Grp 4 Presentation Crafting the Brand Positioning

1. MARKETING MANAGEMENT
GROUP # 4
Chapter 10:
Crafting the Brand Positoning
Crisostomo, Kathleen Lizette
Jongco, Kristoffer
Piñon, Raymund
Siton, Galicano

2. Crafting the Brand
Positioning
Kristoffer Z. Jongco
Marketing management

3. Outline
 What is Brand/Branding and Positioning
 Choosing & communicating effective
positioning in market
 Differentiating brands
 Marketing strategies for stages of product life
cycle
 Marketing evolution

4. Brand and Branding
Brand: A name, term, sign, symbol, or a
combination, intended to identify the goods or
services of one seller or group of sellers and
to differentiate them from competitors
Branding: Providing goods and services with
the power of the brand

5. Advantages of Strong Brands
• Improved • Larger margins
perceptions of • More inelastic
product consumer response
performance • Greater trade
• Greater loyalty cooperation
• Less vulnerability • Increased marketing
to competitive communications
marketing actions effectiveness
• Less vulnerability • Possible licensing
to crises opportunities

6. Defining Associations
Points-of- Points-of-parity
difference (PODs) (POPs)
• Attributes or benefits • Associations that are
consumers strongly not necessarily unique
associate with a to the brand but may
brand, positively be shared with other
evaluate, and believe brands
they could not find to
the same extent with
a competitive brand

7. Brand Positioning
Act of designing the company’s offering and
image to occupy a distinctive place in the
mind of the target market

8. Choosing and Communicating an
Effective Positioning in the Market
How to choose good elements:
•Memorable
•Meaningful
•Likeable
•Transferable
•Adaptable

9. How Brands are Differentiated
 Product

10. How Brands are Differentiated
 Product
 Personnel

11. How Brands are Differentiated
 Product
 Personnel
 Channel

12. How Brands are Differentiated
 Product
 Personnel
 Channel
 Image

13. Product Differentiation
• Product form • Style
• Features • Design
• Performance • Ordering ease
• Conformance • Delivery
• Durability • Installation
• Reliability • Customer training
• Reparability • Customer consulting
• Maintenance

14. Personnel Differentiation
•Better trained
•Competent
•Trustworthy
•Friendly & respectful
•Reliable
•Responsible
•Good communicator

15. Channel Differentiation
•Coverage
•Expertise
•Performance

16. Image Differentiation
•Establish character and value
proposition
•Convey in a distinctive way
•Deliver emotional power

17. Product Life Cycles Stages

18. Stages in the Product Life Cycle
1st Stage
 Growth

19. Stages in the Product Life Cycle
2nd Stage
 Stable

20. Stages in the Product Life Cycle
3rd Stage
 Declining Maturity

21. Appropriate Marketing Strategies:
1st Strategy
 Improve Quality

22. Appropriate Marketing Strategies:
2nd Strategy
 Distribution

23. Appropriate Marketing Strategies:
3rd Strategy
 Advertising

24. Appropriate Marketing Strategies:
4th Strategy
 Sales Promotion

25. Appropriate Marketing Strategies:
5th Strategy
 Services

26. Appropriate Marketing Strategies:
Increasing Sales Volume
 Attract Customers

27. Appropriate Marketing Strategies
for stages of product life cycle
Stages:
Growth; Stable; Decaying Maturity
Improve quality Distribution Advertising Sales Promotion Services
Attract

28. Market Evolution Stages:
1st Stage
• Emergence

29. Market Evolution Stages:
2nd Stage
• Growth

30. Market Evolution Stages:
3rd Stage
• Maturity

31. Market Evolution Stages:
4th Stage
• Decline

32. Market Evolution 4 Stages
• Emergence
• Growth
• Maturity
• Decline

33. Summary
 What is a Brand, Branding & Positioning?
 How to choose and communicate effective
positioning
 Brand Differentiation
 The different marketing strategies
 Evolution of marketing

34. Communicate Effective Positioning
Brand Differentiation Marketing Strategies
Product Life Cycle
Growth, Stable, Decaying Maturity
Product
Market Evolution
Personnel Improve quality Distribution Advertising Sales Promotion
Services
Channel
Image
Attract
Emergence-Growth-Maturity-Decline

