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Brand Positioning and Values

Session7 handout

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Page 1: Session7 handout

Brand Positioning and Values

Page 2: Session7 handout

Where we have been

We understand– Brand equity and the psychology behind it– A function of awareness, strength, favorability,

and uniqueness of the nodes and links in memory BE is created in a progressive fashion

– Establish proper Brand Identity– Create Brand meaning– Elicit positive Brand responses – Forge strong Brand relationship

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Identifying and establishing Brand Positioning

The Integrated Brand Model– Six elements that define a brand

Unified Leverage each other Brand Drivers a function of Organization Drivers

– These six elements serve as a “roadmap” to our Brand Equity model

At every step, we can figure out what to do from our Brand and Organization Drivers

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Brand Positioning

Brand Positioning– Brand positioning is all about identifying the

optimal location in our customers’ minds for our Brand and our competitors

– Proper positioning makes it easier to facilitate understanding of our Brand

Taken to its’ logical conclusion, you might think of the Principle as an indicator of a brand’s position

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First Steps

The first step is to identify and establish Brand positioning and brand values (Keller)

Positioning is the foundation for creating and fostering the desired knowledge and perceptions of your customers– remember our 3 types of associations in memory?– We can really only manage one (positive), can

respond to a second (negative), and have no control over the third (idiosyncratic)

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Proper Positioning

Proper positioning– Clarifies what the Brand is all about– How it is both unique and similar to competitive

brands– Why customers should purchase and use the

Brand

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Example: Pepsi One

Millions in R&D for ingredient Ace-K (artificial sweetener)

37,000 hours to design the can

100 Million Marketing budget

Original Target Market– 20-30 yo Males who did not

like taste of diet colas

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Pepsi One Brand Conveyors: Then and now

Full flavored, healthy alternative to regular cola

“Only one has it all” “True cola taste, one

calorie” “Tastes like regular

cola” Celeb: Tom Green

“Breakthru Sweetener” “Too good to be one

calorie, but it is”

Celeb: Kim Katrell– Better for 20-30 yos?

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In order to Position a Brand…

…you must decide– Who the Target Consumer is– Who your main competitors are– How the Brand is similar to your competitors– How the Brand is different from your competitors

Where do you get this information?– Your BRAND INVENTORY!!

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Target Market Segmentation

A market segment should have similar knowledge structures and brand knowledge– Similar knowledge structures might mean similar

perceptions and beliefs about your Brand There are 2 ways to segment

– Descriptive: characteristics of the individuals in the market

– Behavioral: grouped by how individuals in the market perceive or use the product

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Toothpaste Segmentation

Four main segments Sensory segment

– Flavor and product appearance

Sociables– Brightness of teeth

Worriers– Decay Prevention

Independent– Low Price

3 stripes, one for each of the 3 main segments

Flavor, Brightness

Decay Prevention

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Target Market Segmentation

Which works better? Behavioral– Easier to match perceptions (right/wrong) or beliefs

(right/wrong) with strategy (reinforce/change). – Many times, behavior and descriptive go hand in hand

Demographics may be basis of targeting, but tend to represent some underlying behavioral reason– In some cases, demographics may mask underlying

differences

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Advantages of demographic segmentation

Demographic segmentation is well known, easier to buy media on that basis

However, with the emergence of non-traditional media, this advantage is getting smaller– Web ads can target by demographics traditionally

difficult to access AA, Asian Americans, College students

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Criteria for a Segment

Identifiability– Can the segment be easily identified?

Size– It is big enough to bother?

Accessibility– Are distribution outlets and media available to us to reach

the segment?

