CHAPTER 10 CRAFTING THE BRAND POSITIONING Angelyn dela Cruz MBA 505 Marketing Management how can a firm develop and establish an effective positioning in the market? Learning Objectives how do marketers identify and analyze competition? how are brands successfully differentiated? BRAND POSITIONING the act of designing a company's offering and image to occupy a distinctive place in the minds of the target market Value proposition DEVELOPING BRAND POSITIONING Understanding Positioning and Value Proposition VALUE PROPOSITION DEVELOPING BRAND POSITIONING Understanding Positioning and Value Proposition BRAND POSITIONING FRAME OF REFERENCE POINTS OF PARITY / DIFFERENCE BRAND MANTRA CHOOSING COMPETITIVE FRAME OF REFERENCE Identifying Potentital POD and POP Competitive frame of reference defines which other brands a brand competes with and which should thus be the focus of competitive analysis COMPETITIVE FRAME OF REFERENCE identifies and analyzes competitors CHOOSING COMPETITIVE FRAME OF REFERENCE Identifying Potentital POD and POP CHOOSING COMPETITIVE FRAME OF REFERENCE Identifying Potentital POD and POP POINTS-OF-DIFFERENCE (PODs) POINTS OF DIFFERENCE Attributes / benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand PODs CRITERIA POINTS OF PARITY DESIRABLE DELIVERABLE DIFFERENTIATING CHOOSING COMPETITIVE FRAME OF REFERENCE Identifying Potentital POD and POP POINTS-OF-PARITY (POPs) POINTS OF DIFFERENCE Attributes / benefits associations that are not necessarily unique to the brand but may in fact be shared with other brands POPs FORMS POINTS OF PARITY CATEGORY CORRELATIONAL COMPETITIVE CHOOSING COMPETITIVE FRAME OF REFERENCE Identifying Potentital POD and POP MULTIPLE FRAMES OF REFERENCE STRADDLE POSITIONING PODs vs POPs CHOOSING COMPETITIVE FRAME OF REFERENCE Identifying Potentital POD and POP PODs and POPs CHOOSING SPECIFIC PODs and POPs Competitive advantage Means of differentiation Perceptual map Emotional branding CHOOSING COMPETITIVE FRAME OF REFERENCE Choosing Specific POPs and PODs Perceptual Map HIGH CAFFEINE Pepsi max Coke zero Coke diet Pepsi light Males, 15-30 yrs Females 15-30 yrs LOW IN SUGAR coke pepsi HIGH IN SUGAR 30-50 years 5-15 years 50+ years 7-up LOW IN CAFFEINE fanta BRAND MANTRAS COMMUNICATE SIMPLIFY INSPIRE CHOOSING COMPETITIVE FRAME OF REFERENCE Brand Mantras ESTABLISHING A BRAND POSITIONING ANNOUNCING CATEGORY BENEFITS COMPARING TO EXEMPLARS RELYING ON PRODUCT DESCRIPTOR ESTABLISHING A BRAND POSITIONING EXAMPLES OF NEGATIVELY CORRELATED ATTRIBUTES / BENEFITS COMMUNICATING POPs and PODs ESTABLISHING A BRAND POSITIONING 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 VARIABLES IN ASSESSING POTENTIAL COMPETITORS Share of Market Share of Mind MONITORING COMPETITION ESTABLISHING A BRAND POSITIONING Share of Heart Mind Share Market Share Public Awareness and influence Percentage of the industry’s total sales Heart Share Emotional bond with customers EMOTIONAL BRANDING Market Share Mind Share Heart Share 2011 2012 2013 2011 2012 2013 2011 2012 2013 50% 47% 44% 60% 58% 54% 45% 42% 30% 30 34 37 30 31 35 44 47 53 20 19 19 10 11 11 11 11 8 Competitor A Competitor B Competitor C ESTABLISHING A BRAND POSITIONING 1 Things we already know but worth reviewing BRAND BRANDING BRAND IDENTITY 2 TAGLINE SLOGAN QUESTION AND ANSWER: My course in my undergraduate was IT, I am currently working in the IT industry, I already have an MIT degree, and I am considering pursuing another graduate program. How can you convince me to pursue MBA among others? QUESTION AND ANSWER: Meta - Facebook is in an unbeatable and strong brand positioning for more than a decade now even though it faced privacy-related issues. Do you think their brand position will stay on top until 20 years from now?