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11 Crafting the Brand Positioning Marketing Management A South Asian Perspective, 13th ed Chapter Questions • How can a firm choose and communicate an effective positioning in the market? • How are brands differentiated? • What marketing strategies are appropriate at each stage of the product life cycle? • What are the implications of market evolution for marketing strategies? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-2 Positioning of Café Coffee Day Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-3 What is 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. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-4 Value Propositions • Scorpio, Mahindra and Mahindra A vehicle that provides the luxury and comfort of a car, and the adventure and thrills of an SUV • Domino’s A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-5 Defining Associations Points-of-parity Points-of-difference (POPs) (PODs) • Attributes or benefits • Associations that are not consumers strongly necessarily associate with a unique to the brand, positively brand but may be evaluate, and believe shared with other they could not find to the same extent with a brands competitive brand Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-6 PODs and POPs Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-7 Establishing Category Membership • This “four-in-one entertainment solution” from Konica failed to establish category membership Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-8 Conveying Category Membership Announcing category benefits Comparing to exemplars Relying on the product descriptor Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-9 Consumer Desirability Criteria for PODs Relevance Distinctiveness Believability Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-10 Deliverability Criteria for PODs Feasibility Communicability Sustainability Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-11 Examples of Negatively Correlated Attributes and Benefits • Low-price vs. High quality • Taste vs. Low calories • Nutritious vs. Good tasting • Efficacious vs. Mild Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. • Powerful vs. Safe • Strong vs. Refined • Ubiquitous vs. Exclusive • Varied vs. Simple 11-12 Addressing negatively correlated PODs and POPs • Present separately • Leverage equity of another entity • Redefine the relationship Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-13 Differentiation Strategies Product Personnel Channel Image Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-14 Product Differentiation • • • • • • • Product form Features Performance Conformance Durability Reliability Reparability Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. • • • • • • • • Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance 11-15 Personnel Differentiation: Singapore Airlines Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-16 Nature’s Basket Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-17 Image Differentiation Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-18 Claims of Product Life Cycles • 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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-19 Figure 11.1 Sales and Product Life Cycle Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-20 Figure 11.2 Common Product Life-Cycle Patterns Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-21 Figure 11.3 Style, Fashion, and Fad Life Cycles Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-22 The Pioneer Advantage Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-23 Figure 11.4 Long-Range Product Market Expansion Strategy Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-24 Strategies for Sustaining Rapid Market Growth • Improve product quality, add new features, and improve styling • Add new models and flanker products • Enter new market segments • Increase distribution coverage • Shift from product-awareness advertising to product-preference advertising • Lower prices to attract the next layer of pricesensitive buyers Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-25 Stages in the Maturity Stage Growth Stable Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Decaying maturity 11-26 Marketing Product Modifications • Quality improvements • Feature improvements • Style improvements Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-27 Marketing Program Modifications Prices Distribution Advertising Sales promotion Services Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-28 Ways to Increase Sales Volume • • • • Convert nonusers Enter new market segments Attract competitors’ customers Have consumers use the product on more occasions • Have consumers use more of the product on each occasion • Have consumers use the product in new ways Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-29 A Product in Decline Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-30 Market Evolution Stages Emergence Growth Maturity Decline Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-31 Emerging Markets Latent Single-niche Multiple-niche Mass-market Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-32 Figure 11.5 Maturity Strategies Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-33 Marketing Debate Do brands have finite lives? Take a position: 1. Brands cannot be expected to last forever. or 2. There is no reason for a brand to ever become obsolete. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-34 Marketing Discussion What strategies do firms use to try to position themselves on the basis of pairs of attributes and benefits? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 11-35