Chapter 9 book Flashcards
(28 cards)
What 3 aspects is all marketing strategy built on?
- Segmentation
- Targeting
- Positioning
Positioning
Positioning is designing a company’s offering and image to occupy a distinctive place in the minds of the target market.
The result of positioning is the creation of a customer focused value proposition
Deciding on a positioning requires…; (3)
- To determine a frame of reference
- To identify the POPs and PODs
- To create a brand mantra to summarise positioning
Competitive frame of reference
Defines which other brands a brand competes with.
Industry
An industry is a group of firms offering a product or class of products that re close substitutes for one another.
Competitors
Competitors are companies that satisfy the same customer need
Points of difference (PODs)
PODs are attributes or benefits that consumers believe they could not find to the same extent with a competitive brand.
3 criteria whether a brand association can function as a POD
- Is it desirable to the consumer
- Is it deliverable by the company
- Is it differentiating from competitors
Points of parity (POPs)
POPs are attributes or benefit associations that are not necessarily unique to the brand but may be shared with other brands
Two types of POP associations
- Category POPs
2. Competitive POPs
Category POPs
The brand associations that consumers view as essential and credible within a certain category, although not necessarily sufficient conditions for brand choice
Competitive POPs
The brand associations that are designed to overcome perceived weaknesses of the brand.
Can make competitors PODs ineffective.
Perceptual maps
Visual representations of consumer perceptions and preferences to help choose a brand POPs and PODs
Brand mantra’s
Three to five words that articulate a brands essence, uniqueness and promises
Competitive advantage
Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match
4 dimensions of differentiation
- Employee differentiation (having better employees)
- Channel differentiation (better coverage & expertise)
- Image differentiation (appealing powerful company image)
- Services differentiation (more effective and efficient solutions)
Many marketing experts believe a brand positioning should have…;
… rational en emotional components, with POPs and PODs that appeal to the head and the heart.
What are 3 potential competitive threats a firm should monitor?
- Share of market
- Share of mind
- Share of heart
Share of mind
The percentage of customers who named the competitor in responding to the statement ‘Name the first company that comes to mind in this industry’
Share of heart
The percentage of customers who named the competitor in responding to the statement ‘Name the company from which you would prefer to buy your product’
Market followers
Companies who want to maintain their share and not rock the boat
Market nichers
Serve small segments that larger firms do not reach
Market leaders
Lead in price changes, new-product introductions, distribution coverage and promotional intensity.
To stay #1, market leader must find ways to expand market demand, protect current and increase market share.
Strategies to expand the market for new users (3)
- Market penetration strategy (groups who might use the product but do not)
- New market segment strategy (groups that have never used the product)
- Geographical expansion strategy (groups that live somewhere else)
