D E V E L O P I N G A N D E S T A B L I S H I N G A B R A N D
P O S I T I O N I N G
D I F F E R E N T I A T I O N S T R A T E G I E S

 Positioning
- the act of designing a company's offering and image to occupy a distinctive place in the minds of the target market. The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm.

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Determining the Frame of Reference
Identifying the optimal points-of-parity and pointsof-difference brand associations
Creating a brand mantra to summarize the positioning

 The competitive frame of reference defines which other brands a brand compete with and therefore which brands should be the focus of competitive analysis.
 In other words, competitive frame of reference is the market you compete in.

 Category membership—the products or sets of products with which a brand competes and which function as close substitutes.
 Need to understand consumer behavior and the consideration sets consumers use in making brand choices.

 Points-of-difference (PODs) are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand.
Strong brands may have multiple points-ofdifference.

3 Criteria That Determine Whether A Brand
Association Can Function As Points-of-Difference.
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Desirable to consumer - Consumers must see the brand association as personally relevant to them.
Deliverable by the company - The company must have the resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers. The ideal brand association is preemptive, defensible, and difficult to attack.
Differentiating from competitors - Consumers must see the brand association as distinctive and superior to competitors.

 Points-of-parity (POPs) are attributes or benefit associations that are not necessarily unique to the brand but may be shared with other brands.
Category points-of-parity are associations come in two forms: category and competitive. Category points-of-parity may change over time due to technological advances, legal developments, or consumer trends.

 For choosing specific benefits as POPs and PODs to position a brand, marketers may use perceptual maps, visual representations of consumer perceptions and preferences. These provide quantitative portrayals of market situations and consumer perceptions along various dimensions, revealing "openings" that suggest unmet consumer needs and marketing opportunities.

 Mantra
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 is a one line phrase that epitomizes your company philosophy.
Most often taken right from your mission statement. The company mantra is used both inside and outside the company for employees and customers. A mantra is a phrase to help you focus.
Ex. Nike - Authentic Athletic Performance

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Mantra is an articulation of the brand essence and promise.
Slogan promotes a product or service.

 Establishing the brand positioning requires that consumers understand what the brand offers and what makes it a superior competitive choice.

3 Ways to Convey A Brand’s Category Membership
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Announcing category benefits - To ensure consumers that a brand will deliver on the fundamental reason for using a category, marketers frequently use benefits to announce category membership. Thus, industrial tools might claim to have durability.
Comparing to exemplars - Well-known, noteworthy brands in a category can help a brand specify its category membership.
Relying on the product descriptor - The product descriptor that follows the brand name is a concise means of conveying category origin. Amazon.com calls its
Kindle a "wireless reading device" to communicate category membership.

 Differentiation
- (Michael Porter) Result to make a product or brand stand out as a provider of
unique value to customers in comparison with its competitors.

Differentiation Strategies & Dimensions of
Differentiation
 Product Differentiation
 Form, Features, Customization, Performance
Quality, Conformance Quality, Durability,
Reliability, Reparability, Style, Design

Differentiation Strategies & Dimensions of
Differentiation
 Service Differentiation
 A service firm can differentiate itself by delivering more effective and efficient solutions to consumers.

 Ordering Ease, Delivery, Installation, Customer
Training, Customer Consulting, Maintenance and
Repair, Returns

 Employee differentiation - Companies can have better-trained employees who provide superior customer service.

 Channel differentiation - Companies can design their channels' coverage, expertise, and performance to make buying easier, more enjoyable, and more rewarding for customers.

 Image differentiation - Companies can craft powerful, compelling images that appeal to consumers' social and psychological needs.

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Moutinho, L., Southern, G. (2010). Strategic
Marketing Management. Cheriton House, North
Way, Andover, Hampshire. SP10 5BE, UK: Cengage
Learning EMEA.
www.cengage.co.uk/moutinho

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