Differentiation & Brand Positioning

7/30/2019 Differentiation & Brand Positioning

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PRESENTED BY:ABHIJIT NASKAR

MBA-4A

(008)


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Consumers or organizationalcustomers choose what they buy forone of two reasons:

What they choose is better.

What they choose is cheaper.

In either case, the choice is, in someway, almost always different fromothers they could have chosen.


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Most of the time, differentiation is whypeople buy.

Differentiation among competing

brands Differences can be physical or

perceptual. Brand positioning seeks to create

both physical and perceptualdifferences using all the elements ofthe marketing mix.


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Physical positioning analysis canprovide useful information in the

early stages of identifying anddesigning new product offerings

Based primarily on technical rather

than on market data Physical comparisons can be an

essential step in undertaking a

positioning analysis.


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Limitations

A comparison of the physicaldimensions does not provide acomplete picture of relative positions.

Customers attitudes toward a productare often based on social orpsychological attributes not amenableto objective comparison.

Consequently, perceptual positioninganalysis is critically important.


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Consumers often know very littleabout the essential physical

attributes of the brands they buy. The same is true for many services.

Even if they did, they might not

understand the physical attributeswell enough to use them as a basisfor choosing between competitive

offerings.


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A consumer can typically evaluate aproduct better on the basis of

benefits it provides. The evaluation of many goods and

services is subjective.


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Marketing decision makers seek toendow their brand with various kinds ofattributes:

Simple physically based attributes.

Complex physically based attributes.

Essentially abstract attributes. Price.

Perceptual attributes must be considered

in positioning most products.


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Step 1: Identify a relevant set ofcompetitive products

A positioning analysis at the productor brand level can be helpful.

Marketers who omit important

substitute products or potentialcompetitors risk being blindsided byunforeseen competition.


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Step 2: Identify determinant attributes

Positioning can be based on a variety ofattributes:

Features, benefits, parentage,manufacturing process, ingredients,endorsements, comparison with a

competitors product, pro environmentpositioning, and price/quality.

Marketers should rely primarily on

determinant attributes.


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Step 3: Collect data about customersperceptions for brands in the competitiveset

The marketer needs to know whatattributes are determinant for thetarget market and the product

category under consideration. The marketer also needs to know how

different brands in the competitive set

are viewed on these attributes.


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Step 4: Analyze the current positions ofproducts in the competitive set

The positioning grid, also called aperceptual map provides a visualrepresentation of the positions ofvarious products or brands in the

competitive set in terms of twodeterminant attributes.

Value curve comprises more than just

two dimensions.


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Building a positioning grid

Positioning for a new store could be doneby examining the positioning map for

empty spaces (competitive gaps) whereno existing store is currently located .

Building a value curve

Value curves indicate how productswithin a category compare in terms of thelevelhigh or low.

Value curves are more multidimensional


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Marketing opportunities to gain adistinct position

Competing head-on against theleaders on the basis of attributesappropriated by larger competitorsis not likely to be effective.

A better option is to concentrate onan attribute prized by members of agiven market segment.


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Constraints imposed by an intenseposition

Threat of alienating part or all of the

products current users regardless ofsuccess with its newly targeted group.

Dilution of an existing intense position

as a result of consolidation. Temptation to overexploit the position

by using the brand name on line

extensions and new products.


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Limitations of product positioning analysis

It does not tell the marketer whichpositions are most appealing to customers.

There is no way to determine if there is amarket for a new brand or store.

To solve such problems it is necessary tomeasure customers preferences and locatethem in the product space along with theirperceptions of the positions of existingbrands.

This is called a market positioning analysis.


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Step 5: Determine customers mostpreferred combination of attributes Survey respondents can be asked to

think of the ideal brand within acategory. Respondents could be asked not only to

judge the degree of similarity among

pairs of existing brands but also toindicate their degree of preference foreach.

Conjoint analysis


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Step 6: Consider fit of possible positionswith customer needs and segmentattractiveness

A market positioning analysis cansimultaneously identify distinctmarket segments as well as the

perceived positions of differentbrands.


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By examining the preferences ofcustomers in different segments alongwith their perceptions of the positions ofexisting brands, analysts can learn much

about: The competitive strength of different brands

in different segments. The intensity of the rivalry between brands

in a given segment. The opportunities for gaining a

differentiated position within a specifictarget segment.


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Step 7: Write positioning statement or valueproposition to guide development ofmarketing strategy A positioning statement identifies the target

market for which the product is intended andthe product category in which it competesand states the unique benefit.

A value proposition is similarly explicit

about what the product does for thecustomer and typically also includesinformation about pricing relative tocompetitors.


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Both positioning statements and valuepropositions should generally reflect aunique selling proposition (USP) that

the product embodies. In its shortest form, a value proposition

typically looks like this:

Target market Benefits offered (and not offered)

Price range (relative to competitors)


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Positioning statement or valueproposition should state benefits thatthe user of the product will obtain,

rather than features or attributes of theproduct itself.

Typically not written in catchy

consumer language.


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Brand equity reflects how consumersfeel, think, and act toward the brand.

When companies create differencesbetween their brands and other brands,differences that consumers view asmeaningful, brand equity is the result.


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Managing brand equity Brand reinforcement

Brand revitalization

The emergence of new competitors or changesin consumer tastes and preferences can affect abrands fortunes.

Brand positioning is an ongoing, never-endingprocess.


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Clear and distinctive positioning thatdifferentiates a brand from others withwhich it competes is usually essential for

developing a winning marketingstrategy.

The positioning process outlined in this

chapter helps decision makers choose aposition that maximizes their chance ofestablishing sustainable competitive

advantage.


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Distinctive and intense positioning isbest accomplished when based on one orat most two attributes. More are likely to

be confusing to customers.

Writing clear and succinct positioningstatements or value propositions can

play an important role in ensuringeffective development and execution of amarketing strategy.


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Effective brand positioning decisionsestablish the foundation upon which

successful marketing strategies andprograms are built, thereby settingthe stage for the creation of brand

equity.


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Differentiation & Brand Positioning