MARKETING MANAGEMENT

10
Crafting the Brand
Positioning

Kotler

Keller

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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Marketing Strategy
Segmentation
Segmentation
Targeting
Targeting
Positioning
Positioning

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Positioning

Act of designing the companys

offering and image to occupy
a distinctive place in the mind of
the target market.

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Value Propositions
Perdue Chicken
More tender golden chicken at a
moderate premium price
Dominos
A good hot pizza, delivered to your door
within 30 minutes of ordering, at a
moderate price

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Positioning

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Writing a Positioning Statement

Mountain Dew: To young, active
soft-drink consumers who have
little time for sleep, Mountain Dew
is the soft drink that gives you
more energy than any other brand
because it has the
highest level of caffeine.
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Defining Associations
Points-of-parity
Points-of-difference
(PODs)
(POPs)
Attributes or benefits
Associations that are
consumers strongly
not necessarily unique
associate with a brand,
to the brand but may
positively evaluate, and
be shared with other
believe they could not
brands
find to the same extent
with a competitive
brand
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PODs and POPs

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Conveying Category Membership

Announcing
Announcing category
category benefits
benefits

Comparing
Comparing to
to exemplars
exemplars
Relying
Relying on
on the
the product
product
descriptor
descriptor

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Consumer Desirability Criteria for

PODs
Relevance
Relevance
Distinctiveness
Distinctiveness
Believability
Believability

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Deliverability Criteria for PODs

Feasibility
Feasibility
Communicability
Communicability
Sustainability
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

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

Product form
Features
Performance
Conformance
Durability
Reliability
Reparability

Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance

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Personnel Differentiation:
Singapore Airlines

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Channel Differentiation

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Image Differentiation

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Identity and Image

Identity:
The way a
company aims to
identify or
position itself

Image:
The way the
public perceives
the company or its
products
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Figure 10.1 Product Life Cycle

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Facts about Life Cycles

Products have a limited life.

Product sales pass through distinct stages.
Profits rise and fall at different stages.
Products require different marketing,
financial, manufacturing, purchasing, and
human resource strategies in each stage.

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Figure 10.2 Common PLC Patterns

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Figure 10.3 Style, Fashion, and Fad

Life Cycles

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Figure 10.4 Long-Range Product

Market Expansion Strategy

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Marketing Program Modifications

Prices
Distribution
Advertising
Sales promotion
Services
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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 10.5 Maturity Strategies

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Marketing Debate
Do brands have finite lives?
Take a position:
1. Brands cannot be expected to last
forever.
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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