kotler_mm13e_im_10 - TC H A P T E R POSITIONING HE BRAND...

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G THE BRAND POSITIONING 10 C H A P T E R LEARNING OBJECTIVES After reading this chapter, students should: Know how a firm can choose and communicate an effective positioning in the market Know how brands are differentiated Know what marketing strategies are appropriate at each stage of the product life-cycle Know what he implications are of market evolution for marketing strategies CHAPTER SUMMARY Deciding on positioning requires the determination of a frame of reference— by identifying the target market and the nature of the competition—and the  ideal points-of-parity and points-of-difference brand associations. To  determine the proper competitive frame of reference, one must understand  consumer behavior and the considerations consumers use in making brand  choices. Points-of-difference are those associations unique to the brand that are also  strongly held and favorably evaluated by consumers. Points-of-parity are  those associations not necessarily unique to the brand but perhaps shared  with other brands. Category point-of-parity associations are associations  consumers view as being necessary to a legitimate and credible product  offering within a certain category. Competitive point-of-parity associations  are those associations designed tone gate competitors’ points-of-difference. The key to competitive advantage is relevant brand differentiation –  consumers must find something unique and meaningful about a market  offering. These differences may be based directly on the product or service  itself or in other considerations related to factors such as personnel, channels  or image. Because economic conditions change and competitive activity varies,  companies normally find it necessary to reformulate their marketing strategy  several times during a product’s life cycle. Technologies, product forms, and  brands also exhibit life cycles with distinct stages. The general sequence of  1
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Chapter-by-Chapter Instructional Material stages in any life cycle is introduction, growth, maturity, and decline. The  majority of products today are in the maturity stage. Each stage of the product life cycle calls for different marketing strategies.  The introduction stage is marked by slow growth and minimal profits. If  successful, the product enters a growth stage marked by rapid sales growth  and increasing profits. There follows a maturity stage in which sales growth  slows and profits stabilize. Finally, the product enters a decline stage. The  company’s task is to identify the truly weak products;  2
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Chapter 10: Crafting the Brand Positioning develop a strategy for each one; and phase out weak products in a way that  minimizes the hardship to company profits, employees, and customers. Like products, markets evolve through four stages: emergence, growth, maturity, and
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kotler_mm13e_im_10 - TC H A P T E R POSITIONING HE BRAND...

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