MOD 2 ADPR 101

POSITIONING

• refers to how a brand or product is perceived in the minds of customers relative to its competitors

• about creating a unique and favorable position for a business in the marketplace

• Effective positioning helps businesses differentiate themselves, appeal to their target audience, and influence consumer perceptions.

Positioning is based on a few simple ideas:

• Customer buying habits are strongly influenced by their perceptions. (pangunawa)

• People can only remember and process limited amounts of information at any one time.
  

• Consumers attach mental pictures to company and brand names.

Positioning is based on a few simple IDEAS

1. Unique Selling Proposition (USP)

2. Target Market

3. Competitive Analysis

4. Brand Perception

5. Consistency

6. Emotional Connection

Unique Selling Proposition (USP)

• Every brand should have a _____ that differentiates it from competitors.

• distinct feature or benefit that sets the brand apart and solves a specific need or problem for the target audience.

Target Market

• Knowing and understanding the______ is crucial for successful positioning. 

• involves identifying the specific group of customers that the brand aims to serve, understanding their preferences, needs, and behaviors, and tailoring the brand's positioning accordingly.

Competitive Analysis

• studying and analyzing the competition to identify their strengths, weaknesses, and market positioning

• helps in identifying opportunities for differentiation and finding a unique space in the market.

Brand Perception

• Positioning is about shaping and influencing the perception of the brand in the minds of customers.

• involves crafting a compelling brand story and identity that resonates with the target market and creates positive associations.

Consistency

• ______ in brand messaging, visuals, and actions is crucial for effective positioning. 

• Brands should consistently deliver on their promises, maintain a coherent and unified message across all touchpoints, and create a consistent brand experience.

Emotional Connection

• Successful positioning often includes an ______ with the target audience. 

• Brands that can evoke emotions such as trust, happiness, or a sense of belonging are more likely to establish long-lasting relationships with their customers.

Positioning is all about defining the image of your product and making it believable (4C’s)

1. Clarity 

2. Consistency 

3. Credibility 

4. Competitiveness 

Clarity

• You must have a clear vision of the product and the target market.

Consistency 

• Your message must be consistent throughout all aspects of the product.

Credibility 

• The image that you project must be credible. 

• For example, Toyota could never be seen as a luxury car because of its image, which is why it chose a different name for its more expensive car line, Lexus.

 Competitiveness 

• You must offer something unique that your competitors can't. 

• For example, the iPod was not only a great MP3 player, but the ability to download music from the iTunes Store gave it a huge advantage in the digital music industry.

PRINCIPLES OF POSITIONING

in marketing involve creating a distinct and favorable perception of a brand or product in the minds of the target audience.

KEY PRINCIPLES OF POSITIONING

1. Differentiation

2. Targeting 

3. Focus 

4. Relevance

5. Consistency

6. Competitive analysis

7. Communication

Differentiation

• Positioning is about differentiating your brand or product from competitors. 

• You need to identify and communicate unique features, benefits, or values that set you apart. 

• Could be through innovation, superior quality, convenience, price, or customer experience.

 Targeting 

• Effective positioning requires understanding your target audience. 

• Identify their needs, preferences, and desires, and tailor your positioning strategy to resonate with them specifically. 

• Make sure your brand's message aligns with their values and aspirations.

Focus

• Positioning is about having a clear ___ and identity.

• Determine your brand's core essence and consistently communicate it across all touchpoints.

• Helps create a strong and recognizable brand image in the minds of consumers

 Relevance

• The positioning of your brand or product should be relevant and meaningful to the target audience. 

• Highlight how your offering solves their problems, fulfills their desires, or improves their lives. 

• Connect your brand positioning to the specific needs and motivations of your target market.

Consistency

• _____ is crucial for effective positioning. 

• Ensure that your messaging, visual identity, and overall brand experience are consistent across different channels and touchpoints. 

• Builds trust and reinforces the desired perception of your brand.

 Competitive analysis

• Positioning involves evaluating and understanding your competition. 

• Analyze how they position themselves and identify opportunities to differentiate from them. 

• Highlight your unique strengths and advantages over competitors to carve out a distinct market position.

Communication

• Clear and compelling ____ is essential to effective positioning. 

• Craft a concise and impactful message that conveys your brand's value proposition and resonates with your target audience. 

• Use various marketing channels and tactics to consistently communicate your positioning.

successful positioning

requires ongoing monitoring and adjustment as market dynamics evolve.

STEPS TO DEVELOP A STRONG BRAND POSITION

1. Define your target audience

2. Research your competitors

3. Identify your unique value proposition

Define your target audience

• Start by clearly identifying your target audience. 

• Understand their demographics, psychographics, needs, preferences, and desires. 

• This will help you create a brand position that speaks directly to their specific needs.

Research your competitors

• Conduct a thorough analysis of your competitors' positioning strategies.

