Crafting the Brand Positioning
BY VIVEK S MT11IND005
Marketing Strategy
Segmentation-- group of customers who share a similar set of needs and wants
Targetingconsumer that can be satisfied in a superior way
Positioninga distinctive place in the minds of the target market
What is Positioning?
Positioning - is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market.
Examples of value proposition
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. (DHAR KE AAGE JEET HEY)
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 FedExguaranteed overnight delivery Nikeperformance LexusLuxury Miller Lite Beeronethird less calories Points-of-parity (POPs) Associations that are not necessarily unique to the brand but may be shared with other brands Categorytravel agency must be able to make air and hotel reservations, etc.(IRCTC) Competitive Salvon dominated by Dettol in india.
Conveying Category Membership
Announcing category benefits--able to deliver on the fundamentals reason for using a category (e.g., Brownie mix) Comparing to exemplars--used category membership parity (e.g., Tommy Hilfiger introduction compared its brand to Calvin Klein) Relying on the product descriptor--communicate unique position (e.g., In order for Ford to communicate a vehicle that had the attributes of an SUV, a minivan, and a station wagon and avoid association with its Explorer and Country Squire models,
labeled the vehicle Freestyle to designated it as a sports
wagon
Desirability Criteria for PODs
Relevance--personally relevant and important Distinctiveness--
Deliverability Criteria for PODs
Feasibilitymust be able to support the desired Communicability
superior (Splenda
overtook Equal and Sweet n Low) Believabilitymust find the POD believable & credible
consumers must be able
to understand benefits Sustainability preemptive and defensible positioning
Examples of Negatively Correlated Attributes and Benefits
Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting Powerful vs. Safe Strong vs. Refined Ubiquitous vs. Exclusive Varied vs. Simple
Differentiation Strategies
Productdifferent types and category
Personnelbetter trained employees
Channelmore effectively and efficiently design distribution channel coverage, expertise, and performance. Imagecrafting of powerful, compelling images
(e.g., Marlboro, Hyatt Regency Hotelsatrium
lobbies)
Product Differentiation
Product form Features Performance Style Design Ordering ease
Conformance
Durability Reliability Reparability
Delivery
Installation Customer training Customer consulting Maintenance
Personnel Differentiation: Singapore Airlines
Channel Differentiation
Identity and Image
Identity: The way a company aims to identify or position itself
Image: The way the public perceives the company or Its products
Image Differentiation
Claims of Product Life Cycles
Products have a limited life
Product sales pass through distinct stages each with
different challenges and opportunities and problems to the seller Profits rise and fall at different stages Products require financial, manufacturing, purchasing, and
human resource strategies like different strategies in each
life cycle stage
Product Life Cycle
Common Product Life-Cycle Patterns
Style, Fashion, and Fad Life Cycles
Long-Range Product Market Expansion Strategy
The pioneer advantage Inventor Product pioneer Market pioneer
(P-Product, M-Market)
Product Life-Cycle Marketing Strategies
Marketing Strategies: Growth Stage
Improve product quality and add new product features and improved styling Add new models and flanker products Enter new market segments Increase distribution coverage and enter new distribution channels Shift from product-awareness advertising to product-preference advertising Lower prices to attract next layer of price-sensitive buyers
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
Product Life-Cycle Marketing Strategies
Marketing Strategies: Maturity Stage
Market Modification Expand number of brand users by:
1. Converting nonusers
2.
3.
Entering new market segments
Winning competitors customers
Convince current users to increase usage by:
1.
2. 3.
Using the product on more occasions
Using more of the product on each occasion Using the product in new ways
Product Modifications
Quality improvements Feature improvements Style improvements
Marketing mix Modifications
Price
Distribution Advertising Sales promotion Personal selling services
Product Life-Cycle Marketing Strategies
Marketing Strategies: Decline Stage
1. Increase firms investment (to dominate the market and strengthen
its competitive position) 2. Maintain the firms investment level until the uncertainties about the industry are resolved. 3. Decrease the firms investment level selectively by dropping unprofitable customer groups, while simultaneously strengthening the firms investment in lucrative niches 4. 5. Harvesting (milking) the firms investment to recover cash quickly Divesting the business quickly by disposing of its assets as advantageously as possible.
Summary of Product Life-Cycle Characteristics, Objectives, and Strategies
Introduction Characteristics Sales Costs Profits Customers Low sales High cost per customer Negative Few
Growth
Maturity
Rapidly rising sales Average cost per customer Rising profits Growing Number
Peak sales Low cost per customer High profits Stable number beginning to decline
Typical Changes in Marketing Variables over the Product Life Cycle
THANK YOU.
