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Marketing Management, 12/eA South Asian Perspective

11 Crafting the Brand

Positioning

Kotler Koshy

Keller Jha

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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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Marketing Strategy

Segmentation Targeting Positioning

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Positioning

Act of designing the company’soffering and image to occupy

a distinctive place in the mind ofthe target market.

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Value Propositions

Scorpio, Mahindra & MahindraLuxury of a Car and thrill of an SUV

Domino’sA good hot pizza, delivered to your door

within 30 minutes of ordering, at a moderate price

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Writing a Positioning Statement

Mountain Dew: To young, activesoft-drink consumers who have

little time for sleep, Mountain Dewis the soft drink that gives you

more energy than any other brandbecause it has the

highest level of caffeine.

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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

Points-of-parity (POPs) Associations that are

not necessarily unique to the brand but may be shared with other brands

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Conveying Category Membership Announcing category benefits Comparing to exemplars Relying on the product descriptor

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Consumer Desirability Criteria for PODs Relevance Distinctiveness Believability

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Deliverability Criteria for PODs

Feasibility Communicability Sustainability

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Examples of Negatively Correlated Attributes and Benefits Low-price vs. High

quality Taste vs. Low

calories Nutritious vs. Good

tasting Efficacious vs. Mild

Powerful vs. Safe Strong vs. Refined Ubiquitous vs.

Exclusive Varied vs. Simple

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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 Features Performance Conformance Durability Reliability Reparability

Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance

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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

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Product Life Cycle

Introduction Growth Maturity Decline

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Facts about Life Cycles

Products have a limited life. Product sales pass through distinct

stages. Profits rise and fall at different stages. Products require different marketing,

financial, manufacturing, purchasing, and human resource strategies in each stage.

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Marketing Program Modifications

Prices Distribution Advertising Sales promotion Services

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Market Evolution Stages

Emergence Growth Maturity Decline

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Product Life Cycle

Style Fashion FAD (as in short term trends)

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Emerging Markets

Latent Single-niche Multiple-niche Mass-market