Chapter 10: Crafting the Brand Positioning

What is Brand Positioning?

What it is: The act of designing a company's offering and image to occupy a unique and valued place in the minds
of target customers. It's about creating a distinctive position that sets your brand apart from competitors in the
customer's memory.
Why it matters:
●​ Guides all marketing strategy and tactical decisions
●​ Creates competitive advantage
●​ Helps customers remember and choose your brand over competitors
●​ Differentiates your brand in crowded markets
●​ Increases customer loyalty and perceived value

The Positioning Framework

Deciding on positioning requires three key steps:

1. Determine the Frame of Reference

What it is: Identifying the target market and the relevant competitors your brand will face.
Key elements:
●​ Define the target customer segment you want to serve
●​ Identify both direct and indirect competitors
●​ Understand the competitive landscape and market structure
Marketing Strategy: Use this framework to ensure your positioning is meaningful to your target audience and
realistic in your competitive context.
Example: Starbucks could compete with coffee shops (direct) or other beverage providers (indirect), creating
different POPs and PODs for each frame.

2. Identify Points-of-Parity (POPs)

What it is: Associations that are NOT necessarily unique to your brand but are shared with other brands. These are
similarities, not differences.
Types of Points-of-Parity:
a) Category Points-of-Parity
●​ What it is: Associations that consumers view as essential and necessary to be a legitimate, credible
offering within a product category.
●​ Why it matters: Establishes that your brand "belongs" in the category.
●​ Example: All smartphones must have a screen, processor, and battery. Any new phone needs these to be
considered legitimate.
●​ Marketing Strategy: Communicate that you meet the category standard so customers don't dismiss you.
b) Competitive Points-of-Parity
●​ What it is: Associations designed to negate competitors' points-of-difference or overcome perceived
weaknesses of your brand.
●​ Why it matters: Levels the playing field where competitors have advantages.
●​ Example: If a competitor emphasizes durability, you also need to demonstrate you are "durable enough" to
compete.
●​ Marketing Strategy: Use these to eliminate reasons for NOT choosing your brand.
Zone of Tolerance:
●​ There's a "range of acceptance" for POPs
●​ Your brand doesn't need to be literally equal to competitors
●​ Consumers just need to feel you're "good enough" on that dimension
●​ Break-even on POPs frees up resources to develop stronger PODs

3. Identify Points-of-Difference (PODs)

What it is: Unique, distinctive brand associations that set you apart from competitors. These are what make your
brand special and different.
Characteristics of strong PODs:
●​ Brand must demonstrate CLEAR SUPERIORITY (not just "good enough")
●​ Not easily transferable to other brands
●​ Positive attributes that create preference
●​ Both tangible (physical features) and intangible (emotions, values) benefits
Criteria for Choosing Strong PODs:
a) Desirability
●​ What it is:** The POD must be important and valued by target customers.
●​ Question: Do target customers actually care about this difference?
●​ Example: Tesla's fast acceleration is desirable to performance-focused buyers.
b) Deliverability
●​ What it is:** Your company must have the resources, capabilities, and commitment to deliver and maintain
the POD.
●​ Question: Can we realistically create and sustain this difference?
●​ Example: A luxury brand claiming "lowest price" is not deliverable if it requires premium materials.
c) Differentiation
●​ What it is:** Competitors must not have the same advantage or it must be difficult for them to copy.
●​ Question: Is this unique to us or can competitors easily match it?
●​ Example: Patent protection, proprietary technology, or unique brand heritage.
Types of POD Levels:
1) Attribute-Based PODs (Lowest Level)
●​ Specific physical or measurable features
●​ Example: Apple's iPhone has a Retina display, Samsung has 5G connectivity
●​ Risk: Easy to copy by competitors
2) Benefit-Based PODs (Mid Level)
●​ What customers get from using the product
●​ Example: Nike's "Just Do It" = inspiration and motivation, not just shoes
●​ Functional vs. Emotional Benefits
3) Value/Symbolic PODs (Highest Level)
●​ What the brand represents or stands for
 ●​ Example: Volvo = safety and reliability (symbolizes care for family)
●​ Most difficult to copy because it's built over time

Positioning Strategies

1. Benefit-Based Positioning
What it is: Positioning based on specific customer benefits (functional outcomes).
Example: Dove soap = "moisturizing care for sensitive skin" (functional benefit)
Marketing Strategy: Clearly communicate what problem you solve for customers.

