No company can win if its products and services resemble every other product and offering.

As
part of the strategic brand management process, each offering must represent the right kinds of
things in the minds of the target market. Although successfully positioning a new product in a
well-established market may seem difficult, Method Products shows that it is not impossible
Crafting the Brand Positioning
Brand a name, term, sign, symbol, or design, or a combination of them, intended to identify the
goods or services of one seller or group of sellers and to differentiate them from those of
competitors.
Position is the place a product, brand, or group of products occupies in consumers’ minds
relative to competing offerings.
Positioning is the act of designing a company’s offering and image to occupy a distinctive place
in the minds of the target market. The goal is to locate the brand in the minds of consumers to
maximize the potential benefit to the firm. A good brand positioning helps guide marketing
strategy by clarifying the brand’s essence, identifying the goals it helps the consumer
achieve, and showing how it does so in a unique way. Everyone in the organization should
understand the brand positioning and use it as context for making decisions.
Why does your brand need to enter his or her mind? If you ask a consumer to name a cola
drink, ‘Coke’ name will spurt out. If you ask the consumer to name a toothpaste that comes
immediately to the mind, most probably, Colgate name would pop out. If you ask about
a photocopying brand, ‘Xerox’ name will spurt out.

Jack Trout and Al Ries suggest that managers should ask themselves six basic questions to create
a position for a product or service:
1. What position, if any, do we already have in the prospect’s mind? (This information must
come from the market place, not the managers’ perceptions.)
2. What position do we want to own?
3. What companies must be outgunned if we are to establish that position?
4. Do we have enough marketing money to occupy and hold the position?
5. Do we have the guts to stick with one consistent positioning strategy?
6. Does our creative approach match our positioning strategy?

A good positioning has a “foot in the present” and a “foot in the future.” It needs to be somewhat
aspirational so the brand has room to grow and improve. Positioning on the basis of the current
state of the market is not forward-looking enough, but, at the same time, the positioning cannot
be so removed from reality that it is essentially unobtainable. The real trick in positioning is to
strike just the right balance between what the brand is and what it could be. The result of
positioning is the successful creation of a customer-focused value proposition, a cogent
reason why the target market should buy the product.
Positioning requires that marketers define and communicate similarities and differences between
their brand and its competitors. Specifically, deciding on a positioning requires: (1) determining
a frame of reference by identifying the target market and relevant competition, (2) identifying the
optimal points of parity and points of difference brand associations given that frame of reference,
and (3) creating a brand mantra to summarize the positioning and essence of the brand.

Position Decision Requirements:

1. Determining a frame of reference by identifying the target market and relevant competition
The competitive frame of reference defines which other brands a brand competes with and
therefore which brands should be the focus of competitive analysis. Decisions about the
competitive frame of reference are closely linked to target market decisions. Deciding to target a
certain type of consumer can define the nature of competition, because certain firms have
decided to target that segment in the past (or plan to do so in the future), or because consumers in
that segment may already look to certain products or brands in their purchase decisions.
Competitive frame of references
-Defines which other brands a brand competes with and which should thus be the focus of
competitive analysis
-Identifying and analyzing competitors
A) Identifying competitors : or determine category membership: A good starting point in
defining a competitive
frame of reference for brand positioning is to determine category membership—the products or
sets of products
with which a brand competes and which function as close substitutes. It would seem a simple
task for a
company to identify its competitors.
B) Analyzing competitors: Chapter 2 described how to conduct a SWOT analysis that includes a
competitive
analysis. A company needs to gather information about each competitor’s real and perceived
strengths and
weaknesses. Table 10.2 shows the results of a company survey that asked customers to rate its
three
competitors, A, B, and C, on five attributes
A) Identifying competitors : or determine category membership: A good starting point in
defining a competitive
frame of reference for brand positioning is to determine category membership—the products or
sets of products
with which a brand competes and which function as close substitutes. It would seem a simple
task for a
company to identify its competitors.
B) Analyzing competitors: Chapter 2 described how to conduct a SWOT analysis that includes a
competitive
analysis. A company needs to gather information about each competitor’s real and perceived
strengths and
weaknesses. Table 10.2 shows the results of a company survey that asked customers to rate its
three
competitors, A, B, and C, on five attributes
A) Identifying competitors: or determine category membership:
A good starting point in defining a competitive frame of reference for brand positioning is to
determine category membership—the products or sets of products with which a brand competes
and which function as close substitutes. It would seem a simple task for a company to identify its
competitors. PepsiCo knows Coca-Cola’s Dasani is a major bottled-water competitor for its
Aquafina brand; Citigroup knows Bank of America is a major banking competitor; and
[Link] knows a major online retail competitor for pet food and supplies is [Link].
The range of a company’s actual and potential competitors, however, can be much broader than
the obvious. For a brand with explicit growth intentions to enter new markets, a broader or
maybe even more aspirational competitive frame may be necessary to reflect possible future
competitors. And a company is more likely to be hurt by emerging competitors or new
technologies than by current competitors.
Competition
An industry is a group of firms offering a product or class of products that are close substitutes
for one another. Marketers classify industries according to number of sellers; degree of product
differentiation; presence or absence of entry, mobility, and exit barriers; cost structure; degree of
vertical integration; and degree of globalization

Using the market approach, we define competitors as companies that satisfy the same customer
need. For example, a customer who buys a word-processing package really wants “writing
ability”—a need that can also be satisfied by pencils, pens, or, in the past, typewriters. Marketers
must overcome “marketing myopia” and stop defining competition in traditional category and
industry terms.
Coca-Cola, focused on its soft drink business, missed seeing the market for coffee bars and
fresh-fruit-juice bars that eventually impinged on its soft-drink business.

B) Analyzing competitors: Chapter 2 described how to conduct a SWOT analysis that includes a
competitive analysis. A company needs to gather information about each competitor’s real and
perceived strengths and weaknesses.
Table shows the results of a company survey that asked customers to rate its three competitors,
A, B, and C, on five attributes

Competitor A turns out to be well known and respected for producing high-quality products sold
by a good sales force, but poor at providing product availability and technical assistance.
Competitor B is good across the board and excellent in product availability and sales force.
Competitor C rates poor to fair on most attributes. This result suggests that in its positioning, the
company could attack Competitor A on product availability and technical assistance and
Competitor C on almost anything, but it should not attack B, which has no glaring weaknesses.
As part of this competitive analysis for positioning, the firm should also ascertain the strategies
and objectives of its primary competitors
Once a company has identified its main competitors and their strategies, it must ask: What is
each competitor seeking in the marketplace? What drives each competitor’s behavior? Many
factors shape a competitor’s objectives, including size, history, current management, and
financial situation. If the competitor is a division ofa larger company, it’s important to know
whether the parent company is running it for growth or for profits, or milking it. Finally, based
on all this analysis, marketers must formally define the competitive frame of reference to guide
positioning. In stable markets with little short-term change likely, it may be fairly easy to define
one, two, or perhaps three key competitors. In dynamic categories where competition may exist
or arise in a variety of different forms.

