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8/3/2019 Chapter 3 (BM)
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3.1
CHAPTER 3:CHAPTER 3:
BRAND POSITIONING & VALUESBRAND POSITIONING & VALUES
Muhammad AliMuhammad Ali
Superior UniversitySuperior University
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3.2
Brand PositioningBrand Positioning
Is at the heart of the marketing strategyIs at the heart of the marketing strategy
. . . the act of designing the companys offer and. . . the act of designing the companys offer and
image so that it occupies a distinct and valuedimage so that it occupies a distinct and valued
place in the target customers minds.place in the target customers minds.Philip KotlerPhilip Kotler
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3.3
What are the ideal pointsWhat are the ideal points--ofof--parity and pointsparity and points--
ofof--difference of brand associations visdifference of brand associations vis----vis thevis thecompetition?competition?
Why a Company doesnt fall into considerationWhy a Company doesnt fall into considerationset?set?
Because in order to qualify for CS the brand has toBecause in order to qualify for CS the brand has to
has POP.has POP.
Determining a Frame of ReferenceDetermining a Frame of Reference
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3.4
Determining a Frame of ReferenceDetermining a Frame of Reference
Marketers need to know:Marketers need to know:
Who the target consumer is, what they value?Who the target consumer is, what they value?
Who the main competitors are?Who the main competitors are?
How the brand is similar to these competitors?How the brand is similar to these competitors?
POPPOP
How the brand is different from them?How the brand is different from them?
PODPOD
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3.5
TargetMarketTargetMarket
AA marketmarket isis thethe setset of of allall actualactual andand potentialpotentialbuyersbuyers whowho havehave sufficientsufficient interestinterest in,in, incomeincomefor,for, andand accessaccess toto aa productproduct..
MarketMarket segmentationsegmentation dividesdivides thethe marketmarket intointodistinctdistinct groupsgroups ofof homogeneoushomogeneous consumersconsumers whowho
havehave similarsimilar needsneeds andand consumerconsumer behavior,behavior, andandwhowho thusthus requirerequire similarsimilar marketingmarketing mixesmixes..
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3.6
Example of the Market SegmentationExample of the Market Segmentation
ToothpasteMarketToothpasteMarket
Four main segments:Four main segments:
1.1. Sensory:Sensory: Seeking flavor and product appearanceSeeking flavor and product appearance2.2. Sociable:Sociable: Seeking brightness of teethSeeking brightness of teeth
3.3. Worriers:Worriers: Seeking decay preventionSeeking decay prevention
4.
4. I
ndependent:Independent: Seeking low priceSeeking low price
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3.7
Criteria for SegmentationCriteria for Segmentation
IdentifiabilityIdentifiability::Can we easily identify the segment?Can we easily identify the segment?
Size:Size:Is there adequate sales potential in theIs there adequate sales potential in the
segment?segment? Accessibility:Accessibility:Are specialized distribution outletsAre specialized distribution outlets
and communication media available to reach theand communication media available to reach the
segment?segment?
ResponsivenessResponsiveness: How favorably will the segment: How favorably will the segment
respond to a tailored marketing program?respond to a tailored marketing program?
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3.8
Nature of CompetitionNature of Competition
DecidingDeciding toto targettarget aa certaincertain typetype of of
consumerconsumer oftenoften definesdefines thethe naturenature of of
competitioncompetition
DoDo notnot definedefine competitioncompetition tootoo narrowlynarrowly
ExEx:: aa luxuryluxury goodgood withwith aa strongstrong hedonichedonic benefitbenefit
likelike stereostereo equipmentequipment maymay competecompete asas muchmuch
withwith aa vacationvacation asas withwith otherother durabledurable goodsgoods likelikefurniturefurniture
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3.9
PointsPoints--ofof--ParityParity
and Pointsand Points--ofof--DifferenceDifference PointsPoints--ofof--differencedifference (PODs)(PODs) areare attributesattributes oror
benefitsbenefits thatthat consumersconsumers stronglystrongly associateassociate withwith aa
brand,brand, positivelypositively evaluate,evaluate, andand believebelieve thatthat theythey
couldcould notnot findfind toto thethe samesame extentextent withwith aa
competitivecompetitive brandbrand..
PointsPoints--ofof--parity parity associationsassociations (POPs),(POPs), onon thethe otherother
hand,hand, areare notnot necessarilynecessarily uniqueunique toto thethe brandbrand butbut
maymay inin factfact bebe sharedshared withwith otherother brandsbrands..
