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 CHAPTER 6
BRAND POSITIONING STRATEGY DECISIONS

Chapter Overview

This chapter bridges the strategic orientation of the marketing plan and the copy platform that summarizes
the creative strategy decisions of creative specialists. In doing so, it examines the decisions and process
associated with the topic of brand positioning strategy. Promotional planners receive direction from the
situation analysis and decisions of the strategic marketing plan and must translate that information into
communication strategies for its target audiences. In turn, promotional planners must work with creative
specialists to ensure that the communication strategies are executed with appropriate creative messages.
Brand positioning strategy is a key decision involved that links marketing strategy to creative strategy and
is the primary consideration of this chapter.

Learning Objectives

1. Identify the concepts of market positioning strategy and market position.

2. Apply the positioning concept in an advertising context by defining brand positioning strategy and
brand position.

3. Illustrate how to formulate the brand positioning strategy decisions

4. Demonstrate brand positioning strategy opportunities.

5. Interpret brand positioning strategy decisions in other contexts.

Chapter and Lecture Outline

I. POSITIONING

The first part of the chapter is devoted to reviewing the market positioning concept as a means of
understanding the brand positioning concept. The decision-making process for brand positioning is also
examined.

A. Market Positioning Strategy—A strategic marketing plan evolves from an organization’s

overall corporate strategy and serves as a guide for specific marketing programs and policies.
From a promotional standpoint, planning specialists use the information contained in the
marketing plan to create the promotional plan. A key piece of information is the strategic
direction of the marketing mix as suggested by the market positioning strategy. Firms will write a
marketing positioning statement in their marketing plan to accurately communicate a market
positioning strategy. As the firm develops its market positioning strategy, it may consider
combinations of product attributes that research has shown to be acceptable to the target market.
Promotional planners will consider their market and competitive information in this document to
understand the context of the market positioning decisions and the subsequent brand positioning
decisions.

Positioning has been defined as “the art and science of fitting the product or service to one more
segments of the broad market in such a way as to set it meaningfully apart from competition”.
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 Positioning is a guiding idea in the strategic marketing plan that is a result of identifying
alternative market opportunities (i.e., areas where the company feels there are favorable demand
trends, where customer needs and/or wants are not being satisfied and where it could compete
effectively). Implementation of the marketing plan yields varying outcomes. One critical one is
the idea of market position, the resulting consumer understanding of where a firm’s product is
located in the overall market relative to it main category competitors and related category
substitutes. The shampoo example in the text attempts to draw these ideas out.

B. Brand Positioning Strategy—A brand positioning strategy relates to the image of the product or
brand relative to a competing brand. It is a key decision prior to determining the most effective
message of the advertising or the IMC. The reactions that consumers have to promotions are
referred to as the brand position. The brand position is understood along the lines of salient
attribute and/of salient benefits and is often diagramed with a diagram illustrating where the
brand is in relation to other brands within a given competitive space. The chocolate bar example
in the text illustrates this application.

C. Brand Positioning Strategy Decision Process— the development of a positioning strategy

involves six distinct steps

1. Develop a Market Partition-

2. Determine competitors' positions

3. Assess brand position

4. Determine brand positioning strategy

5. Monitor brand positioning strategy

6. Monitoring the brand positioning strategy

II. BRAND POSITIONING STRATEGY DECISIONS

A. Market Definition

Positioning by end benefit—setting a product apart by stressing a specific characteristic (i.e.,

attribute) or benefit offered. The examples in the text demonstrate how important and how
frequently we see positioning by end benefit.

Positioning by brand name—quality characteristics are emphasized by a brand that lead

consumers to believe that it is premium or a luxury brand. Other brands associate with a quality
message at a competitive price. Other positioning by brand name occurs when brands directly
emphasize its core benefit to the brand name, or the history and origin of the brand name.

Positioning by usage situation—teaching consumers how to use a product in new or different

situation is a way to grow sales for both new and established product as shown in the text.

Positioning by product category—the examples provided in the text in reflect this strategy in
which the product is positioned against others that while not exactly the same, provide the same
class of benefits.

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B. Differential Advantage

Differential vs Central Positioning

While a differential positioning is the classical or typical approach, a newer idea suggest that a
brand may not claim benefits in relation to being superior to a competitor, but rather claim as if
they are the best in the category with their claim defining the category. This is a less common
approach but can be seen with useful examples from brand leaders. A couple of suggestions in the
text attempt to support this idea.

Brand Benefit vs Users Positioning

In this approach, the product is positioned at a particular group of users. The ads provide good
examples to demonstrate this strategy in practice as do the examples for the other products
identified.

