1. Crafting the Brand Positioning Marketing Management, 13 th ed 10

2. 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?

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-3 Positioning Victoria’s Secret

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-4 What is Positioning? Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-5 Value Propositions Perdue Chicken More tender golden chicken at a moderate premium price Domino’s A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-6 Competitive Frame of Reference

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-7 Defining Associations Points-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 Points-of-parity (POPs) Associations that are not necessarily unique to the brand but may be shared with other brands

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-8 PODs and POPs

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-9 Establishing Category Membership This “four-in-one entertainment solution” from Konica failed to establish category membership

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-10 Conveying Category Membership Announcing category benefits Comparing to exemplars Relying on the product descriptor

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-11 Consumer Desirability Criteria for PODs Relevance Distinctiveness Believability

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-12 Deliverability Criteria for PODs Feasibility Communicability Sustainability

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-13 Examples of Negatively Correlated Attributes and Benefits Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting Efficacious vs. Mild Powerful vs. Safe Strong vs. Refined Ubiquitous vs. Exclusive Varied vs. Simple

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-14

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-15 Differentiation Strategies Product ChannelImage Personnel

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-16 Product Differentiation Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-17 Personnel Differentiation: Singapore Airlines

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-18

19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-19 Image Differentiation

20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-20 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

21. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-21 Figure 10.1 Sales and Product Life Cycle

22. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-22 Figure 10.2 Common Product Life-Cycle Patterns

23. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-23 Figure 10.3 Style, Fashion, and Fad Life Cycles

24. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-24 Positioning Statement Should follow the form : To (Target group and need), our (Brand) is (the concept) that (what the point-of difference is or does). Ex. “To busy professionals who need to stay organized, PalmPilot is an electronic organizer that allows you to back up files on your PC more easily and reliably than competitive products” Mountain Dew : To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine

25. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-25 The Pioneer Advantage

26. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-26 Figure 10.4 Long-Range Product Market Expansion Strategy

27. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-27 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

28. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-28 Stages in the Maturity Stage GrowthStable Decaying maturity

29. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-29 Marketing Product Modifications Quality improvements Feature improvements Style improvements

30. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-30 Marketing Program Modifications Prices Distribution Advertising Sales promotion Services

31. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-31 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

32. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-32 A Product in Decline

33. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-33 Market Evolution Stages EmergenceGrowth MaturityDecline

34. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-34 Emerging Markets Latent Single-niche Multiple-niche Mass-market Zibbie Zone is one of several virtual worlds tied to toys.

35. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-35 Figure 10.5 Maturity Strategies

36. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-36 Marketing Debate Do brands have finite lives? Take a position: 1.Brands cannot be expected to last forever. or 2. There is no reason for a brand to ever become obsolete.

37. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-37 Marketing Discussion What strategies do firms use to try to position themselves on the basis of pairs of attributes and benefits?