35. Crafting the Brand
Positioning:
A Visual Model
(Chapter 10)
Raymund C. Piñon
Marketing Management V57
VCoach Bong De Ungria

36. Marketing Task #4
BUILDING STRONG BRANDS
Crafting the Brand Positioning

37. Objectives
At the end of this presentation, the participants should be able to
1. Understand how firms can choose and
communicate an effective positioning in the market
2. See how brands are differentiated
3. Appreciate how different marketing strategies are
appropriate at each stage of the product life cycle
4. Understand the implications of market evolution for
marketing strategies

38. Outline
 Developing and Communicating a
Positioning Strategy
 Competitive Frame of Reference
 Points-of-Difference and Points-of-Parity
 Differentiation Strategies
 Product Life-Cycle Strategies

39. Developing and Communicating
a Positioning Strategy
All marketing strategy is built on STP
 Segmentation – discover different
needs and groups in the marketplace
 Targeting – identify groups it can
satisfy in a superior way
 Positioning – positions its offering
so that the target market recognizes
the firm’s distinctive offering & image

40. What is Positioning?
Act of designing an offer and image to occupy
a distinctive place in the minds of the target market

41. Positioning results in
 The creation of a
 A persuasive REASON WHY the target
market should buy the product

42. Positioning
Examples of Customer-Focused Value Propositions
 Langhap Sarap
 Food offered by Jollibee caters to Filipino taste
 Pera padala
 Makakarating ang padala mo
 We have it all for you
 Convenient shopping experience in SM’s one-stop
shop because it provides all you need under one roof
 World’s safest pain reliever
 Biogesic is safe even for pregnant women

43. Positioning
The Starting Point
1. Competitive Frame of Reference
2. Points-of-Difference and Points-of-Parity

44. Positioning
The Starting Point: Competitive Frame of Reference
Category Membership
 Define Customer Target Market
 Define Nature of Competition
 Products and services competing
for same target segment
 Substitute products and services

45. Positioning
The Starting Point: Points-of Difference
POD – attributes or benefits that consumers…
 Strongly associate with a brand
 Positively evaluate
 Believe are unique to the brand or
could not be found to the same
extent in other brands
 Energizer – longest lasting battery
 Louis Vuitton – most stylish handbag

46. Fun place for family to be together Prompt friendly service
and for children to play
McDo
Clean pleasant modern facilities Food kids love and are affordable
Ned Roberto (Marketing Guru) Manny Paquiao (Pambansang Kamao)

47. Positioning
The Starting Point: Points-of-Parity
POP – attribute or benefit
associations not unique to
the brand but may in fact be
shared with other brands
 Category POPs
=
 Competitive POPs

48. Positioning
The Starting Point: Points-of-Parity
Category POPs
 Associations essential to a legitimate
and credible offering within a category
 Necessary, but not sufficient,
condition for brand choice
 Soap must be able to clean
 A doctor must have medical training
and license to practice

49. Positioning
The Starting Point: Points-of-Parity
Competitive POPs
 Associations designed to
negate a competitor’s POD


Brand “breaks even” on areas
where competitors are trying
to create an advantage
Consumers must believe
brand is “good enough” on
an attribute or benefit
x

50. Positioning
Establishing Category Membership
 Marketers must inform consumers
of a brand’s category membership
 Announcing category benefits
 Cherifer – tangkad sagad
 Enervon C - protektodo
 Comparing to exemplars
 The Rolls Royce of the banking industry
 Elvis Presley of the Philippines
 Relying on the product descriptor
 Ford Freestyle “Space Wagon”
 Ateneo Graduate School of Business

51. Positioning
Choosing POPs and PODs
For PODs
 Desirability
 Relevant and Important
 Distinctive and superior
 Believable, credible, compelling
 Deliverability of promise
 Feasibility
 Design and offer support desired associations
 Communicability
 Compelling reason to believe
 Understandable rationale why brand can deliver desired benefits
 Verifiable evidence or proof points
 Sustainability
 Preemptive
 Defensible
 Difficult to attack

52. Positioning
Choosing POPs and PODs
For POPs
 Need for category membership
 Create competitive POPs
to negate competitors’ PODs

