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1、CRAFTING THE BRAND POSITIONING10 C H A P T E R LEARNING OBJECTIVESAfter reading this chapter, students should:q Know how a firm can choose and communicate an effective positioning in the marketq Know how brands are differentiatedq Know what marketing strategies are appropriate at each stage of the p
2、roduct life-cycleq Know what he implications are of market evolution for marketing strategiesCHAPTER SUMMARY Deciding on positioning requires determining a frame of reference by identifying the target market and the nature of the competition and the ideal points-of-parity, and points-of-difference b
3、rand associations. Determining the proper competitive frame of reference depends on understanding consumer behavior and the considerations consumers use in making brand choices.Points-of-difference are those associations unique to the brand that are also strongly held and favorably evaluated by cons
4、umers. Points-of-parity are those associations not necessarily unique to the brand but perhaps shared with other brands. Category point-of-parity associations are associations consumers view as being necessary to a legitimate and credible product offering within a certain category. Competitive point
5、-of-parity associations are those associations designed to negate competitors point-of-difference. The key to competitive advantage is product differentiation. A market offering can be differentiated along five dimensions: product (form, features, performance quality, conformance quality, durability
6、, reliability, reparability, style, design); services (order ease, delivery, installations, customer training, customer consulting, maintenance and repair, miscellaneous services); personnel, channel, or image (symbols, media, atmosphere, and events). Because economic conditions change and competiti
7、ve activity varies, companies normally find it necessary to reformulate their marketing strategy several times during a products life cycle. Technologies, product forms, and brands also exhibit life cycles with distinct stages. The general sequence of stages in any life cycle is introduction, growth
8、, maturity, and decline. The majority of products today are in the maturity stage. Each stage of the product life cycle calls for different marketing strategies. The introduction stage is marked by slow growth and minimal profits. If successful, the product enters a growth stage marketed by rapid sa
9、les growth and increasing profits. Then it follows a maturity stage in which sales growth slows and profits stabilize. Finally, the product enters a decline stage. The companys task is to identify the truly weak products; develop a strategy for each one: and phase out weak products in a way that min
10、imizes the hardship to company profits, employees, and customers. Like products, markets evolve through four stages: emergence, growth, maturity, and decline. OPENING THOUGHT A barrier to effective learning that can be experienced by students in this chapter comes from the concept of “positioning.”
11、Students will be familiar with different products or services, but having them realize what the products and services “positions are” within their frame of references is challenging to verbalize. The instructor is encouraged to use a number of examples of products or services familiar to the student
12、s to get this concept fully across. Secondly, the understanding of the terms point-ofdifferences (PODs) and points-of-parity (POPs) can easily be confused. The instructor is encouraged to use a number of similar products (computers, cell phones, pens, PDAs for example) and ask the students to differ
13、entiate these products in terms of the products POPs and PODs; and why these concepts are so important to the marketing of products. The third challenge presented in this chapter is an understanding that products and markets have a life cycle and undergo changes throughout that process. Again, the u
14、se of product or service examples familiar to the students is encouraged to communicate the different stages of a products life cycle. TEACHING STRATEGY AND CLASS ORGANIZATIONPROJECTS1. At this point in the semester, student projects should be completed to include their fictional product or services
15、 brand positioning. In relationship to the material contained in the chapter, students should have delineated and designed a differentiated brand positioning for their project. 2. Relevant to the opening vignette of the chapter concerning The Public Broadcasting Services positioning and differentiat
16、ion, students are to devise a positioning and differentiation strategy for their own local PBS system (radio or television). Students should arrange to meet with local PBS management to elicit information on what challenges their local station(s) is/are having in increasing their viewership/listener
17、s. What stage in the products life cycle (PBS is the product) does your local station fall? What level of competitive advantage, if any, commensurate with the position in the life cycle, does your local PBS station(s) command? What can be done to reverse or continue these trends? 3. Sonic PDA Market
18、ing Plan The third part of STP is to select and communicate an effective positioning to differentiate your offering from competitors offerings. The marketer must also plan for appropriate marketing strategies for each stage of the product life cycle. As you continue your work to develop Sonics marke
19、ting plan for launching Sonic 1000, consider these questions about positioning and life-cycle strategies: Which of the differentiation variables related to product, services, personnel, channels, and image are best suited for Sonics situation, strategy, and marketing objectives? Why? Write the posit
20、ioning statement for Sonic 1000. Knowing the stage of the product life cycle for Sonic 1000, what are the implications for the marketing mix, product management strategy, service strategy, and R&D strategy?Record your answers in a written marketing plan or type them in the Positioning section of Mar
21、keting Plan Pro. Note any additional research you may need in the Marketing Research section of Marketing Plan Pro.ASSIGNMENTSSmall Group Assignments1. Most campus communities have their own radio and/or television broadcasting stations. If one is present on your campus, students are to define the c
22、ollege or universitys station(s) in terms of positioning and differentiation strategy. What stage in the products life cycle are the station(s)? What can be done to reposition the station(s) to attract more viewership? What is the competitive advantage present in their operations? 2. Determining the
23、 proper competitive frame of reference requires understanding consumer behavior and the consideration sets consumers use in making brand choices. For a set of three products or services (selected by the students) students should research these companies and provide the companies (and its products) v
24、alue proposition in a matrix similar to Table 10.1. Individual Assignments1. Consultants Michael Treacy and Fred Wiersema, in their book, The Disciplines of Market Leaders (Reading, MA: Addison-Wesley, 1994) proposed a positioning framework called value disciplines. Within its industry, a firm could