C. Target Audience Brand Attitude—Advertising and promotion are used to create favorable
attitudes toward new products/services, reinforce or maintain existing favorable attitudes, and/or
change negative attitudes.

1. Brand Attitude Model have been used by marketers to study consumer attitudes. These
models view an object such as a product as possessing a number of attributes that provide the
basis on which consumers form their attitudes. According to this model consumers have
beliefs about specific brand attributes and attach different levels of importance to these
attributes.

2. Brand Attitude Persuasion—the multiattribute model focuses on the underlying structure or

basis of an attitude and provides insight into ways marketers can influence or change
consumers’ attitudes such as:

• increasing or changing the strength or belief rating of a brand on an important attribute

• changing consumers’ perceptions of the importance or value of an attribute

• adding new attributes to the attitude formation process

• changing perceptions of belief ratings for a competing brand

D. Consumer Purchase Motive—this highlights the importance of accounting for consumer motives
while positioning advertising messages. Eight more managerially useful motives are suggested
that are grouped into two types, informational and transformational. Examples of Canadian
companies using each of the eight motives are provided along with an indication of how the more
traditional aspects of positioning are also used. Instructors are encouraged to find other examples
to illustrate these concepts.

• 1. Informational motives are those in which a consumer perceives deficit in the current
state and seek a product that will return them to a more “normal” state.

• 2. Transformational motives are those in which a consumer perceives themselves to be

in a “normal” but desire to be improved or enhance positively through the purchase
of a product.
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III. BRAND REPOSITIONING STRATEGY

Declining sales or changes in market conditions or other factors may lead a firm to change its brand
positioning strategy, sometimes identified as brand repositioning strategy. The first section identifies
critical analysis that led to recent repositioning strategies for well-known brands. An intention of this
section is to illustrate that one key insightful part of the situational analysis may be a key driver in the
need for a change in the brand positioning strategy. It is important to draw attention to the link from the
situation analysis that provides support for the promotional planner to alter the brand positioning strategy.

When using marketing communication to reposition, we can consider brand repositioning in the four
decision areas, market definition, differential advantage, target audience, purchase motivation. Numerous
examples are shown for each of these and the corresponding decisions within each topic. Often times,
brands are not planning to change their price point differential or alter the product or move into
alternative distribution avenues, yet would like to build sales or gain market share via advertising or some
other IMC tool. The Cassies examples in the text highlight brands that have successfully repositioned the
brand solely through marketing communication. Instructors can show examples of these campaigns in
class using the Cassie website.

IV IMC PLANNING: BRAND POSITIONING EXTENSIONS

The final section shows that unique brand positioning strategies can be developed for specific target
audiences. For example, some messages designed to attract new category users would suggest one kind of
brand positioning while messages intended to retain existing loyal customers might suggest an alternative
brand positioning. The rest of the section extends this idea to suggest that the brand positioning idea can
be extended to the different buyer decision making stages and to corporate brands.

Teaching Suggestions

This chapter in the Canadian edition is substantially different that the US edition. In fact, there are only a
handful of significantly edited paragraphs remaining. Moreover, the Canadian edition contains a whole
chapter on positioning and the US edition devotes about four pages. This reorganized chapter provides
students a very brief review of the marketing process and marketing strategy decisions to put the strategic
communication brand positioning strategy decision into context. The transition from a broader market
positioning of the marketing strategy to the narrower brand positioning strategy of the IMC plan is
challenging to communicate to students. One method is to investigate the distinction between target
market and target audience thoroughly. The difference in these concepts distinction is subtle. It is
important for instructors to illustrate some of the examples in the text or refer to their own. Naturally, the
distinction is difficult to observe practically in some instances, and there may not be any differences for
some cases. So it is wise to find examples that are more obvious than ones where it may be less apparent.
The chapter has also tried to provide a more structured and theory supported perspective of positioning.
Considering the significance of using the positioning concept to set the direction of a communications
strategy, instructors can use either of the developments to give stronger grounding for their students. The
use of attitude change strategies and the importance of linking the consumer motives to positioning are
the two avenues for further explanation.

Vignette

1. Does the emotional and experiential approach for positioning logical for Samsung given its vast array
of product lines?

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 Samsung’s direction appears to be good. Its advertising message is more transformational and
therefore puts a strong overall positive life enhancing image for its brand across its vast product line.
This presumably would be a good idea if Samsung is working with a market definition by brand
name, which appears logical as many player move into different competitive spaces as technology
advances.