2. Value-Based Positioning
What it is: Positioning based on delivering superior customer value (quality at a fair price).
Types:
●​ Premium/Prestige positioning: High quality, high price (Luxury brands like Hermès)
●​ Good-value positioning: Good quality at fair price (Toyota, IKEA)
●​ Everyday low pricing: Acceptable quality at lowest price (Walmart)
Example: IKEA = "affordable design" = stylish furniture at accessible prices
Marketing Strategy: Define what "value" means to your target customers and deliver on it consistently.

3. Competitor-Based Positioning
What it is: Positioning defined in direct comparison to competitors.
Types:
●​ Head-to-head: Challenge competitor directly on same grounds (Pepsi vs. Coca-Cola)
●​ Differentiated: Avoid direct competition, create new space (Blue Ocean thinking)
Example: When a new brand enters, it can position as "Like Brand A but better at X" or create entirely new
category.
Marketing Strategy: Choose battles carefully. Only attack competitors where you have advantage, or create new
competitive space.

4. Emotional vs. Functional Positioning

Functional Positioning:
●​ Based on rational benefits and problem-solving
●​ Example: Michelin tires = "safety" (keeps you safe)
●​ Appeals to: Logic, practicality, effectiveness
Emotional Positioning:
●​ Based on feelings, self-expression, and brand personality
●​ Example: Ferrari = "aspiration and status" (how you feel driving it)
●​ Appeals to: Feelings, identity, lifestyle, values
Best Practice: Strong brands often combine both dimensions.
Brand Mantras
What it is: A short, three-to-five-word articulation of the heart, soul, and essence of the brand. It's the core brand
promise and internal guiding principle.
What it is: A short, three-to-five-word articulation of the heart, soul, and essence of the brand. It's the core brand
promise and internal guiding principle.
Purpose:
●​ Captures the brand's points-of-difference
●​ Guides employee behavior and marketing decisions
●​ Creates a mental filter to screen out brand-inappropriate activities
●​ Communicates what the brand is AND what it is NOT
Why it matters:
●​ Ensures consistency across all marketing activities
●​ Influences tactical decisions (product development, advertising, where to sell)
●​ Even guides seemingly unrelated decisions (office décor, how phones are answered)
●​ Prevents "brand creep" where you lose focus

Famous Brand Mantra Examples:

Brand Brand Mantra What It Means

We're about real sports

Nike "Authentic Athletic Performance"
performance, not just fashion

Entertainment that the whole

Disney "Family Entertainment"
family can enjoy together

Quick food service in a fun,

McDonald's "Food, Folks, and Fun"
welcoming environment

How to Create a Strong Brand Mantra:

1.​ Identify your core POD (what makes you unique)
2.​ Express it in 3-5 words
3.​ Make it memorable and easy to communicate
4.​ Test: Can employees recite it? Does it guide decisions? |
5.​ Test: Does it pass the category test? (Would it only apply to your brand?)
Example: If your mantra is "Fast, Affordable, Fresh" – could this apply to competitors? Make it more distinctive.
Positioning Maps (Perceptual Maps)
What it is: A visual tool that plots brands on a two-dimensional grid, with each axis representing an important
brand attribute or benefit.
Why it matters:
●​ Shows how brands are positioned relative to competitors in customers' minds
●​ Identifies market gaps and opportunities
●​ Helps communicate strategic direction
●​ Shows how markets and ideal customer preferences evolve over time
How to Create a Positioning Map:
Step 1: Select Key Attributes
●​ Choose 2 dimensions/attributes that are:
○​ Important drivers of customer choice
○​ Differentiate brands in customers' minds
○​ Relevant to target segment
●​ Example for smartphones: (Price vs. Performance) or (Durability vs. Style)
Step 2: Score Your Competitors
●​ Rate each brand on each attribute
●​ Use customer research for accuracy
●​ Be honest about competitor strengths
Step 3: Plot Your Competitors
●​ Plot competitors on the 2D grid
●​ Each axis represents the attributes
●​ Position shows competitive landscape
Step 4: Identify Market Opportunities
●​ Look for "empty spaces" near ideal customer points
●​ These gaps represent potential market opportunities
●​ But ensure the gap is desirable and deliverable
What the Map Shows:
●​ Clusters: Groups of similar brands (crowded competitive space)
●​ Gaps: Empty spaces = market opportunities (but verify if real demand exists)
●​ Ideal Points: Where customers want brands to be positioned
●​ Movement: How brands can reposition to gain advantage
Example: In coffee market:
●​ Starbucks: Premium + Convenient
●​ Local café: Premium + Artisanal
●​ Instant coffee: Convenient + Cheap
●​ Gap: Premium + Convenient + Affordable = market opportunity (if customers want it)

