Brand Positioning A.KwantaSirivajjanangkul Albert Laurence School of Communication Arts Department of Advertising 2013
Chapter Outline • Basic Concepts of Brand Positioning • Target Market • Segmentation bases • Criteria • Positioning Guidelines • Defining and communicating the competitive frame of reference • Choosing and establishing points of parity and points of difference • Defining and Establishing Brand Mantras • Core brand associations • Brand mantras
Reference Texts: • Keller, Kevin L. (2003), Strategic Brand Management: Building, Measuring, and Managing Brand Equity (second ed.). Upper Saddle River, NJ: Prentice Hall. • Aaker, David A. (2002), Building Strong Brands. New York: Free Pr. • Aaker, David A., Joachimsthaler E. (2002), Brand Leadership. New York: Free Pr. • Haig M., (2005), Brand Failures: the truth about the 100 biggest branding mistakes of all time. London: Kogan.
Brand Positioning Positioning: identifying and establishing points of parity and points of difference to establish the right brand identity and brand image.
Basic Concept Unique, meaningful points of difference provide a competitive advantage and “reason why” consumers should buy the brand. “no reason why not”
Brand Positioning: is at the heart of marketing strategy. It is the ‘act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds. • Position = Location (finding proper location of the product in the consumer’s minds)
How it is different? And why consumers should purchase and use it?
So, marketers need to know… • Who the target consumer is? • Who the main competitors are? • How the brand is similar to these competitors? • How the brand is different from them?
Target Market • Market:is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product. • Market Segmentation:divided the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior.
Segmentation Bases • Descriptive or customer-oriented: what kind of person or organization the customer is • Behavioral or product-oriented: how the customer thinks of or uses the brand or product
Descriptive or customer-oriented Who? Consumers VS Business Buyers
Consumer Segmentation Bases • Psychographic • Value, opinions, and attitudes • Activities and lifestyle • Geographic • International • regional • Behavioral • User status • Usage rate • Usage location • Brand loyalty • Benefit sought • Demographic • Income • Age • Sex • Race • Family
Business-to-business Segmentation Bases • Demographic • SIC code • Number of employees • Number of production workers • Annual sales volume • Number of establishments • Nature of good • Kind • Where used • Type of buy • Buying condition • Purchase location • Who buys
Behavioral or product-oriented How? **Depend on each product category**
EX: Toothpaste • The sensory segment: seeking flavor and product appearance • The sociables: seeking brightness of teeth • The worriers: seeking decay prevention • The independent segment: seeking low price
How the brand is similar to these competitors?How the brand is different from them? • Points of parity: associations that are not unique to the brand but may be shared with other brands. • Points of difference: attributes or benefits that consumers strongly associate with a brand and they believe that they could not find from a competitive brand
Positioning Guidelines • Designing and communicating the competitive frame of reference • To determine category membership • Which products does the brand complete? • Different categories will lead to different points of parity and points of difference • Ex: PDA – smart phone, laptop, palm • Ex: Coca cola – soft drink, carbonated drink, general beverage • Ex: Kellogg’s Corn Flakes – cereal, snack, morning meal
Positioning Guidelines • Choosing points of difference • Desirability criteria • Relevance • Distinctiveness • Believability • Deliverability criteria • Feasibility • Communicability • Sustainability
Positioning Guidelines • Establishing Points of Parity and Points of Difference • Separate the attributes ex. Clinic clear, Clinic clear for men • Leverage equity of another entity ex. Paula Taylor for Cannon IXUS ex. Jame Ji for Toyota Vios ex. Lady Gaga for Pepsi • Redefine the relationship ex. Coffio canned coffee: fresh, premium, ready to drink coffee
Positioning Guidelines • Updating positioning over time • Laddering: how to deepen the meaning of the brand to tap into core brand associations or more abstract considerations ex. Moving from tangible to intangible • feature, functions, rewards, values, personality • Reacting: how to respond to competitive challenges that threaten an existing positioning • Do nothing • Go on the defensive (self-protective) ex. Singha beer • Go on the offensive (aggressive) ex. Chang beer
Exercise • Pick 2 big brands in the same category • Evaluate the positioning of each brand. • Who are the target markets? • Who and how? • What are their main points of parity and points of difference? • Both performance and imagery • What is their brand position?
Core Brand Associations Core Brand Associations: are those abstract associations that characterize the 5 to 10 most important aspects or dimensions of a brand. They can serve as the basis of brand positioning in terms of how they create points of parity and points of difference.
How do we know core brand associations? • Create mental map: all salient brand associations and responses for a particular target market. • Group brand associations into related categories with descriptive labels
Ex. MTV mental map trendsetter popular changing mainstream original trusting Real and genuine MTV leader For me informative Fun and entertaining music lifestyle young Live and immediate Hip and cool connected Irreverent and rebellious interactive
Ex. MTV core brand associations • Interactivity • Connected and participatory • Community • Share experience • Spontaneity • Up to the minute, immediate • Originality • Genuine, creative • Fluidity • Always changing and evolving • Music • What’s hot and what’s new • Credibility • Expert, trusting, reality • Personality • Irrelevant, hip, cool • Accessibility • Relevant, for everyone
Brand Mantras Heart & Soul Core brand promise Similar to brand essence 3 – 5 words that captures spirit of the brand Ex: McDonald’s brand philosophy: “Food, Folks and Fun”
Designing Brand Mantra • What the brand is and what is not!!! • Brand function: nature of product, benefits the brand provides ex: Nike – performance ex: Disney -- entertainment • Descriptive modifier: further clarifies its nature ex: Nike – athletic (not just typical performance) ex: Disney -- family • Emotional modifier: provide another qualifier, how exactly does the brand provide benefits and in what ways? ex: Nike – Authentic ex: Disney -- fun
Implementing Brand Mantra • Communicate: a good brand mantra should both define the category of business to set the brand boundaries and clarify what is unique about the brand • Simplify: an effective bran mantra should be memorable, short, vivid • Inspire: the brand mantra should also stake out ground that is personally meaningful and relevant to as many employees and possible