2. Identifying the optimal points of parity and points of difference brand associations given
that frame of reference
Once marketers have fixed the competitive frame of reference for positioning by defining the
customer target market and the nature of the competition, they can define the appropriate points-
of difference and points-of-parity associations
a larger company, it’s important to know whether the parent company is running it for growth or
for profits, or
milking it.
* Finally, based on all this analysis, marketers must formally define the competitive frame of
reference to guide
positioning. In stable markets with little short-term change likely, it may be fairly easy to define
one, two, or
perhaps three key competitors. In dynamic categories where competition may exist or arise in a
variety of
different forms, multiple frames of reference may arise, as we discuss next.
Once marketers have fixed the competitive frame of reference for positioning by defining the
customer target
market and the nature of the competition, they can define the appropriate points-of difference
and points-of-
parity associations.
Points-of-Difference and Points-of-Parity
POINTS-OF-DIFFERENCE: Points-of-difference (PODs) are attributes or benefits that
consumers strongly
associate with a brand , positively evaluate, and believe they could not find to the same extent
with a
competitive brand. Associations that make up points-of-difference may be based on virtually any
type of
attribute or benefit. Strong brands may have multiple points-of difference. Some examples are
Apple ( design,
ease-of-use, and irreverent attitude ), Nike ( performance, innovative technology, and
winning ),
Creating strong, favorable, and unique associations is a real challenge, but an essential one for
competitive
brand positioning.
Three criteria determine whether a brand association can truly function as a point-of-difference:
Desirability, deliverability, and differentiability.
Desirable to consumer. Consumers must see the brand association as personally relevant to them.
Deliverable by the company. The company must have the internal resources and commitment to
feasibly and
profitably create and maintain the brand association in the minds of consumer
Differentiating from competitors . Finally, consumers must see the brand association as
distinctive and superior
to relevant competitors
Any attribute or benefit associated with a product or service can function as a point-of-difference
for a brand as
long as it is sufficiently desirable, deliverable, and differentiating.
POINTS-OF-DIFFERENCE: Points-of-difference (PODs) are attributes or benefits that
consumers strongly
associate with a brand , positively evaluate, and believe they could not find to the same extent
with a
competitive brand. Associations that make up points-of-difference may be based on virtually any
type of
attribute or benefit. Strong brands may have multiple points-of difference. Some examples are
Apple ( design,
ease-of-use, and irreverent attitude ), Nike ( performance, innovative technology, and
winning ),
POINTS-OF-DIFFERENCE: Points-of-difference (PODs) are attributes or benefits that
consumers strongly
associate with a brand , positively evaluate, and believe they could not find to the same extent
with a
competitive brand. Associations that make up points-of-difference may be based on virtually any
type of
attribute or benefit. Strong brands may have multiple points-of difference. Some examples are
Apple ( design,
ease-of-use, and irreverent attitude ), Nike ( performance, innovative technology, and
winning ),
POINTS-OF-DIFFERENCE: Points-of-difference (PODs) are attributes or benefits that
consumers strongly associate with a brand , positively evaluate, and believe they could not find
to the same extent with a competitive brand. Associations that make up points-of-difference
may be based on virtually any type of attribute or benefit. Strong brands may have multiple
points-of difference.
•Energizer as having the longest-lasting battery
•Apple are design and ease-of-use
•Nike is about performance, innovative technology, and winning

Creating strong, favorable, and unique associations is a real challenge, but an essential one for
competitive
brand positioning.
Three criteria determine whether a brand association can truly function as a point-of-difference:
Creating strong, favorable, and unique associations is a real challenge, but an essential one for
competitive brand positioning.
Three criteria determine whether a brand association can truly function as a point-of-difference:
Desirability, deliverability, and differentiability.
 Desirable to consumer. Consumers must see the brand association as personally relevant
to them.
Mountain Dew may argue that it is more energizing than other soft drinks and support this
claim by noting that it has a higher level of caffeine
NIVEA Wrinkle Control Crème with Q10 co-enzyme
 Deliverable by the company. The company must have the internal resources and
commitment to feasibly and profitably create and maintain the brand association in the
minds of consumer s. The product design and marketing offering must support the
desired association.
General Motors has had to work to overcome public perceptions that Cadillacis not a
youthful, modern brand and has done so through bold designs and contemporary images.

 Differentiating from competitors. Finally, consumers must see the brand association as
distinctive and superior to relevant competitors

Splenda sugar substitute overtook Equal and Sweet’N Low to become the leader in its
category in 2003 by differentiating itself on its authenticity as a product derived from
sugar, without any of the associated drawbacks.

Any attribute or benefit associated with a product or service can function as a point-of-difference
for a brand as long as it is sufficiently desirable, deliverable, and differentiating
POINTS-OF-PARITY: Points-of-parity (POPs), on the other hand, are attribute or benefit
associations that are not necessarily unique to the brand but may in fact be shared with other
brands.

VISA and MasterCard – offers gold and platinum cards to enhance the prestige of its
brand highlighting exclusivity and its acceptability.
Hyundai and Kia Vehicles – quality and design
Category points-of-parity are attributes or benefits that consumers view as essential to a
legitimate and
credible offering within a certain product or service category. In other words, they represent
necessary—but not
sufficient—conditions for brand choice.
Category points-of parity may change over time due to technological advances, legal
developments, or
consumer trends, but to use a golfing analogy, they are the “greens fees” necessary to play the
marketing game.
Competitive point-of-parity may be required to either:
(1) negate competitors’ perceived points-of-difference
(2) Or negate a perceived vulnerability of the brand as a result of its own points-of-difference.
One good way to uncover key competitive points-of-parity is to role-play competitors’
positioning and infer
their intended points-of-difference. Competitor’s PODs will, in turn, suggest the brand’s POPs
 Category points-of-parity are attributes or benefits that consumers view as essential to
a legitimate and credible offering within a certain product or service category. In other
words, they represent necessary—but notsufficient—conditions for brand choice.

