Successive Sets Involved in
Customer Decision Making
Total
Set
Philips
LG
Samsung
Sansui
Onida
Videocon
Sony
BPL
Hitachi
Akai
National
Aiwa
Awareness
Set
LG
Samsung
Sansui
Onida
Videocon
Sony
BPL
Akai
Aiwa
Consideration
Set
LG
Samsung
Sansui
Onida
Videocon
Aiwa
Choice
Set
Sansui
Onida
Videocon
Decision
?
FISHBEIN MULTI-ATTRIBUTE MODEL FOR BUYING
Differentiation Strategies
•
•
•
•
•
Product
Service
Personnel
Channel
Image
Product Differentiation
•
•
•
•
•
•
•
Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
•
•
•
•
•
•
•
•
Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
Positioning
Act of designing the company’s
offering and image to occupy
a distinctive place in the mind of
the target market.
Defining Associations
Points-of-difference
(PODs)
• 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
Points-of-parity (POPs)
• Associations that are
not necessarily unique
to the brand but may
be shared with other
brands
Points-of-Parity
Points-of-parity (POPs) are associations that are not necessarily
unique to the brand but may in fact be shared with other brands.
These 2 types of associations
1) Category points-of-parity
• Consumers view as essential to be a legitimate and credible offering within a
certain product or service category.
• They represent necessary conditions but not necessarily sufficient for brand
choice.
2) Competitive points-of-parity
Designed to negate competitors’ points-of-difference.
Points-of-Parity Versus Points-of-Difference
•
To achieve a point-of-parity on a particular attribute or benefit, a sufficient
number of consumers must believe that the brand is “good enough” on that
dimension
•
There is a “zone” or “range of tolerance or acceptance” with points-of-parity
•
The brand does not literally have to be seen as equal to competitors, but
consumers must feel that the brand does well enough on that particular
attribute or benefit
With points-of-differences, the brand must demonstrate clear superiority
•
•
Often the key to positioning is not so much as achieving a point-of-difference
as in achieving points-of-parity
Consumer Desirability Criteria for
PODs
• Relevance
• Distinctiveness
• Believability
Establishing Category Membership
•
Often marketers must inform consumers of a brand’s category membership.
•
With the introduction of new products, especially when the category membership is
not apparent.
•
Brands are sometimes affiliated with categories in which they do not hold
membership.
•
The preferred approach to positioning is to inform consumers of a brand’s
membership before stating its point-of-difference.
•
There are three ways to convey a brand’s category membership:
– Announcing category benefits.
– Comparing to exemplars
– Relying on the product descriptor .
Deliverability Criteria for PODs
• Feasibility
• Communicability
• Sustainability
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
Addressing Negatively Correlated
PODs and POPs
• Present separately
• Leverage equity of another entity
• Redefine the relationship
Criterias for POD
–
Decide at which level (s) to anchor the brand’s
points-of-differences
– At the lowest level are the brand attributes.
– At the next level are the brand’s benefits.
– At the top level are the brand’s values.
–
Research has shown that brands can sometimes be
successfully differentiated on seemingly irrelevant
attributes if consumers infer the proper benefit.
Value Propositions
• Perdue Chicken
– More tender golden chicken at a moderate
premium price
• Domino’s
– A good hot pizza, delivered to your door within
30 minutes of ordering, at a moderate price
Positioning diamond
Against
whom?
What Am I?
Why me?
For Whom?
• Establish category to associate and compare with
• Identify the essential difference
POSITIONING
LOW PRICE
•IDLI
•VEG SANDWICH
LOW
NUTRITION
•SAMOSA
HIGH
NUTRITION
•OATS
•B.FAST CEREALS
HIGH PRICE
POSITIONING
SOFT ON HANDS
• ARIEL
• SURF
• HENKO
POOR
CLEANSER
• RIN
• WHEEL
• NIRMA
ROUGH ON HANDS
SUPERIOR
CLEANSER
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.