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 2007 Thomson South-Western

Chapter Five. Marcom Positioning.  2007 Thomson South-Western. Positioning In Theory: Creating Meaning. A brand’s positioning represents the key feature, benefit, or image that it stands for in the target audience’s collective mind.

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 2007 Thomson South-Western

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  1. Chapter Five Marcom Positioning  2007 Thomson South-Western

  2. Positioning In Theory: Creating Meaning • A brand’s positioning represents the key feature, benefit, or image that it stands for in the target audience’s collective mind. • The attribute / benefit of the brand which is most strongly and robustly recalled

  3. The Multi Attribute Attitude Model • Brand beliefs = Attribute x strength of its association with brand • Importance of attribute moderates belief strength • Sum of moderated beliefs = attitude to brand • Interpretation • According to the direction of the scale • Relative to attitude measures for competing brands • Multi Attribute Attitude Modeling (MAAM)

  4. The MAAM n Ab = bi ei i = 1 Ab = attitude toward brand bi = belief about the relationship between brand and attribute i ei = attribute importance weight i n = number of salient attributes

  5. Meaning Transfer: From Culture to Object to Consumer Through socialization, people learn cultural values, form beliefs, and become familiar with the physical manifestations, or artifacts, of these values and beliefs.

  6. Meaning Transfer: From Culture to Object to Consumer The consumer approaches all advertisements as texts to be interpreted.

  7. Meaning Transfer

  8. Advertisements Illustrating Contextual Meaning

  9. The consumer infers that this product will help him or her get in shape and maintain a healthy regimen.

  10. Positioning in Practice: The Nuts and Bolts • Brand positioning is essential to a successful Marcom program. • A good positioning statement should: • Reflect a brand’s competitive advantage • Motivate customers to action

  11. Positioning Statement A positioning statement for a brand is the central idea that encapsulates a brand’s meaning and distinctiveness compared to other brands. BRAND (_______) STANDS FOR _______________

  12. A Communication problem • BRAND (_______) STANDS FOR _______________ • As planned and stated by the marketer • As understood by the consumer • If the two match – ideal situation • If they do not match – communication problem

  13. Outcomes of Proposed Positioning

  14. Loser Characterizes a proposed positioning where the brand possesses no competitive advantage and the basis for the positioning is not enough to motivate consumers to want the brand.

  15. Swimming Up the River (SUTR) • A proposed positioning represents a competitive advantage for a trivial product feature or benefit, and does not give the consumer compelling reasons to want the brand. • Any effort will be hard work with little progress

  16. Promote Competitors • Does not reflect a competitive advantage but does represent an important reason for making brand selection decisions in the product category. • Any effort would basically serve other brand selection decisions in the same category.

  17. Winner • Brand is positioned on a product feature or benefit for which the product has an advantage over competitors and which gives consumers a persuasive reason for trying the brand.

  18. Benefit Positioning Positioning with respect to brand benefits can be accomplished by appealing to any of three categories of needs. Functional Needs Symbolic Needs Experiential Needs

  19. An Appeal to Functional Needs Products that attempt to fulfill the consumer’s consumption-related problems

  20. An Appeal to Symbolic Needs Products that potentially fulfill a consumer’s desire for self-enhancement, group membership, affiliation, altruism, and belongingness

  21. Positioning Based on Symbolic Needs

  22. Attribute Positioning A brand can be positioned in terms of a particular attribute or feature, provided that the attribute represents a competitive advantage and can motivate customers to purchase that brand rather than a competitive offering.

  23. An Example of Product-Related Positioning

  24. Non-Product Related: Usage and User Imagery • Brands can also be positioned in terms of their unique usage symbolism or with respect to the people who use them.

  25. Positioning Via Attributes:Non- Product-Related • Usage Imagery

  26. “Flame-Broiled” Vs. “Fire-Grilled” “Oil of Olay” to Olay Examples of Repositioning a Brand

  27. Understanding the buying process Implementing Positioning

  28. Consumer Buying Strategies

  29. A Basic Strategy Ready Reckoner

  30. The FCB Grid Implementing Positioning

  31. The FCB Grid (Vaughn 1980, 1986)

  32. The Rossiter Percy grid Implementing Positioning

  33. The Rossiter-Percy Grid (1997)

  34. Perceptual Mapping Implementing Positioning

  35. Perceptual Mapping • A representation of the consumers’ mind space with the position of brands in this mind space. • When considering more than two dimensions – Multi-Dimensional Scaling – a statistical procedure for determining clusters of similar brands.

  36. The Perceptual Map – Cars – attribute based High price ferrari Mercedes BMW Acura Accord Power High mpg Prius Insight camaro firebird Civic Ford fiesta Low price

  37. The Perceptual MapCars – benefit based For younger people BMW ferrari Ford festiva savings prestige Corolla Civic Camry Accord mercedes Rolls Bentley volvo For older people

  38. Information from the map • Which brands compete with each other • Strategy implications

  39. Information from the map • How is every brand perceived on each attribute – the current positioning • Tylenol – • Excedrin – • Strategy implications

  40. Information from the map • Length of attribute line • Strategy implications

  41. Information from the map • Angle between lines • Smaller angles – • Larger angles – • Strategy implications

  42. Information from the map • Brand located close to the center (origin) e.g. Panadol

  43. CPM vs. HEM Implementing Positioning

  44. Consumer Processing Model (CPM): information and choice are seen as a rational, cognitive, systematic and reasoned process. Hedonic, Experiential Model (HEM): views consumers’ processing of marcom messages and behavior as driven by emotions in pursuit of fun, fantasies and feeling. Implementing Positioning

  45. Comparison of the CPM and HEM Models

  46. CPM The Consumer Processing Model (CPM)

  47. Stage 1: Consumer Information Processing Exposure to information • Consumers come in contact with the marketer’s message • Gaining exposure is a necessary but insufficient for communication success • “The truth effect”: repeated exposure to a message increases the likelihood that the receiver will believe it to be true. • A function of key managerial decisions regarding the size of the budget and the choice of media and vehicles

  48. CPM The 8 Stages of Consumer Information Processing

  49. Stage 2: Paying Attention • Focus on and consider a message to which one has been exposed • Highly selective

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