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Effective Brand Positioning Strategies

1. Positioning is designing a company's offering and image to occupy a distinctive place in the target market's mind. It requires communicating similarities and differences between brands. 2. Effective positioning defines value propositions, points of difference (PODs), and points of parity (POPs). PODs are unique attributes that customers strongly associate with a brand. POPs are necessary but not unique associations. 3. Differentiation strategies can include the product, personnel, channels, or image. Product differentiation focuses on features, style, and performance. Personnel differentiation improves training and customer interactions. Channel differentiation enhances distribution. Image differentiation shapes the public perception of identity.

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196 views18 pages

Effective Brand Positioning Strategies

1. Positioning is designing a company's offering and image to occupy a distinctive place in the target market's mind. It requires communicating similarities and differences between brands. 2. Effective positioning defines value propositions, points of difference (PODs), and points of parity (POPs). PODs are unique attributes that customers strongly associate with a brand. POPs are necessary but not unique associations. 3. Differentiation strategies can include the product, personnel, channels, or image. Product differentiation focuses on features, style, and performance. Personnel differentiation improves training and customer interactions. Channel differentiation enhances distribution. Image differentiation shapes the public perception of identity.

Uploaded by

ratnakar_3785
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd

CRAFTING THE BRAND

POSITIONING
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?
Marketing Strategy

Segmentation
Segmentation

Targeting
Targeting

Positioning
Positioning
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.

Requires that similarities and differences


between brands should be identified and
communicated effectively to customers
Value Propositions
• Tata Indica
o More spacious small car without extra costs
• Domino’s
o A good hot pizza, delivered to your door
within 30 minutes of ordering, at a moderate
price
• Paras Moov
o Balm for relieving joint pains later as
“backache specialist”
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
• Apple (design)
• Nike (performance)
• Lexus(quality)
• Volkswagen (engineering)
POINTS-OF-PARITY (POPS)

o Associations that are not necessarily unique to the


brand but may be shared with other brands
o Category points of parity: consumers view it as
essential for a legitimate and credible product
offered.
o Necessary but not sufficient conditions for the choice of a
brand
o Competitive points of parity: Negates competitors
points of difference.
Consumer Desirability Criteria for
PODs

Relevance
Relevance

Distinctiveness
Distinctiveness

Believability
Believability
Deliverability Criteria for PODs

Feasibility
Feasibility

Communicability
Communicability

Sustainability
Sustainability
CREATING PODS AND POPS
 One common difficulty in creating a strong competitive
brand positioning is that many of the attributes or
benefits that make up the points-of-parity and points-of-
difference are negatively correlated.
 If consumers rate the brand highly on one particular
attribute or benefit, they also rate it poorly on
another important attribute.
 Unfortunately, consumers typically want to
maximize both attributes and / or benefits.
 The best approach is to develop a product and
service that performs well on both dimensions.

10-10
Differentiation Strategies

Product Personnel

Channel Image
DIFFERENTIATION STRATEGIES
 To avoid the commodity trap, marketers must start
with the belief that they can differentiate anything.
 The obvious means of differentiation, and often most
compelling ones to consumers, relate to aspects of the
product or service.
 Eg: South West Airlines

10-12
DIFFERENTIATION STRATEGIES
 Competitive advantage is a company’s ability in
one or more ways.
 A company hopes to continue inventing new
advantages
 Customers must see any competitive advantage as
a customer advantage.

10-13
Product Differentiation
• Product form • Style
• Features • Design
• Performance • Ordering ease
• Durability • Delivery
• Reliability • Installation
• Reparability • Customer training
• Customer consulting
• Maintenance
PERSONNEL DIFFERENTIATION
 Better-trained people - strong competitive advantage
 Eg: McDonald’s people are courteous

6 characteristics:
 competence, courtesy, credibility, reliability,
responsiveness, communication

10-15
CHANNEL DIFFERENTIATION
 Competitive advantage through - design distribution
channels’ coverage, expertise & performance

 Example: Dell in computers distinguish themselves


 Develop & manage high-quality direct-marketing channels

10-16
IMAGE DIFFERENTIATION
 How the public perceives the company or its products

 Identity - how a company aims to identify/position


itself or its product

10-17
IMAGE DIFFERENTIATION: IDENTITY

An effective identity:
1. Establishes product’s character & value
proposition
2. Conveys character in a distinctive
manner
3. Delivers emotional power beyond a
mental image

10-18

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