IMC Perspective 6-1

1. How effective is the brand positioning strategy for McDonald’s?

A newly formatted McDonald’s restaurant is almost unrecognizable compared to historic ones. Its
menu has evolved despite still selling billions of hamburgers. And people are beginning to see it as a
destination for coffee! All this suggests that McDonald’s has moved from fast-food hamburger shop
to quick-service restaurant. Instructors can encourage a debate regarding whether this is in fact a
significant change in the market positioning of McDonald’s. The question asks students to address
whether the brand positioning strategy designed to encourage customers to visit the store more
frequently is effective. Again, the topic permits an interesting debate to estimate whether customers
visits might move from once per week to twice per week, or some other similar kind of change in
beahaviour.

IMC Perspective 6-2

1. Compare the previous and the current brand positioning strategy decisions for Cracker Barrel Cheese
and comment on whether the new one will be effective.

Previous positioning strategies focused on taste, convenience, and ingredients directed to specific
ages and gender, possibly a noticeable number being middle aged mothers as it is done for many
product categories with research indicating they are often targeted. This positioning appeared to be
more lifestyle directed to those who enjoy culinary arts and who enjoy creating exciting meals. And
the positioning moves those who may not have seen this brand in that light to consider it rather than
artisan cheese, or cheese from a deli. The positioning possibly moves those who do not regularly cook
meals with cheese to realize that it can be a key ingredient for enjoyable meals. Instructors can work
with the ads and suggest students to write out a brand positioning strategy statement.

Answers to Discussion Questions

1. Describe how the market positioning strategy adopted for a brand would need to be supported by all
other elements of the marketing mix.

Positioning requires consistency among all marketing mix elements. For example, it is difficult for
the consumer to perceive that the very best brand/product can also be the least expensive. A high
priced perfume or cologne would certainly lose some of its image if distributed in a discount store.
High quality, high priced products advertised in low cost media might find that their image suffers.
For most consumers, high quality usually means a higher price (and vice versa), upscale (selective or
exclusive) distribution, and quality representation in advertising. Trying to go away from these
consistencies may lead to confusion and detraction from the positioning. The same holds true for
products at other ends of the price/quality spectrum. To maintain margins, intensive distribution may
be required, price discounts, coupons, and other deals may be used more frequently, and less
expensive media may be employed.

2. Why is it useful to distinguish between brand positioning strategy and brand position?
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 As noted in question 3, a brand positioning strategy is the planned image while the brand position is
the resulting image that the target audience believes about the brand. A manager would naturally like
the brand position to be identical to the brand position at the end of the planning period to
demonstrate success; however this may not be the case as the message might get misunderstood or
not be the right message. Alternatively, a brand position might actually be stronger than anticipated
with an audience for which the brand was not targeted, thus indicating an unexpected success.

A brand positioning strategy relates to the planned image of the product or brand relative to a
competing brand for a given competitive space as defined by certain category characteristics.
Marketing communication decisions largely impact this projected image that is decided upon by the
brand manager in conjunction with agency personnel and is generally written in the IMC plan. In
contrast a market positioning strategy is written within the marketing plan and is dependent upon the
whole marketing mix and is derived from the corporate plan regarding a particular product-market.

3. What problems would a brand encounter if it communicated with an incorrect motive?

Communicating an incorrect motive can lead to weaker brand effects. For example, a fashionable
retailer of men’s clothing (e.g., Harry Rosen) could suggest that men would save time by visiting their
store since many men do not enjoy shopping (e.g., problem avoidance). However, this motive is not
the correct one as social approval or some other positive motive would be more likely, or at least
incomplete satisfaction with one’s current retailer could be plausible. In each case, a better ad would
be created and understood by the target audience.

4. What factors would lead a marketer to the use of a repositioning strategy.

Probably the most common factors leading to repositioning would be a loss of sale, a growing market,
and/or the entry of a new product into the marketplace. Other factors might include an erosion of the
product image, a desire to enter new markets and/or even management desires. In any of these cases,
advertiser would look to a new target audience or perhaps a new message that had a different motive.
The CASSIES identified in the chapter propose a key feature of the situation analysis that likely
contributed to the repositioning strategy.

5. Why is it important to consider unique brand positioning decisions at each of the buyer decision
stages? Is it feasible to implement this approach for all product categories?

Since brand positioning strategy is the direction the brand would like a target audience see the brand,
it is quite likely that users and non-users would have different purchase behaviours; thus necessitating
unique messages with varying levels of information to convince them of either repeat buying or trial.
The feasibility of this approach is dependent on factors such as size of each audience and the costs to
develop the messages and media costs. With lowers costs for both of these via social media, it is
entirely possible that brands could consider such an approach.

