Product  Positioning


Consumer behavior is guided by their perception of reality


Positioning is creating and maintaining a certain favorable perception in the consumers mind about a product compared to the competition 


Strong positions are created through consistent advertising and PR
                                                                                                          
Some Positioning Strategies


      Product features/benefits
                  Tylenol - " more powerful but safer " than aspirin


      Consumer's reason for buying the product
                   Yogurt - "more healthful"


      Product Price and Quality
                    ( high price sometimes acts as a signal for quality)
                    Mercedes autos
                    Grey Goose vodka


      Product specific use
                    WD40


      Product User
                    Celebrity user of product


      Competitor
                    Direct/Indirect/Avoidance
                         (don't challenge leaders head on)
                                                                                                         
Steps to Establish a Proper Position


       1. SWOT analysis
                     Market Threats and Opportunities
                     Organization Strengths and Weaknesses 
       2. Analyze the target market
                     characteristics, needs, size, growth, ...
       3. Analyze competition ( strengths - weaknesses)
       4. Economic trends
       5. Develop the marketing mix
       6. Develop a Brand (name)
       7. Determine how you want to be perceived by 
           target market
       8. Create a positioning message
       9. Strong, sustained promotion and PR


                                                                                                        


"The Battle for Your Mind"       Ries & Trout   1981
    (a recognized marketing classic)


Positioning now a key aspect of Marketing Communications


Some Key Points from the book


    Information Overload
        Consumers bombarded with continuous stream of product        
        advertising
        So concept is to position product in mind of consumer
        The mind reacts to high ad volume by accepting only what
        is consistent with prior knowledge or experience
           Advertiser - present simplified message
                             - focus on perceptions of consumer and not
                               product reality


    Getting into the Consumers Mind
         Be First !
             e.g. Miller Lite not the first light beer but was first to be
                    positioned as a light beer ( complete with name)


                    7-Up   #3 behind Coke and Pepsi but established 
                    the drink as the #1 alternative - "The Uncola"


                    Xerox - the first in the plain paper copier market


   Position of a Leader
         Brand success not due to marketing acumen of the company !
         It is because the company was first in the product category
                    Xerox - first in plain paper copier market
                                 IBM couldn't compete
                                 Xerox in other markets (not first)


   Power of a Name
         Brand's name perhaps most important factor affecting 
         consumer perception and positioning of the product
         Use "descriptive" words 
         e.g.  "Die Hard" - batteries   "People" - gossip magazine
                 " Head and Shoulders" - shampoo
                 " Close Up" - toothpaste


                                                                                                    
Repositioning
        Usually used for improvement of existing products 


       physically change product
       change price
       change distribution
       change image through promotion
       change the target market


                                                                                                    
Pricing - Does it all start with Positioning ?


       Pricing and positioning are inseparable


       Don't price until you figure out the position your product will      
       have in the market


       Ask these four questions:


            Who are your competitors ?


            How is your product different from your competitors ?
                 Differentiation is critical but using low  prices as
                 the primary differentiator is fatal


            How do you want to be known in the market ?
                 Describe the position you want to have in terms  of
                 how you want your target market to perceive you


            What are the prices of your competitor products ?
                 What price range is consistent with the perception you
                 want your target market to have of your product




        Put yourself in the shoes of your customer. Figure out how
        much your product is worth to them
                                                                                                                        















   

 Marketing  222  Key Points

• Two Essential Elements of a Marketing Strategy                  

                  Target Market          Marketing Mix

• Target Market

              The group that marketing creates a specific 

              marketing mix for to satisfy their product needs - 

              The group that marketing focuses all activities on

• Four components of the Marketing Mix

Product          Price         Promotion       Distribution 

• Organization SWOT analysis

               Internal - Strengths and Weaknesses

               External - Opportunities and Threats

• The six Marketing Environmental Forces

               Competition     Economic     Political     Technological

               Legal/Regulatory     Sociocultural

• Organization Mission Statement

               Long term view of organization goals/objectives

               State in terms of:

               The target market - the product - product uniqueness

• Marketing Research

               Collecting, analyzing and reporting information to help 

               make marketing decisions

               Used to identify and help solve marketing problems,

               and identify opportunities and threats

                

• Marketing Research Process

             1. Identify the problem    2. Design the project

             3. Collect data     4. Interpret data    5. Report findings

• Marketing Research Data

             Primary Data - gathered specifically for a project

                                        ( surveys, ...) 

             Secondary Data - already exists (internet, publications, 

                                           ... ) in some form

• What are markets ?

