product repositioning involves changing the place a product occupies in a consumer's mind
relative to competitive offerings by changing one of the four marketing mix elements.
1. reacting to a competitor’s position. one reason to reposition is to react to a competitor's
position that is adversely affecting sales and market share.
2. reaching a new market. repositioning is also done to reach a new market.
3. catching a rising trend. changing consumer trends can lead to repositioning a product.
4. changing the value offered. repositioning often involves changing the value offered.
adding value to the product through additional features or higher quality is trading up.
5. trading down is reducing the number of features, quality, or price. this practice often
exists when companies engage in downsizing - reducing the content of packages without
changing package size and maintaining or increasing the package price
branding and brand management
a basic decision in marketing products is branding. some important definitions associated with
a brand name is any word or "device" or combination that distinguishes a seller's offerings from
those of competitors.
a trade name is a commercial, legal name under which a company does business.
a trademark is the brand name which is the exclusive right of the company and is legally
registered in canada under the trademarks act with consumer and corporate affairs canada. an
increasing problem is product counterfeiting, which is the production of low cost copies of a
popular brand not produced by the original manufacturer.
brand personality and brand equity.
established brands take on a brand personality which is a set of human characteristics often
associated with a brand name.
a good brand name leads to brand equity, the added value a given brand name provides a product
beyond the functional benefits provided. brand equity is a competitive advantage and results in
consumers willing to pay a higher price for a product with brand equity.
1. creating brand equity
first develop positive brand awareness. then establish the brand’s meaning in the consumers
mind. lastly, elicit the proper consumer responses to the brand’s identity and meaning.
2. valuing brand equity
brand equity provides financial advantage for the brand owner. brand