BA324

Brand
Positioning
and Values
Strategic Brand Management

Strategic Brand Management

involves the design and
implementation of marketing
programs and activities to build,
measure, and manage brand equity
Strategic Brand Management
Process
STEPS KEY CONCEPTS
Mental maps
Identify and Establish Competitive frame of reference
Brand Positioning and Values Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and Implement Mixing and matching of brand elements

Brand Marketing Programs Integrating brand marketing activities
Leveraging of secondary associations

Brand Value Chain

Measure and Interpret Brand audits
Brand Performance Brand tracking
Brand equity management system

Brand-product matrix
Grow and Sustain Brand portfolios and hierarchies
Brand Equity Brand expansion strategies
Brand reinforcement and revitalization
Positioning Is at the heart of the
marketing strategy
“The development and
communications of a distinct and
valued offering, answering the needs
of the target segment, RELATIVE TO
COMPETITION”. (Ries and Trout):

“. . . the act of designing the company’s offer

and image so that it occupies a distinct and
valued place in the target customer’s
minds.” (Philip Kotler)
Brand Positioning
Proper positioning makes it easier to
facilitate understanding of brand
• Clarifies what the brand is all about
• How it is both unique and similar to
competitive brands
• Why customers should purchase and
use the Brand
Brand Positioning
Marketers need to know:
– Who the target consumer is
– Who the main competitors are
– How the brand is similar to these
competitors
– How the brand is different from them
 In order to Position a Brand…
1. Define competitive frame of reference
– Target market (Who the target consumer is)
– Nature of competition (Who the main competitors
are)
2. Define desired brand knowledge structures
– Points-of-parity (How the brand is similar to these
competitors)
• necessary
• competitive
– Points-of-difference (How the brand is different from
these competitors)
• strong, favorable, and unique brand associations
Target Market

A market is the set of all actual and

potential buyers who have sufficient
interest in, income for, and access to a
product.

Market segmentation divides the market

into distinct groups of homogenous
consumers who have similar needs,
characteristics, or behavior who might
require marketing mixes.
 Criteria for a Segment
• Identifiability: Can the segment be easily identified?
• Size: It is big enough to bother? Large and profitable
enough to serve
• Accessibility: Are distribution outlets and media
available to us to reach the segment? Segments can
be effectively reached and served Need exposure to
media; predictable shopping behavior.
• Responsiveness: How favorably will the segment
respond to a tailored marketing program? (this one is
tough to quantify)
• Differentiable: Respond differently.
• Actionable: Effective programs can be developed.
Target Market Segmentation
• A market segment should have similar
knowledge structures and brand
knowledge
– Similar knowledge structures might mean
similar perceptions and beliefs about brand
• There are 2 ways to segment
– Descriptive: characteristics of the individuals
in the market
– Behavioral: grouped by how individuals in
the market perceive or use the product
Marketing Segmentation
Segmenting Consumer Markets

• Geographical segmentation : Marketing mixes

are customized geographically
• Demographic segmentation: Demographics
are related to needs and usage rates .Most
popular segmentation. Why?
• Psychographic segmentation: Lifestyle, social
class, and personality-based segmentation
• Behavioral segmentation: Benefits, Usage,
Loyalty. - i.e. preferences.
 Toothpaste Segmentation
Four main segments Signal aromatic
• Sensory segment
– Flavor and product
appearance Ipana Active White
• Sociables
– Brightness of teeth
• Worriers
– Decay Prevention
• Independent Colgate Cavity
Protection
– Low Price
 Segmentation
Example
Mobil’s 5 types of gasoline
buyers
– Price Drivers %20
• Not brand loyal, driven by price, has been focus for years
– Road Warriors %16
• Upper income, MA Men, 25-50k/year, buy food and services
with credit card (Premium gas)
– True Blues %16
• Brand loyal, Mid income, pay with cash
– Generation F3 %27
• Fuel, food, fast: half under 25 yo, in and out quickly
– Homebodies %21
• Soccer moms using whatever is on their route
Nature of Competition
Competitive analysis considers a
whole host of factors – including the
resources, capabilities, and likely
intentions of various others firms – in
order for for marketers to choose
markets where consumers can be
profitably served.

Do not define competition too narrowly!

Points-of-Parity
and Points-of-Difference
• Points-of-difference (PODs) are
attributes or benefits that consumers
strongly associate with a brand, positively
evaluate, and believe that they could not
find to the same extent with a competitive
brand.
• Points-of-parity associations (POPs),
on the other hand, are not necessarily
unique to the brand but may in fact be
shared with other brands.
 POD (Points of Difference)
• Strong, favorable, unique brand associations
• May be any kind of attribute or benefit

• Two types of PODs

– Attribute Based
• Functional, performance related differences
(e.g. Sony’s electronic products have “consumer friendly”
technological features, such as television sets with a button to
help misplaced remotes)
– Image Based
• Affective, experiential, brand image related
differences
(e.g. The western imagery of Marlboro cigarettes or the fact that
British Airways is advertised as the “world’s favorite airline”)
POP (Point of Parity)
• Associations that are shared with
other brands

• Two types
– Category: attributes that are required
to include your product as a member of
that category
– Competitive: POP that negate your
competitors PODs

