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Written by : Coretta Parayuelos |
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no company can win if its products and services resemble every other product and offering imagine selling a product in a competitive market with hundreds of other products that customers can choose from your product needs to stand out your product needs to be different to be noticed each offering must represent the right kinds of things in the minds of the target market hi I am Lorenzo begin tow student from Ateneo Graduate School of Business and I will discuss the importance of crafting the brand positioning and how this concept helps transform brands to superb ends the objective of this short presentation is to provide answers to these following questions first how can a firm develop and establish an effective positioning in the market second how do marketers identify and analyze competition third our brand successfully differentiated and last what are the differences in positioning and branding with a small business this presentation is outlined in a way that would help you understand the process of creating a strong brand position from identifying a frame of reference to understanding the strategies objectives strengths and weaknesses of your competitors so that you can position your brand in such a way that consumers see it distinctive and superior to others and last will identify ways on how a small business can overcome challenges in building brands so to start let us first understand the concept of positioning positioning is defined as the act of designing a company's offering an image to occupy a distinctive place in the minds of the target market the goal is to locate the brand in the minds of the consumer is to maximize potential benefits to the firm benefits such as bush being firm visibility and top of mind recall for consumers to help shut out the competition having a strong brand positioning is important because it provides value to prospects gives them something to get interested in and will ultimately convince them to buy from you now the question is how do we create a strong and effective brand positioning positioning requires that companies define and communicate similarities and differences between their brand and their competitors specifically designing on a positioning requires determining a frame of reference by identifying the target market and relevant competition identifying the optimal points of parity and points of difference brand associations given that frame of reference and third creating a brand mantra to summarize the positioning and essence of the brand let us focus on the first step which is determining the frame of reference a frame of reference defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis a good starting point and defining a competitive frame of reference for brand positioning is to determine the brands category membership which is defined as the products or a set of products with which a brand competes and which function is closed substitutes let serve as an example Bo's coffee which is a Filipino coffee chain that operates a total of 91 outlets throughout the country most coffee which offers coffee base products and light snacks and sandwiches once consumers to consider it as part of the coffee house business and a steeper alternative to companies such as Starbucks and Coffee Bean and Tea Leaf Jollibee which is a fast-food restaurant as a go-to please buy many Filipino families who look for a cheap yet fast satisfying news among the top of mine competitors of jollibee in the country are McDonald's and KFC again knowing the frame of reference is important because it helps companies to find out who its competitors are and where to position its brand in the membership category after determining the frame of reference the company must identify its points of parity and points of difference points of parity are attributes or benefit associations that are not necessarily unique to the brand but may in fact we share it with other brands in the photo we see 5 drinking water brands sharing similar attributes such as being bottled all are convenient to carry and every bottle has quality drinking water more so all brands have the function of fulfilling the thirst needs of their consumers this factors fulfill the basic needs of the consumers therefore equally creating a point of parity amongst all points of parity come in two basic forms a category point of parity means that a brand offer is perceived necessary category features local airline companies such as Philippine Airlines and Cebu Pacific do not only focus on bringing safely passengers to their destinations but they also make sure that their services are top-notch and that their service crew members are generally friendly especially in the Philippines where delayed flights are common due to airport congestion a competitive points of parity on the other hand our associations designed to overcome perceived weaknesses of the brand McDonald's had the competitive parity problem when it lost consumers to subway who were concerned about the nutritional quality of their foods to respond McDonald's began offering grilled chicken sandwiches a variety of salad fruits movies and Ray engineered their signature fry recipe to dramatically reduce the bat fat the goal was not to make McDonald's a destination for healthy eating segments but to create enough parity so that the number who wouldn't even consider the brand was reduced going back to our example a while ago all drinking water brands shown are similar at the basic or core product level but this particular drinking water differentiated itself from its competitor by using a glass bottle instead of plastic hence the brand is more environmentally conscious and it can also claim that it has better quality and freshness because glass bottles keep filtered water fresh and pure without the risk of chemicals contaminating the water those factors that make the brand unique from its competitors are what we call points of difference points of difference are attributes that consumer is strongly associated with a brand and believe they could not find to the same extent with a competitive brand there are criteria to determine whether a brand Association can truly function as a point of difference desirability deliverability and differentiability desirability is when consumers must see the brand Association as personally relevant to them consumers must also be given a compelling reason to believe why a brand can deliver the desired benefit mountain's you may argue that it has more energizing than authors of drinks and they support this claim by noting that it has higher level of caffeine second s deliverability or if a commitment to physically and profitably create and maintain the brand association in the minds of the consumers an example would be the Apple brand in particular iPhone which has been in the market since 2007 iPhones features continuously evolved so that their audience can always expect something new fresh and exciting from their latest product launches the third criterion is differentiating consumerist must see the brand Association
Thanks for your comment Collin Leistner, have a nice day.