Category points-of parity may change over time due to technological advances, legal
developments, or consumer trends,
 Correlational points-of-parity are potentially negative associations that arise from the
existence of positive associations for the brand.

 Competitive point-of-parity may be required to either:

(1) negate competitors’ perceived points-of-difference
(2) Or negate a perceived vulnerability of the brand as a result of its own points-of-
difference.
One good way to uncover key competitive points-of-parity is to role-play competitors’
positioning and infer their intended points-of-difference. Competitor’s PODs will, in turn,
suggest the brand’s POPs

3. creating a brand mantra to summarize the positioning and essence of the brand
A brand mantra is an articulation of the heart and soul of the brand and is closely related to
other branding concepts like “brand essence” and “core brand promise.” Brand mantras are short,
three- to five-word phrases that capture the spirit of the brand positioning.
  Ensure understanding to what the brand represent with consumers to adjust actions
accordingly. Guides what to introduce, what ad campaigns to run, and where and how to
sell the brand.
 Mental filter to screen out brand-inappropriate marketing activities
 Communicate what the brand is and what it is not

A) Designing a Brand Mantra:

Brand mantras are designed with internal purposes in mind. A brand slogan is an external
translation that
attempts to creatively engage consumers. Although Nike’s internal mantra was “authentic
athletic
performance,” its external slogan was “Just Do It.”Here are the three key criteria for a brand
mantra.
• Communicate . A good brand mantra should define the category (or categories) of business
for the brand and
set the brand boundaries. It should also clarify what is unique about the brand.
• Simplify . An effective brand mantra should be memorable. For that, it should be short, crisp,
and vivid in
meaning.
• Inspire . Ideally, the brand mantra should also stake out ground that is personally meaningful
and relevant to
as many employees as possible.
Brand mantras typically are designed to capture the brand’s points-of-difference, that is, what is
unique about the brand. Other aspects of the brand positioning—especially the brand’s points of-
parity—may
also be important and may need to be reinforced in other ways.
A) Designing a Brand Mantra:

Brand mantras are designed with internal purposes in mind. A brand slogan is an external
translation that attempts to creatively engage consumers. Although Nike’s internal mantra was
“authentic athletic performance,” its external slogan was “Just Do It.”

Here are the three key criteria for a brand mantra.

 Communicate . A good brand mantra should define the category (or categories) of
business for the brand and set the brand boundaries. It should also clarify what is unique
about the brand.
 Simplify . An effective brand mantra should be memorable. For that, it should be short,
crisp, and vivid in meaning.
 Inspire . Ideally, the brand mantra should also stake out ground that is personally
meaningful and relevant to as many employees as possible.

Brand mantras typically are designed to capture the brand’s points-of-difference, that is, what is
unique about the brand. Other aspects of the brand positioning—especially the brand’s points of-
parity—may also be important and may need to be reinforced in other ways.
POINTS-OF-PARITY: Points-of-parity (POPs), on the other hand, are attribute or benefit
associations that are
not necessarily unique to the brand but may in fact be shared with other brands. These types of
associations
come in two basic forms: category and competitive

Establishing Brand Positioning

Once they have determined the brand positioning strategy, marketers should communicate it to
everyone in the organization so it guides their words and actions.

Establishing the brand positioning in the marketplace requires that consumers understand what
the brand offers and what makes it a superior competitive choice. To do so, consumers need to
understand in which category or categories it competes and its points-of-parity and points-
ofdifference with respect to those competitors.
o communicate a company or brand positioning, marketing plans often include a positioning
statement.
• The statement should follow the form:
To (target group) who (need), our (Brand), is (the concept) that (what the POD is or does
1. Communicating Category Membership
 Announcing category benefits — To reassure consumers that a brand will deliver on the
fundamental reason for using a category, marketers frequently use benefits to announce
category membership.
 Comparing to exemplars — Well-known, noteworthy brands in a category can also help a
brand specify its category membership.
 Relying on product descriptor — The product descriptor that follows the brand name is
often a concise means of conveying category origin

Once they have determined the brand positioning strategy, marketers should communicate it to
everyone in the organization so it guides their words and actions. One helpful schematic to do so
is a brand-positioning bull’s-eye. Constructing a bull’s-eye for the brand ensures that no steps are
skipped in its development. “Marketing Memo: Constructing a Brand Positioning Bull’s-eye”
outlines one way marketers can formally express brand positioning. Establishing the brand
positioning in the marketplace requires that consumers understand what the brand offers and
what makes it a superior competitive choice. To do so, consumers need to understand in which
category or categories it competes and its points-of-parity and points-ofdifference with respect to
those competitors
A brand bull’s-eye provides content and context to improve everyone’s understanding of the
positioning of a brand in the organization. Here we describe the components of a brand bull’s-
eye, illustrating with a hypothetical Starbucks example. In the inner two circles is the heart of the
bull’s-eye—key points-of-parity and points-of-difference, as well as the brand mantra. In the
next circle out are the substantiators or reasons-to-believe (RTB)—attributes or benefits that
provide factual or demonstrable support for the points-of-parity and points-of-difference. Finally,
the outer circle contains two other useful branding concepts: (1) the brand values, personality, or
character—intangible associations that help to establish the tone for the words and actions for the
brand; and (2) executional properties and visual identity—more tangible components of the
brand that affect how it is seen. Three boxes outside the bull’s-eye provide useful context and
interpretation. To the left, two boxes highlight some of the input to the positioning analysis: One
includes the consumer target and a key insight about consumer attitudes or behavior that
significantly influenced the actual positioning; the other box provides competitive information
about the key consumer need the brand is attempting to satisfy and some competitive products or
brands that need suggests. To the right of the bull’s-eye, one box offers a “big picture” view of
the output—the ideal consumer takeaway that would result if the brand positioning efforts were
successful

