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Brand Positioning and Values

Where we have been


 We understand
– Brand equity and the psychology behind it.
– A function of awareness, strength, favorability,
and uniqueness of the nodes and links in memory
 BE is created in a progressive fashion
– Establish proper Brand Identity
– Create Brand meaning
– Elicit positive Brand responses
– Forge strong Brand relationship
Identifying and establishing Brand
Positioning

 The Integrated Brand Model


– Six elements that define a brand
 Unified
 Leverage each other
 Brand Drivers a function of Organization Drivers

– These six elements serve as a “roadmap” to our


Brand Equity model
 Atevery step, we can figure out what to do from our
Brand and Organization Drivers
Brand Positioning

Brand Positioning
– Brand positioning is all about identifying the
optimal location in our customers’ minds for our
Brand and our competitors
– Proper positioning makes it easier to facilitate
understanding of our Brand
 Taken to its’ logical conclusion, you might
think of the Principle as an indicator of a
brand’s position
First Steps
 The first step is to identify and establish
Brand positioning and brand values (Keller)
 Positioning is the foundation for creating and
fostering the desired knowledge and
perceptions of your customers
– Remember our 3 types of associations in
memory?
– We can really only manage one (positive), can
respond to a second (negative), and have no
control over the third (idiosyncratic)
Proper Positioning

 Proper positioning
– Clarifies what the Brand is all about
– How it is both unique and similar to competitive
brands
– Why customers should purchase and use the
Brand
Example: Pepsi One

 Millions in R&D for


ingredient Ace-K (artificial
sweetener)
 37,000 hours to design the
can
 100 Million Marketing
budget
 Original Target Market
– 20-30 yo Males who did not
like taste of diet colas
Pepsi One Brand Conveyors: Then and
now

 Full flavored, healthy  “Breakthru Sweetener”


alternative to regular  “Too good to be one
cola calorie, but it is”
 “Only one has it all”
 “True cola taste, one  Celeb: Kim Katrell
calorie” – Better for 20-30 yos?
 “Tastes like regular
cola”
 Celeb: Tom Green
In order to Position a Brand…

 …you must decide


– Who the Target Consumer is
– Who your main competitors are
– How the Brand is similar to your competitors
– How the Brand is different from your competitors

 Where do you get this information?


– Your BRAND INVENTORY!!
Target Market Segmentation

A market segment should have similar


knowledge structures and brand knowledge
– Similar knowledge structures might mean similar
perceptions and beliefs about your Brand
 There are 2 ways to segment
– Descriptive: characteristics of the individuals in
the market
– Behavioral: grouped by how individuals in the
market perceive or use the product
Toothpaste Segmentation

 Four main segments


 Sensory segment
– Flavor and product
appearance
 Sociables Flavor, Brightness
– Brightness of teeth
 Worriers
– Decay Prevention
3 stripes, one for
 Independent each of the 3 main
– Low Price Decay Prevention segments
Target Market Segmentation

 Which works better? Behavioral


– Easier to match perceptions (right/wrong) or beliefs
(right/wrong) with strategy (reinforce/change).
– Many times, behavior and descriptive go hand in hand
 Demographics may be basis of targeting, but
tend to represent some underlying behavioral
reason
– In some cases, demographics may mask underlying
differences
Advantages of demographic
segmentation

 Demographic segmentation is well known,


easier to buy media on that basis
 However, with the emergence of non-
traditional media, this advantage is getting
smaller
– Web ads can target by demographics traditionally
difficult to access
 AA, Asian Americans, College students
Criteria for a Segment

 Identifiability
– Can the segment be easily identified?
 Size
– It is big enough to bother?
 Accessibility
– Are distribution outlets and media available to us to reach
the segment?
 Responsiveness
– How favorably will the segment respond to a tailored
marketing program? (this one is tough to quantify)
Segmentation Example

Mobil’s 5 types of gasoline buyers


– Price Drivers
 Not brand loyal, driven by price, has been focus for years
– Road Warriors
 Upper income, MAMen, 25-50k/year, buy food and services
with credit card (Premium gas)
– True Blues
 Brand loyal, Mid income, pay with cash
– Generation F3
 Fuel, food, fast: half under 25 yo, in and out quickly
– Homebodies
 Soccer moms using whatever is on their route
The Competition

