11 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 PositioningThe statement of a brand's category membership and its point of difference 3 Starting point for developing a competition-based positioning strategyCurrent understanding of how people represent information in memoryie. 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 reference5 At each level in a hierarchyan object might be associated with attributes, people, and occasions.-Attributes=physical characteristics (size, color, flavor)-people and occasions=images6 Predominantly attribute-based advertisingcomputers7 Predominantly image-based advertisingfragrances8 Benefitabstract concept. convenience, pleasure or fun9 Irrelevant Attributethe benefit is not important to the quality of the product. Used solely for persuasion10 From a strategic perspective.. it matters less whether the feature is termed an attribute or a benefit.11 For highly established productscategory 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 parity214 Points-of-parityAssociations 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 positioningis to inform consumers of a brand's membership before stating its point of difference in relation to other category members17 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 difference18 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 campaign21 How to develop a point of differenceexamine product features broadly to include the various elements of the marketing mix that might distinguish a brand from its competitors22 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 benefitsIt is important to limit the number of benefits presented, especially when broadcast media is being used26 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 Positioning3attempting to show how the brand relates to consumers' goals-laddering up/down28 two characteristics of laddering upattributes/images and benefits-the progression from attribute to benefit to more abstract benefit29 5 dimensions of brand personality1. Sincerity: campbell's soup2. Exciting: red bull/apple3. Competent: durable, reliable: "Ford Tough"4. Sophisticated: upper-class; Gucci5. Rugged: outdoor, adventurous: Levi30 brand essences has.. a commonality with consumers' goals that allow the consumer to infer the goal that might be achieved by using the brand31 category essenceuses 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 provided32 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 downreinforces 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 broad35 Requirements of exchange:communication between two or more people36 Marketing's first task: (3 step)-Potential Consumers- The market-information about needs-Discover consumer needs (Are their sufficient needs/competitors?)437 When a new product is introduced and fails, what was not practiced?They failed to research their market's demand38 To satisfy consumer, one must find the right combination of: product<-most importantprice<- important with gaspromotion<-only for wantsplace (Distribution)39 Advertising Affectpart of one's enjoyment of a productplace-made in a certain country, associated with convenience (sold in certain towns or stores)40 Functional Benefitperforms a task Ex: hammer, oven, pen41 Social Benefitinteracting with othersie. phone, alcohol, organizations42 Experiential Benefitevents one experiences ie. storming the field43 Personal benefitmakes you feel proud ie. church, gym, earning a degree44 Monetary CostTuition, book fees45 Temporal CostTime spent doing somethingie. time spent in class/studying46 Psychological CostExpends mental energyEX: Cost of taking this class - stress, anxiety47 Behavioral Costexpends physical energyie. walking to class, getting sick from lecture548 Strategy vs. Objectivelong term procedure vs. short term, day to day tasks49 How do companies identify potential changes/trends that affect them?Market Research and Observation of their target market50 Result of a Belgium restaurant in CoMo?Different cultures spreading throughout the