Chapter 10 -- summary
Deciding on positioning requires the determination of a frame of reference -- identifying the target market and the nature of the competition -- and the ideal point of parity and points of difference brand associations.to determine the proper competitive frame of reference, one must understand consumer behavior in the considerations consumers use in making brand choices.
Point of difference are those associations unique to the brand that are also strongly held and favorably evaluated by consumers.
Point of parity are those associations not necessarily unique to the brand but perhaps shared with other brands.
Category point of parity associations are associations consumer view as being necessary to a legitimate incredible product offering within a certain category.
Competitive point of parity associations are designed to negate competitors points of difference.
The key to competitive advantages product differentiation. A market offering can be differentiated along five dimensions:
Each stage of the product lifecycle calls for different marketing strategies. The introduction stage is marked by slow growth in minimal profits. If successful, the product enters a gross stage marked by rapid sales growth and increasing profits. There follows a maturity stage in which sales growth slows and profits stabilize. Finally, the product enters a decline stage. The company's task is to identify the truly weak products; develop a strategy for each one; and phase out weak products in a way that minimizes the hardship to company profits, employees, and customers.
Like products, markets evolve through four stages:
Deciding on positioning requires the determination of a frame of reference -- identifying the target market and the nature of the competition -- and the ideal point of parity and points of difference brand associations.to determine the proper competitive frame of reference, one must understand consumer behavior in the considerations consumers use in making brand choices.
Point of difference are those associations unique to the brand that are also strongly held and favorably evaluated by consumers.
Point of parity are those associations not necessarily unique to the brand but perhaps shared with other brands.
Category point of parity associations are associations consumer view as being necessary to a legitimate incredible product offering within a certain category.
Competitive point of parity associations are designed to negate competitors points of difference.
The key to competitive advantages product differentiation. A market offering can be differentiated along five dimensions:
- product
- services
- personnel
- Channel
- image
Each stage of the product lifecycle calls for different marketing strategies. The introduction stage is marked by slow growth in minimal profits. If successful, the product enters a gross stage marked by rapid sales growth and increasing profits. There follows a maturity stage in which sales growth slows and profits stabilize. Finally, the product enters a decline stage. The company's task is to identify the truly weak products; develop a strategy for each one; and phase out weak products in a way that minimizes the hardship to company profits, employees, and customers.
Like products, markets evolve through four stages:
- emergence
- growth
- maturity
- decline
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