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CHAPTER3:

BRANDPOSITIONING&VALUESKevinLaneKellerTuckSchoolofBusinessDartmouthCollege1BrandPositioningIsattheheartofthemarketingstrategy“...theactofdesigningthecompany’sofferandimagesothatitoccupiesadistinctandvaluedplaceinthetargetcustomer’sminds.”PhilipKotler2DeterminingaframeofreferenceWhataretheidealpoints-of-parityandpoints-of-differencebrandassociationsvis-à-visthecompetition?Marketersneedtoknow:WhothetargetconsumerisWhothemaincompetitorsareHowthebrandissimilartothesecompetitorsHowthebrandisdifferentfromthem3TargetMarketAmarketisthesetofallactualandpotentialbuyerswhohavesufficientinterestin,incomefor,andaccesstoaproduct.Marketsegmentationdividesthemarketintodistinctgroupsofhomogeneousconsumerswhohavesimilarneedsandconsumerbehavior,andwhothusrequiresimilarmarketingmixes.Marketsegmentationrequiresmakingtradeoffsbetweencostsandbenefits.4Exampleofthetoothpastemarket

Fourmainsegments:Sensory:SeekingflavorandproductappearanceSociables:SeekingbrightnessofteethWorriers:SeekingdecaypreventionIndependent:Seekinglowprice5CriteriaforSegmentationIdentifiability:Canweeasilyidentifythesegment?Size:Isthereadequatesalespotentialinthesegment?Accessibility:Arespecializeddistributionoutletsandcommunicationmediaavailabletoreachthesegment?Responsiveness:Howfavorablywillthesegmentrespondtoatailoredmarketingprogram?6NatureofCompetitionDecidingtotargetacertaintypeofconsumeroftendefinesthenatureofcompetitionDonotdefinecompetitiontoonarrowlyEx:aluxurygoodwithastronghedonicbenefitlikestereoequipmentmaycompeteasmuchwithavacationaswithotherdurablegoodslikefurniture7Points-of-Parity

andPoints-of-DifferencePoints-of-difference(PODs)areattributesorbenefitsthatconsumersstronglyassociatewithabrand,positivelyevaluate,andbelievethattheycouldnotfindtothesameextentwithacompetitivebrand.Points-of-parityassociations(POPs),ontheotherhand,arenotnecessarilyuniquetothebrandbutmayinfactbesharedwithotherbrands.8BrandPositioningGuidelinesTwokeyissuesinarrivingattheoptimalcompetitivebrandpositioningare:DefiningandcommunicatingthecompetitiveframeofreferenceChoosingandestablishingpoints-of-parityandpoints-of-difference

9DefiningandCommunicatingtheCompetitiveFrameofReferenceDefiningacompetitiveframeofreferenceforabrandpositioningistodeterminecategorymembership.Thepreferredapproachtopositioningistoinformconsumersofabrand’smembershipbeforestatingitspointofdifferenceinrelationshiptoothercategorymembers.10ChoosingPOP’s&POD’sDesirabilitycriteria(consumerperspective)PersonallyrelevantDistinctiveandsuperiorBelievableandcredibleDeliverabilitycriteria(firmperspective)FeasibleProfitablePre-emptive,defensible,anddifficulttoattack11AttributeandBenefitTrade-offsPriceandqualityConvenienceandqualityTasteandlowcaloriesEfficacyandmildnessPowerandsafetyUbiquityandprestigeComprehensiveness(variety)andsimplicityStrengthandrefinement12StrategiestoReconcile

AttributeandBenefitTrade-offsEstablishseparatemarketingprogramsLeveragesecondaryassociation(e.g.,co-brand)Re-definetherelationshipfromnegativetopositive13CoreBrandValuesSetofabstractconceptsorphrasesthatcharacterizethefivetotenmostimportantdimensionsofthementalmapofabrandRelatetopoints-of-parityandpoints-of-differenceMentalmapCorebrandvaluesBrandmantra14BrandMantrasAnarticulationofthe“heartandsoul”ofthebrandsimilarto“brandessence”or“corebrandpromise”

Shortthree-tofive-wordphrasesthatcapturetheirrefutableessenceorspiritofthebrandpositioningandbrandvalues

ConsiderationsCommunicateSimplifyInspire15DesigningtheBrandMantraThetermbrandfunctionsdescribesthenatureoftheproductorserviceorthetypeofexperiencesorbenefitsthebrandprovides.Thedescriptivemodifierfurtherclarifiesitsnature.Theemotionalmodifierprovidesanotherqualifier—howexactlydoesthebrandprovidebenefits,andinwhatway?16DesigningtheBrandMantraEmotionalModifierDescriptiveModifierBrandFunctionsNikeAuthenticAthleticPerformanceDisneyFunFamilyEntertainmentFunFolksFood17InternalBrandingMembersoftheorganizationareproperlyalignedwiththebrandandwhatitrepresents.Crucialforservicecompanies18BrandAuditExternally,consumer-focusedassessementAcomprehensiveexaminationofabrandinvolvingactivitiestoassessthehealthofthebrand,uncoveritssourcesofequity,andsuggestwaystoimproveandleveragethatequity

Itincludesbrandvision,mission,promise,values,position,personality,andperformance19ImportanceofBrandAudits

UnderstandsourcesofbrandequityFirmperspectiveConsumerperspective

SetstrategicdirectionforthebrandRecommendmarketingprogramstomaximizelong-termbrandequity20BrandAuditSteps

Brandinventory(supplyside)Brandexploratory(demandside)21BrandInventory

Acurrentcomprehensiveprofileofhowalltheproductsandservicessoldbyacompanyarebrandedandmarketed:BrandelementsSupportingmarketingprogramsProfileofcompetitivebrandsPOPsandPODsBrandmantra22BrandInventory(Cont.)SuggeststhebasesforpositioningthebrandOffersinsightstohowbrandequitymaybebettermanagedAssessesconsistencyinmessageamongactivities,brandextensions,andsub-brandsinordertoavoidredundancies,overlaps,andconsumerconfusion23BrandExploratory

Providesdetailedinformationastohowconsumersperceivethebrand:AwarenessFavorabilityUniquenessofassociationsHelpsidentifysourcesofcustomer-basedbrandequityUncoversknowledgestructuresforthecorebrandaswellasitscompetitors24SuggestedBr

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