- Coretta Parayuelos, Staff Member
welcome to cutler and keller's marketing management chapter 10 crafting the brand positioning let's get started learning objectives how can a firm develop and establish an effective positioning in the market how do marketers identify and analyze competition how are brands successfully differentiated how do firms communicate their positioning what are some alternative approaches to positioning what are the differences in positioning and branding for small business the goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm a good brand positioning helps guide marketing strategy by clarifying the brand's essence identifying the goals it helps the consumer achieve and showing how it does so in a unique way one result of positioning is the successful creation of a customer-focused value proposition a cogent reason why the target market should buy a product or service table 10.1 shows how three companies hertz volvo and dominoes have defined their value proposition through the years with their target customers the competitive frame of reference the competitive frame of reference defines which other brands a brand competes with and which should thus be the focus of competitive analysis and also identifies and analyzes competitors table 10.2 shows the results of a company survey that asks customers to rate its three competitors we'll call them a b and c on five attributes competitor a turns out to be well known and respected for producing high quality products sold by a good sales force but poor at providing product availability and tech assistance competitor b is good across the board and excellent in product availability in salesforce competitor c rates poor to fare on most attributes this result suggests that in its positioning the company could attack competitor a on product availability and tech assistance and competitor c on almost anything but it should not attack b which has no glaring weaknesses as part of this competitive analysis and positioning the firm should also ascertain the strategies and objectives of its primary competitors associations that make up points of differences can be based on visually any type of attribute or benefit strong brands often have multiple points of difference three criteria determine whether a brand association can truly function as a point of reference desirability deliverability and differentiability if something is desirable to the consumers they must see the brand association as personally relevant to them deliverable by the company would mean that the company must have the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers and differentiating from competitors means that consumers must see the brand association as distinctive and superior to relevant competitors regardless of the source of perceived weaknesses if in the eyes of consumers a brand can break even in those areas where it appears to be at a disadvantage and achieve advantages in other areas it should be in a strong and probably unbeatable competitive position consider the introduction of miller lite beer the first major light beer in north america pop associations come in three basic forms category correlational and competitive category points of parity or attributes or benefits to consumers view is essential to a legitimate and credible offering within a certain product or service category correlational points of parity are potentially negative associations that arise from the existence of positive associations for that brand competitive points of parity are associations designed to overcome perceived weaknesses of the brand in light of competitors points of difference it's not uncommon for a brand to identify more than one actual or potential competitive frame of reference if competition widens or the firm plans to expand into new areas occasionally a company will be able to straddle two frames of reference with one set of points of difference and points of parity in these cases the points of difference for one category become points of parity for the other and vice versa straddle positions allow brands to expand their market coverage and potential customer base porter urged companies to build a sustainable competitive advantage competitive advantage is the company's ability to perform in one or more ways that competitors cannot or will not match but few competitive advantages are inherently sustainable at best they may be leverageable any product or service benefit that is sufficiently desirable deliverable and differentiating can serve as a point of difference for a brand for choosing specific benefits as pops and pods to position a brand perceptual maps may be useful perceptual maps are visual representations of consumer perceptions and preferences they provide quantitative pictures of market situations and the way consumers view different products services and brands in different dimensions by overlaying consumer preferences with brand perceptions marketers can a person's emotional response to a brand and its marketing will depend on many factors an increasingly important one is the brand's authenticity here are the three key criteria for a brand mantra first of all communicate a good brand mantra should clarify what's unique about the brand you may also need to define the category or categories of business for the brand and set brand boundaries simplify an effective brand mantra should be memorable for that it should be short crisp and vivid and meaning inspire ideally the brand mantra should also stake out ground that's personally meaningful and relevant to as many employees as possible when a product is new marketers must inform consumers of the brand's category membership there's three main ways to show a brand's category membership one is announcing category benefits to reassure consumers that a brand will deliver on the fundamental reason for using a category marketers use benefits to announce category membership number two comparing to exemplars well-known noteworthy brands in a category can also help a brand specify its category membership and number three relying on the product descriptor the product descriptor that follows a brand name is often a concise way of conveying the category origin once they have fashioned the brand positioning strategy marketers should communicate it to everyone in the organization so it guides the authorized words and actions one helpful schematic with which to do so is a brand positioning bullseye marketing memo constructing a brand positioning bullseye outlines one way marketers can formally express brand positioning without skipping any steps one common challenge in positioning is that many of the benefits to make up points of parity and points of difference are negatively correlated the company conagra must convince consumers that healthy choice frozen foods taste good and are good for you unfortunately consumers typically want to maximize both the negatively correlated attributes or benefits much of the art and science and marketing consists of dealing with trade-o
Thanks Eleanore your participation is very much appreciated
- Coretta Parayuelos
About the author
I've studied neuroscience at Anderson University in Anderson and I am an expert in archaeology of china. I usually feel impressed. My previous job was food technologist I held this position for 3 years, I love talking about painting and foraging. Huge fan of Dougie Poynter I practice equestrian: jumping and collect cheese labels.
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