1. CHAPTER 10 CRAFTING THE BRAND POSITIONING

2. DEVELOPING AND COMMUNICATING A POSITIONING STRATEGY
Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target markets.
“Positioning is not what you do to a product, it is what you do to the mind of the prospect.”- Ries & Trout
The result of positioning is the successful creation of customer-focused value proposition.

3. 1. Competitive frame of reference
A competitive frame of reference can be determined by the following ways –
By determining category membership
The products or sets of products with which a brand competes and which function as close substitutes.
By identifying target markets and competition

4. 2. Points-of-Difference (POD)
PODs are attributes or benefits consumers strongly associate with a brand, positively evaluate and believe that they could not find to the same extent with a competitive brand.

5. 3. Points-of-Parity (POP)
POPs are associations that are not necessarily unique to the brand but may in fact be shared with other brands.
These types of associations come in two basic forms –
Category points-of-parity
Competitive points-of-parity

6. Category points-of-parity
These are associations consumers view as essential to be a legitimate and credible offering within a certain product/service category.
Competitive points-of-parity
These are associations designed to negate competitors’ points-of-difference.
If a brand can “break even” in those areas where the competitors have failed to find an advantage, the brand should be in a strong competitive position.

7. DIFFERENTIATION STRATEGIES
1. Product differentiation
Brands can be differentiated on the basis of a number of different product/service dimensions.
One general positioning for brands is as “best quality” which has positive correlation with ROI.
Quality can be communicated by actual product performance, physical signs and cues, high price, packaging, distribution, and promotion.

8. 2. Personnel differentiation
Companies can gain a strong competitive advantage through having better trained people.
Better trained personnel exhibit six characteristics -
Competence
Courtesy
Credibility
Reliability
Responsiveness
Communication

9. 3. Channel differentiation 4. Image differentiation
Companies can achieve competitive advantage through the way they design their distribution channels’ coverage, expertise, and performance.
4. Image differentiation
Companies and brands can be differentiated through identity and image.

10. PRODUCT-LIFE-CYCLE (PLC) MARKETING STRATEGIES
The positioning or differentiation strategy must change as the product, market and competitors change over the PLC.
Products have a limited life.
Product sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller.
Profits rise and fall at different stages of PLC.
Products require different strategies in each stage

11. PLC curves can take different shapes based on product category and includes three patterns-
Sales volume
Sales volume
Sales volume
Primary
cycle
Recycle
Time
Time
Time
a. Growth-slump- maturity pattern
b. Cycle-recycle pattern
c. Scalloped pattern

12. Most PLC curves are portrayed as bell-shaped
Sales
Sales & profits
Profits
Time
Introduction
Growth
Maturity
Decline

13. 1. Introduction stage Characteristics- Low sales
High costs
Negative profits
Customers – innovators
Few Competitors
Marketing objectives- Create product awareness and trial

14. Strategies- Product Offer a basic product Price Use cost-plus
Distribution Build selective distribution
Advertising Build product awareness among early adopters & dealers
Sales promotion Use heavy sales promotion to entice trial

15. Pioneer’s advantages -
Early users will recall the pioneer’s brand name.
The pioneer’s brand establishes the attributes the product class should possess.
The pioneer’s brand captures more users.
The pioneer’s brand enjoys higher rates of consumer repeat purchases.
Producer gain advantage such as economies of scale, technological leadership, patents, and ownership of scarce assets.

16. 2. Growth stage Characteristics Rapidly rising sales
Average Costs Rising profits
Customers - Early adopters
Growing number of competitors
Marketing objectives- Maintaining market share

17. Strategies-
The firm improves product quality and adds new product features and improved styling
It adds new models and flanker products
It enters new market segments
It increases its distribution coverage and enters new distribution channels
It shifts from product-awareness advertising to product-preference advertising
It lowers prices to attract the next layer of price- sensitive buyers

18. 3. Maturity stage Characteristics Peak sales
Low costs
High profits
Customers – Middle majority
Stable number of competitors beginning to decline
Marketing objectives Maximize profit while defending market share

19. Strategies- 1. Market modification
Expanding the number of brand users by –
-- Converting nonusers
-- Entering new market segments
-- Winning competitors’ customers
Increasing the brand usage rate by convincing users to –
-- Use the product on more occasions
-- Use more of the product on each occasion
-- Use the product in new ways

20. 3. Marketing program modification
2. Product modification
Quality improvement
Feature improvement
Style improvement
3. Marketing program modification
Modifying other marketing program elements such as -
-- Prices -- Sales promotion
-- Distribution -- Personal selling
-- Advertising -- Services

21. 4. Decline stage Characteristics Declining sales
Low Costs
Declining profits
Customers – Laggards Declining numbers of Competitors
Marketing objectives Reduce expenditure and milk the brand

22. Strategies- Product Phase out weak items Price Cut price
Distribution Go selective: phase out unprofitable outlets
Advertising Reduce to level needed to retain hard-core loyal
Sales promotion Reduce to minimal level