Product PositioningProduct Positioning

Step 2: Understanding the Components of Positioning

Essential Elements of Brand Essential Elements of Brand PositioningPositioning

Consumer NeedsTarget GroupCompetitive FrameworkBenefitReason WhyBrand CharacterValue-Based Payoff

Consumer NeedsConsumer Needs Element Element

Needs can be exemplified in two ways:Utilitarian Needs

Physical or functional needs that emphasize objective, tangible attributes of products

Hedonic needsPsychographic or emotional needs characterized

by subjective, experiential benefits of products

Utilitarian Needs: ExamplesUtilitarian Needs: Examples

The need to satisfy my hunger, thirst

The need for safe shelter

The need for reliable transportation

The need for an organized work environment

Hedonic Needs: ExamplesHedonic Needs: Examples

The need for acceptance

The need to trust and be trusted

The need to be recognized for one’s accomplishments

Competitive FrameworkCompetitive Framework ElementElement

The competitive framework provides a grouping of like products with which our product competesDirect & indirect competitors

Requirement: Framework must be consistent with the brand’s main benefit.

BenefitBenefit Element Element

Encapsulates the most meaningful product difference between our brand and the competitors

Benefit must be consistent with the product’s physical attributes

Reason WhyReason Why Element Element

Element that adds credibility to the main benefit by emphasizing supporting rationale intrinsic to the brand

Makes a connection between those attributes that support the benefit(s) promise

Brand CharacterBrand Character Element Element

Element that addresses who your brand is.

The personage or personality of your specific brandComplexionTemperamentSpirit/Soul

TheThe Value-Based Value-Based Payoff Payoff

The element that captures the value associated with the benefit promise

Recall: Essential Elements of Recall: Essential Elements of Brand PositioningBrand Positioning

Consumer NeedsTarget GroupCompetitive FrameworkBenefitReason WhyBrand CharacterValue-Based Payoff

When The Components are In When The Components are In PlacePlace

Once all components are in place, the positioning statement can be formulated

Statement partsStatement parts

To (specify target market) who need (specify need)

(brand name) is the (competitive framework) brand

that (state the benefit(s)).

The reason is because (state the “reason(s) why”).

Statement (cont.)Statement (cont.)

The brand personality is (specify personality characteristics).

The value-based payoff is (specify).

Example1 (Sundell, Example1 (Sundell, Oretsky,Masters)Oretsky,Masters)

To college students who need an inexpensive meal to get them through afternoon classes, Campbell’s soup is the brand of canned soup that gives you a quick and tasty meal. The reason is that 1) it requires minimal preparation time and 2) is ready to heat and eat.

The brand character is versatile and on-the-go.

The value-based payoff is empowerment.

Example2 (Foster, Gruse, Example2 (Foster, Gruse, Demers, Bennett, Carlson)Demers, Bennett, Carlson)

To senior citizens who need a simple, healthy meal without the fuss of preparation, Campbell’s soup is the “quick meal” brand that gives you a healthy meal and preparation convenience. The reason is that it is low in cholesterol and ready-to-eat.

The brand character is caring. The value-based payoff is security and

empowerment.

Example3 (Dussuyer, Beam, Example3 (Dussuyer, Beam, Abbott, Zwolinski)Abbott, Zwolinski)

To young couples (“youples”) who need meals to accommodate the fact that they are “eating on a budget,” Campbell’s brand soup provides you with an affordable, yet nutritious meal. The reason is because it sells for less than the price of dinner for two out and it contains vitamins, iron and protein.

Example 3 (cont.)Example 3 (cont.)

The brand character is steamy and romantic.

The value-based payoff is self-direction and security.

Example4 (Tony, Patel, Catone, Example4 (Tony, Patel, Catone, Jacobsen)Jacobsen)

To business people who need a quick, fast lunch, Campbell’s soup is the fast-food alternative that gives you a quick, tasty meal in the middle of the work day. The reason is because it 1) is ready to eat, 2) takes minimal preparation, and 3) is microwavable.

The brand character is reliable, helpful. The value-based payoff is accomplishment.

The positioning statement provides the basis for the communication strategy

The communication strategy statement specifies what the focus of marketing communications should be

Communication Strategy Communication Strategy TemplateTemplate

Convince: (Target Audience)

That: (Product Benefit based on a Competitive Framework)

Because: (Reason Why)

Specify the Brand Character, V-B Payoff

Positioning ExamplePositioning Example

To business people who need a quick, fast lunch, Campbell’s soup is the fast-food alternative that gives you a quick, tasty meal in the middle of the work day. The reason is because it 1) is ready to eat, 2) takes minimal preparation, and 3) is microwavable.

The brand character is reliable, helpful. The value-based payoff is accomplishment.

The Communication StrategyThe Communication Strategy

Convince: business people who need a quick, fast lunch

That: Campbell’s soup is the fast-food alternative that gives you a quick, tasty meal in the middle of the work day

Because: it is ready to eat and takes minimal preparation.

Communication Strategy (cont.)Communication Strategy (cont.)

The brand character is reliable, helpful.

The value-based payoff is accomplishment.