bmgt 411 marketing management fall 2014 chris lovett

1. BMGT 411: Chapter 9
Crafting Brand Positioning

2. Chapter Questions
• How can a firm develop and establish an effective positioning?
• How are brands successfully differentiated?
• How do marketers identify and analyze competition?
• How can market leaders, challengers, followers, and nichers compete
effectively?

3. Brand Positioning Statement
• Positioning: The act of designing a company’s offering and image to
occupy a distinctive place in the minds of the target market
• Positioning Statement or Value Propositions
• For (target audience), (brand name) is the (frame of reference) that
delivers (benefit/point of difference).
• Frame of Reference: The category the brand name competes in

4. Examples
For (target audience), (brand name)
is the (frame of reference) that
delivers (benefit/point of
difference).

5. Examples
For (target audience), (brand name)
is the (frame of reference) that
delivers (benefit/point of
difference).

6. Examples
For (target audience), (brand name)
is the (frame of reference) that
delivers (benefit/point of
difference).

7. Examples
For (target audience), (brand name)
is the (frame of reference) that
delivers (benefit/point of
difference).
YOUR
EXAMPLE

8. Defining Associations
• Points-of-difference: 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: Associations that are not necessarily unique to the brand
but may be shared with other brands

9. Point-of-Difference Criteria for POD
• Desirable to Consumer: Consumers must see the brand association as
personally relevant to them
• Deliverable: The company must have resources to feasibly and
profitably create and maintain the brand association in the minds
• Ex: If Walmart promised great customer service
• Differentiating from Competitors: Consumers must see the brand
association as distinctive and superior to competitors

10. Figure 9.1a Perceptual
Map: Current
Perceptions
Brand Repositioning

11. Figure 9.1b Perceptual
Map: Possibilities
Brand Repositioning

12. Dimensions of Differentiation for Competitive
Employee
Channel
Image
Services

13. Employee Differentiation
!
• Better trained
• Superior customer service
• Often premium priced vs
competition

14. Channel Differentiation
!
•Channel coverage, convenience
• Makes buying easier
• More enjoyable
• More rewarding

15. Image Differentiation
!
•Powerful brand images that
appeal to customers social and
psychological needs
• Often premium prices

16. Service Differentiation
!
•Delivering more effectively to
consumers
• Delivering more efficiently

17. Figure 9.1
Hypothetical
Market Structure

19. Protecting Market Share Continuous Innovation

20. Types of Defense Strategies - Market
Leaders
• Position Defense: Continuing to occupy the most desirable position
through marketing and continued innovation
• Flank Defense: Developing brand extensions to compete at lower price
points to try to meet attackers (Luv’s Diapers Vs Private Label)
• Preemptive Defense: Announce new products at a pace competitors
cannot keep up with

21. Types of Defense Strategies Market Leaders
• Counteroffensive Defense: Lowering prices so competitors cant
compete, even at a loss, while gaining profits off other products
• Mobile Defense: Enters new territories or market diversifications
• Contraction Defense: Letting go, or sunsetting unprofitable products to
focus on more profitable ones

22. General Attack Strategies - Challengers
• Frontal attack: Matches opponents product, price, and marketing (Usually
loses in retail)
• Flank attack: Targets underperforming geographic areas, or to serve
uncovered market needs
• Encirclement attack: Launching an attack in several areas at once, requires
great resources
• Bypass attack: Diversifying products, innovating, shifting messaging where
challenger has advantage
• Guerrilla warfare: Grassroots marketing efforts meant to surprise the market
leader

23. Specific Attack Strategies
• Price discounts
• Lower-priced goods
• Value-priced goods
• Prestige goods
• Product proliferation
• Product innovation
• Improved services
• Distribution innovation
• Manufacturing-cost reduction
• Intensive advertising promotion

24. Market Follower
Strategies
!

25. Market Nicher Strategies
• End-User Specialist
• Vertical-Level Specialist
• Customer-Size Specialist
• Specific-Customer Specialist
• Geographic Specialist
• Product-Line Specialist
• Job-Shop Specialist
• Quality-Price Specialist
• Service-Specialist
• Channel Specialist