MARKETING MANAGEMENT

12th edition

Chapter 9
Crafting the Brand
Positioning

Marketing Strategy
Segmentation
Segmentation
Targeting
Targeting
Positioning
Positioning

10-2

Positioning

Act of designing the companys

offering and image to occupy
a distinctive place in the mind of
the target market.
Positioning starts with product.
But positioning is not what your do to a product.
Positioning is what you
do to the mind of the PROSPECT
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Value Propositions
Dominos Pizza
A good hot pizza, delivered to your door
within 30 minutes of ordering, at a
moderate price
Target Consumer: Convenience-minded pizza lovers
Benefit: Delivery speed and good quality
Price: 15% premium
Value Proposition: A good hot Pizza, delivered to your door
within 30 minutes of ordering, at a moderate price
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Competitive Frame of Reference

Competitive Frame of Reference is to determine
the category membership- The product or sets of
products with which a brand competes and which
function as close substitutes.

Dominos Pizza and Frozen Pizza Market

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Competitive Frame of Reference

Frozen Pizza

Normal Pizza

Points of Parity (POP) and

Points of differences (POD)
Point of Difference A particular attribute or
dimension of a brand which a group of consumers
likes and perceives as the uniqueness of the brand.
Point of Parity a particular dimension or attribute
or a brand which a group of consumers believe
that is good enough or meet their basic
expectations.

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Point of Difference Vs. Points of Parity

Point of Difference: The attributes consumers strongly
associates with a brand, positively evaluate, and believe that
they could not find to the same extent with a competitive
brand.
FedEx (Guaranteed Overnight Delivery)
Nike (Performance)

10-8

Consumer Desirability Criteria for PODs

Desirable
Desirable to
to consumer:
consumer: Target
Target consumers
consumers must
must find
find the
the

POD
POD personally
personally relevant
relevant and
and important.
important. eg:
eg: Westin
Westin Stamford
Stamford Hotel
Hotel
in
in Singapore
Singapore advertised
advertised that
that itit was
was the
the worlds
worlds tallest
tallest hotel.
hotel.

Desirable
Desirable by
by company:
company: Must
Must have
have internal
internal resource
resource

and
and commitment
commitment and
and profitability
profitability to
to create
create and
and maintain
maintain
brand
brand association.
association. VISA
VISA

Differentiating
Differentiating from
from competitor:
competitor: Distinct
Distinct and
and superior
superior to
to
relevant
relevant competitors.
competitors. Eg.
Eg. GP
GP 3G
3G in
in Bangladesh
Bangladesh
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Deliverability Criteria for PODs

Feasibility:
Feasibility: The
The product
product or
or service
service design
design and
and
marketing
marketing offering
offering must
must be
be support
support the
the desired
desired
association.
association. REAL
REAL CHANGE
CHANGE

Communicability:
Communicability: What
What factual
factual or
or verifiable
verifiable evidence
evidence
or
or proof
proof points
points can
can be
be given
given as
as support
support of
of believability.
believability.
Eg.
Eg. Wrinkle
Wrinkle Control
Control CreamFair
CreamFair and
and Lovely.Veet
Lovely.Veet

Sustainability:
Sustainability: Is
Is the
the positioning
positioning preemptive,
preemptive,
defensible
defensible and
and difficult
difficult to
to attack?
attack? Sustainable
Sustainable positioning
positioning of
of
Prada,
Prada, Hermes
Hermes

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Point of Difference Vs. Points of Parity

Point of Parity: That are not necessarily unique to the brand
but may in fact be shared with other brands.
Category POP: They represent necessary condition for
brand choice. For example; Consumer may not choose a travel
agent unless it is able to make air ticket, hotel reservation and can
give advise about leisure package.etc. This POP may change over
time due to technological advances, consumer trend or legal
development.

Competitive POP: designed to overcome perceived

weaknesses of the brand. In the eyes of consumer. If a
brand can break-even in those areas where the
competitors are trying to find an advantage and can
achieve advantages in other areas, the brand should in a
strong- and perhaps unbeatable-competitive position.
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Product Differentiation

Product form (Size)

Features (functions)
Performance
Conformance (Panasonic
energy saving)

Durability
Reliability
(Nazma Metal 10 years)

Reparability

Style
Design (laptop mouse)
Ordering ease
Delivery (30 minutes delivery)
Installation (CAT Installation)
Customer training
Customer consulting
Maintenance

(Spare parts availability)

Air Asia Airlines with low prices

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Personnel Differentiation
Singapore Airlines enjoys excellent reputation in
large part because of its flight attendants.
IBM people are professional
McDonalds people are courteous

Channel Differentiation
CAT dealers found more locations than
competitors dealers.
DELL and AVON is direct marketing channel
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Image Differentiation
Image is the way the public perceives the
company and its products. Effective identity does:
Products character and value proposition
Character in distinctive way
Emotional power beyond a mental image
IBM MEANS SERVICE
TOYOTA MEANS LOW COST EFFICIENT CAR

10-14

Image Differentiation

10-15

Image Differentiation

10-16