MONITORING COMPETITION
EANS OF DIFFERENTIATION :
Employee differentiation. Companies can have better-trained employees who provide superior
customer
service
Channel differentiation. Companies can more effectively and efficiently design their distribution
channels’
coverage, expertise, and performance to make buying the product easier and more enjoyable and
rewarding
Image differentiation. Companies can craft powerful, compelling images that appeal to
consumers’ social and
psychological needs.
Services differentiation. A service company can differentiate itself by designing a better and
faster delivery
system that provides more effective and efficient solutions to consumers.
There are three levels of differentiation.29 The first is reliability: Some suppliers are more
reliable in their on-
time delivery, order completeness, and order-cycle time. The second is resilience: Some
suppliers are better at
handling emergencies, product recalls, and inquiries. The third is innovativeness: Some suppliers
create better
information systems, introduce bar coding and mixed pallets, and in other ways help the
customer
In general, the firm should monitor three variables when analyzing potential threats posed by
competitors:
1. Share of market—The competitor’s share of the target market.
2. Share of mind—The percentage of customers who named the competitor in responding to the
statement, “Name the first company that comes to mind in this industry.”
3. Share of heart—The percentage of customers who named the competitor in responding to the
statement, “Name the company from which you would prefer to buy the product.”
Alternative Approach

Brand Narratives and Storytelling Companies like the richness and imagination they can
derive from thinking of the story behind a product or service. The brand was creating so much
value through its story and exceptional experience
Example: Hermes Birkin Bag: The combination of value creation elements based on its
compelling brand story drives Hermès’ value up so much that customers deeply desire its rare
and unique products and are willing to pay much more than for other brands.
Framework for a brand story:
• Setting - The time, place, and context
• Cast - The brand as a character, including its role in the life of the audience, its relationships
and responsibilities, and its history or creation myth
• Narrative arc - The way the narrative logic unfolds over time, including actions, desired
experiences, defining events, and the moment of epiphany
• Language - The authenticating voice, metaphors, symbols, and themes
BRAND JOURNALISM When he was CMO at McDonald’s, Larry Light advocated an
approach to brand positioning that he called “brand journalism.” Just as editors and writers for
newspapers and magazines tell many facets of a story to capture the interests of diverse groups of
people, Light believes marketers should communicate different messages to different market
segments, as long as they at least broadly fit within the basic broad image of the brand.

Cultural Branding
Cultural branding is a term most often used for consumer brands like Coca-Cola and Harley-
Davidson, depicting a lifestyle that's culturally relevant to the brand audience.
Example:
•Dove’s: Body positive feminism
For instance, look at Spotify. The company regularly makes itself stand out with cultural
branding efforts targeted specifically at customers. Spotify allows consumers to see their
“playlist” for the year at the end of each year, to learn more about their music habits, and help
connect them with other listeners in their community

Competitive Dynamics
Competition grows more intense every year—from global competitors eager to grow sales in
new markets, from online competitors seeking cost efficient ways to expand distribution, from
private-label and store brands providing low-price alternatives, and from brand extensions by
mega-brands moving into new categories.

Market leaders have the largest share and usually lead in price changes, new product
introductions, distribution coverage, and promotional intensity.

The now multinational fast food chain, Jollibee, dominates the fast-food industry in the
Philippines today, owning around 65% market share. Perhaps its main competitive advantages
over fast food giants such as McDonald’s and KFC are its relatively higher turnover rates and
very low prices.

• Medical Example:
– The two main competitive advantages that pharmaceutical giant Pfizer has over a lot of its
adversaries is its large and diversified portfolio and tremendous brand recognition for quality.

To be a long-term market leader is the goal of any marketer. Today’s challenging marketing
circumstances, however, often dictate that companies reformulate their marketing strategies and
offerings several times. Economic conditions change, competitors launch new assaults, and
buyer interest and requirements evolve. Different market positions can suggest different market
strategies
To stay number one, the firm must first find ways to expand total market demand. Second, it
must protect its current share through good defensive and offensive actions. Third, it should
increase market share, even if market size remains constant. Let’s look at each strategies

Expanding Total Market Demand

When the total market expands, the dominant firm usually gains the most.
.

In general, the market leader should look for new customers or more usage from existing
customers. A company can search for new users among three groups: those who might use it but
do not (market-penetration strategy), those who have never used it (new-market segment
strategy), or those who live elsewhere (geographical-expansion strategy). In targeting new
customers, the firm should not lose sight of existing ones.

Marketers can try to increase the amount, level, or frequency of consumption. They can
sometimes boost the amount through packaging or product redesign. In general, increasing
frequency of consumption requires either (1) identifying additional opportunities to use the brand
in the same basic way or (2) identifying completely new and different ways to use the brand.

Dra. Vicki Belo, the CEO of the Belo Medical Group, has an unending drive to pioneer many
cosmetic breakthroughs and deliver the latest innovations, as seen in her skin products. That
way, she is at the forefront of the cosmetics industry in the Philippines.

In addition to sales through company-operated retail stores, Starbucks sells whole bean coffees
through a specialty sales group and supermarkets, and by selling bottled Frappuccino® coffee
drinks and ice cream through its joint venture partnerships

Protecting Market Share

While trying to expand total market size, the dominant firm must actively defend its current
business. The most constructive response is continuous innovation. The front-runner should lead
the industry in developing new products and customer services, distribution effectiveness, and
cost cutting. Comprehensive solutions increase competitive strength and value to customers so
they feel appreciative or even privileged to be a customer as opposed to feeling trapped or taken
advantage of.A company needs two proactive skills: (1) responsive anticipation to see the writing
on the wall, as when IBM changed from a hardware producer to a service business, and (2)
creative anticipation to devise innovative solutions. Note that responsive anticipation is
performed before a given change, while reactive response happens after the change takes place.

When Philip Morris recognized the growing curbs against smoking, they purchased
several industries whose products are unrelated to theirs, such as beer, liquor, and soft
drink

Defensive Marketing –
The aim of defensive strategy is to reduce the probability of attack, divert attacks to less
threatened areas, and lessen their intensity. A leader would like to do anything it legally and
ethically can to reduce competitors’ ability to launch a new product, secure distribution, and gain
consumer awareness, trial, and repeat.
A dominant firm can use the six defense strategies summarized in Figure Position defense.
 Position defense means occupying the most desirable position in consumers’ minds,
making the brand almost impregnable.
 Flank defense. The market leader should erect outposts to protect a weak front or support
a possible counterattack.
 Preemptive defense. A more aggressive maneuver is to attack first, perhaps with guerrilla
action across the market—hitting one competitor here, another there—and keeping
everyone off balance. Another is to achieve broad market envelopment that signals
competitors not to attack.
 Counteroffensive defense. In a counteroffensive, the market leader can meet the attacker
frontally and hit its flank or launch a pincer movement so the attacker will have to pull
back to defend itself. Another form of counteroffensive is the exercise of economic or
political clout.
 Contraction defense. Sometimes large companies can no longer defend all their territory.
In planned contraction (also called strategic withdrawal), they give up weaker
markets and reassign resources to stronger ones.
 Mobile defense. In mobile defense, the leader stretches its domain over new territories
through market broadening and market diversification. Contraction defense. Sometimes
large companies can no longer defend all their territory. In planned contraction (also
called strategic withdrawal), they give up weaker markets and reassign resources to
stronger ones

