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3. C H A P T E R . Brand Positioning and Values. Strategic brand management process. Identifying and establishing brand positioning and values. Planning and implementing brand marketing programs. Measuring and interpreting brand performance. Growing and sustaining brand equity.

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  1. 3 C H A P T E R Brand Positioning and Values

  2. Strategic brand management process • Identifying and establishing brand positioning and values. • Planning and implementing brand marketing programs. • Measuring and interpreting brand performance. • Growing and sustaining brand equity.

  3. Brand knowledge • Brand knowledge can be characterized in term of two components : • Brand awareness is related to the strength of the brand node or trace in memory, as reflected by consumers’ ability to identify the brand under different conditions. • Brand image can be defined as perceptions about a brand a reflected by the brand associations held in consumer memory. In other words, brand associations are the other informational nodes linked to the brand node in memory and contain the meaning of brand for consumers.

  4. Brand Associations : McDonald’s Possible Apple Computer Associations Macintosh User friendly Innovative Apple logo Educational Creative Fun Desktop publishing Graphics Friendly

  5. Customer-Based brand Equity Pyramid Resonance JudgmentsFeelings Performance Imagery Salience 4.Relationship What about you and me? 3.Response What about you? 2.Meaning What are you? 1.Identify Who are you?

  6. Identifying and establishing brand positioning (1) • Brand positioning is at the heart of marketing strategy. • Brand positioning : as the “act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.

  7. Identifying and establishing brand positioning (2) • Deciding on a positioning requires determining: 1. Who the target consumer is. 2. Who the main competitors are. 3. How the brand is similar to these competitors (points-of-parity) 4. How the brand is different from these competitors.(points-of-difference)

  8. Target Market • Identifying the consumer target is important because different consumers may have different brand knowledge structures and thus different perceptions and preferences for the brand. • A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.In other words, a market consists of all consumers with sufficient motivation, ability,and opportunity to buy a product.

  9. Market segmentation • Market segmentation involves dividing the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior and thus require similar marketing mixes. • Defining a market segmentation plan involves tradeoffs between costs and benefits.

  10. Segmentation bases • Possible segmentation bases for consumer and industrial markets • Descriptive or customer-oriented (what kind of person or organization is the customer) • Behavioral or product-oriented (how the customer thinks of or uses the brand or product) clearer strategic implications.

  11. Segmentation : toothpaste market • The Sensory segment : seeking flavor and product appearance. • The Sociables : seeking brightness of teeth • The Worriers : seeking decay prevention • The Independent segment : seeking low price

  12. Criteria : Segmentation and Targeting • Identifiability: Can segment identification be easily determined? • Size : Is there adequate sales potential in the segment? • Accessibility : Are specialized distribution outlets and communication media available to reach the segment? • Responsiveness : How favorably will the segment respond to a tailored marketing program? Identifiability Accessibility Responsiveness Size

  13. Segmentation : users of a brand (commitment) Low • Convertible: On the threshold of change; highly likely to switch brands • Shallow: Not ready to switch, but may be considering alternatives • Average: Comfortable with their choice; unlikely to switch in the future • Entrenched: Staunchly loyal; unlikely to change in the foreseeable future http://www.yankelovich.com High

  14. Segmentation : nonusers of a brand (openness to trying) Low • Strongly Unavailable:Strongly prefer their current brand • Weakly Unavailable: Preferences lies with their current brand, although not strongly • Ambivalent: As attracted to the”other” brand as to their current choice • Available:Prefer the “other” brand but have not yet switched High

  15. Nature of competition • Not to be too narrow in defining competition • Often,competition may occur at the benefit level rather than the attribute level. Ex: Baskin-Robbins VS frozen coffee drink, blended frozen-fruit (Starbucks, TCBY,Daily Queen) • Recognizing the nature of different levels of competition has important implications for the desired brand associations.

  16. Competitive frame of reference • Once the appropriate competitive frame of reference for positioning has been fixed by defining the customer target market and nature of competition, the basis of the positioning itself can be defined. • Arriving at the proper positioning requires establishing the correct points-of-difference and point-of-parity associations.

  17. Points-of-Difference Associations • Points-of-Difference (PODs) are attributes or benefits that customer strongly associate with a brand, positive evaluate, and believe that they could not find to the same extent with a competitive brand. • Brand associations can be broadly classified in terms of either functional, performance-related considerations or abstract, imagery-related considerations.