POPs can be “good enough”,

but PODs should be “superior”
Similar concepts

• Unique Selling Proposition (USP; Reeves

and Bates)
– Advertisers should give a compelling reason to
buy a product that competitors could not
match
• Sustainable Competitive Advantage (SCA)
• The advantage of delivering superior value in the
marketplace for a prolonged period of time
• Further, SCAs can result from any component of the
firm
Similar concepts
• Unique Selling Proposition examples
– Head & Shoulders: "You get rid of
dandruff
– Domino's Pizza: "You get fresh, hot
pizza delivered to your door in 30
minutes or less."
– Olay: "You get younger-looking skin"
– FedEx: "Your package absolutely,
positively has to get there overnight"
– M&M's: "The milk chocolate melts in
your mouth, not in your hand"
 Identifying & Choosing
POP’s & POD’s
• Desirability criteria (consumer perspective)
– Relevance (Personally relevant)
– Distinctiveness (Distinctive and superior)
– Believability (Believable and credible)
• Deliverability criteria (firm perspective)
– Feasibility
– Profitability
– Communicability
– Sustainability
Core Brand Associations
(Values)
• Set of abstract concepts (Attributes and
benefits) or phrases that characterize the
5-10 most important dimensions of the
mental map of a brand.
• Relate to points-of-parity and points-of-
difference
• Mental Map
Core Brand Values
Brand
Mantra
 Nike Mental Map
Shoes
Tennis
Clothing
Basketball American

Running

Competition
Top
Athletes
NIKE
Aggresissive

Expensive
Irreverent

Michael Jordan
Cool
Air Quality
Innovation
Technology
Apple Mental Map
 Brand Mantras
A brand mantra is an articulation of
the “heart and soul” of the brand.
– Brand mantras are short three to five
word phrases that capture the irrefutable
essence or spirit of the brand positioning
and brand values.

• Brand Functions
• Descriptive Modifier
• Emotional Modifier
Designing the Brand Mantra

Emotional Descriptive Brand

Modifier Modifier Functions

Authentic Athletic Performance

Nike

Fun Family Entertainment

Disney

Fun Folks Food

Positioning Statement
Provides the underlying platform for
communications, reflecting the
company's/brand's value proposition.

Address:
• definition—how the company defines its
business or how the brand defines its
competitive set; who we are and what we do;
• differentiation—what makes the
company/brand special; how we do it; and
• deliverables—benefit delivered to its
customers.
Positioning Template

• To: ____target market____________

• ______Our brand________________

• Is The:_Frame of reference_______

• That:___Unique owned Benefit____

• Because:___Reason to believe____
 Fundamentals of Positioning…
• Target Customers: Describe the segment
they’re in with relevant dimensions
• Frame of Reference: What goal will be
served by the target by consuming the
brand. What is the category of
consideration/key competitor /consumer
goal defining the category?
• Point of Difference: What distinguishes
you from other offerings in the competitive
set?
• Reasons to Believe: Compelling evidence
that your claim of difference is true…
 Positioning Statement Example:
• To the tradesman who uses his power
tools to make a living and cannot
afford downtime on the job (target),
• DeWalt professional power tools
(frame of reference)
• are more dependable than other
brands of professional power tools
(point of difference)
• because they are engineered to the
brand’s historic high quality standards
and are backed by Black and Decker’s
extensive service network and
guarantee to repair or replace any tool
within 48 hours (reasons to believe).
Some Positioning Examples…
For those who do creative
things with computers,
_______________________

Is the desktop computer

they know will be a user-
friendly creative computer,
compares with MS-Dos
computers
Four elements for an effective
positioning
To (core target), (brand name) is the
(competitive reference point) that (brand payoff)

To highly social young adults who are

concerned about fresh breath, Colgate Fresh
Confidence is the gel toothpaste that
delivers long-lasting fresh breath.
Positioning Elements

–To the PC user, the IOMEGA Zip drive is the

portable storage device that is most cost effective.
Positioning Statement
–To young, active
soft-drink consumers
who have little time
for sleep, Red Bull is
the soft drink that
gives you more
energy than any
other brand because it
has the highest level
of caffeine.
Brand Positioning Statement

For homemakers, Dow

Bathroom Products are
the easy way to get a
great clean shine for your
tub, tile and toilet. That’s
because only Dow
Bathroom Products
contain scrubbing
bubbles that cut through
dirt and grime clean to
the shine!
Brand Positioning Statement

For those suffering

from a cold,
Comtrex offers four
different relief
formulas that treat
and work against
your specific cold
ailments.
Brand Positioning Statement

For cold sufferers,

Contac offers 12
hours of continuous
relief from
congestion and
sinus pressure
thanks to it’s time-
release technology.
Brand Positioning Statement

For consumers ages 16-

35, Crest Whitestrips
whiten teeth five times
better than the leading
paint-on whitening gel.
That’s because Crest’s
gel-coated strips hold
the peroxide on teeth
longer, to whiten stains
below the tooth surface.
Brand Positioning Statement
For women ages 25-
55, Loreal Revitalift
Anti-wrinkle and
firming cream
reduces facial
wrinkles and firms
your skin.

NO REASON
WHY!
Brand Positioning Statement

For “Green”
consumers seeking
healthy foods free
from pesticides,
chemical or
preservatives, Seeds
of Change frozen
entrée’s taste great.
100% of our
ingredients are grown
organically and are not
only healthy for you,
but also our planet.