Gaining increased share does not automatically produce higher profits, however, especially for
labor-intensive service companies that may not experience many economies of scale. Because
the cost of buying higher market share through acquisition may far exceed its revenue value, a
company should first consider four factors:
o The possibility of provoking antitrust action

– rustrated
– competitors are likely to cry “monopoly” and seek legal action if a dominant firm makes
further
– inroads ‫ تاحاجن‬. Microsoft and Intel have had to fend off numerous lawsuits and legal
challenges
– around the world as a result of what some feel are inappropriate or illegal business
practices
– and abuse of market powe
Frustrated competitors are likely to cry “monopoly” and seek legal action if a dominant firm
makes further inroads. Microsoft and Intel have had to fend off numerous lawsuits and legal
challenges around the world as a result of what some feel are inappropriate or illegal business
practices and abuse of market power.
 o Economic cost
– he cost of gaining
– further market share might exceed the value if holdout customers dislike the company,
are loyal
– to competitors, have unique needs, or prefer dealing with smaller firms. And the costs of
legal
– work, public relations, and lobbying rise with market share. Pushing for higher share is
less
– justifiable when there are unattractive market segments, buyers who want multiple
sources of
– supply, high exit barriers, and few scale or experience economies
The cost of gaining further market share might exceed the value if holdout customers dislike the
company, are loyal to competitors, have unique needs, or prefer dealing with smaller firms. And
the costs of legal work, public relations, and lobbying rise with market share. Pushing for higher
share is less justifiable when there are unattractive market segments, buyers who want multiple
sources of supply, high exit barriers, and few scale or experience economies

o The danger of pursuing the wrong marketing activities

Companies successfully gaining share typically outperform competitors in three areas: new-
product activity, relative product quality, and marketing expenditures. Companies that attempt to
increase market share by cutting prices more deeply than competitors typically don’t achieve
significant gains because rivals meet the price cuts or offer other values, so buyers don’t switch

o The effect of increased market share on actual and perceived quality

Too many customers

can put a strain on the firm’s resources, hurting product value and service delivery. Charlotte-
based FairPoint Communications struggled to integrate the 1.3 million customers it gained in
buying Verizon Communications’s New England franchise. A slow conversion and
significant
service problems led to customer dissatisfaction, regulator’s anger, and eventually short-term
bankruptcy.

Too many customers can put a strain on the firm’s resources, hurting product value and service
delivery. Charlotte-based FairPoint Communications struggled to integrate the 1.3 million
customers it gained in buying Verizon Communications’ New England franchise. A slow
conversion and significant service problems led to customer dissatisfaction, regulator’s anger,
and eventually short-term bankruptcy.
Other competitive strategies

Market Challenger
– A company that can attack the leader and other
direct competitors in an aggressive bid for
further market share.
• Many market challengers have gained ground
or even overtaken the leader.
With the advent of social media comes
the need for faster Internet
connections. Converge

– It can attack the market leader

anon grabbed a large
chunk of Xerox’s market by introducing desk copiers. This strategy often has the added benefit
of distancing the firm from other challengers
Canon grabbed a large chunk of Xerox’s market by introducing desk copiers. This strategy often
has the added benefitof distancing the firm from other challengers

– It can attack firms its own size that are not doing the job and are underfinance

hese firms have aging ‫ ةخيوخيش‬products, are charging excessive prices ‫ ضرفت راعسأ ةدئاز‬,
or are not satisfying customers in other ways
firms have aging products, are charging excessive prices ,or are not satisfying customers in other
ways

– It can attack small local and regional firms.

everal major banks grew to their present size by

gobbling up ‫ ماهتال‬smaller regional banks, or “guppies
Several major banks grew to their present size by gobbling up smaller regional banks, or
“guppies

– It can attack the status quo

A challenger might not attack a specific firm as much as an industry as a whole or a pervasive
way of thinking that doesn’t adequately address customer need.

Market-Follower
Strategies
• Innovative imitation; where
another firm can come along and
copy or improve on the new
product.
• Although it probably will not
over- take the leader, the
follower can achieve high
profits because it did not bear
any of the innovation expense
The cloner emulates ‫ ىكاننحي‬the leader’s products, name, and packaging with
slight variations ‫ةفيفط تافلتخا‬. Technology firms are often accused of being cloners: Similar-
sounding knockoffs ‫ ةدلقمال‬copy mobile-messaging app maker WhatsApp’s products

2. Imitator The imitator copies some things from the leader but differentiates
on packaging,advertising, pricing, or location. The leader doesn’t mind as long as the
imitator doesn’tattack aggressively. Fernandez Pujals grew up in Fort Lauderdale,
Florida, and took Domino’s pizza home delivery idea to Spain, where he borrowed
$80,000 to open hisfirst store in Madrid. His Telepizza chain now holds about 70 percent of
the Spanish pizza delivery market and operates more than 1,200 stores in Europe and
Latin America

[Link] adapter takes the leader’s products and adapts or improves them. The
adapter may choose to sell to different markets, but often it grows into a future challenger,
as many Japanese firms have done after improving products developed elsewhere.

Note that we can contrast these three follower strategies from an illegal andunethical
follower strategy. Counterfeiters ‫ نيروزمال‬duplicate the leader’s productand packages and
sell them on the black market or through disreputablesn ‫ ىسةعمسال‬dealers. High-tech firms
like Apple and luxury brands like Rolex have beenplagued by ‫ تيلتبا – تناع‬the counterfeite

Market-Nicher Strategies
• An alternative to being a follower
in a large market is to be a leader
in a small market, or NICHE.
• Smaller firms normally avoid
competing with larger firms by
targeting small markets of little
or no interest to the larger firms,
but even large, profitable firms
may choose to use niching
strategies for some of their
business units or companies.