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3.10
Brand Positioning GuidelinesBrand Positioning Guidelines
Two key issues in arriving at the optimalTwo key issues in arriving at the optimal
competitive brand positioning are:competitive brand positioning are:
1. Defining and communicating the competitive1. Defining and communicating the competitive
frame of referenceframe of reference
2. Choosing and establishing points2. Choosing and establishing points--ofof--parity andparity and
pointspoints--ofof--differencedifference
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3.11
Defining and Communicating theDefining and Communicating the
Competitive Frame of ReferenceCompetitive Frame of Reference DefiningDefining aa competitivecompetitive frameframe ofof referencereference forfor aa
brandbrand positioningpositioning isis toto determinedetermine categorycategory
membershipmembership..
TheThe preferredpreferred approachapproach toto positioningpositioning isis toto
informinform consumersconsumers ofof aa brandsbrands membershipmembership
beforebefore statingstating itsits pointpoint of of differencedifference inin
relationshiprelationship toto otherother categorycategory membersmembers..
Qualify for a particular categoryQualify for a particular category
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3.12
Choosing POPChoosing POPs & PODs & PODss
Desirability criteria (consumer perspective)Desirability criteria (consumer perspective)
Personally relevantPersonally relevant
Distinctive and superiorDistinctive and superior
Believable and credibleBelievable and credible
Deliverability criteria (firm perspective)Deliverability criteria (firm perspective)
FeasibleFeasible
ProfitableProfitable
PrePre--emptive, defensible, and difficult to attackemptive, defensible, and difficult to attack
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3.13
Attribute and Benefit TradeAttribute and Benefit Trade--offsoffs
Price and qualityPrice and quality
Convenience and qualityConvenience and quality
Taste and low caloriesTaste and low calories
Efficacy and mildnessEfficacy and mildness
Power and safetyPower and safety
Ubiquity(extensive presence) and prestigeUbiquity(extensive presence) and prestige Comprehensiveness (variety) and simplicityComprehensiveness (variety) and simplicity
Strength and refinementStrength and refinement
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3.14
Strategies to ReconcileStrategies to Reconcile
Attribute and Benefit TradeAttribute and Benefit Trade--offsoffs Establish separate marketing programsEstablish separate marketing programs
One feature one AdOne feature one Ad
Leverage secondary association (e.g., coLeverage secondary association (e.g., co--brand)brand)
Combining the two contrasting strengthsCombining the two contrasting strengths
ReRe--define the relationship from negative todefine the relationship from negative to
positivepositive Difficult but achievableDifficult but achievable
Examples?Examples?
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3.15
Core Brand ValuesCore Brand Values
SetSet of of abstractabstract conceptsconcepts oror phrasesphrases thatthat
characterizecharacterize thethe fivefive toto tenten mostmost importantimportant
dimensionsdimensions ofof thethe mentalmental mapmap ofof aa brandbrand
RelateRelate toto pointspoints--ofof--parityparity andand pointspoints--ofof--
differencedifference
Mental mapMental map Core brand valuesCore brand values Brand mantraBrand mantra
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3.16
Brand MantrasBrand Mantras
An articulation of the heart and soul of the brandAn articulation of the heart and soul of the brand
similar to brand essence or core brand promisesimilar to brand essence or core brand promise
Short threeShort three-- to fiveto five--word phrases that capture theword phrases that capture the
irrefutable essence or spirit of the brandirrefutable essence or spirit of the brandpositioning and brand valuespositioning and brand values
ConsiderationsConsiderations
CommunicateCommunicate SimplifySimplify
InspireInspire
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3.17
Designing the BrandMantraDesigning the BrandMantra
TheThe termterm brandbrand functionsfunctions describesdescribes thethe naturenature ofof
thethe productproduct oror serviceservice oror thethe typetype ofof experiencesexperiences
oror benefitsbenefits thethe brandbrand providesprovides..
TheThe descriptivedescriptive modifiermodifierfurtherfurther clarifiesclarifies itsits naturenature..
TheThe emotionalemotional modifiermodifier providesprovides anotheranother
qualifierqualifierhowhow exactlyexactly doesdoes thethe brandbrand provideprovide
benefits,benefits, andand inin whatwhat way?way?
