crafting the brand positioning marketing management, 13 th ed 11
TRANSCRIPT
Crafting the Brand Positioning
Marketing Management, 13th ed
11
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
Defining AssociationsPoints-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 (Apple design, Nike Performance, Lexus quality)
Points-of-parity
(POPs)• Associations that are
not necessarily unique to the brand but may be shared with other brands• Category POP e.g.,
Travel Agency has to make hotel & travel reservations
• Competitive POP e.g., Savlon vs. Detol
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Conveying Category Membership
Announcing category benefits (Laziza Kheer Mix in desert category)
Announcing category benefits (Laziza Kheer Mix in desert category)
Comparing to exemplars (Mixer associating itself with Tang)
Comparing to exemplars (Mixer associating itself with Tang)
Relying on the product descriptor (BMW-luxury and
performance)
Relying on the product descriptor (BMW-luxury and
performance)
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Consumer Desirability Criteria for PODs
Relevance (One hotel stating the world’s tallest-not relevant for tourists)
Relevance (One hotel stating the world’s tallest-not relevant for tourists)
Distinctiveness (Splenda sugar overtook Equal because made of
sugar without any side effects)
Distinctiveness (Splenda sugar overtook Equal because made of
sugar without any side effects)
Believability (Mountain Dew is more energizing soft drink by emphasizing higher levels of
caffeine)
Believability (Mountain Dew is more energizing soft drink by emphasizing higher levels of
caffeine)
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Deliverability Criteria for PODs
Feasibility (GM had to work very hard by changing consumer perception about
Cadillac as youthful brand)
Feasibility (GM had to work very hard by changing consumer perception about
Cadillac as youthful brand)
Communicability (Proof points-Nivea wrinkle control crème)
Communicability (Proof points-Nivea wrinkle control crème)
Sustainability (Visa, American Express more sustainable vs.
Fashion industry)
Sustainability (Visa, American Express more sustainable vs.
Fashion industry)
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Differentiation Strategies (Competitive Advantage)
Product
(Microsoft,
Southwest Airline)
Channel (Eureka
Forbes Vacuum
Cleaner-direct to
home channel)
Image (Marlboro's-
Macho cowboy,
Commander Safeguard)
Personnel
(Singapore Airline)
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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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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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-10
Figure 10.1 Sales and Product Life Cycle
Figure 10.2 Common Product Life-Cycle Patterns
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-12
Figure 10.3 Style, Fashion, and Fad Life Cycles
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Figure 10.4 Long-Range Product Market Expansion Strategy
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-14
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
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Growth (Sales growth
starts to decline, no new channels
to fill, new competitive
force emerge)
Stable (Sales flatten on saturation basis, future
growth depends on population growth &
replacement )
Decaying Maturity (sales slow down
creating over capacity.Competitors scramble
to find niches, start advertising & consumer
promotions. R&D tocome up with line extensions. Weak
competitors withdraw)
Product Modification
• Quality improvement: Stronger, bigger or better (chakki atta in Pakistan)
• Feature improvement: Size, weight, materials, additives & accessories (Provide free publicity & generate sales force and distributor enthusiasm)
• Style improvement: Improve product esthetic sense (new car models)
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-17
Marketing Program Modifications
Prices (Price cuts? What sort or Price increase?)
Distribution (Toyo Nasic, Omroc & Nova)
Advertising (Increase ads, change message)
Sales promotion (What sort of promotions?)
Services (Delivery, after sales, credit)
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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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Market Evolution Stages
Emergence Growth
Maturity Decline
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Emerging Markets
Latent
Single-niche
Multiple-niche
Mass-marketZibbie Zone is one of several
virtual worlds tied to toys
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Figure 10.5 Maturity Strategies