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.