Transcript Kotler Keller 10

11
Crafting
the Brand Positioning
Marketing Management
A South Asian Perspective, 13th ed
Chapter Questions
• How can a firm choose and
communicate an effective positioning in
the market?
• How are brands differentiated?
• What marketing strategies are
appropriate at each stage of the
product life cycle?
• What are the implications of market
evolution for marketing strategies?
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Positioning
of Café
Coffee Day
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What is Positioning?
Positioning is the act of designing the
company’s offering and image to
occupy a distinctive place in the mind of
the target market.
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Value Propositions
• Scorpio, Mahindra and Mahindra
A vehicle that provides the luxury and
comfort of a car, and the adventure and
thrills of an SUV
• Domino’s
A good hot pizza, delivered to your door
within 30 minutes of ordering, at a
moderate price
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Defining Associations
Points-of-parity
Points-of-difference
(POPs)
(PODs)
• Attributes or benefits • Associations that
are not
consumers strongly
necessarily
associate with a
unique to the
brand, positively
brand but may be
evaluate, and believe
shared with other
they could not find to
the same extent with a brands
competitive brand
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PODs and POPs
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Establishing Category Membership
• This “four-in-one
entertainment
solution” from
Konica failed to
establish category
membership
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Conveying Category Membership
Announcing category benefits
Comparing to exemplars
Relying on the product
descriptor
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Consumer Desirability Criteria for PODs
Relevance
Distinctiveness
Believability
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Deliverability Criteria for PODs
Feasibility
Communicability
Sustainability
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Examples of Negatively Correlated
Attributes and Benefits
• Low-price vs.
High quality
• Taste vs. Low
calories
• Nutritious vs.
Good tasting
• Efficacious vs.
Mild
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• Powerful vs. Safe
• Strong vs.
Refined
• Ubiquitous vs.
Exclusive
• Varied vs. Simple
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Addressing negatively correlated
PODs and POPs
• Present separately
• Leverage equity of another entity
• Redefine the relationship
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Differentiation Strategies
Product
Personnel
Channel
Image
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Product Differentiation
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Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
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Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
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Personnel Differentiation:
Singapore Airlines
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Nature’s
Basket
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Image Differentiation
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Claims of Product Life Cycles
• 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
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Figure 11.1 Sales and
Product Life Cycle
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Figure 11.2 Common
Product Life-Cycle Patterns
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Figure 11.3 Style, Fashion, and
Fad Life Cycles
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The Pioneer Advantage
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Figure 11.4 Long-Range Product
Market Expansion Strategy
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Strategies for Sustaining
Rapid Market Growth
• Improve product quality, add new features,
and improve styling
• Add new models and flanker products
• Enter new market segments
• Increase distribution coverage
• Shift from product-awareness advertising to
product-preference advertising
• Lower prices to attract the next layer of pricesensitive buyers
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Stages in the Maturity Stage
Growth
Stable
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Decaying
maturity
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Marketing Product Modifications
• Quality
improvements
• Feature
improvements
• Style improvements
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Marketing Program Modifications
Prices
Distribution
Advertising
Sales promotion
Services
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Ways to Increase Sales Volume
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Convert nonusers
Enter new market segments
Attract competitors’ customers
Have consumers use the product on
more occasions
• Have consumers use more of the
product on each occasion
• Have consumers use the product in
new ways
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A Product in Decline
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Market Evolution Stages
Emergence
Growth
Maturity
Decline
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Emerging Markets
Latent
Single-niche
Multiple-niche
Mass-market
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Figure 11.5 Maturity Strategies
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Marketing Debate
 Do brands have finite lives?
Take a position:
1. Brands cannot be expected to last
forever.
or
2. There is no reason for a brand to
ever become obsolete.
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Marketing Discussion
 What strategies do firms use to
try to position themselves on the
basis of pairs of attributes and
benefits?
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