53. Positioning
Levels of Brand’s POD
Functional Psycho-
Benefits Social Instrumental
Attributes Emotional and
(What a
- Promil Benefits Terminal
brand does)
contains (Self-Image Values
- Promotes
taurine Social Image) - My children
Brain
development - I’m a will love me
good Mom

54. Positioning
Positioning Statement
To Children who are undernourished due
(Target group and need) to poor appetite
Our Appebon
(Brand)
Is Is a complete vitamin-mineral
(Concept) formulation with an appetite stimulant
That Provides needed nourishment and
(what POD is or does) stimulates children’s appetite because
it contains 5 mg of buclizine HCl

55. Differentiation
To avoid the commodity trap
 Competitive advantage
 A company’s ability to perform in one or more ways that
competitors cannot or will not match
 Leverageable advantage
 Advantage a company can use as springboard to new
advantages
 Customer advantage
 Competitive advantage that is seen by customer as an
advantage to themselves

56. Differentiation
Deriving Fresh Insights to Differentiate
 The Consumption Chain
 Examining customers’ entire experience
with a product or service to uncover
opportunities to position offerings
in ways no one thought possible
 McMillan & McGath Questionnaire
 To derive consumer-based
points of differentiation

57. Differentiation
Dimensions
 Product design
 Swatch – colorful, fashionable watches
 Subway – healthy alternative to fast foods
 Personnel Differentiation
 Better-trained employees
 Channel Differentiation
 More effective and efficient design of
distribution channels’ coverage, expertise
and performance
 Image Differentiation
 Craft powerful, compelling images
 Marlboro Man

58. Product Life Cycle Marketing Strategies
 Introduction
 Slow sales growth
 Heavy expenditure
 Non-existent profits
 Growth
 Rapid market acceptance
 Substantial profit improvement
 Maturity
 Slowdown in sales growth
 Acceptance y most potential buyers
 Stabilized or decreased profits
 Increased competition
 Decline
 Sales decline
 Profits erode

59. Product Life Cycle Marketing Strategies
Marketing Strategy is about STP
SWOT
SWOT
A company’s POSITIONING and DIFFERENTIATION strategy
must change as products, markets and competitors change
over the PRODUCT LIFE CYCLE

60. Product Life Cycle Marketing Strategies
SWOT
Key Issues:
• Pioneer 1st to market with new product vs. late entrant with better product
• Heavy investments in product, technology, market, channel development
• Market entry strategy with high risks and uncertainty

61. Product Life Cycle
Growth Stage Marketing Strategies
• New entrants come in with new product features and expanded distribution
• Customer base expands from innovators to early adopters
• Sales increase, prices remain or fall, promo expense and profits increase
• Company improves product quality, adds new features and improves styling
• Adds new models and flankers, enters new segments,
• Increases distribution coverage and enters new channels
• Shifts from product awareness advertising to product preference advertising
• Lowers prices to attract next layer of price-sensitive buyers

62. Product Life Cycle
Maturity Stage Marketing Strategies
SWOT
•Sales growth rate slows, flattens then declines
• No new distribution channels, market is saturated, future growth organic
• Customer starts switching to other products
• New competitive forces – emerge of new categories or blue oceans
• Sales decline cause overcapacity and leads to fierce competition for market shares
• Price wars, increased promo spending, increased R&D spend
• Exit of weaker competitors and dominance of a few large competitors: quality leader,
cost leader, service leader and a few nichers

63. Product Life Cycle
Maturity Stage Marketing Strategies
SWOT
Ways to change the course of a brand during maturity stage
• Market modification - expand market:
Volume = Expand # of brand users x increase usage rate per user
• Product modification: Improve quality, features, style
• Market program modification: pricing, distribution, advertising, trade and consumer
promotions, personal selling, services

64. Product Life Cycle
Decline Stage Marketing Strategies
• Sales decline due to technological advances, changes consumer preferences, increased
domestic and foreign competition
• Industry overcapacity, price cuts, profit erosion
• Companies exit the market, reduce products offered, withdraw smaller segments and
weaker trade channels
• Cut promotional budget and lower prices further
• Sustain product? Modify marketing strategy? Drop product?
• Harvest – maintain sales, cut costs.
• Divest – Sell or liquidate?