 Market Segments define competitors


– They are targeting the same segments
 Don’tbe too narrow in your definition of
competitors
 Consider Sprite
– Product Type (non-cola soft drinks)
– Product Category (all soft drinks)
– Product Class (all beverages)
Baskin-Robbins Competitive analysis

 Original Tagline:
– 31 Flavors
 100 M$ facelift in late 1990s
 Expanded from Ice cream
– Frozen coffee drinks
– Fruit Smoothies
 Perceived competitors
– Starbucks
– Jamba Juice
– TCBY
– (and still Dairy Queen)
Part 3: POP and POD

 POD (Point of Difference)


– Strong, favorable, unique brand associations
– May be any kind of attribute or benefit
 Two types of PODs
– Attribute Based
 Functional, performance related differences
– Image Based
 Affective, experiential, brand image related differences
Part 3: POP and POD

 POP (Point of Parity)


– Associations that are shared with other brands
 Two types
– Category: attributes that are required to include
your product as a member of that category
– Competitive: POP that negate your competitors
PODs
 POPs can be “good enough”, but PODs
should be “superior
Similar concepts

 Unique Selling Proposition (USP; Reeves


and Bates)
– Advertisers should give a compelling reason to
buy a product that competitors could not match
 What component of the IBM reflects this?
 Sustainable Competitive Advantage (SCA)
 The advantage of delivering superior value in the
marketplace for a prolonged period of time
 Further, SCAs can result from any component of the
firm
– Similar to notion that Principle exists in every part of the
POP AND POD: BMW over the
years
1991

1985
1975
1971
• Affluence, exclusivity
• Fun to drive
• Affluence, exclusivity
• Fun to drive

• Fun to drive
• Economical
• International
21
• Desirability
Managerial Issues

 How do I begin to position my Brand?


– Communicate category membership
– This is the “frame of reference”, where customers
can activate what they know about the category
and apply it to your POPs and PODs
 How?
– Communicate category benefits
– Compare your product to exemplars
– Rely on product descriptor
Sneaky psychology sidebar -
Exemplars

 Memory is modeled in a hierarchical was as well


– Exemplars can be real or amalgamated (prototypes)
– Generated from experiences and exposures from the
environment

 Exemplar example (heh)


– DRAW A PICTURE OF A CHAIR (THE FIRST THING
THAT COMES TO MIND

 Compare your picture to your other team members


– Is it the same or different
Ways to convey category membership
(cont): Comparison to Exemplars

 Thus, two strategies:


– Created exemplar (not a real product)
– Real exemplar (coke when talking about cola-
based carbonated beverages)
 NOTE: Keller defines exemplars as
– Well known, noteworthy brands in a category
 Pepsi One example (after repositioning)
Nuts and Bolts

 How do I decide on my PODs and POPs?


 POPs
– Analysis of category
 What attributes do all of my competitors have? I probably need
to have those, or my competitors automatically have a POD
 POPs get you included in category

 PODs are more difficult


– Don’t use PODs that are product centric (dominate
competition) but customer centric (uniquely address need of
customer)
Managerial issues

 Criteria for POD


– Desirability
 Must be Relevant
 Must be Distinctive
 Must be Believable

– Deliverability
 Feasibility
 Communicability
 Sustainability
Establish POP and POD in marketplace

 Difficulty:
Many attributes that make up POP
and PODs are negatively opposed
– Low price vs. High quality
– Tastes Great vs. Less filling
 Separate the attributes
 Leverage equity in another entity
 Redefine the relationship
Defining Values and Principle

 You already know how to do this


– Your values and principle are part of your Org and
Brand drivers!!!
– Keller calls principle “Brand Mantra”
 Your Values, Principle, and position all are
related
– NOTE: Keller says that associations are values,
but we have a stricter definition of associations
from the IBM
Principles a la Keller: What makes a
good Principle?

 Three components
– Emotional component (Comfortable)
– Descriptive modifier (Casual)
– Brand function (clothing)

 Other Examples
– Nike: Authentic, Athletic Performance
– Fun Family Entertainment