Chapter 6: Positioning and Branding 6.1 What is Positioning? 6.2 Types of Positioning
The bottom line • A position is a __________, a ___________, or a __________________ • Fans show their support by wearing team jerseys. Once fans position themselves as supporting one team, they’re usually not fans of any other team in that sport • Positioning allows us to create an ___________ – the outward representation of the person we want to be
Marketers and Positioning • Marketers, too, make choices about how to position their product/service in order to create an image of the brand that they want the consumer to accept • So what is positioning? The attempt by a business to achieve __________________ __________________ among target consumers
Chapter 6: Positioning and Branding 6.2 Types of Positioning
Types of PositioningJIGSAW ACTIVITY • Individually, you will read about your assigned type of positioning. Your role is to be an “expert” of your assigned section. • You will meet with your expert group (other people who have the same section) to discuss main points of the section and improve your summary. • Meet with your Home Group (assigned). Each student in the home group will present his or her section to the group.
Chapter 6: Positioning and Branding 6.3 How to Position a Product
Positioning Premise Positioning a product means that some people will _________ ___________the product. Similarly, the business may decide that there are some potential consumers it doesn’t want.
A good position... ...singles out the target lifestyle or demographic and appeals directly to that group saying: “Our ___________ are _________of your culture, your world, and we understand you when ‘they’ don’t”
Not taking a stand... Not all marketers will try to position their products. “We want our company to be _______ things to _________ consumers in attempt to make _____________ _____________”
Long-term Positioning Marketers usually try to select a position that their product can maintain for a long time “We are _______ going to base our product’s positioning on a technological innovation to which we have exclusive rights”
Relevant Positioning • Marketers also have to be sure that the position of their product is _____________ to the consumer • Consumers shop at MEC because they want excellent quality outerwear at reasonable prices
Clear and Coherent Positioning Marketers also have to make sure that the position of their product is __________ and ________________ so that consumers can understand it Without a clear understanding of the company’s position, it is unlikely consumers would choose that brand
Distinctive Positioning A company that doesn’t position its product in a _________________ manner or decides not to position its product at all will see that consumers have ____ ____________to choose that product over its competitor
The Importance of Positioning Without positioning, a company will be forced to use significant price discounts, a complicated push strategy, and costly advertising. It is much ________ costly and _________ effective if the ______________ has a _________________ with the product–if he or she believes in it, understands it, and knows when to use it
Chapter 6: Positioning and Branding 6.4 Branding
Branding 1) From Chapter 5: Product Development – the company designs a product that is different from competitors 2) The business creates a brand for the product to give it a distinct identity to distinguish it from competitors 3) The company positions it product establish the brand’s identity (top-of-the-mind awareness)
In Summary These branding, positioning, and advertising activities are called, __________ _________________ – they are all ways of making one company’s products different from those of another company
What’s a brand? All of the features that make up a product’s image A _____________ (Brand) _______________ associations (Logo) ___________________ These make up the product’s personality
Brand Names – 3 types 1) Corporate-dominant– names include the name of the manufacturing company in the brand name as the name of the product The product is associated with all the positive associations that the company has spent time and money developing
2) Private-label– exploit the corporate image of the seller, as opposed to the manufacturer
3) Product-dominant– try to connect a product with its positive attributes
Logos The accepted generic term for all the symbolic ways to create a brand. There are 3 forms: ________________ – stylized writing of the company’s or product’s initials ________________– line drawings of people, animals, or objects ________________– shapes that carry a visual message but are not representative of identifiable objects
Match them up! Monogram Visual symbols Abstract
Slogans A short, catchy phrase that is always attached to the company’s name and logo. “Betcha can't eat just one.” “It's everywhere you want to be.” “Have it your way.” “Maybe she’s born with it...” “Das Auto” “M'm! M'm! Good!” “When you care enough to send the very best” “Snap! Crackle! Pop!” “It only does everything”
Chapter 6: Positioning and Branding 6.5 Brand Strategies
Developing brand strategies • Support an existing brand • Develop brand extensions • License a successful brand • Co-brand • Acquire a company that’s currently marketing a successful brand
Support an Existing Brand Brand strategies for a company’s existing products may require ____________ _______________ redesign a package communicate the value equation to a different target market change the advertising message
BUT... Once a brand has been positioned in the consumer’s mind and its initial value equation established, it is very difficult to reposition the brand
Developing a Brand Extension A company will use one of its established brands to create a similar product that capitalizes on the older brand’s success– Brand extensions
Licensing a Successful Brand One company’s brand appears on ________________ company’s products Some companies license their brand identification to other companies for a fee, which is usually a percentage of the new product’s sales
Co-branding When two or more brands combine and cooperate for their mutual benefit Can you think of some examples?
