crafting the brand positioning and dealing with competition
DESCRIPTION
Crafting the Brand Positioning and Dealing with Competition. Key Concepts. What is Positioning?. The act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market. Result is the creation of a customer-focused value proposition: - PowerPoint PPT PresentationTRANSCRIPT
Crafting the Brand Crafting the Brand Positioning and Positioning and Dealing with Dealing with CompetitionCompetition
Key ConceptsKey Concepts
What is What is Positioning?Positioning?
The act of designing the company’s The act of designing the company’s offering and image to occupy a offering and image to occupy a distinctive place in the minds of the distinctive place in the minds of the target market.target market.
Result is the creation of a Result is the creation of a customer-customer-focused value proposition:focused value proposition:
A cogent reason why the target market A cogent reason why the target market should buy the product.should buy the product.
Competitive Frame Competitive Frame of Referenceof Reference
Category membership—the products or sets Category membership—the products or sets of products with which a brand competes of products with which a brand competes and which function as close substitutes.and which function as close substitutes.
Need to understand consumer behavior and Need to understand consumer behavior and the consideration sets consumers use in the consideration sets consumers use in making brand choices.making brand choices.
Points-of-Parity Points-of-Parity and Points-of-and Points-of-
DifferenceDifferencePoints-of-difference Points-of-difference
(PODs)(PODs)
Attributes or Attributes or benefits that benefits that consumers strongly consumers strongly associate with a associate with a brand, positively brand, positively evaluate, and evaluate, and believe they believe they couldn’t find to couldn’t find to the same extent the same extent with a competitive with a competitive brand.brand.
Points-of-parity Points-of-parity (POPs)(POPs)
Associations that Associations that aren’t necessarily aren’t necessarily unique to the unique to the brand but may in brand but may in fact be shared fact be shared with other brands.with other brands.
Category points-of-Category points-of-parityparityCompetitive points-Competitive points-of-parityof-parity
Establishing Establishing Category Category MembershipMembership
Announcing category benefitsAnnouncing category benefits
Comparing to exemplarsComparing to exemplars
Relying on the product descriptorRelying on the product descriptor
Key Criteria for Key Criteria for Points-of-Points-of-DifferenceDifference
Desirability Desirability CriteriaCriteria
RelevanceRelevance
DistinctivenessDistinctiveness
BelievabilityBelievability
Deliverability Deliverability CriteriaCriteria
FeasibilityFeasibility
CommunicabilityCommunicability
SustainabilitySustainability
Differentiation Differentiation StrategiesStrategies
Competitive advantage—a company’s ability Competitive advantage—a company’s ability to perform in one or more ways that to perform in one or more ways that competitors can’t or won’t match.competitors can’t or won’t match.
Few are sustainable, but a Few are sustainable, but a leverageable leverageable advantageadvantage can be used as a springboard to can be used as a springboard to new advantages.new advantages.Focus on building competitive advantages as Focus on building competitive advantages as customer advantagescustomer advantages..
Product Product DifferentiationDifferentiationFormForm
FeaturesFeatures
CustomizationCustomization
Performance Performance qualityquality
Conformance Conformance qualityquality
DurabilityDurability
ReliabilityReliability
RepairabilityRepairability
StyleStyle
DesignDesign
Service Service DifferentiationDifferentiationOrdering easeOrdering ease
DeliveryDelivery
InstallationInstallation
Customer trainingCustomer training
Customer consultingCustomer consulting
Maintenance and repairMaintenance and repair
ReturnsReturns
Other Dimensions Other Dimensions of of
DifferentiationDifferentiationPersonnelPersonnel
ChannelChannel
ImageImage
Five Forces that Five Forces that Determine Marketing Determine Marketing
AttractivenessAttractiveness
Industry competitorsIndustry competitors
Potential entrantsPotential entrants
SubstitutesSubstitutes
BuyersBuyers
SuppliersSuppliers
Threats Posed By Threats Posed By These ForcesThese Forces
Threat of intense segment rivalry.Threat of intense segment rivalry.
Threat of new entrants.Threat of new entrants.
Threat of substitute products.Threat of substitute products.
Threat of buyers’ growing bargaining Threat of buyers’ growing bargaining power.power.
Threat of suppliers’ growing bargaining Threat of suppliers’ growing bargaining power.power.