65. Market Evolution
 Latent market
 Diffused preference
 Single-niche strategy
 Multiple-niche strategy
 Mass-market strategy
 Emergence stage
 Growth stage
 Maturity stage
 Market fragmentation
 Market consolidation
 Decline stage

66. Market Evolution
Marketing Strategy is about STP
SWOT
SWOT
Firms must visualize a market’s evolutionary path as it is affected
by new needs, technology, competitors, channels and other
developments. A company’s POSITIONING and DIFFERENTIATION
strategy must change to keep pace with market developments

67. Summary
1. How firms choose and communicate an
effective positioning in the market
2. How brands are differentiated
3. How different marketing strategies are
appropriate at each stage of the product life
cycle
4. Implications of market evolution for
marketing strategies

68. +
POP POD
= +

69. Crisostomo, Kathleen Lizette C.
MARKMA
Chapter 10 – Crafting the Brand Positioning

70. Positioning is the act of designing
the company’s offering and image
to occupy a distinctive place in the
mind of the target market.

71. 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

72. Criteria for PODs:
Desirable:
* Relevance
* Distinctiveness
* Believability

73. Criteria for PODs:
Desirable:
* Relevance
* Distinctiveness
* Believability
Deliverable:
* Feasibility
* Communicability
* Sustainability

74. Differentiation Strategies
Product

75. Differentiation Strategies
Personnel
Product

76. Differentiation Strategies
Personnel
Channel
Product

77. Differentiation Strategies
Personnel
Channel
Product
Image

78. Product Life Cycle Claims:

79. Product Life Cycle Claims:
Products have a limited
life

80. Product Life Cycle Claims:
Products have a limited
life
Product sales pass
through distinct
stages each with
different challenges
and opportunities

81. Product Life Cycle Claims:
Products have a limited
life
Product sales pass
through distinct
stages each with
different challenges
and opportunities
Profits rise and fall at
different stages

82. Product Life Cycle Claims:
Products have a limited
life
Product sales pass
through distinct
stages each with
different challenges
and opportunities
Profits rise and fall at
different stages
Products require different
strategies in each life cycle
stage

83. Product Life Cycle Marketing
Strategies

84. Product Life Cycle Marketing
Strategies
•Introduction stage
- slow growth in minimal
profits.
-if successful, the
product enters a gross
stage marked by rapid
sales growth and
increasing profits

85. Product Life Cycle Marketing
Strategies
•Growth Stage
-Improve product quality
- Add new product
features, models
-Enter new markets
–Increase distribution
coverage
- Shift from product-
awareness advertising
to product-preference

86. Product Life Cycle Marketing
Strategies
• Maturity Stage
-Improve product quality
- Add new product
features, models
-Enter new markets
–Increase distribution
coverage
- Shift from product-
awareness advertising
to product-preference

87. Product Life Cycle Marketing
Strategies
• Decline stage
- Identify the truly weak
products and develop a
strategy for each or
phase out

88. The Maturity Stage
Stable
Decaying
Growth
Maturity
STAGES

89. The Maturity Stage
Stable
Decaying
Growth
Maturity
STAGES
PRODUCT MODIFICATIONS
2012 Toyota Prius-C Hybrid
1. Quality Sedan
2. 3.
Features Sedan

90. The Maturity Stage
PROCESS
Stable
MODIFICATIONS
Decaying
Growth
Maturity
STAGES
PRODUCT MODIFICATIONS
2012 Toyota Prius-C Hybrid Sedan
1. Quality 2. 3.
Features Sedan

92. Galicano, Siton
Markma V57

93. Crafting The Brand
Positioning

94. Defining Association
Why they are similar and Why they are so different

95. Deliverability and Desirability
Criteria of PODS
Feasible Relevance Communicability
Distinctiveness Believability
Sustainability

96. Differentiation Strategies
Product Personnel
Channel Image

97. Product Lifecycle
1 2
4 3

98. Marketing Program
Modifications and Evolution
 Ways to Increase
Sales Volume
 Use product in new
ways
 Use product in many
occasion
 Use many product in
many occasions

99. Emerging and Maturing
Markets
Them Them
New He New He
You
You
Old She
Old She
It
It

100. Relevance
Feasible Communicability
Product
Association
Cycle
Distinctiveness Believability
Brand Craft Emerging Sustainability
Maturing
Them Them
New He New He
You
You
Old She
Old She
It
It