L1 - Ch 2 Notes

Refer to brand equity as a bridge

Reflection of the past, Direction to the future

Brand knowledge appeals to…

Associative network memory model

Brand knowledge consists of 2 parts

Brand Awareness & Image

Marketing Advantages of Strong Brands (11)

• Greater loyalty
  • Larger margins
  • Possible licensing opportunities
  • Greater trade cooperation and support
  • Additional brand extension opportunities
  • Improved perceptions of product performance
  • Less vulnerability to competitive marketing actions
  • Less vulnerability to marketing crises
  • More inelastic consumer response to price increases
  • More elastic consumer response to price decreases
  • Increased marketing communication effectiveness

Brand equity consists of (2)

• Brand awareness

• Brand image

Brand awareness consists of (3)

• Brand recall & recognition

• Advantages

• Repeated exposure to one or more brand elements

Brand image consists of (2)

Brand associations (Attributes/Benefits) +

Strength, favourability, and uniqueness

Identifying and Establishing Brand Positioning (4)

• Basic Concepts

• Target Market

• Nation of Competition

• Points of parity & points of difference

Choosing a target market involves identifying segmentation bases and criteria (4)

• Identifiability

• Size

• Accessibility

• Responsiveness

Consumer Segmentation Bases (4)

• Behavioral

• Demographic

• Psychographic

• Geographic

Business-to-Business Segmentation Bases (3)

• Nature of good

• Buying condition

• Demographic

Competitive Analysis

• Indirect competition

• Multiple frames reference

What is POP?

Points-of-Parity (POP)

What can Points-of-Parity consist of? (3)

– Category points-of-parity
– Competitive points-of-parity
– Correlational points-of-parity

What does POD mean?

Points of Difference

What can Points-of-Difference consist of? (2)

– Functional-performance related considerations
– Abstract-imagery related considerations

Differences of POD & POP? (3)

– Unless certain POP can be achieved to overcome potential weaknesses, POD may not even matter
– “Range of tolerance or acceptance” for POP
– POP are easier to achieve than POD

Guidelines for Positioning (5)

• Defining and Communicating the Competitive Frame ofReference
• Choosing Points-of-Difference
• Establishing Points-of-Parity and Points-of-Difference
• Straddle Positions
• Updating Position Over Time

Communicating Category Benefits (3)

– Use product benefits to announce category membership
– Exemplars
– Product descriptor

Points of Difference (3)

• Desirability criteria
• Deliverability criteria
• Differentiation criteria

Solutions for a negative correlation between POP and POD
may exist in the minds of consumers? (3)

• Separate the attributes
• Leverage equity of another entity
• Redefine the relationship

What is a straddling position originating from?

Points of Parity + Points of Difference (POD)

Points-of-difference in one category (2)

Become points-of-parity in the other
• And vice-versa for points-of-parity

Infrequent positions means…

existing POPs and PODs are no longer effective

When position needs updating 3 options

• nothing

• defense

• offense

a good position..(4)

• Allows for room to grow
• Identifies all relevant points-of-parity
• Reflects a consumer point of view
• Rational and emotional components

A brand mantra consists of a word phrase of

3-5 words

When is brand mantra developed?

Developed at same time as positioning

Brand mantra captures/includes

• essence of the brand positioning

• Includes:
  – Brand functions
  – Descriptive modifier
  – Emotional modifier

• - guidance about marketing decisions