Final Markma Group 4 Presentation Chapter 10 Crafting the Brand Positioning

MARKETING MANAGEMENT

GROUP # 4

Chapter 10:

Crafting the Brand Positoning

Crisostomo, Kathleen Lizette

Jongco, Kristoffer

Piñon, Raymund

Siton, Galicano

Crafting the Brand Positioning

Kristoffer Z. Jongco

Marketing management

Outline

What is Brand/Branding and Positioning Choosing & communicating effective

positioning in market Differentiating brands Marketing strategies for stages of product life

Marketing evolution

Brand and Branding

Brand: A name, term, sign, symbol, or a combination, intended to identify the goods or services of one seller or group of sellers and to differentiate them from competitors

Branding: Providing goods and services with the power of the brand

Advantages of Strong Brands

• Improved perceptions of product performance

• Greater loyalty• Less vulnerability

to competitive marketing actions

• Less vulnerability to crises

• Larger margins• More inelastic

consumer response• Greater trade

cooperation• Increased marketing

communications effectiveness

• Possible licensing opportunities

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

Brand Positioning

Act of designing the company’s offering and image to occupy a distinctive place in the

mind of the target market

Choosing and Communicating an Effective Positioning in the Market

How to choose good elements: • Memorable• Meaningful• Likeable• Transferable• Adaptable

How Brands are Differentiated Product

Personnel

Channel

Personnel

Channel

Product Differentiation

• Product form• Features• Performance• Conformance• Durability• Reliability• Reparability

• Style• Design• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance

Personnel Differentiation

• Better trained • Competent • Trustworthy• Friendly & respectful• Reliable• Responsible• Good communicator

Channel Differentiation

• Coverage• Expertise

• Performance

Image Differentiation

• Establish character and value proposition

• Convey in a distinctive way• Deliver emotional power

Product Life Cycles Stages

Stages in the Product Life Cycle1st Stage

Growth

Stable

Stages in the Product Life Cycle2nd Stage

Declining Maturity

Stages in the Product Life Cycle3rd Stage

Appropriate Marketing Strategies:1st Strategy

Improve Quality

Distribution

Appropriate Marketing Strategies:2nd Strategy

Advertising

Appropriate Marketing Strategies:3rd Strategy

Sales Promotion

Appropriate Marketing Strategies:4th Strategy

Services

Appropriate Marketing Strategies:5th Strategy

Attract Customers

Appropriate Marketing Strategies:Increasing Sales Volume

Appropriate Marketing Strategiesfor stages of product life cycle

Stages:Growth; Stable; Decaying Maturity

Improve quality Distribution Advertising Sales Promotion Services

Attract

Market Evolution Stages:1st Stage

• Emergence

• Growth

Market Evolution Stages:2nd Stage

• Maturity

Market Evolution Stages:3rd Stage

Market Evolution Stages:4th Stage

• Decline

Market Evolution 4 Stages

• Emergence

• Growth

• Maturity

• Decline

Summary

What is a Brand, Branding & Positioning? How to choose and communicate effective

positioning Brand Differentiation The different marketing strategies Evolution of marketing

Communicate Effective Positioning

Brand Differentiation Marketing Strategies

Market Evolution

Product

Personnel

Channel

Emergence-Growth-Maturity-Decline

Product Life Cycle

Improve quality Distribution Advertising Sales PromotionServices

Attract

Growth, Stable, Decaying Maturity

Crisostomo, Kathleen Lizette C.

MARKMA

Chapter 10 – Crafting the Brand Positioning

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the

mind of the target market.