• Understand how they are positioning their brands and products in the market. 

• Identify gaps and opportunities that you can leverage to differentiate your brand.

 Identify your unique value proposition

• Determine what makes your brand unique and valuable to your target audience. 

• Focus on your strengths, such as product features, quality, customer service, innovation, or a specific market niche. 

• Your unique value proposition should address a key customer pain point or solve a problem better than competitors.

DEVELOPING A BRAND POSITION

• Determine your current brand positioning.

• Identify your competitors.

• Conduct competitor research.

• Identify what makes your brand unique.

• Create your positioning statement.

• Evaluate if your positioning works.

• Establish an emotional connection with prospects and customers.

PRODUCT

• Refers to both tangible products and intangible services that provide value to the customer.

• Basically refers to an item that is created and offered to customers to satisfy their needs and wants.

• Anything that can be offered to a market that might satisfy a want or need. 

• Represent the items of value that businesses offer to their customers and clients in exchange for other products, money, or services. 

Physical items

 cars, smartphones, or food items.

Digital products

• software, mobile applications, or cloud services may also be considered products.

According to the web search results, a product needs to have several key qualities:

1.Relevant/Relevance

2.The product needs to have an immediate use for its intended users.

3.Functionally able

4.The product needs to be able to perform the functions it is designed for in a high-quality way.

5.Communicated

6.Potential users need to know the benefits of the product and how it makes their lives easier. Marketing and branding help communicate a product's value.

PRICE

• is the sum of all the values that a customer gives up to gain the benefits of having or using a product or service.

  • Refers to the amount of money or value that is assigned to a product or service in exchange for its ownership or use. 

  • Monetary value that a buyer pays to acquire a product from a seller. 

concept of priceis essential in economics and business, as it plays a crucial role in determining:

supply and demand, market equilibrium, and profitability.

• Least appreciated

• Least understood

• Most abused 

PRICE  DETERMINING FACTORS

• Prices are influenced by various factors, including production costs, competition, market demand, and consumer perception of value.

• Companies often consider factors such as: materials, labor, overhead costs, marketing expenses, and desired profit margins when setting prices.

• Pricing strategies can vary based on: market conditions, target audience, product

Prices are influenced by various factors,

•  including production costs, competition, market demand, and consumer perception of value.

Companies often consider factors such as:

• materials, labor, overhead costs, marketing expenses, and desired profit margins when setting prices.

Pricing strategies can vary based on:

• market conditions, target audience, product differentiation, and overall business objectives.

TYPES OF PRICING

1.Cost-based pricing 

2.Value-based pricing 

3.Competitive pricing

4.Penetration pricing 

5.Skimming pricing

6.Dynamic pricing

Cost-based pricing

• involves setting prices based on the production costs and desired profit margins.

Value-based pricing

• focuses on the perceived value of the product or service to customers.

Competitive pricing

• involves setting prices based on the prices charged by competitors in the market.

Penetration pricing

• aims to set lower initial prices to gain market share.

Skimming pricing

• involves setting higher prices initially and gradually lowering them over time.

Dynamic pricing

• adjusts prices in real time based on factors like demand, supply, and market conditions. 

Price Discrimination

• refers to a strategy where different prices are charged to different customers or groups of customers for the same product or service.

• can be based on factors such as customer demographics, location, purchasing power, or willingness to pay.

Price Discrimination

• This strategy allows businesses to capture additional revenue by charging higher prices to customers who are willing to pay more while offering lower prices to price-sensitive customers.

PRICING METHOD

1 . Cost Plus 

2. Competitive Parity (pagkakapantay-pantay)

3. Price Skimming 

4. Penetration Pricing

5. Value-based pricing

6. Dynamic Pricing 

Cost Plus

• pricing is a method where the price of a product is determined by calculating the production costs and adding a markup percentage to cover profit. 

• This method ensures that the desired profit margin is achieved for each unit sold

Competitive Parity (pagkakapantay-pantay)

• involves setting prices based on the prices charged by competitors in the market.

• The goal is to stay competitive with other businesses offering similar products or services

Price Skimming 

• is a strategy where a high initial price is set for a new product, targeting customers who are willing to pay a premium.

• Over time, the price is gradually lowered to attract more price-sensitive customers.

Penetration Pricing

• is the opposite of price skimming. 

• It involves setting a low initial price to quickly gain market share. 

• The aim is to attract customers and build brand loyalty, with the potential to increase prices later.

Value-based pricing

• a strategy that sets prices based on the perceived value of the product or service to customers. 

• Instead of focusing on production costs or competition, the price is determined by what customers are willing to pay based on the value they receive

Dynamic Pricing

• adjusts prices in real-time based on factors such as demand, supply, and market conditions.

• This strategy allows businesses to optimize prices and maximize revenue based on changing circumstances.

