1 1 Brand Positioning Element 1 brand holds membership to a certain category Bud Light in the light beer category Element 2 Advantage that the brand holds over other category members Bud Light has a heritage of King of Beers 2 Fundamental Elements of Competition Based Positioning The statement of a brand s category membership and its point of difference 3 Starting point for developing a competition based positioning strategy Current understanding of how people represent information in memory ie Long term memory is in terms of natural categories Bud Light is stored as a subcategory of Light Beer 4 What are the two levels of the hierarchy that will suffice for analytical purposes The brand and the category in which it has membership or frame of reference 5 At each level in a hierarchy an object might be associated with attributes people and occasions Attributes physical characteristics size color flavor people and occasions images 6 Predominantly attribute based advertising computers 7 Predominantly image based advertising fragrances 8 Benefit abstract concept convenience pleasure or fun 9 Irrelevant Attribute the benefit is not important to the quality of the product Used solely for persuasion 10 From a strategic perspective it matters less whether the feature is termed an attribute or a benefit 11 For highly established products category membership is not a focal issue Unless they are introducing new products where category membership is not apparent 12 When is it necessary to reinforce category membership when consumers may not be convinced that the brand is a good member of the category Is Dell as good as IBM or Compaq 13 What are used to announce category membership Benefits sometimes referred to as points of parity 2 14 Points of parity Associations that are not necessarily unique to the brand but may be shared with other brands 15 when image is used to create membership a brand attribute is often used to create a point of difference a certain target market 16 The preferred approach to positioning is to inform consumers of a brand s membership before stating its point of difference in relation to other category members 17 How to campaign a new product seperate campaigns are generally needed to inform consumers of membership and to educate them about a brand s point of difference 18 For brands with limited resources they should develop a campaign that establishes category membership prior to one that states a point of difference 19 For brands with greater resources they can develop concurrent campaigns where one features membership and the other point of difference 20 What campaign does not work for new brands when they inform consumers of membership and point of difference in the same campaign 21 How to develop a point of difference examine product features broadly to include the various elements of the marketing mix that might distinguish a brand from its competitors 22 When a brand cannot dominate competitors on a factor an effort is made to teach consumers beliefs that imply the brand s benefit Listerine is supposed to taste bad that means its working 23 Large brands promote using benefits that prompt category use Tide detergent stresses superior cleaning power 24 Smaller brands promote using a niche as their point of difference selecting some benefit other than the focal one of the category to establish brand dominance 25 Number of benefits It is important to limit the number of benefits presented especially when broadcast media is being used 26 when multiple benefits are presented caution is needed to limit the likelihood that one benefit undermines another nutritional and good tasting inexpensive and good quality 27 Goal Positioning 3 attempting to show how the brand relates to consumers goals laddering up down 28 two characteristics of laddering up attributes images and benefits the progression from attribute to benefit to more abstract benefit 29 5 dimensions of brand personality 1 Sincerity campbell s soup 2 Exciting red bull apple 3 Competent durable reliable Ford Tough 4 Sophisticated upper class Gucci 5 Rugged outdoor adventurous Levi 30 brand essences has a commonality with consumers goals that allow the consumer to infer the goal that might be achieved by using the brand 31 category essence uses insight about how a category fits with consumers goals as a brands point of difference the assumption is that if consumers perceive a brand to understand their problems that brand is the solution consumers urged to buy Lee Jeans no rationale was provided 32 Category essence may be a way for a brand to compete when it does not have a product point of difference its a strategy of last resort 33 Laddering down reinforces the foundation on which brand essence is built provides a reason for consumers to believe a benefit in the context of competition based positioning 34 Marketing is study of exchange ideas interviews dating etc the scope of marketing and exchange is broad 35 Requirements of exchange communication between two or more people 36 Marketing s first task 3 step Potential Consumers The market information about needs Discover consumer needs Are their sufficient needs competitors 4 37 When a new product is introduced and fails what was not practiced They failed to research their market s demand 38 To satisfy consumer one must find the right combination of product most important price important with gas promotion only for wants place Distribution 39 Advertising Affect part of one s enjoyment of a product place made in a certain country associated with convenience sold in certain towns or stores 40 Functional Benefit performs a task Ex hammer oven pen 41 Social Benefit interacting with others ie phone alcohol organizations 42 Experiential Benefit events one experiences ie storming the field 43 Personal benefit makes you feel proud ie church gym earning a degree 44 Monetary Cost Tuition book fees 45 Temporal Cost Time spent doing something ie time spent in class studying 46 Psychological Cost Expends mental energy EX Cost of taking this class stress anxiety 47 Behavioral Cost expends physical energy ie walking to class getting sick from lecture 5 48 Strategy vs Objective long term procedure vs short term day to day tasks 49 How do companies identify potential changes trends that affect them Market Research and Observation of their target market 50 Result of a Belgium restaurant in CoMo Different cultures spreading throughout the nation immigration 51 Immediate