Product Life-Cycle Marketing Strategies

A company’s positioning and differentiation strategy must change as its product, market, and
competitors change over the product life cycle (PLC). To say a product has a life cycle is to
assert four things:
1. Products have a limited life.
2. Product sales pass through distinct stages, each posing different challenges, opportunities,
and problems to the seller.
3. Profits rise and fall at different stages of the product life cycle.
4. Products require different marketing, financial, manufacturing, purchasing, and
human
resource strategies in each life-cycle stage
Product Life-Cycle Marketing Strategies
A company’s positioning and differentiation strategy must change as its product, market, and
competitors change over the product life cycle (PLC). To say a product has a life cycle is to
assert four things:
1. Products have a limited life.
2. Product sales pass through distinct stages, each posing different challenges, opportunities, and
problems to the seller.
3. Profits rise and fall at different stages of the product life cycle
4. Products require different marketing, financial, manufacturing, purchasing, and
human resource strategies in each life-cycle stage

Most product life cycles are portrayed as bell-shaped curves, typically divided into four stages:
introduction, growth, maturity, and decline55 (see Figure 12.5).
1. Introduction—A period of slow sales growth as the product is introduced in the market. Profits
are nonexistent because of the heavy expenses of product introduction.
2. Growth—A period of rapid market acceptance and substantial profit improvement.
3. Maturity—A slowdown in sales growth because the product has achieved acceptance by most
potential
buyers. Profits stabilize or decline because of increased competition.
4. Decline—Sales show a downward drift and profits erode.

1.
Because it takes time to roll out a new product, work out technical problems, fill
dealer pipelines, and gain consumer acceptance, sales growth tends to be slow in the
introductionstage. Profits are negative or low, and promotional expenditures are at their highest
ratio to sales because of the need to
(1) inform potential consumers,
(2) induce product trial,
(3) secure distribution in retail outlets
Prices tend to be higher because costs are high, and firms focus on buyers who are the most
ready to buy.
Companies that plan to introduce a new product must decide when to do so. To be first can be
rewarding, but risky and expensive. To come in later makes sense if the firm can bring superior
technology, quality, or brand strength to create a market advantage. We next consider some of
the pros and cons of being a pioneer in a new market

• Pioneering advantages
o Recall of brand name
o Establishes product class attributes
 o Captures more uses in middle of markets
• Pioneering drawbacks
o Imitators can surpass innovators
o Once leadership is lost, it’s rarely regained

The growth stage is marked by a rapid climb in sales. Early adopters like the product, and
additional consumers start buying it. New competitors enter, attracted by the opportunities. They
introduce new product features and expand distribution. Prices stabilize or fall slightly,
depending on how fast demand increases. Companies maintain marketing expenditures or raise
them slightly to meet competition and continue to educate the market. Sales rise much faster than
marketing expenditures, causing a welcome decline in the marketing- to-sales ratio. Profits
increase as marketing costs are spread over a larger volume, and unit manufacturing costs fall
faster than price declines, owing to the producer-learning effect. Firms must watch for a change
to a decelerating rate of growth in order to prepare new strategies.T o sustain rapid market share
growth now, the firm:
• improves product quality and adds new features and improved styling.
• adds new models and flanker products (of different sizes, flavors, and so forth) to protect the
main product.
• enters new market segments.
• increases its distribution coverage and enters new distribution channels.
• shifts from awareness and trial communications to preference and loyalty communications
• lowers prices to attract the next layer of price-sensitive buyers.

Maturity

At some point, the rate of sales growth will slow, and the product will enter a stage of relative
maturity. Mostproducts are in this stage of the life cycle, which normally lasts longer than the
preceding ones.
At some point, the rate of sales growth will slow, and the product will enter a stage of relative
maturity. are in this stage of the life cycle, which normally lasts longer than the preceding ones.

Market Modification A company might try to expand the market for its mature brand by
working withthe two factors that make up sales volume, number of brand users and usage rate
per customer, as in Table 12.1, but competitors may match this strategy.
Product Modification Managers also try to stimulate sales by improving quality, features, or
style. Quality improvement increases functional performance by launching a “new
and
improved” product. Featureimprovement adds size, weight, materials, supplements,
and
accessories that expand the product’s performance, versatility, safety, or convenience. Style
improvement increases the product’s esthetic appeal.
Marketing Program Modification Finally, brand managers might also try to stimulate
sales
bymodifying non-product elements—price, distribution, and communications in particular—as
we will review in later chapters. They should assess the likely success of any changes in terms of
their effects on new and existing customers
Market Modification A company might try to expand the market for its mature brand by
working withthe two factors that make up sales volume, number of brand users and usage rate
per customer, as in Table 12.1, but competitors may match this strategy.
Product Modification Managers also try to stimulate sales by improving quality, features, or
style. Quality improvement increases functional performance by launching a “new
and
improved” product. Featureimprovement adds size, weight, materials, supplements,
and
accessories that expand the product’s performance, versatility, safety, or convenience. Style
improvement increases the product’s esthetic appeal.
Marketing Program Modification Finally, brand managers might also try to stimulate
sales
bymodifying non-product elements—price, distribution, and communications in particular—as
we will review in later chapters. They should assess the likely success of any changes in terms of
their effects on new and existing customers
– Market Modification -A company might try to expand the market for its mature
brand by working with the two factors that make up sales volume, number of brand users
and usage rate per customer, but competitors may match this strategy.
– Product Modification -Managers also try to stimulate sales by improving quality,
features, or style. Quality improvement increases functional performance by
launching a “new and improved” product. Feature improvement adds size,
weight, materials, supplements, and accessories that expand the product’s
performance, versatility, safety, or convenience. Style improvement increases the
product’s esthetic appeal.
– Marketing Program Modification - brand managers might also try to stimulate sales
By modifying non-product elements—price, distribution, and communications in
particular—as we will review in later chapters. They should assess the likely success of
any changes in terms of their effects on new and existing customers

