MARKETING STRATEGY
10
Crafting the Brand
Positioning
Marketing Strategy
Segmentation
 Targeting
 Positioning
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10-2
Strategic Positioning
Strategic positioning is about differentiating your
company from competitors, in order to attract
and maintain a specific customer segment
1. Identifying the salient (basic / central) features
of the product or service
2. Finding the ideal value of the salient features
for the targeted consumer segment
3. Investigating consumers’ perceptions of the
values of the salient features of competitors
products
10-3
Positioning
Act of designing the company’s
offering and image to occupy
a distinctive place in the mind of
the target market.
Positioning maps show consumer
perceptions of their brands
versus competing products
on important buying dimensions
10-4
Positioning
Positioning Strategies
 Positioning by attribute: associate the product
with specific attribute(s) (e.g. energy, reliability,
safety, performance)
 Positioning by price and quality (e.g. Lidl)
 Positioning with respect to use or application
(e.g. cereals as a breakfast meal)
 Positioning with respect to a competitor / product
class (e.g. Avis car rental)
10-5
Writing a Positioning Statement
Mountain Dew: To young, active
soft-drink consumers who have
little time for sleep, Mountain Dew
is the soft drink that gives you
more energy than any other brand
because it has the
highest level of caffeine.
10-6
Defining Associations
Points-of-difference
(PODs)
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Attributes or benefits
consumers strongly
associate with a brand,
positively evaluate, and
believe they could not
find to the same extent
with a competitive brand
e.g. Fed Ex – overnight
delivery Nike performance
Points-of-parity (POPs)
 Associations that are
not necessarily
unique to the brand
but may be shared
with other brands
10-7
Examples of Negatively Correlated
Attributes and Benefits
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Low-price vs. High
quality
Taste vs. Low calories
Nutritious vs. Good
tasting
Efficacious vs. Mild
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Powerful vs. Safe
Strong vs. Refined
Ubiquitous vs.
Exclusive
Varied vs. Simple
10-8
Differentiation Strategies
Product
 Personnel
 Channel – Design the channels of
distribution to achieve coverage, expertise,
performance
 Image
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10-9
Product Differentiation
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Product form
Features
Performance
Durability
Reliability
Reparability
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Style
Design
Ordering ease
Delivery
Installation
Customer training
Maintenance
10-10
Personnel
Better trained people exhibit six characteristics:
 Competence: posses the required skills &
knowledge
 Credibility: trustworthy
 Reliability: perform the service consistently &
accurately
 Responsiveness: respond quickly
 Communicate effectively
10-11
Identity and Image
Identity:
The way a
company aims to
identify or
position itself
(The intended message
Must be conveyed through
Every available
Communication channel)
Image:
The way the
public perceives
the company or its
Products
(e.g. Marlboro)
10-12
Differentiation and Positioning
Identifying Possible Value Differences and
Competitive Advantage

Competitive Advantage is the advantage over
competitors gained by offering greater value
either through lower prices or by providing more
benefits that justify higher prices
10-13
Product Life Cycle
Introduction
 Growth
 Maturity
 Decline
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10-14
Facts 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.
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10-15
Marketing Program Modifications
Prices
 Distribution
 Advertising
 Sales promotion
 Services
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10-16