Product Positioning

1. Product Positioning Step 2: Understanding the Components of Positioning

2. Essential Elements of Brand Positioning • Consumer Needs • Target Group • Competitive Framework • Benefit • Reason Why • Brand Character • Value-Based Payoff

3. Consumer Needs Element • Needs can be exemplified in two ways: • Utilitarian Needs • Physical or functional needs that emphasize objective, tangible attributes of products • Hedonic needs • Psychographic or emotional needs characterized by subjective, experiential benefits of products

4. Utilitarian Needs: Examples • The need to satisfy my hunger, thirst • The need for safe shelter • The need for reliable transportation • The need for an organized work environment

5. Hedonic Needs: Examples • The need for acceptance • The need to trust and be trusted • The need to be recognized for one’s accomplishments

6. Competitive Framework Element • The competitive framework provides a grouping of like products with which our product competes • Direct & indirect competitors • Requirement: Framework must be consistent with the brand’s main benefit.

7. Benefit Element • Encapsulates the most meaningful product difference between our brand and the competitors • Benefit must be consistent with the product’s physical attributes

8. Reason Why Element • Element that adds credibility to the main benefit by emphasizing supporting rationale intrinsic to the brand • Makes a connection between those attributes that support the benefit(s) promise

9. Brand Character Element • Element that addresses who your brand is. • The personage or personality of your specific brand • Complexion • Temperament • Spirit/Soul

10. The Value-Based Payoff • The element that captures the value associated with the benefit promise

11. Recall: Essential Elements of Brand Positioning • Consumer Needs • Target Group • Competitive Framework • Benefit • Reason Why • Brand Character • Value-Based Payoff

12. When The Components are In Place • Once all components are in place, the positioning statement can be formulated

13. Statement parts • To (specify target market) who need (specify need) • (brand name) is the (competitive framework) brand • that (state the benefit(s)). • The reason is because (state the “reason(s) why”).

14. Statement (cont.) • The brand personality is (specify personality characteristics). • The value-based payoff is (specify).

15. Example1 (Sundell, Oretsky,Masters) • To college students who need an inexpensive meal to get them through afternoon classes, Campbell’s soup is the brand of canned soup that gives you a quick and tasty meal. The reason is that 1) it requires minimal preparation time and 2) is ready to heat and eat. • The brand character is versatile and on-the-go. • The value-based payoff is empowerment.

16. Example2 (Foster, Gruse, Demers, Bennett, Carlson) • To senior citizens who need a simple, healthy meal without the fuss of preparation, Campbell’s soup is the “quick meal” brand that gives you a healthy meal and preparation convenience. The reason is that it is low in cholesterol and ready-to-eat. • The brand character is caring. • The value-based payoff is security and empowerment.

17. Example3 (Dussuyer, Beam, Abbott, Zwolinski) • To young couples (“youples”) who need meals to accommodate the fact that they are “eating on a budget,” Campbell’s brand soup provides you with an affordable, yet nutritious meal. The reason is because it sells for less than the price of dinner for two out and it contains vitamins, iron and protein.

18. Example 3 (cont.) • The brand character is steamy and romantic. • The value-based payoff is self-direction and security.

19. Example4 (Tony, Patel, Catone, Jacobsen) • To business people who need a quick, fast lunch, Campbell’s soup is the fast-food alternative that gives you a quick, tasty meal in the middle of the work day. The reason is because it 1) is ready to eat, 2) takes minimal preparation, and 3) is microwavable. • The brand character is reliable, helpful. • The value-based payoff is accomplishment.

20. The positioning statement provides the basis for the communication strategy • The communication strategy statement specifies what the focus of marketing communications should be

21. Communication Strategy Template • Convince: (Target Audience) • That: (Product Benefit based on a Competitive Framework) • Because: (Reason Why) • Specify the Brand Character, V-B Payoff

22. Positioning Example • To business people who need a quick, fast lunch, Campbell’s soup is the fast-food alternative that gives you a quick, tasty meal in the middle of the work day. The reason is because it 1) is ready to eat, 2) takes minimal preparation, and 3) is microwavable. • The brand character is reliable, helpful. • The value-based payoff is accomplishment.

23. The Communication Strategy • Convince: business people who need a quick, fast lunch • That: Campbell’s soup is the fast-food alternative that gives you a quick, tasty meal in the middle of the work day • Because: it is ready to eat and takes minimal preparation.

24. Communication Strategy (cont.) • The brand character is reliable, helpful. • The value-based payoff is accomplishment.