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 brandPoints-of-parity (POPs)Associations that are not necessarily unique to the brand but may be shared with other brands

Criteria for PODs:

* Relevance* Distinctiveness* Believability

Desirable:

Criteria for PODs:

* Relevance* Distinctiveness* Believability

* Feasibility* Communicability* Sustainability

Desirable:

Deliverable:

Differentiation Strategies

Product

Personnel

Product

Personnel

Channel

Product

Personnel

Channel

Product Life Cycle Claims:

Products have a limited life

Product sales pass through distinct stages each with different challenges and opportunities

Profits rise and fall at different stages

Products require different strategies in each life cycle stage

Product Life Cycle Marketing Strategies

• Introduction stage - slow growth in minimal profits.- if successful, the product enters a gross stage marked by rapid sales growth and increasing profits

• Growth Stage- Improve product

quality - Add new product

features, models- Enter new markets –Increase distribution

coverage- Shift from product-

awareness advertising to product-preference

• Maturity Stage- Improve product

quality - Add new product

features, models- Enter new markets –Increase distribution

coverage- Shift from product-

awareness advertising to product-preference

• Decline stage- Identify the truly weak products and develop a

strategy for each or phase out

The Maturity Stage

Growth

Stable

Decaying Maturity

STAGES

The Maturity Stage

Growth

Stable

Decaying Maturity

STAGES

PRODUCT MODIFICATIONS

2012 Toyota Prius-C Hybrid Sedan1. Quality 2.

Features3.

The Maturity Stage

Growth

Stable

Decaying Maturity

STAGES

PRODUCT MODIFICATIONS

2012 Toyota Prius-C Hybrid Sedan1. Quality 2.

Features3.

PROCESS MODIFICATIONS

P.A.D.S.S.Prices

Advertising

DistributionSales

PromotionServices

Maturity Stages: Growth, Stable, Maturity

Decline

Maturity Stage: Product Modification

Product Life Cycle Marketing Strategies: Introduction, Growth,

Maturity, Decline

Limited Life

Defined Stages

Rise and Fall of ProfitsDifferent Strategies in Each Life Cycle

Product

Personnel

Channel

Criteria for PODs

Desirable

Deliverable

SUMMARY PAGE

Crafting the Brand Positioning:

A Visual Model (Chapter 10) Raymund C. Piñon

Marketing Management V57

VCoach Bong De Ungria

Marketing Task #4BUILDING STRONG BRANDS

Crafting the Brand Positioning

ObjectivesAt the end of this presentation, the participants should be able to

1. Understand how firms can choose and communicate an effective positioning in the market

2. See how brands are differentiated

3. Appreciate how different marketing strategies are appropriate at each stage of the product life cycle

4. Understand the implications of market evolution for marketing strategies

Outline

Developing and Communicating a Positioning Strategy Competitive Frame of Reference Points-of-Difference and Points-of-Parity

Product Life-Cycle Strategies

The 4th Task of Marketing is…

Developing and Communicating a Positioning Strategy

All marketing strategy is built on STP

Segmentation – discover different needs and groups in the marketplace

Targeting – identify groups it can satisfy in a superior way

Positioning – positions its offering so that the target market recognizes the firm’s distinctive offering & image

What is Positioning?Act of designing an offer and image to occupy a distinctive place in the minds of the target market

Positioning results in

The creation of a

A persuasive REASON WHY the target market should buy the product

Positioning Examples of Customer-Focused Value Propositions

Langhap Sarap Food offered by Jollibee caters to Filipino taste

Pera padala Makakarating ang padala mo

We have it all for you Convenient shopping experience in SM’s one-stop

shop because it provides all you need under one roof

World’s safest pain reliever Biogesic is safe even for pregnant women

PositioningStarts with…

A Competitive Frame of Reference

And then looks at

Points-of-Difference and Points-of-Parity

Positioning So Start with a Competitive Frame of Reference by

1st Identifying the Product’s Category Membership

Define Customer Target Market

Define Nature of Competition Products and services competing

for same target segment Substitute products and services

PositioningThen Looking at Points-of Differences

POD – attributes or benefits that consumers… Strongly associate with a brand

Positively evaluate

Believe are unique to the brand or could not be found to the same extent in other brands