25、 aspire to be the product leader, operationally excellent firm, or customer intimate firm. Choosing an industry, each student is to identify one or more firms operating within that industry that fits each of these three value disciplines. Students should define their reasoning for selecting each fir
26、m and in its placement as either the product leader, operationally excellent or customer intimate. 2. Points-of-differences and points-of-parity are two important concepts of brand development and are driven by two differing strategiesinclusion and differentiation. Students should devise a list of a
27、t least five other products/services that they believe demonstrate points-of-differences and points-of-parity in their brand positioning. Student must include their reasoning behind the inclusion of these products/services into a category. Good students will present “proof” of their correct selectio
28、n by including advertising copy supporting the product or services POD or POP. Think-Pair-Share1. Styles, fashions, and fads fall into special categories when talking about product life cycles. Some may have a product life cycle measured in weeks, others in months, and yet others in years. Ask the s
29、tudents to list the current fads, fashions, and styles prevalent around campus today. Do any of these fashions, styles, or fads meet or satisfy a strong need? If so, can they predict the length of the life cycle of the ones that satisfy a strong need? Which of the fashions, styles, or fads do the st
30、udents predict will have longevity? Why or why not? 2. In the Marketing Memo entitled, Exceeding Customer Expectations, the authors list a three-step process for creating customer value that exceeds customer expectations in service organizations. Students, who have experience working in an eating es
31、tablishment, can comment on the applicability and feasibility of this three-step process to creating customer value in their work environment. In other words, does their place of employment follow the practices outlined in the Marketing Memo? Or is there still much more work to be done to create cus
32、tomer value where they work? Other students who have related experiences in service industries can also comment on the value of this model in their work environment. MARKETING TODAYCLASS DISCUSSION TOPICSSouthwest Airlines has differentiated itself by emphasizing low prices, reliable service, and a
33、healthy sense of humor. Recently a number of other “low fare” airlines have started with their objectives being to capitalize upon the niche created by Southwest. If you were in the position to create a new differentiation and positioning strategy for Southwest, what aspects of the company would you
34、 emphasize? How would your differentiation strategy position Southwest from these other airlinesby product, personnel, channel, or some combination of all of the above? END-OF-CHAPTER SUPPORT MARKETING DEBATEDo Brands Have Finite Lives? Often, after a brand begins to slip in the marketplace or disap
35、pears altogether, commentators observe, “all brands have their day.” Their rationale is that all brands, in some sense, have a finite life and cannot be expected to be leaders forever. Other experts contend, however, that brands can live forever, and long-term success depends as much on the skill an
36、d insight of the marketers involved. Take a position: Brands cannot be expected to last forever versus there is no reason for a brand to ever become obsolete. Pro: Brands can last forever as evidenced by a number of brands that are entering their one hundredth year of existence. For a brand to have
37、immortality, it must continue to have a competitive advantage in its product differentiation dimensions (product, services, personnel, channel, and symbols). The management of the brand, how well brand management monitors changes in the environment, customer preferences, strategies, and technology t
38、o continue to equip the brand with point-of-differences and/or points-of-parity is the key to the brands ongoing success in the marketplace. Con: Brands meet specific consumer needs and wants and provide specifics for these needs and wants. As consumer needs and wants change, evolve, or disappear, b
39、rands must also change, evolve, and finally expire. The loss of the brands point-of-difference in the marketplace or its lack of point-of-parity with other brands will cause its demise. Firms can be best served to understand and accept the inevitability of brand declines and plan for the creation of
40、 and marketing of newer brands to replace declining brands quickly. If a brand is designed to perform a specific function, the change in technologies may render that brand obsolete and see its market decline. Consider the case of the IBM Selectric typewriter as an example where the new technology of
41、 computers rendered this brand obsolete. Every manufacturer or service provider must be on the lookout for threats to their brands ongoing effectiveness and applicability and develop appropriate replacement strategies. MARKETING DISCUSSIONIdentify other negatively correlated attributes and benefits
42、not included in Table 10.2. What strategies do firms use to position themselves on the basis of pairs of attributes and benefits? Suggested Response:Some additional negatively correlated attributes and benefits include: Functionality and price: products and/or services with many features but at a lo
43、w pricecomputers, automobiles, home appliances. Easy and completeness: products that are easy to use and contain everything the consumer wants in the productscomputers, home entertainment products. Fun to drive and good gas mileage: for cars, this is an ongoing challenge along with safe and good gas
44、 mileage and “large” and good gas mileage. Safe and scaryamusement rides, movies, television shows, books. Choices and convenience: variety in our shopping but sized for convenience (has the right mix of products but is not too bigconvenience stores. Close but not too closeshopping centers and large
45、 mega-stores close enough but “not in my backyard.” Simply to use yet not complicated-computer and game programs.A firm may use dual strategies to communicate these negatively correlated attributes and benefits. Although more expensive to use dual marketing strategies, for a product or service consi
46、sting of negatively correlated attributes, such strategies will appeal to both sets of consumers for the product. Additionally, the marketer may anchor the PODs and POPs, with other brands or other associations that emulate the desired characteristics or communicate the desired emotional appeals. MA
47、RKETING SPOTLIGHTKrispy KremeDiscussion Questions:1) What have been the key success factors for Krispy Kreme?a. Careful brand positioning.b. Local marketing.c. Careful brand image (fresh, hot donuts).2) Where is Krispy Kreme vulnerable?a. Change in diet preferences (low carb).b. Replication of their
48、 corporate image and brand positioning by their competitors.3) What should it watch out for?a. Change in diet preferences.b. Change in consumer tastes and emotional appeals that donuts have (reward or indulgent).4) What recommendations would you make to senior marketing executives going forward?a. W
49、atch for changes in diet (fads, fashions, trends) and respond accordingly.5) What should they be sure to do with their marketing? a. Continue to craft their image and positioning carefully.b. Care in expansion of their products through third parties such as convenience stores. c. Over exposure prevalence of
