DEVELOPING BRAND POSITIONING

AND COMPETITIVE FRAME OF

REFERENCE

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Brand positioning

 Brand positioning
 Act of designing the company’s offer and image so
that it occupies a distinct and valued place in the
target customers’ minds
 Finding the proper “location” in the minds of
consumers or market segment
 Allows consumers to think about a product or service
in the “right” perspective

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
Identify POD vs. POP for brand positioning

Points-of-Parity and
Points-of-Difference

 Points-of-difference associations
 Points-of-parity associations
 Points-of-parity versus points-of-difference

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
Product positioning versus brand positioning

 Both are designed to influence a target audience's

perception, create separation from competitors,
and ultimately drive revenue.
 However, they are fundamentally different
practices.
 Product positioning explains the product's value
while brand positioning creates a brand “essence”
that drives customer affinity.

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
 Product positioning versus brand positioning

 What is Product Positioning?

Product positioning, a cornerstone in marketing strategy, is the deliberate art of
creating a unique identity for a specific product within the vast landscape of
choices. It involves identifying and accentuating the distinctive attributes
(capabilities or features) and mapping the benefits that set the product or
service apart from its competitors.
It answers: “Why should I choose this particular solution over others?”

 What is Brand Positioning?

Brand positioning takes a broader perspective. It is a strategic endeavor to
carve out a unique and memorable space for the entire brand in the minds of
your ideal customers.
Brand positioning is not merely about the features of a product but encompasses
the brand’s personality, values, and overarching essence. It defines the
perception, identity, and reputation of the company
“What makes our brand relevant, trustworthy, and memorable to consumers?”

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
 Examples of Positioning Statements Oxford University Press 6

Apple offers …. the best personal

computing experience to students,
educators, creative professionals and
consumers around the world through
its innovative hardware, software and
Internet offerings.

The Chrysler PT Cruiser is an

inexpensive, small car, that is versatile,
fun to drive, and will appeal to active
singles and young couples with
children who otherwise would have
bought an SUV or a minivan.

Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Copyright © 2013 Pearson Education

 Brand positioning and marketing funnel

 A marketing funnel is the purchase cycle consumers go

through from awareness to loyalty.

 The Evolution of the Marketing Funnel

 At the end of the 20th century, Elias St. Elmo Lewis created a
model highlighting the stages of a customer’s relationship with a
business. The “AIDA” model indicates that every purchase
involves:
 Awareness: The prospect is aware of their problems and
possible solutions for them.
 Interest: The prospect shows interest in a group of services or
products.
 Desire: The prospect begins to evaluate a certain brand.
 Action: The prospect decides whether to purchase.

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
 Brand positioning and marketing funnel

 The marketing funnel:

 It starts from
Customer awareness  Brand awareness 
Brand consideration  Brand Preference

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
 “Frame of Reference” in brand positioning

 "Frame Of Reference" is how a new product, service, or

concept is seen by the target market. (Morelo, n.d.).
 “Point Of View Of Measuring Things”

 It is a point of comparison that helps your marketers position and

differentiate your product within the marketplace. Specifically, it
refers to how customers see your product in relation to other
products of a similar type.

Brand Management
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“Frame of Reference” in brand positioning

 The Frame of Reference is the context in which you place the

two items you plan to compare and contrast; this can be a
theme, question, theory, idea, or problem.
 Think of it as an umbrella under which you have grouped your
two items for contrast. The Grounds for Comparison is your
rationale.

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
 Broadening your brand's frame of reference can
help you: Identify a strong point of difference within
your current narrower frame of reference (for
instance,
 Pepsi chose to 'own' psychological refreshment as
a point of difference over Coca-Cola when

 Coca-Cola defined its category as human liquid

consumption).

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
The importance of competitive frame of reference

 By creating a place that has become many a businessperson's,

mom's, student's and many other's “third home” (outside of where
you live and where you work/go to school), Starbucks defined its
competitive frame of reference as an overall experience that
people wanted to come and hang out in

 The benefits of frame of reference

1. Parity
2. Differentiation
3. Consumer insight
4. Brand positioning

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
To Sum up…
 To appropriately position a brand, marketers should:
 Identify their target customers

 Analyze the type of competition they might face in

the identified market base
 Identify product features and associations that are
different or similar to their competitors

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
Brand Positioning Guidelines

Defining and Communicating the Competitive Frame of

Reference

Choosing Points-of-Difference

Establishing Points-of-Parity and Points-of-Difference

Straddle Positions

Updating Position Overtime

Developing a Good Positioning

Brand Management Advanced prepared
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2013Dr. Nermin
Pearson A. Daniel
Education
Straddle Positioning
 Definition: Straddle positioning is a strategy where a brand
tries to position its product in two categories simultaneously.
 This helps create a dual image of the product to serve a
larger audience.

 Brands use a mix of Point of Parity (POP) and Point of

Difference (POD) to find segments and position their product.

 POPs are points of differentiation. You must show that your

offering is better or equivalent to the competitor to diminish
their advantage and refocus on your point of parity.

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education
Straddle Positioning
For example, it’s thought that Apple products are superior to
Samsung’s. So, Samsung tries to show that their products are as
good as their competitors, such as battery duration, screen
resolution, and design aesthetics.
 POD is the key differentiator that distinguishes a brand’s
product from its competitors.
 For example, Samsung can show that their phones have no
notch, faster charging time, and can be foldable.

Brand Management Advanced

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Education
 Straddle Positioning
Example of Straddle Position:
 The most famous example of a straddle position comes

from BMW.


 When BMW entered the market, all major automakers

focused on luxury. BMW positioned itself as a luxury
brand but with high performance, and it was a success.
Luxury was their POP, and the performance was POD.

Brand Management Advanced

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Education
Brand Management Advanced prepared by Dr. Nermin A. Daniel
Copyright © 2013 Pearson Education
Perceptual Mapping

Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Copyright © 2013 Pearson Education

PERCEPTUAL MAPS
• It is the visual representation of the
different competitive brand
offerings/objects of interest in perceptual
space

• It represents a map of various offerings

within the minds of the target consumers

• “Perception equals reality”

Brand Management Advanced prepared by Dr. Nermin A.

Daniel
Copyright © 2013 Pearson Education
Perceptual Mapping: Mars

Marketing management, Presented By Dr. Nermin A. Daniel, DBA

Copyright © 2013 Pearson Education

To Sum up ...

 Brand positioning describes how a brand can

effectively compete against a specified set of
competitors
 A good product positioning should:
 Have a “foot in the present” and a “foot in the future”
 Identify all relevant points-of-parity
 Reflect a consumer point of view in terms of the benefits that
consumers derive
 Contain points-of-difference and points-of-parity that appeal
both to the “head” and the “heart”

Brand Management Advanced prepared by Dr. Nermin A. Daniel

Copyright © 2013 Pearson Education