Energizer – longest lasting battery

Louis Vuitton – most stylish handbag

Fun place for family to be togetherand for children to play

Clean pleasant modern facilities Food kids love and are affordable

Prompt friendly service

Ned Roberto (Marketing Guru) Manny Paquiao (Pambansang Kamao)

Positioningand also at Points-of-Parity

POP – attribute or benefit associations not unique to the brand but may in fact be shared with other brands

2 Types of POPs are:

Category POPs

Competitive POPs

PositioningCategory POPs are:

Associations essential to a legitimate and credible offering within a category

Necessary, but not sufficient, condition for brand choice

Soap must be able to clean

A doctor must have medical training and license to practice

PositioningCompetitive POPs are

Associations designed to negate a competitor’s POD

Brand “breaks even” on areas where competitors are trying to create an advantage

Consumers must believebrand is “good enough” onan attribute or benefit

PositioningTo Establish Category Membership

Marketers must inform consumers of a brand’s category membership Announcing category benefits

Cherifer – tangkad sagad Enervon C - protektodo

Comparing to exemplars The Rolls Royce of the banking industry Elvis Presley of the Philippines

Relying on the product descriptor Ford Freestyle “Space Wagon” Ateneo Graduate School of Business

PositioningIn Choosing POPs and PODs, we need to consider

For PODs

Desirability Relevant and Important

Distinctive and superior

Believable, credible, compelling

Deliverability of promise Feasibility

Design and offer support desired associations

Communicability Compelling reason to believe Understandable rationale why brand can deliver desired benefits Verifiable evidence or proof points

Sustainability Preemptive Defensible Difficult to attack

PositioningIn Choosing POPs, consider

Need for category membership

Create competitive POPs to negate competitors’ PODs

PositioningMarketers must choose which level of a Brand’s POD to highlight

Attributes- Promil containstaurine

FunctionalBenefits (What a

brand does)- Promotes

Braindevelopment

Psycho-Social

EmotionalBenefits

(Self-ImageSocial Image)

- I’m a good Mom

Instrumental and

TerminalValues

- My children will love me

This?This?

This?Or this?

PositioningThe outcome of the process of creating a value proposition is a Positioning Statement

To (Target group and need)

Children who are undernourished due to poor appetite

Our(Brand)

Appebon

Is(Concept)

Is a complete vitamin-mineral formulation with an appetite stimulant

That(what the POD is or does)

Provides needed nourishment and stimulates children’s appetite because it contains 5 mg of buclizine HCl

DifferentiationTo avoid the commodity trap, we consider Competitive advantage

A company’s ability to perform in one or more ways that competitors cannot or will not match

Leverageable advantage Advantage a company can use as springboard to new

advantages

Customer advantage Competitive advantage that is seen by customer as an

advantage to themselves

DifferentiationTo derive fresh insights to differentiate our brand we can use tools such as

The Consumption Chain Examining customers’ entire experience

with a product or service to uncover opportunities to position offerings in ways no one thought possible

McMillan & McGath Questionnaire To derive consumer-based

points of differentiation

DifferentiationSome Dimensions we can use to differentiate are

Product design Swatch – colorful, fashionable watches Subway – healthy alternative to fast foods

Personnel Differentiation Better-trained employees

Channel Differentiation More effective and efficient design of

distribution channels’ coverage, expertise and performance

Image Differentiation Craft powerful, compelling images Marlboro Man

Product Life CycleDescribes an analogy of the stages of life of a product that is similar to natural biological stages of living things

Birth Slow sales growth Heavy expenditure Non-existent profits

Growth Rapid market acceptance Substantial profit improvement

Maturity Slowdown in sales growth Acceptance by most potential buyers Stabilized or decreased profits Increased competition

Decline Sales decline Profits erode

Product Life Cycle Marketing StrategiesRecall that Marketing Strategy is about STPSo examine your brand’s STP at different stages in the PLC

