Chp 10
Chp 10
Fifteenth Edition
Chapter 10
Crafting the
Brand Positioning
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Learning Objectives
10.1 How can a firm develop and establish an
effective positioning in the market?
10.2 How do marketers identify and analyze
competition?
10.3 How are brands successfully differentiated?
10.4 How do firms communicate their
positioning?
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Developing a Brand Positioning
• Positioning
– The act of designing a company’s
offering and image to occupy a
distinctive place in the minds of
the target market
– Value proposition
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Value Proposition
Table 10.1 Examples of Value Propositions
Company and Product Target Customers Value Proposition
Hertz (car rental) Busy professionals Fast, convenient way to rent the
right type of a car at an airport
Volvo (station wagon) Safety-conscious The safest, most durable wagon in
upscale families which your family can ride
Domino’s (pizza) Convenience-minded A delicious hot pizza, delivered
pizza lovers promptly to your door
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Developing a Brand Positioning
Deciding on positioning requires:
• choosing 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
• creating a brand mantra summarizing the positioning and
essence of the brand
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Competitive Frame of Reference (1 of 2)
• Competitive frame of reference
– Defines which other brands a brand competes with and
which should thus be the focus of competitive analysis
– Identifying and analyzing competitors
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Points-of-Difference and Points-of-
Parity (1 of 6)
• Points-of-difference (PODs)
– Attributes/benefits that
consumers strongly
associate with a brand,
positively evaluate, and
believe they could not find
to the same extent with a
competitive brand
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Points-of-Difference and Points-of-
Parity (3 of 6)
• Points-of-parity (POPs)
– Attribute/benefit associations that are not necessarily
unique to the brand but may in fact be shared with
other brands
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Points-of-Difference and Points-of-
Parity (6 of 6)
• Brand mantras
– Communicate
– Simplify
– Inspire
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Establishing a Brand Positioning
• Communicating category membership
– Announcing category benefits
– Comparing to exemplars
– Relying on product descriptor
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Communicating POPs and PODs
• Negatively correlated attributes/benefits
‒ Low price vs. high quality
‒ Taste vs. low calories
‒ Powerful vs. safe
‒ Ubiquitous vs. exclusive
‒ Varied vs. simple
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Monitoring Competition
• Variables in assessing
potential competitors
– Share of market
– Share of mind
– Share of heart
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