Transcript Lecture 1 Introduction of Branding

Lecture 2
Brand Positioning
Dr. Lucy Ting
[email protected]
Agenda
• Importance of a Brand
– Consumers’ perspective
• Brand Positioning
– Point of difference
– Point of parity
Why is a Brand Important
to customers??
Consumer Perspective
1. Identification
2. Practicality
Keller (2008) Chapter 1
Consumer Perspective
3. Guarantee
4. Optimisation
Keller (2008) Chapter 1
Consumer Perspective
5. Continuity
6. Badge
Keller (2008) Chapter 1
Consumer Perspective
7. Hedonistic
8. Ethical
Keller (2008) Chapter 1
Brands create perceived value in
order to differentiate the product or
service in the eyes of the consumer.
Keller (2008) Chapter 1
Brand Positioning
Brand Positioning
•
What is Brand Positioning?
– Brand positioning is an act of designing the
company’s offer and image so that it occupies
a distinct and valued place in the target
customers’ minds.
Positioning Criteria
1. Target Customers
2. Nature of Competition
3. Point of Difference
4. Point of Parity
Keller (1993), “Conceptualizing, Measuring and Managing Customer-Based Brand
Equity,” Journal of Marketing, 57(1), pp. 1-29
Competitive Frame of Reference
• Target Market
– Identifying which segment of customers have
a strong favourable and unique association
with the brand
• Nature of Competition
– The product’s category membership tells
consumers about the benefits when using the
product and helps marketers to identify their
competitors
Positioning Criteria
• Point of Difference
– Attributes or benefits that consumers strongly
associate with a brand, positively evaluate
and believe that they could not find to the
same extent with a competitive brand
Keller et al. (2002), “Three Questions you Need to Ask About Your Brand,” Harvard
Business Review 80(9), pp. 80-89
Point of Difference
PODs
Functional,
performance-related
Abstract,
Imagery-related
Choosing PODs
Point of
Differences
Desirability
Deliverability
Choosing PODs
PODs
Relevance
Desirability
Deliverability
Distinctiveness
Believability
Choosing PODs
• Relevance
– Target consumers must find the POD
personally relevant and important
• Distinctiveness
– Target consumers must find the POD
distinctive and superior
• Believability
– A brand must offer a compelling and credible
reason for choosing it over the other options
Choosing PODs
PODs
Desirability
Deliverability
Feasibility
Communicability
Sustainability
Choosing PODs
• Feasibility
– The product and marketing must be designed
to support the desired association
• Communicability
– Factual, verifiable evidence marketers use to
communicate as support to the brand and its
desired association
• Sustainability
– The PODs need to pre-emptive, defensible
and difficult to attack
Positioning Criteria
• Point of Parity
– Associations that are not necessarily unique
to the brand but may in fact be shared by
other brands
Keller et al. (2002), “Three Questions you Need to Ask About Your Brand,” Harvard
Business Review 80(9), pp. 80-89
Point of Parity
POPs
Category POPs
Competitive POPs
Putting them together…
• First POPs:
– A brand does not have to be seen as literally
equal to competitors, but consumer must feel
that it does “good enough” on a a particular
attribute or benefit.
• Then PODs
– Consumers can then base their evaluation on
other attributes potentially more favourable to
the brand
Putting them together…
• When PODs and POPs are negatively
correlated….
– i.e. Tasty vs. Low in Calories
–
High in Choices
vs. Low in Price
Putting them together…
• Separate the attributes
– Launch two different marketing campaigns
each devoted to a different brand attribute
Low-fare, Exclusively Business Class
Keller (2008) Chpt 3
Putting them together…
• Leverage equity of another entity
– The brand “borrowed” the equity of wellknown and well-liked celebrities to lend
credibility to a negatively correlated benefits
Keller (2008) Chpt 3
Putting them together…
• Redefine the relationship
– Convince the consumers that the relationship
is in fact positive
Keller (2008) Chpt 3