparing to exemplarsComparing to exemplars

Relying on the productdescriptor

Relying on the productdescriptor

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-11

Consumer Desirability Criteria for PODs

RelevanceRelevance

DistinctivenessDistinctiveness

BelievabilityBelievability

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-12

Deliverability Criteria for PODs

FeasibilityFeasibility

CommunicabilityCommunicability

SustainabilitySustainability

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-13

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

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-14

Addressing negatively correlatedPODs and POPs

• Present separately• Leverage equity of another entity• Redefine the relationship

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-15

Differentiation Strategies

Product

Channel Image

Personnel

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-16

Product Differentiation

• Product form• Features• Performance• Conformance• Durability• Reliability• Reparability

• Style• Design• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-17

Personnel Differentiation:Singapore Airlines

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-18

Channel Differentiation

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-19

Image Differentiation

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-20

Claims of Product Life Cycles

• Products have a limited life• Product sales pass through distinct

stages each with different challengesand opportunities

• Profits rise and fall at different stages• Products require different strategies in

each life cycle stage

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-21

Figure 10.1 Sales andProduct Life Cycle

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-22

Figure 10.2 CommonProduct Life-Cycle Patterns

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-23

Figure 10.3 Style, Fashion, andFad Life Cycles

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-24

The Pioneer Advantage

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-25

Figure 10.4 Long-Range ProductMarket Expansion Strategy

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-26

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

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-27

Stages in the Maturity Stage

Growth Stable Decayingmaturity

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-28

Marketing Product Modifications

• Qualityimprovements

• Featureimprovements

• Style improvements

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-29

Marketing Program Modifications

Prices

Distribution

Advertising

Sales promotion

Services

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-30

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

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-31

A Product in Decline

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-32

Market Evolution Stages

Emergence Growth

Maturity Decline

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-33

Emerging Markets

Latent

Single-niche

Multiple-niche

Mass-marketZibbie Zone is one of several

virtual worlds tied to toys.

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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-34

Figure 10.5 Maturity Strategies

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-35

Marketing Debate

Do brands have finite lives?Take a position:1. Brands cannot be expected to lastforever.or2. There is no reason for a brand toever become obsolete.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-36

Marketing Discussion

What strategies do firms use totry to position themselves on thebasis of pairs of attributes andbenefits?