MARKETING MANAGEMENT Chapter 10 Crafting the brand Positioning
MARKETING MANAGEMENT Chapter 10 Crafting the Brand Positioning
LEARNING OBJECTIVES After reading this chapter, students should Know how a firm can choose and communicate an effective positioning in the market Know how brands are differentiated Know what marketing strategies are appropriate at each stage of the product life-cycle Know what he implications are of market evolution for marketing strategies
2 LEARNING OBJECTIVES • After reading this chapter, students should: – Know how a firm can choose and communicate an effective positioning in the market – Know how brands are differentiated – Know what marketing strategies are appropriate at each stage of the product life-cycle – Know what he implications are of market evolution for marketing strategies
Chapter Outline Positioning strategies POD VS POP Differentiation Strategies Product Life-Cvcle Marketing strategies
3 Chapter Outline • Positioning Strategies – POD vs. POP • Differentiation Strategies • Product Life-Cycle Marketing Strategies
Marketing Positioning Positioning is the act of designing the Company's offering and image to occupy a distinctive place in the target market's mind Right product Right Customer Right value Better than Competitor
4 Marketing Positioning • Positioning is the act of designing the Company’s offering and image to occupy a distinctive place in the target market’s mind – Right Product – Right Customer – Right Value – Better than Competitor
EXamples of Value Propositions Demand States and Marketing Tasks Company and Target Value Product Customers Benefits Price Proposition Perdue Tenderness 10% More tender (chicken) conscious premium golden chicken at consumers of a moderate chicken premium price Volvo Safety- Durability 20% The safest most (station conscIouS and safety premium durable wagon in wagon) upscale which your family families can ride Domino s Convenience Delivery 15% A good hot pizza, (pizza) minded pizza speed and premium delivered to your lovers good quality door door within 30 minutes of ordering, at a moderate price
5 Examples of Value Propositions Demand States and Marketing Tasks A good hot pizza, delivered to your door door within 30 minutes of ordering, at a moderate price 15% premium Delivery speed and good quality Convenienceminded pizza lovers Domino’s (pizza) The safest, most durable wagon in which your family can ride 20% premium Durability and safety Safetyconscious “upscale” families Volvo (station wagon) More tender golden chicken at a moderate premium price 10% premium Quality- Tenderness conscious consumers of chicken Perdue (chicken) Value Benefits Price Proposition Target Customers Company and Product
Developing a Positioning Strategy Positioning According to Ries Trout Strengthen own current position(Pepsi) Grab an unoccupied position( MOTO) De-position(7-Up) Re-position(KFC) Product ladders (Top 3 Value Discipline Positioning Product leader Operationally excellent firm Customer intimate firm
6 Developing a Positioning Strategy • Positioning According to Ries & Trout – Strengthen own current position (Pepsi) – Grab an unoccupied position (MOTO) – De-position (7-Up) – Re-position (KFC) – Product ladders (Top 3) • Value Discipline Positioning – Product leader – Operationally excellent firm – Customer intimate firm
Positioning Perspectives Attribute: Volvo( Safety) Benefit: Audi A6(Technology) se or application BMWX5 SUV User: Bora(Driver's Car) Competitor: Polo vs Sail(Fashion) Quality/price: LeXus VS BENZ ( Same quality, half cost) Special positioning: Red Flag zhong hua
7 • Attribute: Volvo ( Safety ) • Benefit: Audi A6 (Technology) • Use or application : BMW X5 SUV • User : Bora (Driver’s Car) • Competitor : Polo vs. Sail (Fashion) • Quality / price : Lexus vs. BENZ (Same quality, half cost) • Special positioning: Red Flag & Zhong hua Positioning Perspectives
How many ideas to promote? Unique selling proposition Promote only one benefit to the target market Four major positioning errors Underpositioning Overpositioning Confused positioning Doubtful positioning Profit
8 • Unique selling proposition – Promote only one benefit to the target market • Four major positioning errors – Underpositioning – Overpositioning – Confused positioning – Doubtful positioning How many ideas to promote?
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9 Perceptual Map
Point of Difference(POD) PODs are attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find the same extent with a competitive brand · Examples FedEX(guaranteed overnight delivery Nike(performance) -iKEA (quality for the mass
10 Point of Difference (POD) • PODs are attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find the same extent with a competitive brand. • Examples –FedEx (guaranteed overnight delivery) –Nike (performance) –IKEA (quality for the mass)