Branding & Services Marketing Brand Positioning Marketing Jeopardy What is a brand? The promise you make to your customers / prospective customers Brand Positioning What do we mean by positioning? A couple of definitions • • Creating distinct and valued physical and perceptual differences between one’s product and its competitors, as perceived by the target customer. The act of designing the firm’s market offering so that it occupies a distinct and valued place in the minds of its target customers. Marketing Jeopardy What is determining exactly what niche your offering is intended to fill? Brand Positioning Brand Positioning What don’t we mean by positioning? • • • • Which stores or channels you’ll sell the product in Where on the shelf you hope to have it placed The market segment you will target These decisions are related to or grow out of the positioning decision, but they are not positioning, as marketers use the term. Competitive Positioning Strategies Competitive Advantage Lower Cost Differentiation Broad Target Cost Leadership Strategy Differentiation Strategy Narrow Target Focus Strategy Focus Strategy (Differentiation Based) Competitive Scope Physical & Perceptual Positioning Analysis Physical positioning Perceptual positioning • • • • • • • • • • Technical orientation Physical characteristics Objective measures Data readily available Physical brand properties • Large number of dimensions • Represents impact of product specs and price • Direct R&D implications Consumer orientation Perceptual attributes Perceptual measures Need for marketing research Perceptual brand positions and positioning intensities • Limited number of dimensions • Represents impact of product specs and communication • R&D implications need to be interpreted Perceptual Maps Import Domestic Light Beer Heavy Where would you plot your favorite beers? Your best friend’s favorites? Your parent’s? Positioning Statement Framework FOR distributors who want to enhance their profitability EiKO IS the alternative lighting supplier THAT GIVES YOU a competitive edge BECAUSE as the most experienced Far East importer, we have the experience and the skills necessary to deliver to you a superior lighting product at a lower cost. Positioning Statement Framework FOR distributors who want to enhance their profitability EiKO IS the alternative lighting supplier THAT GIVES YOU a competitive edge UNLIKE the other “boutique” suppliers, EiKO is the only one to offer: • Broad product coverage in several market segments • Virtually every product the Big 3 provide • Hard-to-find specialty bulbs • Responsive, flexible service • Attractive profit margins Value Proposition The USP: Unique Selling Proposition • • • How you win the battle in thirty seconds Elevator conversation explains your differentiation Defines how you expect to win the prospect to your side Marketing Services Marketing a Service What is a “Service”? • • • • • • An intangible Inseparable Perishable Heterogeneous Client-based Relationships Most involve customer contact Service Characteristics • Intangibility – Difficult for customer to evaluate – No physical possession – Difficult to display/advertise – Difficult to price – No patent protection Service Characteristics • Inseparability – No mass production – Customer must participate in the production – Other consumers affect the outcomes – Difficult to distribute Service Characteristics • Perishability – Cannot be stored or inventoried – Difficult to balance supply and demand – Unused capacity lost forever – Demand can be very time sensitive Service Characteristics • Heterogeneity – Quality difficult to control – Standardization very difficult Service Characteristics • Client-based Relationships – Tough to satisfy and keep clients over time – Generating repeat business is a challenge – Relationship marketing is critical Service Characteristics • Customer Contact – Providers are critical to delivery – High levels of employee training and motivation are required – Maintaining customer satisfaction difficult as contact relationship changes Distribution of Services • • • • Typically short and direct Often use intermediaries Balancing supply and demand a key Moving from high contact to low contact approach Promotion of Services • • • • • Explanation of features and benefits difficult Often marketed to lifestyles of target audience More price promotions Word of Mouth critical Promotional programs designed to encourage trial (guarantees) Pricing of Services • Performance-based for specific tasks Often demand-based Bundled pricing plays a role • Perceived quality often pegged to price • • Dimensions of Service Quality • • • • • Tangibles Appearance of physical facilities, equipment, personnel, and communications materials. Reliability Ability to perform the promised service dependably and accurately. Responsiveness Willingness to help customers and provide prompt service. Assurance Knowledge and courtesy of employees and their ability to convey trust and confidence. Empathy Caring, individualized attention the firm provides its customers. Determinants of Perceived Service Quality Marketer Customer Word-of-mouth communications Personal needs Past experience Expected service Gap 5 Perceived service Gap 1 Service delivery (including pre and post contracts) External communication to consumers Gap 4 Gap 3 Translation of perceptions into service quality specs Gap 2 Mgmt. perceptions of consumer. expectations Non-Profit Marketing • NP organization marketing – – • NP social marketing – • • • Concepts and techniques Not profit-generating Promotion of social causes Opportunity for greater creativity Can be controversial Primary objective is the desired response Non-Profit Marketing • Target Markets are somewhat different – – • Client publics (direct) General publics (indirect) Marketing Mix often ignored – – – Ideas and concepts more difficult to market than intangibles Promotion: advertising & public relations Distribution channels based on availability