 DISTRIBUTION CHANNEL

•  an organized and managed network of agencies and individuals linking producers with end users.

CHANNEL AUDIT

• identifies consumer needs,

• selecting the most appropriate individuals, agencies, and partners to satisfy those needs

CHANNEL AUDIT QUESTIONS

1. Choose and describe your target segment.

2. What are the customers’ needs for each of the three distribution flows?

3. Who can best satisfy those needs (partner)?

4. Who are potential channel members to satisfy the segment’s needs across the four flows. There may be multiple options

5. Who can best satisfy the market segment's needs and why are they the best choice as a channel partner?

6. What are the channel partner's needs for each of the three flows?

7. What must the company do in order to satisfy the needs across all of the channel flows for all of the channel members?

THEY OFFER:

• Greater market penetration

• Lower company investment

• Lower company risk

• Market knowledge and expertise

• Share marketing resources

MARKETING COMMUNICATIONS 

• are the messages and media that marketers use to communicate with target markets. 

The promotion mix consists of these MAJOR TOOLS:

1. Advertising

2. Sales Promotion

3. Public Relations 

4. Personal Selling 

5. Direct Marketing 

6. Interactive/Internet Marketing 

Advertising

• the activity or profession of producing advertisements for commercial products or services.

Sales Promotion

• marketing strategy using temporary, short-term incentives like discounts, coupons, contests, and samples to encourage customers to buy a product or service immediately, boost demand, and increase short-term sales

Public Relations

• the state of the relationship between the public and a company or other organization, or a famous person.

 Personal Selling 

• face-to-face (or direct, person-to-person) communication between a salesperson and a potential customer to inform, persuade, and ultimately close a sale.

Direct Marketing 

• the business of selling products or services directly to the public, e.g. by mail order or telephone selling, rather than through retailers.

Interactive/Internet Marketing

• is a customer-centered digital strategy where brands create a two-way dialogue by encouraging consumers to actively engage with content, fostering personalized experiences and stronger relationships.

strategic process to differentiate your brand and communicate its unique value to the target audience.

1. Identify Target Audience

2. Analyze the Competition

3. Define Brand Identity and Values

4. Determine Unique Selling Proposition (USP)

5. Develop a Positioning Statement
6. Create Key Messaging and Brand Promise

7. Design Visual and Verbal Brand Elements

8. Implement in Advertising Campaigns

9. Monitor and Adjust

Identify Target Audience

• Understand who your ideal customers are, including their demographics, psychographics, needs, preferences, and behaviors.

 Analyze the Competition

• Study competitors’ brands, their positioning strategies, strengths, and weaknesses to identify gaps and opportunities in the market.

 Define Brand Identity and Values

• Clarify what your brand stands for—its mission, vision, personality, and core values that resonate with your target audience.

Determine Unique Selling Proposition (USP)

• Identify what makes your brand different and better than competitors—your unique benefits or features that appeal to your customers.

Develop a Positioning Statement

• Craft a clear, concise statement that communicates your brand’s unique value and position in the minds of consumers. 

Create Key Messaging and Brand Promise

• Develop core messages that reflect your positioning and consistently communicate the value your brand offers.

Design Visual and Verbal Brand Elements

• Establish visual identity (logo, colors, typography) and tone of voice that align with your positioning and appeal to your target audience.

 Implement in Advertising Campaigns

• Integrate your positioning into all advertising efforts—media, content, creative concepts—to reinforce your brand’s unique stance.

Monitor and Adjust

• Continuously evaluate the effectiveness of your positioning through market feedback and metrics, making adjustments as needed to stay relevant and differentiated.

Whenever  we communicate, these are the questions that come to mind:

• who 

• says what

• in what channel 

• to whom 

• with what effect? 

COMMUNICATION PROCESS

sender, encoding, message, channel, noise, receiver, decoding, feedback

SENDERS

• must know what audiences they want to reach and what responses they want.

• They encode their messages in a way that takes into account how the target audience usually decodes messages.

SOURCE

• must transmit the message through efficient media that reach the target audience. 

SENDERS

• must develop feedback channels so that they can know the receiver's response to the message.

For a message to be effective, the sender's encoding process must mesh with

 receiver's decoding process. 

sees messages essentially as signs that must be familiar to the receiver.

Wilbur Schramm

sender's task

• to get his or her message through to the receiver. 

• The target audience may not receive the intended message for any of three reasons. 

1. SELECTIVE ATTENTION 

2. SELECTIVE DISTORTION

3. SELECTIVE RECALL 

SELECTIVE ATTENTION

• in that they will not notice all the stimuli.

SELECTIVE DISTORTION

• in that they will twist the message to hear what they want to hear.

SELECTIVE RECALL

• in that they will retain in permanent memory only a small fraction of the messages that reach them.