BMGT 411: Chapter 9

Crafting Brand Positioning

Chapter Questions

• How can a firm develop and establish an effective positioning?

• How are brands successfully differentiated?

• How do marketers identify and analyze competition?

• How can market leaders, challengers, followers, and nichers compete effectively?

Brand Positioning Statement• Positioning: The act of designing a company’s offering and image to

occupy a distinctive place in the minds of the target market

• Positioning Statement or Value Propositions

• For (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference).

• Frame of Reference: The category the brand name competes in

ExamplesFor (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference).

ExamplesFor (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference).

ExamplesFor (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference).

ExamplesFor (target audience), (brand name) is the (frame of reference) that delivers (benefit/point of difference).

YOUR EXAMPLE

Defining Associations

• Points-of-difference: 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: Associations that are not necessarily unique to the brand but may be shared with other brands

Point-of-Difference Criteria for POD

• Desirable to Consumer: Consumers must see the brand association as personally relevant to them

• Deliverable: The company must have resources to feasibly and profitably create and maintain the brand association in the minds

• Ex: If Walmart promised great customer service

• Differentiating from Competitors: Consumers must see the brand association as distinctive and superior to competitors

Figure 9.1a Perceptual Map: Current

PerceptionsBrand Repositioning

Figure 9.1b Perceptual Map: Possibilities

Brand Repositioning

Dimensions of Differentiation for Competitive

Employee

Channel

Image

Services

Employee Differentiation!• Better trained• Superior customer service• Often premium priced vs competition

Channel Differentiation!•Channel coverage, convenience• Makes buying easier• More enjoyable• More rewarding

Image Differentiation !•Powerful brand images that appeal to customers social and psychological needs• Often premium prices

Service Differentiation!•Delivering more effectively to consumers• Delivering more efficiently

Figure 9.1 Hypothetical Market Structure

Protecting Market Share Continuous Innovation

Types of Defense Strategies - Market Leaders

• Position Defense: Continuing to occupy the most desirable position through marketing and continued innovation

• Flank Defense: Developing brand extensions to compete at lower price points to try to meet attackers (Luv’s Diapers Vs Private Label)

• Preemptive Defense: Announce new products at a pace competitors cannot keep up with

Types of Defense Strategies Market Leaders

• Counteroffensive Defense: Lowering prices so competitors cant compete, even at a loss, while gaining profits off other products

• Mobile Defense: Enters new territories or market diversifications

• Contraction Defense: Letting go, or sunsetting unprofitable products to focus on more profitable ones

General Attack Strategies - Challengers

• Frontal attack: Matches opponents product, price, and marketing (Usually loses in retail)

• Flank attack: Targets underperforming geographic areas, or to serve uncovered market needs

• Encirclement attack: Launching an attack in several areas at once, requires great resources

• Bypass attack: Diversifying products, innovating, shifting messaging where challenger has advantage

• Guerrilla warfare: Grassroots marketing efforts meant to surprise the market leader

Specific Attack Strategies

• Price discounts

• Lower-priced goods

• Value-priced goods

• Prestige goods

• Product proliferation

• Product innovation

• Improved services

• Distribution innovation

• Manufacturing-cost reduction

• Intensive advertising promotion

Market Follower Strategies !

Market Nicher Strategies

• End-User Specialist

• Vertical-Level Specialist

• Customer-Size Specialist

• Specific-Customer Specialist

• Geographic Specialist

• Product-Line Specialist

• Job-Shop Specialist

• Quality-Price Specialist

• Service-Specialist

• Channel Specialist