Answers to Applied Questions

1. Explain how McDonalds’ market positioning strategy has changed with the new developments in its
menu and outlets.

McDonald’s altered its menu in a healthier and more tasteful (e.g., coffee) and interior to make it a
more welcoming environment that is attracting adults instead of its traditional base of families.
Ronald has taken much less prominence in its promotion and imagery with the change. In short,
McDonalds’ strategy is less of a family fast food restaurant but more of a quick service casual
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 restaurant. Its corporate imagery during Olympic sponsorship for examples reinforces this view as
well. This has implications for its brand positioning strategy for its individual campaigns as many of
them are designed to attract consumers to switch to the brand from other formats. For example, it tries
to regain customers from Tim Horton’s with much of its messages of late.

2. Examine the social media presence of a brand and assess whether it clearly identifies a brand
positioning strategy.

This exercise directs students to investigate a topic of interest. Students will likely select a brand they
consume and use themselves as a representation of the target audience. With this in mind, the student
will implicitly think about how the positioning is occurring with social media vs. what they may have
been accustomed via TV or other mass media. Answers should clearly remark upon all four decisions
for a brand positioning strategy and give an indication of effectiveness.

3. Explain why a central positioning strategy is feasible. Do any brands currently use this approach in
their marketing communications?

A central positioning is a newer idea, and in a world with iPads, it seems that the idea is clearly an
option for brands to consider and attempt. As expected, really only one brand in a product category
would attempt such a strategy, but it would be an interesting debate if students could identify a
product category where two brands attempted the strategy. The option is entirely feasible as the iPad
example suggests where the brand attempts to “own” the category as its marketing communication
messages indicates that the market is defined via brand name.

4. Develop market partition diagrams for beverages. What repositioning options are available for any
brand?

This question asks students to apply Figures 6-8 to 6-11 to a different product category other than the
automobile market such as soft drinks. A product type partition would include; cola and non-cola or
diet and non-diet as an initial breakout. An end benefit partition might include refreshing or thirst-
quenching among others of a similar nature. A usage situation partition could see soft drinks as a
mixer or a beverage for drinking with a meal etc. Finally, Coke and Pepsi view is clearly seen in the
brand name partition. For either of these brands, all four options may be applicable for various target
audiences, and in all likelihood, both brands have used all four type of partitions for different
campaigns over time.

5. How can brand positioning decisions be applied to new category users and brand loyals users of
smartphones?

The attitude towards the product category for new category user and brand loyal is fundamentally
different since the former does not consume and is therefore less knowledgeable thereby requiring
more extensive communication. This fact suggests a message of an educational nature in order for a
brand attitude and category attitude to be established. Encouraging repeat purchasing for a brand loyal
is important and brands would use their existing positive (presumed) attitude and use messages to
ensure consistency or slight improvement. In both scenarios, an appropriate message is required that
will be within the latitude of acceptability for the brand to thrive.

Additional Discussion Questions (not in text)

A. Many organizations segment on the basis of demographics. Discuss three products that might
segment on this basis, and then explain what other segmentation criteria they might also employ.
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 Firms have found that demographics may be more of a descriptor of a segment than a basis for
segmentation itself. On the other hand, there are clearly some products that have segmented on
demographics and have been quite successful.

Autos—BMW has successfully targeted women. Volvo has focused attention on families, and
Cadillac has segmented on both age (38-45) and sex (females). One might also argue that each of
these has focused on lifestyles as well.

Fast foods—most fast food shops segment on the basis of age, with most going after the 18-45
year groups. At the same time, others they have also employed lifestyle segmentation (fast
service) and benefit segmentation (quality of food, fat content, etc.)

Snowboards—snowboards have definitely targeted the younger generation (the vast majority of
snowboarders are young, and most young prefer snowboarding to skiing). Snowboard
manufacturers have also appealed to lifestyles and attitudes—successfully targeting Generation X
and Y’ers.

In sum, it might be said that all demographic segments have other bases for segmentation, as it is not
the fact that one is of a certain sex or age that serves as the reason for using a product as much as it is
the benefit or use of the product itself.

B. Marketers have increased their efforts to reach ethnic markets. Explain why this may be occurring.
Bring to class examples of ads targeted to various ethnic groups.

Marketers are increasing their efforts to reach ethnic markets as part of their market segmentation
strategies. Marketers have come to the realization that ethnic markets represent important market
segments that can be targeted most effectively with specific marketing and promotional programs.
There are media vehicles that reach specific ethnic markets such as Chinese, Italian and Greek and the
consumption patterns and decision making criteria of these groups are often different from the mass
market. Students should be encouraged to find magazines or newspapers that reach specific ethnic
markets and bring in examples of some of the ads that appear in these publications.

