Brand positioning

Crafting the Brand Positioning

Marketing ManagementAdrian Arsenal

Brand Positioning: The Cornerstone

• The brand strategy is the single most important item in all of marketing.

• It defines EVERYTHING about what your brand is to your consumer.

The act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market.

The goal is to locate a brand in the minds of consumers to maximize the potential benefit to the firm.

Brand Positioning: The Cornerstone

Defining Associations

Point of difference (POD) are those associations unique to the brand that are also strongly held and favorably evaluated by consumers.

Brand Attributes

Brand Benefits

Brand Values

Point of parity (POP) are those associations not necessarily unique to the brand but perhaps shared with other brands.

Category point of parity are associations consumer view as being necessary to a legitimate and credible product offering within a certain category.

Competitive point of parity are associations designed to negate competitors points-of-difference.

Defining Associations

Competitive Advantage

“Famous for their mouth-watering, hot, original glazed

doughnuts”

• The company’s ability to perform in one or more ways that competitors cannot match.

• The key to competitive advantage is relevant brand differentiation.

• Consumers must find something unique and meaningful about the market.

Product Life Cycle

Most product life-cycle curves are portrayed as bell-shaped and this curve is typically divided into four stages.

Product Life Cycle

Growth- rapid sales growth (market acceptance) and substantial profit improvement.

Maturity- sales growth slows and profits stabilize because of increased competition.

Introduction- slow sales growth and minimal profits (heavy expenses of product introduction.)

Decline- sales show a downward drift and profits erode

CHARACTERISTICS

Introduction Growth Maturity Decline

Sales Low sales Rapidly rising sales Peak sales Declining sales

Costs High cost per customer

Average cost per customer

Low cost per customer

Low cost per customerProfits Negative Rising profits High profits Declining Profits

Customers Innovators Early adopters Middle majority Laggards

Competitors Few Growing number Stable number beginning to decline

Declining number

Introduction Growth Maturity DeclineMarketing Objectives

Create product awareness and trial

Maximize market share

Maximize profit while defending

market share

Reduce expenditure and milk the brand

Product Life Cycle

STRATEGIES Introduction Growth Maturity DeclineProduct Offer a basic

productOffer product

extentions, service, warranty

Diversify brands and items models

Phase out weak products

Price charge cost-plus Price to penetrate the market

Price to match or best competitors

Cut price

Distribution Build selective distribution

Build intensive distribution

Build more intensive distribution

Go selective: Pahse out unprofitable

outletsAdvertising Build product

awareness among early adopters and

dealers

Build awareness and interest in the mass

market

Stress brand differencesand

benefits

Reduce to level needed to retain hard-core loyals

Sales Promotion Use heavy sales promotion to entice

trial

reduce to take advantage of heavy consumer demand

Increase to encourage brand

switching

Reduce to minimal level

Product Life Cycle

Positioning is not effective unless it sticks to the mind of the consumers. It is what’s the brand stands for and what the consumers can get out of what it stands for.