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3.18
Designing the Brand MantraDesigning the Brand Mantra
EmotionalEmotional
ModifierModifier
DescriptiveDescriptive
ModifierModifier
BrandBrand
FunctionsFunctions
NikeNike AuthenticAuthentic AthleticAthletic PerformancePerformance
DisneyDisney
FunFun FamilyFamily EntertainmentEntertainment
FunFun FolksFolks FoodFood
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3.19
Internal BrandingInternal Branding
Members of the organization are properly alignedMembers of the organization are properly aligned
with the brand and what it represents.with the brand and what it represents.
Crucial for service companies, since they dontCrucial for service companies, since they dont
have any tangibles to explain brand values.have any tangibles to explain brand values.
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3.20
Brand AuditBrand Audit
Externally,Externally, consumerconsumer--focusedfocused assessmentassessmentAA comprehensivecomprehensive examinationexamination ofof aa brandbrand
involvinginvolving activitiesactivities toto assessassess thethe healthhealth ofof thethe
brand,brand, uncoveruncover itsits sourcessources ofof equity,equity, andand suggestsuggestwaysways toto improveimprove andand leverageleverage thatthat equityequity
ItIt includesincludes brandbrand vision,vision, mission,mission, promise,promise, values,values,
position,position, personality,personality, andand performanceperformance
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3.21
Importance of Brand AuditsImportance of Brand Audits
Understand sources of brand equityUnderstand sources of brand equity
Firm perspectiveFirm perspective
Consumer perspectiveConsumer perspective Set strategic direction for the brandSet strategic direction for the brand
Recommend marketing programs to maximizeRecommend marketing programs to maximize
longlong--term brand equityterm brand equity
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3.22
Brand Audit StepsBrand Audit Steps
Brand inventory(supply side)Brand inventory(supply side)
Brand exploratory(demand side)Brand exploratory(demand side)
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3.23
Brand InventoryBrand Inventory
A current comprehensiveA current comprehensiveprofileprofileof how all theof how all the
products and services sold by a company areproducts and services sold by a company are
branded and marketed:branded and marketed:
Brand elementsBrand elements
Supporting marketing programsSupporting marketing programs
Profile of competitive brandsProfile of competitive brands
POPs and PODsPOPs and PODs Brand mantraBrand mantra
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3.24
Brand Inventory (Cont.)Brand Inventory (Cont.)
Suggests theSuggests the basesbasesfor positioning the brandfor positioning the brand
OffersOffers insightsinsightsto how brand equity may be betterto how brand equity may be better
managedmanaged
AssessesAssesses consistencyconsistencyin message among activities,in message among activities,
brand extensions, and subbrand extensions, and sub--brands in order tobrands in order to
avoid redundancies, overlaps, and consumeravoid redundancies, overlaps, and consumer
confusionconfusion
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3.25
Brand ExploratoryBrand Exploratory
Provides detailed information as to howProvides detailed information as to how
consumers perceive the brand:consumers perceive the brand:
AwarenessAwareness
FavorabilityFavorability
Uniqueness of associationsUniqueness of associations
Helps identify sources of customerHelps identify sources of customer--based brandbased brand
equityequity Uncovers knowledge structures for the coreUncovers knowledge structures for the core
brand as well as its competitorsbrand as well as its competitors
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3.26
Suggested Brand Audit OutlineSuggested Brand Audit Outline
Brand audit objectives, scope, and approachBrand audit objectives, scope, and approach
Background about the brand (selfBackground about the brand (self--analysis)analysis)
Background about the industriesBackground about the industries
Consumer analysis (trends, motivation, perceptions, needs,Consumer analysis (trends, motivation, perceptions, needs,segmentation, behavior)segmentation, behavior)
Brand inventoryBrand inventory
Elements, current marketing programs, POPs, PODsElements, current marketing programs, POPs, PODs Branding strategies (extensions, subBranding strategies (extensions, sub--brands, etc.)brands, etc.)
Brand portfolio analysisBrand portfolio analysis
CompetitorsCompetitors brand inventorybrand inventory
Strengths and weaknessesStrengths and weaknesses
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3.27
Brand Audit Outline (Cont.)Brand Audit Outline (Cont.)
Brand exploratoryBrand exploratory Brand associationsBrand associations
Brand positioning analysisBrand positioning analysis
Consumer perceptions analysis (vs. competition)Consumer perceptions analysis (vs. competition)
Summary of competitor analysisSummary of competitor analysis SWOT analysisSWOT analysis
Brand equity evaluationBrand equity evaluation
Strategic brand management recommendationsStrategic brand management recommendations
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