C. Assume that you are the advertising manager for a new hot cereal product. Perform a competitive
analysis for your brand giving attention to other forms of competition noted in the text

The other forms of competition discussed in the text range from direct brand competition to other
product forms to more indirect forms of competition such as product substitutes. A new hot cereal
product would compete against other brands of hot cereal such as Quaker Oats Oatmeal, TOTAL
Oatmeal, and Cream of Wheat. Hot cereals also must compete against the vast number of traditional
ready-to-eat cold cereals. Competition for a hot cereal also comes from other hot breakfast products
such as pancakes, waffles and French toast. The fact that companies offer easy-to-prepare versions of
these products that can be heated in a microwave or toaster makes them an important form of
competition for hot cereals. Of course there are numerous other breakfast foods such as eggs, fruit,
pastries and the like that a firm competing in the breakfast market must consider.

D. Establishing brand image is often difficult for new companies. Explain what these companies must do
to establish a strong brand image.

As noted in the chapter, developing an image requires positioning. The chapter notes that there are six
questions that must be answered to develop a position. In reviewing these, it becomes obvious that to
create an image, the organization must determine what it wants to be, how it is different from

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 competitors, and whether or not it can claim and maintain that image. The image then must be
supported by an integrated marketing communications program, with each element designed to
reinforce the image.

Companies fail to achieve a distinct image in the marketplace for a variety of reasons. First, all
communications efforts do not support this image, due to inconsistencies. Secondly, the brand or
corporate identity does not contribute to the overall image. Most importantly, building an image takes
time. Companies that have been successful in building and/or changing their images have invested
much time and effort into this endeavor, and have stayed with one consistent strategy through thick
and thin.

E. Discuss the various attitude change strategies recognized by the multiattribute model. Discuss how an
airline could use some of these attitude change strategies in their advertising and marketing programs.

The multiattribute model provides insight into several ways marketers can influence consume
attitudes. Each of these strategies might be used by an airline to influence the attitudes of flyers
toward their airline. Each will be discussed.

The first strategy is increasing or changing the strength or belief rating of the airline on an important
attribute. The airline should identify which attributes are important to flyers and emphasize them in
their ads. For example, most airline flights are priced similarly so they focus their marketing and
advertising on the quality of their service. They run ads that stress the high quality of customer
service they provide at all levels of the flying experience.

Another strategy is changing consumers’ perceptions of the importance or value of an attribute. An

airline may want to emphasize a particular feature or benefit and why it is should be important to
flyers. For example, airlines talk about their frequent flyer programs and encourage consumers to
accumulate miles by being loyal to them.

Adding a new attribute to the attitude formation process is another strategy recognized by the
multiattribute model. An airline may find a new service or benefit it wants to provide to consumers
that isn’t currently offered by competitors. For example, some airlines have increased the amount of
leg room they offer in coach class while others offer wider seating.

A final strategy is changing perceptions of belief ratings for a competing brand. An airline may
identify an area where a competitor is weak or vulnerable and note this in a comparative ad. For
example, one airline may have a better offering of flights between two cities or may have a better on-
time arrival record. These advantages could be pointed out in a comparative advertisement.

F. Why is the brand attitude model important for brand positioning strategy?

The model is important since it provides a way of understanding and computing a target audience’s
attitude to a brand. It is comprised of general cognition and affect towards the brand and individual
cognitive and emotional element as well. These are manifested with beliefs about brand attributes (or
benefits) and their importance. Once the decision maker has laid out all the possible attributes, and
possibly obtained marker research ratings on them, the focus turns to which one or ones that need to
be improved through communication to improve the overall brand effect. A few strategies to do this
are shown in the text to plan for individual components to change.

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IMC Exercise

Find examples where an advertiser is having multiple brand positioning strategies. Suggest to students to
find communications for a brand that are directed current customers (e.g., switchers) and other
communications for the same brand that are directed to non-customers (e.g., new category users). Ask the
students what makes the positioning unique for each target audience to support the brand position and
what make the positioning similar to help support the overall market position.

IMC Comprehensive Project

Students should be considering different positioning options at this stage so that the creative strategy and
tactics have an appropriate strategic direction.

IMC Project Assignment for Chapter 6

Develop market position and brand position diagrams for the brand you are marketing. Identify certain
opportunities for developing an improved brand positioning strategy decision. What attributes or benefits
should the brand claim in its new advertising campaign? What method of positioning is most relevant in
terms of consumer or competition? Identify the most relevant motive to base your positioning. What
sources of information should be use as for the creative to support the brand positioning strategy?

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