Brand Positioning

1
Brand Positioning

Brand Positioning (as defined by Kotler) is “

an act of designing the company’s offer and
image so that it occupies a distinct and
valued in the target customer’s mind”.

 Finding a proper ‘location’ in the minds of a

group of consumers or market segment so
that they think about a product or service in
the ‘right’ or desired way.
2
Establishing brand Positioning

 Target market
 Points of parity and Points of Difference

3
Target market

 A market is the set of all actual and

potential buyers who have sufficient
interests in, income for, and access to a
product.
 A market segmentation – a distinct group
of homogeneous consumers who have
similar needs and behavior and thus
require similar marketing mixes.
4
Points of Parity (POP) and
Points of differences (POD)
Point of Parity  a particular dimension or
attribute or a brand which a group of
consumers believe that is ‘good enough’ or
meet their basic expectations.

Point of Difference  A particular attribute or

dimension of a brand which a group of
consumers likes and perceives as the
uniqueness of the brand.
5
Point of Differences

Other names:
 Competitive Points of Parity
 Unique Selling Point

6
Positioning Guidelines

1. Defining and communicating the

competitive frame of reference
2. Choosing points of parity and points
of differences.
3. Establishing points of parity and
points of differences.
4. Updating positioning over time

7
 Positioning concepts
Functional positions
Solve problems
Provide benefits to customers
Get favorable perception by
Symbolic positions
Self-image enhancement
Ego identification
Belongingness and social meaningfulness
Affective fulfillment connected with
mental processes
Experiential positions of understanding:
Provide sensory stimulation
Provide cognitive stimulation

8
 Brand Extension
“Brand extension is using the
leverage of a well known brand name
in one category to launch a new
product in a different category.”

9
Components of BE Definition

 It is a new product.

 It should use a well known brand.

 The brand should have leverage with

customers of the new category.
10
11
Brand Pyramid

12
 Celebrity Endorsement of a brand
that you use and
like a particular
(a) draw attention to the endorsed product so that
products/services other people will
want to buy it
(b) transfer image values to these
products/services by virtue of their
celebrity profile and engaging attributes.
 Attribute Matching good quality
 Celebrity Power
 Choice of Media Vehicle
 Brand Risks posed by Celebrities
13
Role of e-communities
in Brand Management

14