Chapter 10 Notes
Chapter 10 Brand Positioning Notes
Positioning – The act of designing the company’s offering and image to occupy a distinctive place in the
mind of the target market. The goal is to locate the brand in the minds of consumers to maximize the
potential benefit to the firm. A good brand positioning helps guide marketing strategy by clarifying the
brand’s essence, what goals it helps the consumer achieve, and how does it so in a unique way.
Determining a Competitive Frame of Reference
Competitive frame of reference – defines which other brands a brand competes with and therefore
which brands should be the focus of competitive analysis. Decisions to target a certain type of consumer
can define the nature of competition because certain firms have decided to target that segment in the
past (or place to do so in the future)
Category Membership – The products or sets of products with which a brand competes and which
function as close substitutes.
Industry – Is a group of firms offering a product or class of products that are close substitutes for
another. Markets classify industries according to numbers of sellers, degree of product differentiation,
presence or absence of entry, mobility and exit barriers, cost structure, of vertical integration, and
degree of globalization.
Markets must formally define the competitive frame of reference to guide positioning, in stable markers
with the sheet term change likely, it may be fairly easy to define one, or perhaps three key competitors.
In dynamic categories where competition may exist arise in a variety of different forms, multiple frames
of reference may arise.
Identify Optimal Points-of-Difference and Points-of-Parity
Points-of-difference ( PODs) – are attributes or benefits consumers strongly associate with a brand ,
positively evaluate, and believe that they could not find to the same extent
The Three Key Criteria
Desirable to consumer – Consumers must see the brand association as personally relevant to them.
Deliverable by the company – Companies, like Bay and Cascades, must have the internal resources and
commitment to feasibly and profitable create and maintain the brand associate in the minds
Differentiating from competitors – Finally consumers must see the brand association as distinctive and
superior to relevant competitors. MKT702
Chapter 10 Notes
Associations that are not necessarily unique to the brand but may in fact be shared with other brands.
These types of associations come in two basic forms, category and competitive:
Category POP’s – Are associations consumers view as essential to be legitimate and credible offering
within a certain product or service category. In other words, they represent necessary – but not
necessarily sufficient – conditions for brand choice.
Competitive POPs- Associations designed to negative competitors POD’s. If in the eyes of consumers, a
brand can “break even in those areas where the competitors are trying to find an advantage and can
achieve advantages in other areas, the brand should in a strong – and perhaps unbeatable – competitive
POPS Versus PODs
There is a zone or range of tolerance or acceptance with POPs. The brand does not have to be seen as
literally equal to competitors, but consumers must feel that way, they may be willing to base their
evaluations and decisions on other factors potentially more favourable to the brand.
Multiple Frames of Reference
1. Quick-serve restaurants and convenience shops. Intended PODs might be quality, image,
experience, and variety intended POPs might be the convenience and value
2. Supermarket brands for home consumptions ( Folgers and NESCAFE). Intended PODs might be
quality, image, experience, variety, and freshness, intended POs might be convenience and
3. Local Cafes. Intended PODS might be convenience and service quality, Intended POPs might be
quality, variety, price and community
Straddle two frames of reference with one set of points-of-difference and points-of-parity. In these
cases, the points-of-difference for one category become points-of-parity for the other and vice versa.
Choosing POPs and PODs
Markets typically focus on brand benefits in choosing the points-of-parity and points-of-difference that
make up their brand positioning. Brand attributes generally play more of a supporting role by providing
reasons to beliefs, or proof points as to why a brand can credibly claim it offers certain benefits.
Perceptual Maps – Visual representations of consumer perceptions and preferences. They provide
quantitative portrayals of market situations and the way consumers view different products, services,
and brands along various dimensions.
Brand Mantras MKT702
Chapter 10 Notes
A brand mantra- is an articulation of the heart and the brand, it is often useful to define a brand mantra.
Brand mantras and powerful devices. They can provide guidance about what products to introduce
under the brand, what ad campaigns. Brand mantras must economically communicate what the brand is
and what it is not. What makes for a good brand mantra : captures the brand essence and core brand
Designing A Brand Mantra
Communicate – A good brand mantra should define the category ( or categories) of business for the
brand and set the brand boundaries. It should also clarify what is unique about the brand.
Simplify – An effective brand mantra should be memorable. For that, it should be short, crisp and vivid
Inspire – Ideally, the brand mantra should also stake out ground that is personally meaningful and
relevant to as many employees as possible
Communicating Category Membership
1. Communicating benefits. To reassure-