Responsiveness– How favorably will the segment respond to a tailored

marketing program? (this one is tough to quantify)

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Segmentation Example

Mobil’s 5 types of gasoline buyers– Price Drivers

Not brand loyal, driven by price, has been focus for years

– Road Warriors Upper income, MAMen, 25-50k/year, buy food and services

with credit card (Premium gas)

– True Blues Brand loyal, Mid income, pay with cash

– Generation F3 Fuel, food, fast: half under 25 yo, in and out quickly

– Homebodies Soccer moms using whatever is on their route

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The Competition

Market Segments define competitors– They are targeting the same segments

Don’t be too narrow in your definition of competitors

Consider Sprite– Product Type (non-cola soft drinks)– Product Category (all soft drinks)– Product Class (all beverages)

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Baskin-Robbins Competitive analysis

Original Tagline:– 31 Flavors

100 M$ facelift in late 1990s Expanded from Ice cream

– Frozen coffee drinks– Fruit Smoothies

Perceived competitors– Starbucks– Jamba Juice– TCBY– (and still Dairy Queen)

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Part 3: POP and POD

POD (Point of Difference)– Strong, favorable, unique brand associations– May be any kind of attribute or benefit

Two types of PODs– Attribute Based

Functional, performance related differences

– Image Based Affective, experiential, brand image related differences

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Part 3: POP and POD

POP (Point of Parity)– Associations that are shared with other brands

Two types– Category: attributes that are required to include

your product as a member of that category– Competitive: POP that negate your competitors

PODs POPs can be “good enough”, but PODs

should be “superior

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Similar concepts

Unique Selling Proposition (USP; Reeves and Bates)– Advertisers should give a compelling reason to buy

a product that competitors could not match What component of the IBM reflects this?

Sustainable Competitive Advantage (SCA) The advantage of delivering superior value in the

marketplace for a prolonged period of time Further, SCAs can result from any component of the firm

– Similar to notion that Principle exists in every part of the firm

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POP AND POD: BMW over the years

1971

1975

1985

1991

• International• Desirability

• Fun to drive• Economical

• Affluence, exclusivity• Fun to drive

• Affluence, exclusivity • Fun to drive

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Managerial Issues

How do I begin to position my Brand?– Communicate category membership– This is the “frame of reference”, where customers

can activate what they know about the category and apply it to your POPs and PODs

How?– Communicate category benefits– Compare your product to exemplars– Rely on product descriptor

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Sneaky psychology sidebar - Exemplars

Memory is modeled in a hierarchical was as well– Exemplars can be real or amalgamated (prototypes)– Generated from experiences and exposures from the

environment

Exemplar example (heh)– DRAW A PICTURE OF A CHAIR (THE FIRST THING

THAT COMES TO MIND

Compare your picture to your other team members– Is it the same or different

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Ways to convey category membership (cont): Comparison to Exemplars

Thus, two strategies:– Created exemplar (not a real product)– Real exemplar (coke when talking about cola-

based carbonated beverages)

NOTE: Keller defines exemplars as– Well known, noteworthy brands in a category

Pepsi One example (after repositioning)

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Nuts and Bolts

How do I decide on my PODs and POPs? POPs

– Analysis of category What attributes do all of my competitors have? I probably need

to have those, or my competitors automatically have a POD POPs get you included in category

PODs are more difficult– Don’t use PODs that are product centric (dominate

competition) but customer centric (uniquely address need of customer)

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Managerial issues

Criteria for POD– Desirability

Must be Relevant Must be Distinctive Must be Believable

– Deliverability Feasibility Communicability Sustainability

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Establish POP and POD in marketplace

Difficulty: Many attributes that make up POP and PODs are negatively opposed– Low price vs. High quality– Tastes Great vs. Less filling

Separate the attributes Leverage equity in another entity Redefine the relationship

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Defining Values and Principle

You already know how to do this– Your values and principle are part of your Org and

Brand drivers!!!– Keller calls principle “Brand Mantra”

Your Values, Principle, and position all are related– NOTE: Keller says that associations are values,

but we have a stricter definition of associations from the IBM

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Principles a la Keller: What makes a good Principle?

Three components– Emotional component (Comfortable)– Descriptive modifier (Casual)– Brand function (clothing)

Other Examples– Nike: Authentic, Athletic Performance– Fun Family Entertainment