             Individuals or organizations with: need - ability to buy             
             - willingness to buy - authority to buy

• Two major types of markets 

             Consumer          Organizational

• Market Segmentation

             Process of dividing the total market into groups

             {segments) with similar characteristics & product needs

• Market Segment

            Group with one or more similar characteristics

            with similar product needs

• Consumer Market Segmentation Variables

           Demographic - age,gender,income,education, ...
           Geographic - region,urban,suburbanrural, ...
           Psychographic - lifestyle, motives, ...
           Behavioristic - brand loyalty, benefit expectations, ...

• Organizational Market Segmentation Variables

           Geographic

           Type of Organization

           Customer Size

           Product Use 

• Targeting Strategies 

           Total market (undifferentiated)

           One segment of the market (concentrated)

           Multiple segments of the market (differentiated)

• Target Market Selection ( segmentation approach)

           1. Identify the segments of the overall market for your

               product using segmentation variables and specific needs

                         consumer - age, income, lifestyle,...

                         organizational - type of business, size, ...

           2. Chose the segment(s) that best fit with organization

               goals and objectives

                   This is /are the target market(s)

• Product

           Can be a:      Good - Service - Idea

           Two major classes:     Consumer - Business 

       Consumer Product Classifications               

           Convenience

           Shopping

           Specialty                        

           Unsought


       Product Life Cycle                          

           4 Stages:     introduction - growth - maturity - decline


           sales/profits/ marketing mix differ in each stage


       Product Brand

          name, term, symbol, design intended to clearly identify

          and differentiate a seller's product from a competitors

          brands developed by consistent advertising  and PR

          Three levels of loyalty:

                     Brand recognition - weakest

                     Brand preference - will take a substitute

                     Brand insistence - strongest, no substitutes


       Product Differentiation

           Create and design products so customers perceive them

           as different ( and better) than competitors

           Elements to consider:

                                Quality

                                Design/Features

                                Support Services


      Product Positioning

           Creating and maintaining a favorable perception in the

           consumers mind about a product compared to the 

           competition

           Strong positions are created and maintained through        

           consistent advertising and PR ( and WOM ?)


           The primary elements of positioning a product are:
                  price      low-middle or high
                  quality   well designed,well produced, features 
                  service   product customized or personalized 
                  distribution   channel used is key element
                  packaging    good packaging makes a strong statement                

           Use positioning as part of competitive strategy


           Identify your strongest strength and use it to position
           your product
         

• Price

        Price Competition - match or beat competitors

                                          - should be low cost seller

           Nonprice Competition - emphasize product features, 

                                                   quality, service, ...

                                                 - promote brand and positioning

           Classic Demand Curve - when price falls, demand goes up

                                                    and the reverse


           Pricing Objectives
                        - survival
                        - profit
                        - return on investment
                        - market share
                        - cash flow
                        - status quo
                        - product quality


           Pricing Strategies
                        - differential
                        - new product
                        - product line
                        - psychological
                        - promotional

•    Promotion

        Four Elements of the Promotion Mix

                        - advertising

                        - public relations

                        - personal selling

                        - sales promotion

              Advertising
                        - a paid form of communication
                        - conveys information about product/business
                        - directed at a specific group ( target audience}
                        - uses mass media
                        - purpose is to to inform, persuade,motivate


                  Target Audience - the group the ad campaign wants
                                                  to reach (part of or the total 
                                                  target market)


                  Basic objective of Advertising:
                      Help sell the product/organization to the customer


                      Some specific reasons to advertise
                           - introduce new product 
                           - promote new  product to a target audience
                           - build new business image
                           - make public aware of new company/product
                           - show differences with competitive products
             
              Public Relations   
                       - communicate favorable image of organization,
                         product, person, idea, ... and promote goodwill
                       - tools
                             website
                             brochures
                             newsletters
                             speeches
                             event sponsorship
                             charitable works
                             corporate identity materials
                             publicity
                             WOM                      
                             Social Media

•   Distribution

               Marketing Distribution Channel

                       - directs flow of products from producer to

                         customer

              Consumer Marketing Channels Strategies

                        producer - consumer

                        producer - retailer - consumer

                        producer - wholesaler - retailer - consumer

              Major role of Marketing Channel

                       make products available for consumer at:

                            right time - place - quantity

              Consumer Product Market  Distribution Coverage

                       intensive - all available outlets

                                         (convenience products)

                       selective - few outlets

                                         ( shopping products )

                       exclusive - limited outlets

                                         ( specialty products )


+++++++++++++++++++++++++++++++++++++++++++++

• Some ways to deal with the Competition

            - price

            - service

            - quality

            - distribution

            - promotion

            - positioning

       

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• So - What is Marketing ?

