Positioning Positioning is closely related to the association and image concepts except that it implies a frame of reference, the reference point usually being competition The Value of Brand Associations Help Process/Retrieve Information
Differentiate/Position
Associations Reason-to-Buy
Create Positive Attitudes/Feelings
Basis for Extensions
Types of Associations What does these brands mean to you ? Types of Associations Product Attribute Most used positioning strategy is to associate an object with a product attribute or characteristic Positioning problem is usually to find an attribute important to a major segment & not already claimed by a competitor Intangibles Companies love to make brand comparisons Problems with such specmanship Brand position based upon a specification is vulnerable to innovation When firms start a specification shouting match, they all eventually lose credibility People do not always make decisions based upon a particular specification anyway Regis McKenna, an advisor to silicon valley firms intangible factors are more effective associations to develop than specific attributes. Perceived quality, technological leadership, perceived value or healthy food Customer Benefits Most product attributes provide customer benefits, there usually is a 1 to 1 correspondence (crest, BMW) A rational benefit is closely linked to a product attribute and would be part of a rational decision process A psychological benefit, often extremely consequential in the attitude-formation process, relates to what feelings are engendered when buying and/or using the brand (e.g., Avanti) Relative Pricing Relative price, is so useful & pervasive that it is appropriate to consider it separately. In some product classes there are 5 well-developed price levels Saks fifth avenue, Neiman Marcus, Bloomingdales Macys, Robinsons, Bullocks, Daytons etc Sears, Montogomery Ward, j.C Penney K Mart Positioning with respect to relative price can be complex. The brand usually needs to be clearly in only one of the price categories The job then is to position its offering away from others at the same price point Use/Application Associate the brand with use or application Reach out and touch some one User/Customer Associate a brand with a type of product user or customer User positioning strategy is effective because it can match positioning with a segmentation strategy Identifying a brand with its segment often is a good way to appeal to that segment Cadbury adult soft drink market Celebrity/Person Linking a celeb with a brand can transfer those associations to the brand One characteristic important for a brand to develop & manufacture a product Life-Styles/Personality Every person, of course possesses a personality and a life style that is rich, complex & vivid and distinctive as well Product Class Some brands need to make critical positioning decisions that involve product-class associations 7 up, maxim freeze-dried coffee competitors Positioning strategies, the frame of reference, whether explicit or implicit, is one or more competitors It is useful to consider positioning with respect to a competitor for two reasons The competitor may have a firm, well- crystallized image, developed over many years, which can be used as a bridge to help communicate another image referenced to it Sometimes it is not important how good customers think you are; it is just important that they believe you are better than a given competitor Positioning with respect to a competitor can be an excellent way to create a position with respect to a product characteristic, especially price quality Creating Associations Identifying and managing signals Customers often discount or disbelieve factual information They cope by using signals or indicators, one attribute or association can imply others E.g., healthy cereal, caterpillar Providing credibility in the High-Tech World Ben Rosen (Sevin Rosen Funds) Compaq, Lotus Having alliance Understanding Unanticipated Signals Millers diet beer failed because of perceived taste problems Associations with low calorie, diet products was avoided Pringles The Role of Promotions Strengthening Associations & Brand Awareness Leather Strapped luggage tags Amex Terrycloth robe Polo Cologne Belts, Handbags Levis Outdoor Gear & 2 mountain bike Jeep Role of Publicity Creating associations and recognition need not to be expensive Advertising sometimes is extremely difficult and expensive because it lacks both credibility & interest value Involving the Customer Changing Associations Changing associations (repositioning) often is a delicate job because of the existing associations Maintaining Associations Be consistent over time Changing associations is wasteful when associations that have been nurtured over a long time-period are allowed to dissipate when a new association is emphasized Be consistent over elements of the marketing program E.g., E.J Korvette, a pioneer discounter (Eugene Ferfauf, 1948) Managing Disasters Suzuki Samurai Nestle AT&T