A company’s POSITIONING and DIFFERENTIATION strategy must change as products, markets and competitors change

over the PRODUCT LIFE CYCLE

SWOTSWOT

Product Life Cycle Introduction Stage Marketing Strategies

Key Issues:• Pioneer 1st to market with new product vs. late entrant with better product• Heavy investments in product, technology, market, channel development• Market entry strategy with high risks and uncertainty

Product Life Cycle Growth Stage Marketing Strategies

• New entrants come in with new product features and expanded distribution• Customer base expands from innovators to early adopters• Sales increase, prices remain or fall, promo expense and profits increase• Company improves product quality, adds new features and improves styling• Adds new models and flankers, enters new segments, • Increases distribution coverage and enters new channels• Shifts from product awareness advertising to product preference advertising• Lowers prices to attract next layer of price-sensitive buyers

Product Life Cycle Maturity Stage Marketing Strategies

• Sales growth rate slows, flattens then declines• No new distribution channels, market is saturated, future growth organic• Customer starts switching to other products• New competitive forces – emerge of new categories or blue oceans• Sales decline cause overcapacity and leads to fierce competition for market shares • Price wars, increased promo spending, increased R&D spend• Exit of weaker competitors and dominance of a few large competitors: quality leader,

cost leader, service leader and a few nichers

Product Life Cycle Maturity Stage Marketing Strategies

Ways to change the course of a brand during maturity stage• Market modification - expand market:

Volume = Expand # of brand users x increase usage rate per user

• Product modification: Improve quality, features, style

• Market program modification: pricing, distribution, advertising, trade and consumer promotions, personal selling, services

Product Life Cycle Decline Stage Marketing Strategies

• Sales decline due to technological advances, changes consumer preferences, increased domestic and foreign competition

• Industry overcapacity, price cuts, profit erosion• Companies exit the market, reduce products offered, withdraw smaller segments and

weaker trade channels • Cut promotional budget and lower prices further• Sustain product? Modify marketing strategy? Drop product?• Harvest – maintain sales, cut costs. • Divest – Sell or liquidate?

Market EvolutionMarkets also go through life cycle stages

Latent market Diffused preference

Single-niche strategy Multiple-niche strategy Mass-market strategy

Emergence stage

Growth stage

Maturity stage Market fragmentation Market consolidation

Decline stage

Market EvolutionReview Brand’s STP at each stage of the Market’s Evolution

Firms must visualize a market’s evolutionary path as it is affected by new needs, technology, competitors, channels and other developments. A company’s POSITIONING and DIFFERENTIATION

strategy must change to keep pace with market developments

SWOTSWOT

In SummaryWe discussed…

1. How firms choose and communicate an effective positioning in the market

2. How brands are differentiated

3. How different marketing strategies are appropriate at each stage of the product life cycle

4. Implications of market evolution for marketing strategies

P – Positioning

Crafting the Value Proposition

Points of Parity

MarketCompetition

Points of Difference

Differentiation

Product Life Cycle

Market Evolution

4th Task of Marketing?

Avoid the commodity trap

HOW???

Positioning changes w/ changing PLC and ME

Building Strong Brands!!!

PositioningStatement:

ToOurIs

Galicano, Siton

Markma V57

Crafting The Brand Positioning

Defining Association

Why they are similar and Why they are so different

Deliverability and Desirability Criteria of PODS

Relevance

BelievabilityDistinctiveness

Communicability

Sustainability

Feasible

Product Personnel

Channel Image

Product Lifecycle

Marketing Program Modifications and Evolution Ways to Increase

Sales Volume Use product in new

ways Use product in many

occasion Use many product in

many occasions

Emerging and Maturing Markets

Relevance

BelievabilityDistinctiveness

Communicability

Sustainability

Feasible

Product Cycle

Emerging

Maturing

Brand Craft

Association

Final Markma Group 4 Presentation Chapter 10 Crafting the Brand Positioning

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