  18. Points-of-Parity Associations • Points-of-parity (POPs) are those associations that are not necessarily unique to the brand but may in fact be shared with other brands. • Category points-of-parity are those associations that consumers view as being necessary to be a legitimate and credible offering within a certain product or service category. • Competitive points-of-parity are those associations designed to negate competitors’ point of difference.

  19. Points of Parity VS Points of Difference • To achieve a point of parity on a particular attribute or benefit, a sufficient number of customers must believe that the brand is “good enough” on that dimension. • There is a “zone” or “ range of tolerance or acceptance” with POPs • Points of parity are thus easier to achieve than points of difference.

  20. Positioning • The optimal competitive brand positioning are • Defining and communicating the competitive frame of reference. • Choosing and establishing points of parity and points of difference.

  21. 1. Defining and communicating the competitive frame of reference • A starting point is determine category membership which a brand competes. • Choosing to compete in different categories often results in different competitive frames of reference and thus different POPs and PODs. • The preferred approach to positioning is to inform consumers of a brand’s membership before stating its point of difference in relation to other category members.

  22. 2. Choosing and establishing points of parity and points of difference.(1) • Choosing Points-of-Parity Three main ways to convey a brand’s category membership : • Communicating category benefits. • Comparing to exemplars • Relying on the product descriptor

  23. 2. Choosing and establishing points of parity and points of difference.(2) • Choosing Points-of-Difference The two most important considerations : • Desirability criteria : 3 keys • Relevance • Distinctiveness • Believability • Deliverability criteria : 3 keys • Feasibility (actual or potential ability of the product to perform at the level stated) • Communicability • Sustainability

  24. Establishing Points of Parity and Points of Difference • Many of the attributes or benefits make up the POPs or PODs are negatively correlated. e.g. “low price” vs “high quality” • Increasing level of effectiveness • Separate the attributes • Leverage equity of another entity • Redefine the relationship ex: apple “user friendly” “The power to be your best”

  25. Updating positioning over time (1) • Updating positioning involves two main issues: • How to deepen the meaning of the brand to tap into core brand values or other, more abstract consideration (laddering). Maslow’s hierachy: 1.Physiological needs (food,water,air etc.) 2.Safety and security needs (protection,order,stability) 3.Social needs (affection,friendship,belonging) 4.Ego needs (prestige,status,self-respect) 5.Self-actualization (self-fulfillment)

  26. Updating positioning over time (2) • How to respond to competitive challenges that threaten an existing positioning (reacting) • Do nothing just stay the course and continue brand-building efforts. • Go on the defensive to add some reassurance in the product or advertising to strengthen POPs and PODs. • Go on the offensive reposition the brand to address the threat,launch a product extension or ad campaign.

  27. Defining and establishing brand values • Core brand values are those set of abstract associations (attributes and benefits) that characterize the 5 to 10 most important aspects or dimensions of a brand. • First step is to create a detailed mental map of the brand.A mental map accurately portrays in detail all salient brand associations and responses for a particular target market.(When do you think of this brand,what comes to mind?) • Second step,brand associations are grouped into categories according to how they are related. Core brand value

  28. Brand Mantras (1) • A brand mantra is an articulation of the “heart and soul” of the brand. • Brand mantras are short, three-to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values. • Their purpose is to ensure that all employees within the organization and all external marketing partners understand what the brand most fundamentally is to represent with customers so that they can adjust their actions accordingly.

  29. Brand Mantras (2) Emotional Descriptive Brand Modifier Modifier Functions Nike Authentic Athletic Performance Disney Fun Family Entertainment • Brand function term describes the nature of the product or the type of experiences or benefits that the brand provides • Descriptive modifier is a way to circumscribe the business functions term to further clarify its nature • Emotional modifier provides another qualifier in terms of how the brand delivers these benefits.

  30. Internal Branding • Core brand values and brand mantras point out the importance of internal branding making sure that members of the organization are properly aligned with the brand and what it represents. • Branding should be perceived as participatory. • B2E (business-to-employee)

  31. Brand audit • A brand audit is a consumer-focused exercise that involves a series of procedures to access the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity. • Brand inventory is to provide a complete, up-to-date profile of how all the products and services sold by a company are marketed and branded. • Brand exploratory is research activity directed to understanding what consumers think and feel about the brand to identify sources of brand equity.

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