MARKETING STRATEGY 10 Crafting the Brand Positioning
Marketing Strategy • Segmentation • Targeting • Positioning
Strategic Positioning Strategic positioning is about differentiating your company from competitors, in order to attract and maintain a specific customer segment • Identifying the salient (basic / central) features of the product or service • Finding the ideal value of the salient features for the targeted consumer segment • Investigating consumers’ perceptions of the values of the salient features of competitors products
Positioning Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions
Positioning Positioning Strategies • Positioning by attribute: associate the product with specific attribute(s) (e.g. energy, reliability, safety, performance) • Positioning by price and quality (e.g. Lidl) • Positioning with respect to use or application (e.g. cereals as a breakfast meal) • Positioning with respect to a competitor / product class (e.g. Avis car rental)
Writing a Positioning Statement 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.
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 e.g. Fed Ex – overnight delivery Nike - performance Points-of-parity (POPs) Associations that are not necessarily unique to the brand but may be shared with other brands Defining Associations
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 Examples of Negatively Correlated Attributes and Benefits
Differentiation Strategies • Product • Personnel • Channel – Design the channels of distribution to achieve coverage, expertise, performance • Image
Product form Features Performance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Maintenance Product Differentiation
Personnel Better trained people exhibit six characteristics: • Competence: posses the required skills & knowledge • Credibility: trustworthy • Reliability: perform the service consistently & accurately • Responsiveness: respond quickly • Communicate effectively
Identity and Image Identity: The way a company aims to identify or position itself (The intended message Must be conveyed through Every available Communication channel) Image: The way the public perceives the company or its Products (e.g. Marlboro)
Differentiation and Positioning Identifying Possible Value Differences and Competitive Advantage • Competitive Advantage is the advantage over competitors gained by offering greater value either through lower prices or by providing more benefits that justify higher prices
Product Life Cycle • Introduction • Growth • Maturity • Decline
Facts about Life Cycles • Products have a limited life. • Product sales pass through distinct stages. • Profits rise and fall at different stages. • Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each stage.
Marketing Program Modifications • Prices • Distribution • Advertising • Sales promotion • Services