Chapter 9 - Crafting The Brand Positioning 451q5v

9 Crafting the Brand Positioning and Dealing with Competition

Chapter Questions ƒ

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How can a firm choose and communicate an effective positioning? How are brands and offerings differentiated? How can a firm identify its primary competitors and analyze their strategies, objectives, strengths, and weaknesses? How can market leaders, challengers, followers, and nichers compete effectively?

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What is Positioning? Positioning is the act of deg the company’s offering and image to occupy a distinctive place in the mind of the target market.

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Competitive Frame of Reference Category hip – the products or sets of products with which a brand competes and which function as close substitutes.

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Conveying Category hip ƒ ƒ ƒ

Announcing category benefits Comparing to exemplars Relying on the product descriptor

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Value Propositions ƒ

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Perdue Chicken ƒ More tender golden chicken at a moderate price Domino’s ƒ A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

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POP versus POD

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Defining Associations (POD, POP) 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 Category POPs vs. Competitive POPs

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Point-of-Difference Criteria Desirable (relevant, desirable, believable) Deliverable (feasible, communicable, sustainable) Differentiating

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Examples of Negatively Correlated Attributes and Benefits ƒ

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Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting Efficacious vs. Mild

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Powerful vs. Safe Strong vs. Refined Ubiquitous vs. Exclusive Varied vs. Simple

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Perceptual Map: Current Perceptions

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Perceptual Map: Possibilities

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Brand Mantras

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Deg a Brand Mantra Communicate

Simplify

Inspire

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Constructing a Brand Positioning Bull’s-Eye

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Differentiation Strategies Product ƒ Form ƒ Features ƒ Customization ƒ Performance quality ƒ Conformance quality ƒ Durability ƒ Reliability ƒ Repairability ƒ Style, design

Services ƒ Ordering ease ƒ Delivery ƒ Installation ƒ Customer training ƒ Customer consulting ƒ Maintenance and repair ƒ Return and exchange policy 9-16

Differentiation Strategies Personnel ƒ Competence ƒ Courtesy ƒ Credibility ƒ Reliability ƒ Responsiveness ƒ Communication

Channel ƒ Market coverage ƒ Expertise ƒ Channel performance Image ƒ Identity ƒ Image

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Five Forces Determining Market Attractiveness

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Analyzing Competitors ƒ ƒ ƒ

Strategies Objectives Strengths and weaknesses

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Industry Concept of Competition ƒ

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Number of sellers and degree of differentiation Entry, mobility, and exit barriers Cost structure Degree of vertical integration Degree of globalization

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Customer Ratings of Competitors

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Hypothetical Market Structure

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Market-Leader Strategies: Expanding the Total Market ƒ ƒ ƒ

New customers New uses More usage

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Market-Leader Strategies: Six Types of Defense Strategies

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Market-Leader Strategies: Expanding Market Share ƒ ƒ ƒ ƒ

Possibility of provoking antitrust action Economic cost Pursuing the wrong marketing-mix strategy The effect of increased market share on actual and perceived quality

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Market-Challenger Strategies ƒ ƒ ƒ

Define the strategic objective and opponents Choose a general attack strategy Choose a specific attack strategy

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Market-Challenger Attack Strategies Frontal Attack

Flank Attack

Encirclement Attack

By Attack

Guerrilla Warfare 9-27

Specific Attack Strategies ƒ ƒ

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Price discounts Lower-priced goods Value-priced goods Prestige goods Product proliferation Product innovation

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Improved services Distribution innovation Manufacturing-cost reduction Intensive advertising promotion

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Market-Follower Strategies ƒ ƒ ƒ ƒ

Counterfeiter Cloner Imitator Adapter

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Market-Nicher Strategies: Niche Specialist Roles ƒ ƒ

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End- Specialist Vertical-Level Specialist Customer-Size Specialist Specific-Customer Specialist Geographic Specialist

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Product-Line Specialist Job-Shop Specialist Quality-Price Specialist Service-Specialist Channel Specialist

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Emotional Branding Strong culture

Communication style

Emotional hook

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Brand Narratives and Storytelling

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Strengths and Weaknesses ƒ ƒ ƒ

Share of market Share of mind Share of heart

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Steps in Benchmarking ƒ

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Determine which functions or processes to benchmark Identify the key performance variables to measure Identify the best-in-class companies Measure the performance of best-in-class companies Measure the company’s performance Specify programs/actions to close the gap Implement and monitor results 9-34

New Ways to Use a Brand

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Protecting Market Share Responsive anticipation

Creative anticipation

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The Concept of Optimal Market Share

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Other Competitive Strategies

Market Challengers

Market Followers

Market Nichers

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Balancing Orientations ƒ ƒ

Competitor-centered Customer-centered

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