Decline

Eliminating Weak Products

Besides being unprofitable,
weak products consume a
disproportionateamount of
management’s time, require
frequent price and inventory
adjustments, incur expensive
setup for what are usually short
production runs, draw
advertising
and sales force attention better
used to make healthy products
more profitable, and cast a
negative shadow on company
image. Maintaining them also
delays the aggressive search for
replacement products, creating a
lopsided product mix long on
yesterday’s breadwinners and
short on tomorrow’s.
Harvesting and Divesting
Strategies for harvesting and
for divesting are quite
different.
Harvestingcalls for gradually
reducing a product or business’s
costs while trying to maintain
sales. The first step is to cut
R&D costs and plant and
equipment investment. The
company
might also reduce product
quality, sales force size,
marginal services, and
advertising
expenditures, ideally without
letting customers,
competitors, and employees
know what is
happening. Harvesting is
difficult to execute, yet many
mature products warrant this
strategy.
And it can substantially increase
current cash flo
Sales decline for a number of reasons, including technological advances, shifts in consumer
tastes, and increased domestic and foreign competition. All can lead to overcapacity, increased
price cutting, and profit erosion. As sales and profits decline, some firms withdraw. Those
remaining may reduce the number of products they offer, exiting smaller segments and weaker
trade channels, cutting marketing budgets, and reducing prices further. Unless strong reasons
for retention exist, carrying a weak product is often very costly. Eliminating Weak Products
Besides being unprofitable, weak products consume a disproportionate amount of
management’s time, require frequent price and inventory adjustments, incur expensive setup
for what are usually short production runs, draw advertising and sales force attention better
used to make healthy products more profitable, and cast a negative shadow on company
image. Harvesting and Divesting Strategies for harvesting and for divesting are quite different.
Harvesting calls for gradually reducing a product or business’s costs while trying to maintain
sales. When a company decides to divest a product with strong distribution and residual
goodwill, it can probably sell it to another firm.

Economic Downturn

Marketing in a Slow-Growth Economy

Given economic cycles, there will always be tough times, such as the recession of 2008–2009
and the slow recovery that has followed. Despite reduced funding for marketing programs and
intense pressure to justify them as cost effective, some marketers have survived—or even
thrived—in tough economic times. Here are guidelines for improving the odds for marketing
success in a slow-growth economy.

 Explore the Upside of Increasing Investment

The amount of investment isn’t all that matters. Firms that received the most benefit from
increasing marketing investments during a recession were often those best able to exploit
a marketplace advantage such as an appealing new product, a weakened rival, or
development of a neglected target market. With such strong evidence, marketers should
consider the potential upside and positive payback of an increased investment that seizes
market opportunities. Here are two companies that made such a decision.

 Get Closer to Customers

Consumers with leveling incomes may change what they want and where and how they
shop. A downturn or slow-growth period is an opportunity to learn even more about what
consumers are thinking, feeling, and doing ,especially the loyal base that yields so much
profitability

 Review Budget Allocations

Slowed growth provides an opportunity for marketers to review their
spending, opening promising new option sand eliminating sacred cows if they don’t
yield results. It can be a good time to experiment.

 Put Forth the Most Compelling Value Proposition

 Focusing heavily on price reductions and discounts can harm long-term brand equity and
price integrity. Marketers should increase—and clearly communicate—their brands’
value, conveying all the financial, logistical, and psychological benefits.

 Fine-Tune Brand and Product Offerings

Marketers can review product

portfolios and brand
architecture to confirm that
brands and sub-
brands are clearly
differentiated, targeted, and
supported based on their
prospects. Luxury
brands can benefit from lower
priced brands or sub-brands in
their portfolios
Marketers can review product portfolios and brand architecture to confirm that brands
and sub-brands are clearly differentiated, targeted, and supported based on their
prospects. Luxury brands can benefit from lower priced brands or sub-brands in their
portfolios.
Review Budget Allocations
Slowed growth provides an
opportunity for marketers to
review their spending,
opening
promising new optionsand
eliminating sacred cows if they
don’t yield results. It can be a
good
time to experiment. In London,
T-Mobile created spontaneous
“happenings” to convey its
brand
positioning that “Life’s for
Sharing” and generate massive
publicity. Its “Dance” video,
featuring
400 dancers getting subway
riders to dance, was viewed
millions of times on YouTube.
Put Forth the Most Compelling
Value Proposition
Focusing heavily on price
reductions and discounts can
harm long-term brand equity
and price
[Link] should
increase—and clearly
communicate—their brands’
value, conveying
all the financial, logistical,and
psychological benefits. GE
changed its ad messages for the
$3,500
Profile washer-and-dryer set
during thedownturn to
emphasize its practicality—it
optimizes the
use of soap and water per load
and is gentle on
clothes,extending their life.
Fine-Tune Brand and Product
Offerings
Marketers can review product
portfolios and brand
architecture to confirm that
brands and sub-
brands are clearly
differentiated, targeted, and
supported based on their
prospects. Luxury
brands can benefit from lower
priced brands or sub-brands in
their portfolios. Armani is an
example
 Setting Product Strategy

At the heart of a great brand is a great product. Product is a key element in the market offering.
To achieve market leadership, firms must offer products and services of superior quality that
provide unsurpassed customer value.
Marketing planning begins with formulating an offering to meet target customers’ needs or
wants. The customer will judge the offering by three basic elements: product features and
quality, services mix and quality, and price
heart of a great brand is a great product. Product is the key element
in the marketing offering.
heart of a great brand is a great product. Product is the key element
in the marketing offering.
heart of a great brand is a great product. Product is the key element
in the marketing offering.
Product characteristics and classifications Many people think that a product is a tangible
offering, but a product can be more than that. Product is everything that can be offered to
market to satisfy a want or need. Products that are marketed include physical goods, services,
experiences, events, persons, places, properties, organizations, information and ideas
Product levels: The Customer-Value Hierarchy
Fundamental level: Core benefit - the service or benefit the customer is really buying
(marketers – benefit providers);
Second level: Basic product - to turn the core benefit into a basic product;
Third level: Expected product - a set of attributes and conditions buyers normally
expect when they purchase this product;
Fourth level: Augmented product - exceeds customer expectations (differentiation)
Product levels: The Customer-Value Hierarchy Fundamental level: Core benefit - the service or
benefit the customer is really buying (marketers – benefit providers); Second level: Basic
product - to turn the core benefit into a basic product; Third level: Expected product - a set
of attributes and conditions buyers normally expect when they purchase this product; Fourth
level: Augmented product - exceeds customer expectations (differentiation)

