MARKETING MANAGEMENT 10 Crafting the Brand Positioning 10-1 Chapter Questions • How are brands differentiated? • How can a firm choose and communicate an effective positioning in the market? • What are the implications of market evolution for marketing strategies? 10-2 Marketing Strategy Segmentation Targeting Positioning 10-3 Positioning Designing the company’s offering and image for a distinctive place in the mind of the target market. 10-4 Cigarettes Cigarettes 10-5 10-6 10-7 10-8 10-9 10-10 10-11 10-12 10-13 10-14 10-15 10-16 10-17 10-18 10-19 10-20 Positions? • Pizza places? • Bars? • Grocery stores? 10-21 Positioning 10-22 10-23 A Positioning Statement To young, active soft-drink consumers with little time for sleep, Mountain Dew is the soft drink that gives you energy because it has the most caffeine. 10-24 Defining Associations Points-of-parity (POPs) Points-of-difference (PODs) 10-25 Consumer Desirability Criteria Relevance Distinctiveness Believability 10-26 Deliverability Criteria for PODs Feasibility Communicability Sustainability 10-27 Examples of Negatively Correlated Attributes and Benefits • • • • • • • • Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting Efficacious vs. Mild Powerful vs. Safe Strong vs. Refined Ubiquitous vs. Exclusive Varied vs. Simple 10-28 Addressing negatively correlated PODs and POPs • Present separately • Leverage equity of another entity • Redefine the relationship 10-29 Image Differentiation 10-30 Product Life Cycle 10-31 Theories about Life Cycles • Products have a limited life. • Product sales pass through distinct stages. • Profits rise and fall at different stages. • Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each stage. 10-32 Product in Decline 10-33 Market Evolution Stages Emergence Growth Maturity Decline 10-34 Maturity Strategies 10-35 Activity Do brands have finite lives? Take a position: 1. Brands can last forever. 2. Brands will eventually be obsolete. 10-36