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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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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