Competitive Analysis for Positioning

Key Questions to Answer:
1.​ How does our offering compare to competitors in customer value?
○​ If customers perceive greater value → charge higher price
○​ If customers perceive less value → charge lower price
2.​ What are competitors' current positioning strategies?
○​ Identify their POPs and PODs
○​ Understand their target market
○​ Assess their vulnerabilities
 3.​ Which competitor should we attack or differentiate from?
○​ Attack competitors with weaknesses or gaps in their positioning
○​ Don't attack strong competitors without clear advantage
○​ Consider competing alongside (co-existence) vs. attacking directly
4.​ Can we straddle multiple competitive frames?
○​ Some brands compete across multiple categories
○​ Example: Starbucks as both coffee shop AND comfortable workspace
○​ PODs in one category can become POPs in another

Repositioning Strategy
What it is: Changing a brand's current positioning to revitalize declining brands or adapt to market changes.
Reasons for Repositioning:
●​ Brand has lost relevance with target market
●​ Competition has made current position less distinctive
●​ Market trends or consumer preferences have shifted
●​ Brand wants to expand into new markets
Repositioning Approaches:
1. Update Brand Imagery
●​ Refresh visual identity and communication style
●​ Make the brand feel contemporary and modern
●​ Example: Old Spice went from "old man's brand" to "confident, fun, young"
2. Adjust Target Segments
●​ Attract new customer groups
●​ Emphasize different benefits to different segments
●​ Example: Product positioned for professionals may reposition for students
3. Shift Value Proposition
●​ Emphasize different PODs
●​ Change what customers value most about the brand
●​ Example: Luxury car brand emphasizing "technology and innovation" instead of "prestige and status"
4. Improve or Add Benefits
●​ Add new features or services
●​ Improve quality or reliability
●​ Example: Budget airlines adding premium seating and services to attract business travelers
Challenges in Repositioning:
●​ Customers have existing mental associations (difficult to change)
●​ May confuse loyal existing customers
●​ Requires consistent execution across all marketing mix elements
●​ Takes time to shift customer perceptions
Differentiation Strategies Beyond Positioning

Product Differentiation
●​ Features, quality, design, durability
●​ Example: Apple's design and user interface

Service Differentiation
●​ Delivery, installation, training, support
●​ Example: Zappos' exceptional customer service

Personnel Differentiation
●​ Knowledgeable, friendly, dependable staff
●​ Example: High-end hotels with personalized service

Channel Differentiation
●​ Where and how you distribute/sell
●​ Example: Exclusively sold in premium locations vs. everywhere

Image/Brand Differentiation
●​ Brand personality, heritage, emotional connection
●​ Example: Coca-Cola's iconic brand image

Key Takeaways for Successful Positioning

1. Start with Target Market and Competition
●​ You can't position in a vacuum
●​ Positioning is always relative to competitors and customer needs
2. Balance POPs and PODs
●​ Achieve category credibility through POPs
●​ Create preference through distinctive PODs
●​ Don't waste resources trying to be better on every dimension
3. Be Consistent
●​ All marketing mix elements should reinforce positioning (4 Ps)
●​ Product features, price, place, and promotion must align
●​ Inconsistency confuses customers
4. Make It Simple and Clear
●​ Customers need to "get it" quickly
●​ Complex positioning doesn't stick in memory
●​ Use brand mantra as your clarity test
5. Back It Up with Reality
●​ Your positioning must reflect what you actually deliver
●​ False claims damage trust and brand equity
●​ Deliverability is non-negotiable
6. Anticipate Competitive Response
●​ Strong PODs attract competitor imitation
●​ Maintain barriers (patents, brand loyalty, switching costs)
 ●​ Continuous innovation keeps you ahead
7. Monitor and Adapt
●​ Customer preferences change over time
●​ Competitive landscape evolves
●​ Use perceptual maps to track shifts
●​ Reposition proactively before crisis forces change

Real-World Examples

Volvo
●​ Positioning: Safety and reliability
●​ POD: "The safest car" (functional)
●​ Marketing: Emphasizes safety tests, durability, family protection
●​ Consistency: Every product, advertisement, and brand message reinforces safety

Nike
●​ Positioning: Athletic performance and inspiration
●​ POD: "Just Do It" (emotional) + Authentic athletic performance (functional)
●​ Marketing: Athlete endorsements, performance technology, motivational messaging
●​ Consistency: Products designed for performance, marketing inspires action

IKEA
●​ Positioning: Affordable, stylish, functional home furnishings
●​ POD: "Democratic Design" = good design at affordable prices (value-based)
●​ Marketing: Store experience emphasizes value, product functionality, DIY assembly
●​ Consistency: Everything (store layout, product naming, price point) supports the position