         identify - satisfy - keep customers and satisfy the goals

            and objectives of the organization

            management process responsible for identifying, 

            anticipating and satisfying the customer needs profitably

           management process that moves goods and services from

           concept to the customer. It consists of selecting a

           target market and developing a marketing mix ( product -

           price - promotion - distribution) to satisfy the customer         


           marketing consists of the strategy and tactics used to 
           identify, create and maintain satisfying relationships with
           customers that results in value for the customer and the 
           organization

           

           

            
                        

             

                                  

           

             

Lecture Notes for FLCC Marketing Class: Branding, Packaging & Websites

____________________

BRANDING
Some Brand Definitions:

A brand is a collection of perceptions which reside in the hearts and minds of customers and prospects—the sum total of their experiences with and perceptions of a company—an intangible.  A brand is a promise.  It is a pledge of satisfaction, quality, and predictable results.  A brand carries with it a set of assets or liabilities linked to a company’s name and logo that adds to or subtracts from the value provided by a product or service.

Brand is everything what you want to communicate to consumers and what you communicate (whether you want to or not).

By definition, “brand” is whatever the consumer thinks of when he or she hears your company’s name.

David Ogilvy defines brands as “the intangible sum of a product’s attributes: its name, packaging, and price, its history, its reputation, and the way it’s advertised.”

Philip Kotler defines brands as “A brand is a name, term, sign, symbol, or design or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competitor.”

Walter Landor: “Simply put, a brand is a promise. By identifying and authenticating a product or service it delivers a pledge of satisfaction and quality.”

Branding’s role in Marketing & Advertising:
The brand relies on the effectiveness of marketing.
Marketing relies on the strength of the brand.
Advertising grabs customers’ minds.
Branding gets at customers’ hearts.

Some Types of Brands:
BUSINESS / CORPORATE / TRADE NAME
(followed by trademark/trade dress identifiers):  
Coca-Cola (red & script), McDonalds (Golden Arches), Nike (swoosh), IBM (blue), Yahoo (logotype & voice), Intel (Intel Inside & musical notes), Levi's (red pocket tab), General Mills (G), Kodak (yellow & 'bug'), Xerox (digital X), Wegmans (plate with knife, fork, spoon graphic)

PRODUCTS & PRODUCT LINES (Consumer & Business):
Coca-Cola, V8, Wheaties, Pop Tarts, Snapple, Lean Cuisine, FancyFeast, Miracle Whip, Jell-O, Levi's 501, Nike—swoosh

SERVICES (Consumer & Business):
Friends And Family: phone service service plan
GM, Mr Good Wrench: auto service guarantee of quality
Wegmans Shoppers Club: price discounts & special privileges
1-800-CALL-ATT: to use ATT long distance services
Sears KidVantage: clothing discount program
American Airlines, Mileage Plus: frequent flyer program

INGREDIENT / FEATURE / COMPONENT: ingredient brand
Lay's KC Masterpiece Barbecue Potato Chips:
—also example of “co-branding” and product extension
—competed with Lay's standard barbecue potato chips
ColorPoint: ingredient brand
—new/better color film technology by Kodak
—verses saying "New & Improved"
Mobi Mesh: feature brand
—a customized and registerd metal mesh for bird feeders
Sure Flash: component brand
—a flash that will go off on every picture—One-Time-Use cameras 

PERSONAL:  
You are a brand.  If people know your name or recognize your face, they hold your brand image in their minds.

PERSONALITY:  
Large personal brands.
Wide-reaching personal celebrity with significant value-add when associated with products or services: sports, business, hollywood, political celebrities . . .
  • Martha Stewart
  • Tiger Wood: Buick
  • Michael Jordan
  • Jamie Leigh Curtis: Activia Yogurt
  • Jimmy Falon: Credit Card
  • Rush Limbaugh: advertisers on his show
Diet Product Industry Spokespeople:
NutriSystem—Tori Spelling (actress)
—Dan Marino (sports commentator, NFL Hall of Fame quarterback)
—Don Shula (former NFL coach)
—Steve Beuerlein (former NFL quarterback)
—Zora Andrich (television personality, Joe Millionaire winner)
Jenny Craig
—Queen Latifah   (rapper, singer, actress)
—Valerie Bertinelli (actress)
—Kirstie Alley (actress)
—Monica Lewinsky (former White House intern, entrepreneur)
—Kimberly Locke (singer, former American Idol contestant)
Weight Watchers
—Jenny McCarthy (model, comedian, actress, author)
—Sarah Ferguson, aka Fergie (Duchess of York)
—Lynn Redgrave (actress)
Slim-Fast
—Rachel Hunter (actress, model)
—Tommy Lasorda (former Major League Baseball pitcher/manager)         
—Shari Belafonte (actress, model, writer, singer)
—Kathie Lee Gifford (actress, singer-songwriter, former co-host of Live with Regis and Kathie Lee)
—Whoopi Goldberg (The View moderator, actress, comedian, author)
—Ann Jillian (actress)

