1 MKT 455 MKT 455 Understanding Brand Positioning Understanding - - PDF document

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MKT 455

Marketing Strategy

Brand and Product Strategy Options MKT 455

Product: A “benefit delivery system” What benefits do customers want? What benefits does our product deliver them? How does our product deliver the benefits?

Initial Thoughts on Products and Brands

Core Product Actual Product Augmented Product MKT 455

Product: A “benefit delivery system” What benefits do customers want? What benefits does our product deliver them? How does our product deliver the benefits? Brand: The promise of the benefit What benefits does the brand promise? How does the brand promise those benefits?

Initial Thoughts on Products and Brands

MKT 455

Why Branding Products is Important To the Customer Reduce search and search costs Reduce risk To the Marketer Encourage repeat purchase Efficiently communicate product benefits Efficiently delineate from competitive brands Capitalize on marketing economies of scale

Initial Thoughts on Products and Brands

MKT 455

Initial Thoughts on Products and Brands

Brand Positioning Basics Product or Brand “Position”: The mental perception a target audience holds about a product or brand, relative to its competitors. Successfully positioned product emphasizes differences with key competitors (who you select). Points of differentiation should, optimally, fill “holes” in consumers’ perceptions of marketplace. Marketers base product positions not on competitors’ product attributes, but on competitors’ claims. MKT 455

Initial Thoughts on Products and Brands

Brand Positioning Basics Product or Brand “Position”: The mental perception a target audience holds about a product or brand, relative to its competitors. Positioning draws from the organization of memory into “memory schema,” or systems of classifying stored concepts. Position Perceptual Maps

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MKT 455

Understanding Brand Positioning

Position Perceptual Maps MKT 455

Understanding Brand Positioning

Position Perceptual Maps Roughly similar in basic function to distance perceptual mapping. Less concerned with “perceived distance” between brands. More concerned with proximity to brand attributes or benefits. Uses a different estimation technique than distance mapping (see web notes). MKT 455

Understanding Brand Positioning

Position Perceptual Maps Example: Laptop Computers Measured on six dimensions: weight: light □ □ □ □ □ heavy appearance: plain □ □ □ □ □ elegant distinctiveness: common □ □ □ □ □ distinctive setup: easy □ □ □ □ □ difficult speed: slow □ □ □ □ □ fast value: poor □ □ □ □ □ excellent MKT 455

Understanding Brand Positioning

Position Perceptual Maps Performance Look/Styling

Common Elegant Slow Easy Set-up Excellent Value Light Toshiba 1960CT IBM 701C

MKT 455

Understanding Brand Positioning

Marketers can position centrally or differentially in the product category. centrally category prototype me too brand differentially pioneer leader price anything that works MKT 455

Understanding Brand Positioning

Marketers can position centrally or differentially in the product category. centrally category prototype me too brand differentially pioneer leader price anything that works

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MKT 455

Preferences and Product Design

Although positioning is psychological, it must be based on something. That “something” will be features of the product or other marketing mix components. Conjoint analysis is a statistical technique that helps determine the optimal combination of attributes for a product (within limits). Conjoint analysis data can be obtained via survey. Also utilizes elements of experimentation. Many variations on dependent variable, which measures preference or choice. MKT 455

Preferences and Product Design

Basics on Conjoint Design Select three or four attributes of the product being designed or tested. Select two, three or four levels of each attribute being tested. Present all possible combinations of attributes and levels to respondents. Respondents rate, rank, or select combinations they prefer. MKT 455

Preferences and Product Design

Conjoint Design Example Basics on Conjoint Design Suppose company tests hand held GPS devices. Wants to know how four attributes affect preference. Accuracy Display Color Battery Life Price Wants to test two levels of each attribute. within 10 feet within 50 feet color black and white 32 hours 12 hours $350 $250 High Options Low Options MKT 455

Preferences and Product Design

Conjoint Design Example Basics on Conjoint Design Suppose company tests hand held GPS devices. Respondents evaluate 16 possible combinations (2 x 2 x 2 x 2). MKT 455

Preferences and Product Design

Conjoint Design Example Basics on Conjoint Design Suppose company tests hand held GPS devices. Respondents evaluate 16 possible combinations (2 x 2 x 2 x 2).

1 Accuracy Display Battery Price 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 10ft $350 10ft 10ft 10ft 10ft 10ft 10ft 10ft 50ft 50ft 50ft 50ft 50ft 50ft 50ft 50ft Color Color Color Color B&W B&W B&W B&W Color Color Color Color B&W B&W B&W B&W 32hrs 32hrs 12hrs 12hrs 32hrs 32hrs 12hrs 12hrs 32hrs 32hrs 12hrs 12hrs 32hrs 32hrs 12hrs 12hrs $250 $350 $250 $350 $250 $350 $250 $350 $250 $350 $250 $350 $250 $350 $250

MKT 455

Preferences and Product Design

Conjoint Design Example Basics on Conjoint Design Suppose company tests hand held GPS devices. Respondents evaluate 16 possible combinations (2 x 2 x 2 x 2). Evaluations should show preference or likely choice.

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MKT 455

Preferences and Product Design

Conjoint Design Example Basics on Conjoint Design Suppose company tests hand held GPS devices. Respondents evaluate 16 possible combinations (2 x 2 x 2 x 2). Evaluations should show preference or likely choice.

Compare the following two model options of the PosiTech Hand held GPS. Accuracy of location Map display Battery life Price Option 1 within 50 feet color 12 hours $350 Which of these two options would you select? Option 2 within 50 feet black & white 32 hours $350 Option 1 Option 2

MKT 455

Preferences and Product Design

Conjoint Design Example Basics on Conjoint Design Suppose company tests hand held GPS devices. Respondents evaluate 16 possible combinations (2 x 2 x 2 x 2). Evaluations should show preference or likely choice.

Compare the following two model options of the PosiTech Hand held GPS. Accuracy of location Map display Battery life Price Option 1 within 50 feet color 12 hours $350 Option 2 within 50 feet black & white 32 hours $350 How would you rate your preference for these options Strongly Prefer Option 1 Strongly Prefer Option 2 1 2 3 4 5

MKT 455

Preferences and Product Design

Conjoint Design Example Basics on Conjoint Design Suppose company tests hand held GPS devices. Respondents evaluate 16 possible combinations (2 x 2 x 2 x 2). Evaluations should show preference or likely choice. Results can be interpreted similarly to regression analysis. Intercept Accuracy Battery Display Price 2.7 9.6 30.4 14.9 40.6