Core benefit —service or benefit (e.g., hotel guest is buying “rest and sleep”)
Basic product —turn core benefit into basic product (e.g., hotel room includes a bed, bathroom,
towels, desk, dresser, and closet) Expected product – set of attributes and conditions buyers
normally expect (e.g., clean bed, fresh towels, working lamps)
Augmented product—exceeds customer expectations (e.g., free health spar)
Potential product—all the possible augmentations and transformations (e.g., free internet
connections and use)

expect a chocolate bar on his bed, and it won’t cause an enchantment anymore. It will be
considered part of the expected product.
With that in mind, marketers must find a way of providing always something in order to
exceed customer expectations and cause a continuous enchantment. Marketers must find, in
this way, not only customers current needs, but also its future needs, what can be done
throughout market research.
In this way, at the heart of a great brand is a great product. Product is the key element in the
marketing offering. Product characteristics and classifications Many people think that a
product is a tangible offering, but a product can be more than that. Product is everything
that can be offered to market to satisfy a want or need. Products that are marketed include
physical goods, services, experiences, events, persons, places, properties, organizations,
information and ideas. Product levels: The Customer-Value Hierarchy Fundamental level: Core
benefit - the service or benefit the customer is really buying (marketers – benefit providers);
Second level: Basic product - to turn the core benefit into a basic product; Third level: Expected
product - a set of attributes and conditions buyers normally expect when they purchase this
product; Fourth level: Augmented product - exceeds customer expectations (differentiation);
Consumption system: the way the user performs the task of getting and using product and related
services; It is necessary to know that: Each augmentation adds costs; Augmented benefits soon
become expected benefits and necessary points-of-parity; As companies raise the price of
their augmented product, some companies offer a stripped-down version at a much lower
price. Fifth level: Potential product - encompasses all the possible augmentations and
transformations the product or the offering might undergo in the future. To better explain that,
let’s consider the example of a car: Core product: The client is looking for transportation from
one place to another. Actual Product: The brand of the car, its looks and design etc. Expected
Product: Decent mileage, proper engine, inflated tires etc. Augmented Product: After-sale
services, insurance policy etc. Potential Product: May run more smoothly as it wears off a little.
The passage from one level to the next happens when the previous level is satisfied. If the
customer goes to a hotel and finds some chocolate bars on his bed, it exceeds his expectations
and causes and enchantment. But after that, the customer will always expect a chocolate
bar on his bed, and it won’t cause an enchantment anymore. It will be considered part of the
expected product. With that in mind, marketers must find a way of providing always
something in order to exceed customer expectations and cause a continuous enchantment.
Marketers must find, in this way, not only customers current needs, but also its future needs,
what can be done throughout market research.

Product classifications Each product type has an appropriate marketing-mix strategy.

Durability and tangibility:
Nondurable goods: tangible goods normally consumed in ne or a few uses (beer and
soap). These goods are consumed quickly and purchased frequently.
Appropriate strategy: make them available in many locations, charge only a small markup,
and advertise heavily to induce trial and build preference.
Durable goods: tangible goods that normally survive many uses (refrigerators, clothing).
Appropriate strategy: require more personal selling and services, command a higher margin,
and require more sells guarantees.
Services: intangible, inseparable, variable, and perishable products.
Appropriate strategy: require more quality control, supplier credibility, and adaptability
(haircuts, legal advice).
onsumer-goods classification:
The consumer usually purchases convenience goods frequently, immediately, and with
a minimum of effort. Examples include soft drinks.
Staples are goods consumers purchase on a regular basis.
Impulse goods are purchased without any planning or search effort.
Emergency goods are purchased when a need is urgent – umbrellas during a
rainstorm. Manufactorers of impulse and emergency goods will place them in
those outlets where consumers are likely to experience an urge or compelling
need to make a purchase

Consumer-goods classification:
The consumer usually purchases convenience goods frequently, immediately, and with a
minimum of effort. Examples include soft drinks.
Staples are goods consumers purchase on a regular basis.
Impulse goods are purchased without any planning or search effort.
Emergency goods are purchased when a need is urgent – umbrellas during a rainstorm.
Manufactorers of impulse and emergency goods will place them in those outlets where
consumers are likely to experience an urge or compelling need to make a purchase
Unsought goods are those the consumer does not know about or normally think of buying, such
as smoke detectors. Classic examples of known but unsought goods are life insurance, cemetery
plots, and gravestones. Unsought goods require advertising and personal-selling support
known but unsought goods are life insurance and encyclopedias. Unsought goods require
advertising and personal-selling support. Industrial-goods classification: Industrial goods can be
classified in terms of their relative cost and how they enter the production process: material and
parts, capital items and supplies and business services. Material and parts are goods that
enter the manufacturer’s product completely. They fall into two classes: Raw materials: farm
products and natural products; Manufactured materials and parts: component materials and
components parts. Capital items are long-lasting goods that facilitate developing or managing the
finished product. They include two groups: Installations Equipament Supplies and business
services are short-term goods and services that facilitate developing or managing the
finished product. Supplies are of two kinds: Maintenance ana repair items Operating supplies

Product differentiation
Differentiation To be branded, products must be differentiated. The seller faces an
abundance of differenciation possibilities, including form, features, customization,
performance quality, conformance quality, durability, reliability, repairability and style.
Design has become increasingly important. Product differentiation Form – any produts can be
differentiated in form (the size, shape, or physical structure); Features – Most products can
be offered with varying features that supplement their basic function. The marketer must be
aware of custumer value versus company cost for each potencial feature. Each company
must decide whether to offer feature customization at a higher cost or a few standard
packages at a lower cost. Customization – marketers can differentiate products by making them
customized to na individual; Mass customization – is the ability of a company to meet
each customer’s requirements (to prepare on a mass basis individually designed products,
services, programs and communications);
Performance quality - most products are established at one of four performance levels:
low, average, high or superior. Performance quality is the level at which the product’s
primary characteristics operate. The manufacturer must design a performance level
appropriate to the target market and competitors’ performance levels; Conformance quality
– buyers expect products to have a high conformance quality, which is the degree to
which all the produced units are identical and meet the promised specifications; Durability
– is a measure of the product’s expected operating life under natural or stressful
conditions, is a valued attribute for certain products; Reliability – buyers normally will pay a
premium for more reliable products. Reliability is a measure of the pobability that a product
will not malfunction or fail within a specified time period; Repairability – is a measure of
the ease of fixing a product when it malfunctions or falis; Style – describes the products
look and feel to the buyer. Design As competition intensifies, design offers a potent way to
differentiate and position a company’s products and services. In increasingly fast-paced
markets, price and technology are not enough. Design is the factor that will often give a
company its competitive edge. Design is the totally of features that affect how a product
looks, fells, and functions in terms of customer requirements. In the firm’s point of view, a well-
design product is the one that is easy to manufacture and distribute. In the customer’s point of
view a well-design product is pleasant to look at and easy to open, install, use, repair and dispose
of. Holistic marketers recognize the emotional power of design and the importance to
customers of how things look and fell. In summary, in a increasingly visually oriented culture,
translating brand meaning and positioning through design is critical.