***Brands can be independent, dependent, coexisting, leveraged (brand leveraging), etc.

Definitions of Primary Branding Terms:
A brand name is that part of a brand that can be spoken, including letters, words, and numbers; a brand name is often a product’s only distinguishing characteristic.
A brand mark is an element of a brand that cannot be spoken, often a symbol or design.
A trademark is a legal designation indicating that the owner has exclusive use of the brand or part of that brand and that others are prohibited by law from using it.
A trade name is the full legal name of an organization rather than the name of a specific product. 
Additionally: brand imagery, brand graphics, brand copy, etc.

Coke Consumer Brand Breakdown Examples:  PRODUCT: Coca-Cola ZERO (Coke Zero)
Coca-Cola: Brand Name (product name)
“Coca-Cola” script: Brand Mark & Trademark (logotype)
“Coke”: Brand Mark & Trademark (logotype)
“Coke classic original formula”: Trademark
Bottle graphic: Brand Mark & Trademark

PRODUCT: Coca-Cola Zero (Coke Zero)
Coca-Cola Zero/Coke Zero: Brand Name(s) (product names)
—Coca-Cola/Coke: Primary Brand(s)
—Zero: Sub-Brand (line extension—feature branded)
“Coca-Cola” script: Brand Mark & Trademark (logotype)
“ZERO”: Brand Mark & Trademark (logotype)
Bottle graphic: Brand Mark & Trademark

The Coca-Cola Company: Trade Name (corporate brand name)
Red: Corporate Trade Dress Color
White: Corporate Trade Dress Color
Black: Sub-Brand Trade Dress Color

A Definition of Brand Equity:
Brand equity is a set of assets (and liabilities) linked to a brand’s name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and/or that firm’s customers.  The major asset categories of Brand Equity are:  1: Brand name awareness,  2. Brand loyalty,  3. Perceived quality, and  4. Brand associations (Aaker).

See KODAK FunSaver 35 (One-Time-Use) Cameras case study, below

____________________
PACKAGING
Evolution of a Consumer Product Brand:
Kodak One-Time-Use Cameras


KODAK Fling 35 (Disposable) Camera
—original/initial product (1988)
—negative environmental connotation
   —stigma stuck with the line

KODAK Weekend 35 Waterproof Camera

—first product line extension

—“Fing” & “Disposable” dropped

KODAK Stretch 35 Pamoramic Camera
—second product line extension

KODAK FunSaver 35 (Single-Use) Camera
—repositioned Fling 35 as FunSaver 35

KODAK FunSaver 35 With Flash (Single-Use) Camera
—third product line extension

KODAK FunSaver TeleFoto 35 (Single-Use) Camera
—forth product line extension

KODAK FunSaver Portrait 35 (Single-Use) Camera
—fifth product line extension

____________________

Brand Equity Case Study (below): 
PRODUCT LINE: KODAK FunSaver 35 (One-Time-Use) Cameras

In repositioning the line to bring it together under a consistent, cohesive brand name and design, a brand line naming exercise was undergone followed by customer focus group research on several name options, including FunSaver 35.  Surprisingly and unexpectedly, sufficient brand equity had been built-up through the two existing Funsaver 35 models that it was preferred by customers by wide margins over the other options that were presented, among which were Pocket and Kapture.
____________________

KODAK FunSaver 35 (One-Time-Use) Cameras
—product line was consolidated, repositioned & renamed
—line was unified under one primary brand name (FunSaver 35) and design
—poor performing models were dropped (TeleFoto & Potrait)
—line became referred to as the 'Mini' line

KODAK FunSaver Switch Dual Format Flash Camera—product line extension

KODAK FunSaver Pocket (One-Time-Use) Cameras
—Daylight & Flash line extensions/coexisted with 'Mini' line
—Pocket was more “camera-like” in design
   —sold at higher price-point than Mini

____________________

Brand Breakdown Example (above): 
PRODUCT: KODAK FunSaver Pocket One-Time-Use Daylight Camera

KODAK: Trade Name (corporate brand name)
FunSaver: Brand Name (product line name)
Pocket: Brand Extension Name (product line extension name)
Daylight: Feature Brand (model name) 
Camera: product type
“Pocket” script: Brand Mark & Trademark (logotype) 
Kodak “Bug”: Corporate Brand Mark & Trademark (logo)