Acquiring a Successful Brand Often times a company will buy an ___________, ______________ brand in order to expand or compete against other brands Large Internet companies used this strategy to buy companies from “young computer wizards” who understood the Internet and its potential This made a few young people very wealthy...
Chapter 6: Positioning and Branding 6.6 Branding for International Markets
Branding – Gone Global! The Internet connects consumers and businesses around the world. International travel is common, and many retail stores are known around the globe. NAFTA, European Union, and the World Trade Organization are making international marketing easier by reducing tariffs.
A business going global needs to consider... Are we going to the use same brand identity in different countries? Are we going to rename the brand to reflect the local culture and market preferences? Are we going to acquire a local brand?
The answers depend on... ...more questions!
Is the business centralized or decentralized? If the company is centralized... The company will most likely maintain the same brand in all markets If the company is decentralized... The company would be more likely to adapt the brand to local tastes (since the company would have access to local market knowledge) This is called “thinking globally, but acting locally” – “glocal” marketing
What is the business’s expansion strategy? If the business has plans to have a truly global presence... It would build on the original brand identity and increase the brand’s equity with each expansion If the business wants only limited foreign trade... The acquisition of a local manufacturer plant or the renaming of the brand for local markets in a joint venture would be more appropriate
Does the business have a strong corporate identity in the foreign market? A company is more likely to maintain the original brand identity if... It has a strong corporate identity in the foreign market, a significant advertising budget, an existing foreign distribution network, and a global presence A company with minimal brand equity... Marketing a brand to meet local tastes would be easier, less expensive, and equally effective, especially with a joint venture parternship
How similar or diverse are the company’s products? If a company manufactures beverages exclusively... It would be easier for that company to develop brand equity in foreign beverage markets than it would be for a company that produces beverages as only a small portion of its product line It would be better for these manufacturers to use their international distribution contacts to adapt the brand to local markets
How similar is the foreign target market compared to the domestic market? Consumers in countries that have a similar language, culture, habits, and customs... These consumers would respond to a brand’s existing position more than a brand that needs to be repositioned
Is the competition in the foreign market the same as, or different from, the competition in the domestic market? If a foreign market is highly competitive... A company must consider the local opinion of its brand very carefully If the brand is well known... The foreign aspect of the brand gives it a competitive advantage If the brand is unknown... Strong competition from well-established local brands will make it difficult to successfully enter the market
What are the cultural associations that the brand carries with it into foreign markets? Cultural associations may be positive or negative McDonalds restaurants opened in India in 1996. The company changed the menu for Indian consumers since the majority of them are vegetarians...except, the oil used to cook the fries contained beef extracts for flavour. Violent protests took place in front of McDonalds restaurants. McDonalds issued an apology in 2002 and donated $10 million dollars to vegetarian and Hindu groups.
In summary People are travelling more, media is becoming more international (satellite television, international magazines, the Internet), and new markets emerging (China, Russia)... A brand can be local one day and international the next
Chapter 6: Positioning and Branding 6.7 Packaging
Packaging is done at _______________ level of marketing Raw material processors package their product in large bags, sacks, or drums Manufacturers use shrink-wrap and cardboard boxes Retailers place customer purchases in boxes or bags or both There are a number of reasons why businesses use packaging...
1. Consolidation The main reason for packaging is to ____________ the product, to keep it ________ _________________ Liquids are packaged in bottles, cans, or jars Manufacturers shrink-wrap shipments consisting of many boxes to keep all the products for the same retailer together
2. Protection Packages are intended to ___________ products from __________________ Manufacturers will cover fragile material in bubble wrap, foam, plastic, or Styrofoam Some packages protect products from sunlight, air, germs, or dirt In medicine bottles, the cotton at the top or the packet of silicon at the bottom protects pills from moisture Safety seals, childproof caps, security seals and sensors
3. Information The law requires that ________________ on food ____________________ list the ingredients in the product By amount, from most to least. If a product lists sugar as its first ingredient, it means that the largest single ingredient is sugar
A package also features: • The name and address of the manufacturer or distributor • The product’s weight, grade, and size and pricing information (Universal Product Code) • Storage instructions, health warnings, cooking instructions, recipes, and coupons