Marketing Final Exam

CRAFTING THE BRAND POSITIONING

Deciding on positioning requires determining a frame of reference by identifying the target market and the nature of the competition and the ideal points-of-parity, and points-of-difference brand associations. Determining the proper competitive frame of reference depends on understanding consumer behavior and the considerations consumers use in making brand choices.

Points-of-difference are those associations unique to the brand that are also strongly held and favorably evaluated by consumers. Points-of-parity are those associations not necessarily unique to the brand but perhaps shared with other brands. Category point-of-parity associations are associations’ consumers view as being necessary to a legitimate and credible product offering within a certain category. Competitive point-of-parity associations are those associations designed to negate competitors’ point-of-difference.

The key to competitive advantage is product differentiation. A market offering can be differentiated along five dimensions: product (form, features, performance quality, conformance quality, durability, reliability, reparability, style, design); services (order ease, delivery, installations, customer training, customer consulting, maintenance and repair, miscellaneous services); personnel, channel, or image (symbols, media, atmosphere, and events).

Because economic conditions change and competitive activity varies, companies normally find it necessary to reformulate their marketing strategy several times during a product’s life cycle. Technologies, product forms, and brands also exhibit life cycles with distinct stages. The general sequence of stages in any life cycle is introduction, growth, maturity, and decline. The majority of products today are in the maturity stage.

Each stage of the product life cycle calls for different marketing strategies. The introduction stage is marked by slow growth and minimal profits. If successful, the product enters a growth stage marketed by rapid sales growth and increasing profits. Then it follows a maturity stage in which sales growth slows and profits stabilize. Finally, the product enters a decline stage. The company’s task is to identify the truly weak products; develop a strategy for each one: and phase out weak products in a way that minimizes the hardship to company profits, employees, and customers.

Like products, markets evolve through four stages: emergence, growth, maturity, and decline.

Emotional branding is a powerful tool when differences are connected to underlying functional differences. Consider alternatives that are less structured such as brand narratives, storytelling and cultural branding.

Small businesses must place extra emphasis on their brand elements and secondary associations, be more focused and create buzz for their brand.