Eastman Kodak Company: Trade Name (corporate brand name)
Yellow: Corporate Trade Dress Color (Pantone® 123)
Red: Secondary Corporate Trade Dress Color (Pantone® 495)
—“KODAK” always red on yellow
Blue: Model Color (Orange for Flash model)
____________________

KODAK FunSaver Sport (One-Time-Use) Camera
—product line extension
—more “camera like” waterproof camera 
   —specialty product sold at higher price-point than Weekend

KODAK FunSaver Pocket (One-Time-Use) Cameras
—redesign of Pocket Daylight & Flash line extensions

KODAK Max One-Time-Use Cameras
—Product line consolidation & rebranding
—followed film branding (1998-2001)

 

____________________

WEBSITES
Website Development Process Breakdown

Business Phase 
Business goals of the website are set (3±)
—what the website will accomplish for the company

Marketing Phase
Determinations are made:
—how the website can be used and leveraged
—how to steer customers and prospects to the website

Production Phase 

a) Project Management
Project is managed from start to finish
—Client expectations are set and managed as well as all logistics
   —Keeping project, team members, client, and budget on track

b) Visual Design Phase
Crafting of website’s structure, navigation, and interface design
Overall appearance, text integration, graphics, and animation is determined for key levels of the website

c) Information Architecture Phase
Website blueprint developed
This is where it is determined how the whole site works and fits together—a site map diagram is developed
An outline of how people will navigate from page to page is developed through a series of page-level wire frame diagram layouts for key levels of the website

d) Content Design Phase
Individual page content is developed
Identifies copy elements needed per page—headlines, bulleted lists, descriptions, etc.
Identifies graphic elements needed per page—imagery, graphics, colors, etc.
—The rules and descriptions that govern each are also addressed

e) Media Phase
Specialized media created
—includes Flash animations, video, and audio

f) Programming Phase
Website automation
—Website is automated by connecting it to databases for displaying and storing content
—Connections to any applications needed for processing input are made

g) Technical Integration/Production Phase
Website optimization
—Website is optimized to ensure optimum web browser compatibility and maximize page downloading performance

***Test-runs are sprinkled throughout the various phases of the project



____________________

OTUC Links:
http://cameracollection.tripod.com/jetakodak.html
http://www.browniecamera.nl/fun/

http://www.google.com/search?q=kodak+fling+disposable+camera&hl=en&client=firefox-a&hs=SLJ&rls=org.mozilla:en-US:official&prmd=imvns&source=lnms&tbm=isch&ei=n9GLTrOTPOrk0QGrn7HwBA&sa=X&oi=mode_link&ct=mode&cd=2&ved=0CE0Q_AUoAQ&biw=1501&bih=1304#hl=en&client=firefox-a&rls=org.mozilla:en-US%3Aofficial&tbm=isch&sa=1&q=kodak+funsaver+camera&pbx=1&oq=kodak+funsaver+camera&aq=f&aqi=g-S3&aql=&gs_sm=e&gs_upl=96398l96398l2l98926l1l1l0l0l0l0l165l165l0.1l1l0&bav=on.2,or.r_gc.r_pw.,cf.osb&fp=c0702cc1c888f558&biw=1501&bih=1304

 http://www.google.com/search?q=Kodak+FunSaver+TeleFoto+35+Camera&hl=en&client=firefox-a&hs=Al0&rls=org.mozilla:en-US:official&prmd=imvnsb&source=lnms&tbm=isch&ei=4_CLTsSaGajZ0QHirpHbBA&sa=X&oi=mode_link&ct=mode&cd=2&ved=0CCwQ_AUoAQ&biw=1501&bih=1304

http://www.google.com/search?q=kodak+fling+disposable+camera&hl=en&client=firefox-a&hs=SLJ&rls=org.mozilla:en-US:official&prmd=imvns&source=lnms&tbm=isch&ei=n9GLTrOTPOrk0QGrn7HwBA&sa=X&oi=mode_link&ct=mode&cd=2&ved=0CE0Q_AUoAQ&biw=1501&bih=1304#hl=en&client=firefox-a&rls=org.mozilla:en-US%3Aofficial&tbm=isch&sa=1&q=kodak+funsaver+portrait+35+camera&pbx=1&oq=kodak+funsaver+portrait+35+camera&aq=f&aqi=&aql=&gs_sm=s&gs_upl=6080l10707l0l13107l4l4l0l0l0l0l282l845l0.2.2l4l0&bav=on.2,or.r_gc.r_pw.,cf.osb&fp=c0702cc1c888f558&biw=1501&bih=1304