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11

Crafting
the Brand Positioning

Marketing Management
A South Asian Perspective, 13th ed
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?

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Positioning
of Café
Coffee Day

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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.

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Value Propositions
• Scorpio, Mahindra and Mahindra
A vehicle that provides the luxury and
comfort of a car, and the adventure and
thrills of an SUV
• Domino’s
A good hot pizza, delivered to your door
within 30 minutes of ordering, at a
moderate price

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Defining Associations
Points-of-difference Points-of-parity
(PODs) (POPs)
• Attributes or benefits • Associations that
consumers strongly are not
associate with a brand, necessarily
positively evaluate, and unique to the
believe they could not brand but may be
find to the same extent shared with other
with a competitive brands
brand

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PODs and POPs

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Establishing Category Membership

• This “four-in-one
entertainment
solution” from
Konica failed to
establish category
membership

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Conveying Category Membership

Announcing
Announcing category
category benefits
benefits

Comparing
Comparing to
to exemplars
exemplars

Relying
Relying on
on the
the product
product
descriptor
descriptor

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Consumer Desirability Criteria for PODs

Relevance
Relevance

Distinctiveness
Distinctiveness

Believability
Believability

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Deliverability Criteria for PODs

Feasibility
Feasibility

Communicability
Communicability

Sustainability
Sustainability

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Examples of Negatively Correlated
Attributes and Benefits

• Low-price vs. • Powerful vs. Safe


High quality • Strong vs.
• Taste vs. Low Refined
calories • Ubiquitous vs.
• Nutritious vs. Exclusive
Good tasting • Varied vs. Simple
• Efficacious vs.
Mild
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Addressing negatively correlated
PODs and POPs
• Present separately
• Leverage equity of another entity
• Redefine the relationship

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Differentiation Strategies

Product Personnel

Channel Image

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Product Differentiation

• Product form • Style


• Features • Design
• Performance • Ordering ease
• Conformance • Delivery
• Durability • Installation
• Reliability • Customer training
• Reparability • Customer consulting
• Maintenance

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Personnel Differentiation:
Singapore Airlines

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Nature’s
Basket

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Image Differentiation

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Claims of Product Life Cycles

• Products have a limited life


• Product sales pass through distinct
stages each with different challenges
and opportunities
• Profits rise and fall at different stages
• Products require different strategies in
each life cycle stage

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Figure 11.1 Sales and
Product Life Cycle

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Figure 11.2 Common
Product Life-Cycle Patterns

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Figure 11.3 Style, Fashion, and
Fad Life Cycles

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The Pioneer Advantage

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Figure 11.4 Long-Range Product
Market Expansion Strategy

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Strategies for Sustaining
Rapid Market Growth
• Improve product quality, add new features,
and improve styling
• Add new models and flanker products
• Enter new market segments
• Increase distribution coverage
• Shift from product-awareness advertising to
product-preference advertising
• Lower prices to attract the next layer of price-
sensitive buyers

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Stages in the Maturity Stage

Decaying
Growth Stable
maturity

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Marketing Product Modifications

• Quality
improvements
• Feature
improvements
• Style improvements

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Marketing Program Modifications

Prices

Distribution

Advertising

Sales promotion

Services

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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
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A Product in Decline

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Market Evolution Stages

Emergence Growth

Maturity Decline

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Emerging Markets

Latent

Single-niche

Multiple-niche

Mass-market

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Figure 11.5 Maturity Strategies

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Marketing Debate

 Do brands have finite lives?


Take a position:
1. Brands cannot be expected to last
forever.
or
2. There is no reason for a brand to
ever become obsolete.

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Marketing Discussion

 What strategies do firms use to


try to position themselves on the
basis of pairs of attributes and
benefits?

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