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. It is at the heart of marketing strategy.

Brand Positioning-CBBE MODEL• Issues in deciding on a positioning-

• Define competitive frame of reference– Target market– Nature of competition

• Define desired brand knowledge structures– Points-of-parity

• Necessary-to be a legitimate and credible product offering within a certain category.

• Competitive- to negate competitor’s points of differences.– Points-of-difference

• strong, favorable, and unique brand associations

Value Propositions

• Scorpio, Mahindra and MahindraA vehicle that provides the luxury and comfort of a car, and the adventure and thrills of an SUV

• Domino’sA good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

Defining AssociationsPoints-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

POSITIONING GUIDELINES

•2 key issues in arriving at the optimal competitive brand positioning-•Defining and communicating the competitive frame of reference-

•Establish and convey category membership

•Choosing and establishing points of parity and points of difference

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Establishing Category Membership

• This “four-in-one entertainment solution” from Konica failed to establish category membership.

• Straddle positioning worked however for BMW when it entered the US mkt in the 1980s-luxury+performance

Conveying Category Membership

Announcing category benefitsAnnouncing category benefits

Comparing to exemplarsComparing to exemplars

Relying on the product descriptor-Vaseline Intensive

care lotion

Relying on the product descriptor-Vaseline Intensive

care lotion

Identifying & Choosing POP’s & POD’s

• Desirability criteria (consumer perspective)– Personally relevant– Distinctive & superior– Believable & credible

• Deliverability criteria (firm perspective)– Feasible – Profitable– Pre-emptive, defensible & difficult to attack

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Consumer Desirability Criteria for PODs

RelevanceRelevance

DistinctivenessDistinctiveness

BelievabilityBelievability

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Deliverability Criteria for PODs

FeasibilityFeasibility

CommunicabilityCommunicability

SustainabilitySustainability

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

Addressing negatively correlated PODs and POPs

• Present separately-e.g H&S campaign in Europe.• Leverage equity of another entity-Miller Lite used

former professional athletes who debated the merits of ‘great taste(POP) as opposed to ‘Less filling/light(POD)’. These ae negatively correlated benefits.

• Redefine the relationship-Apple launched the Macintosh with key POD-”user friendly”. Tag line used “ Power to be your best.”

Issues in Implementing Brand Positioning

• Establishing Category Membership• Identifying & Choosing POP’s & POD’s• Communicating & Establishing POP’s & POD’s• Sustaining & Evolving POD’s & POP’s

Major Challenges in Positioning

• Find compelling & impactful points-of-difference (MacMillan & McGrath, HBR, ‘97)– How do people become aware of their need for your

product and service?– How do consumers find your offering?– How do consumers make their final selection?– How do consumers order and purchase your product or

service?– What happens when your product or service is delivered?– How is your product installed?– How is your product or service paid for?

Major Challenges in Positioning

• Find compelling & impactful points-of-difference (cont.) – How is your product stored?– How is your product moved around?– What is the consumer really using your product for?– What do consumers need help with when they use your

product?– What about returns or exchanges?– How is your product repaired or serviced?– What happens when your product is disposed of or no

longer used?

Communicating & Establishing POP’s & POD’s

• Create POP’s and POD’s in the face of attribute & benefit trade-offs– Price & quality– Convenience & quality– Taste & low calories– Efficacy & mildness– Power & safety– Ubiquity & prestige– Comprehensiveness (variety) & simplicity– Strength & refinement

Strategies to Reconcile Attribute & Benefit Trade-Offs

• Establish separate marketing programs• Leverage secondary association (e.g., co-brand)• Re-define the relationship from negative to

positive

Sustaining & EvolvingPOP’s & POD’s

• Core Brand Values &Core Brand Proposition

• These piont out the importance of internal branding-making sure that members of the organization are properly aligned with the brand and what it represents.

Core Brand Values

• Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand.

• Relate to points-of-parity and points-of-difference

• Mental Map Core Brand Values Brand Mantra

Brand Mantras

• A brand mantra is an articulation of the “heart and soul” of the brand. – Brand mantras are short three to five word phrases that

capture the irrefutable essence or spirit of the brand positioning and brand values.

• Nike– Authentic Athletic Performance

• Disney– Fun Family Entertainment