Industry and Industry and Market Views of Market Views of CompetitionCompetition
Industry—a group of firms that offers a product Industry—a group of firms that offers a product or class of products that are close substitutes or class of products that are close substitutes for each other.for each other.
Classified by:Classified by:Number of sellersNumber of sellersDegree of product differentiationDegree of product differentiationPresence or absence of entry, mobility, and exit Presence or absence of entry, mobility, and exit barriersbarriersCost structureCost structureDegree of vertical integrationDegree of vertical integrationDegree of globalizationDegree of globalization
Analyzing Analyzing CompetitorsCompetitors
StrategiesStrategies
ObjectivesObjectives
StrengthsStrengths
WeaknessesWeaknesses
Competitor Competitor Strengths and Strengths and WeaknessesWeaknesses
Share of marketShare of market
Share of mindShare of mind
Share of heartShare of heart
Selecting Selecting CompetitorsCompetitors
Strong vs. weakStrong vs. weak—most companies aim at weak —most companies aim at weak competitors.competitors.
Close vs. distantClose vs. distant—most companies compete —most companies compete with the rivals that resemble them the most.with the rivals that resemble them the most.
““Good” vs. “bad”Good” vs. “bad”—good competitors play by —good competitors play by industry rules, make realistic assumptions, industry rules, make realistic assumptions, set reasonable prices, and favor a healthy set reasonable prices, and favor a healthy industry.industry.
Competitive Competitive StrategiesStrategies
LeaderLeader
ChallengerChallenger
FollowerFollower
NicherNicher
If you are a Market If you are a Market Leader, you will Leader, you will
want towant toExpand the total marketExpand the total market
Defend market shareDefend market share
Expand market shareExpand market share
If you are a Market If you are a Market Leader, how to expand Leader, how to expand
total market?total market?
Market-penetration strategyMarket-penetration strategy
New-market segment strategyNew-market segment strategy
Geographical-expansion strategyGeographical-expansion strategy
If you are a Market If you are a Market Leader, how to defend Leader, how to defend
your market shareyour market share
• Position defensePosition defense
• Flank defenseFlank defense
• Preemptive defensePreemptive defense
• Counteroffensive defenseCounteroffensive defense
• Mobile defenseMobile defense
• Contraction defenseContraction defense
If you are a Market If you are a Market Leader, how to expand Leader, how to expand your market shareyour market share
• Factors to consider before pursuing:Factors to consider before pursuing:
– The possibility of provoking antitrust The possibility of provoking antitrust actionaction
– Economic costEconomic cost– Pursuing the wrong marketing activitiesPursuing the wrong marketing activities– The effect of increased market share on The effect of increased market share on
actual and perceived qualityactual and perceived quality
Other Competitive Other Competitive StrategiesStrategies
• Market-challenger strategiesMarket-challenger strategies
• Market-follower strategiesMarket-follower strategies
• Market-nicher strategiesMarket-nicher strategies
Market-Market-Challenger’s Challenger’s StrategiesStrategies
• Define the strategic objective and Define the strategic objective and opponents.opponents.
• Decide who to attack:Decide who to attack:– Market leaderMarket leader– Market equals that are underperformingMarket equals that are underperforming– Small local and regional firmsSmall local and regional firms
Market Market Challenger’s Challenger’s
Attack StrategiesAttack Strategies• Frontal attackFrontal attack
• Flank attackFlank attack
• Encirclement attackEncirclement attack
• Bypass attackBypass attack
• Guerilla warfareGuerilla warfare
Market-Follower’s Market-Follower’s StrategiesStrategies
• CounterfeiterCounterfeiter
• Cloner Cloner
• Imitator Imitator
• AdapterAdapter
Specialized Niche Specialized Niche Roles Roles
• End-user End-user
• Vertical-levelVertical-level
• Customer-sizeCustomer-size
• Specific-customerSpecific-customer
• GeographicalGeographical
• Product or product-Product or product-lineline
• Product-featureProduct-feature
• Job-shopJob-shop
• Quality-priceQuality-price
• ServiceService
• ChannelChannel
Balancing Customer Balancing Customer and Competitor and Competitor OrientationsOrientations
Competitor-centered Competitor-centered companycompany
• Looks at what Looks at what competitors are competitors are doing and then doing and then formulates formulates competitive competitive reactions.reactions.
Customer-centered Customer-centered companycompany
• Focuses more on Focuses more on customer customer developments in developments in formulating its formulating its strategies.strategies.