Identifying and Establishing Brand Positioning

Brand positioning is defined as the “act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds. Positioning is all about identifying the optimal location of a brand and its competitors in the minds of consumers to maximize potential benefit to the firm. According to customer based brand equity model, deciding on a positioning requires determining a frame of reference by identifying the target market and the nature of competition and the ideal points-of-parity and points-of-difference brand association.

Target Market

A market is the set of all actual and potential buyers who have sufficient motivation, ability and opportunity to buy a product. Market segmentation involves dividing the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior and thus require similar market mixes. All companies never target all of its segments. There is a criterion under which segments are targeted.

Identifiably: Can segment identification be easily determined?
Size: Is there adequate sales potential in the segment?
Accessibility: Are specialized distribution outlets and communication media available to reach the segment?

Responsiveness: How favorably will the segment respond to a tailored marketing program?

From manufacturer perspective the model segments users of a brand is divided

into four groups based on strength of commitment from low to high, as follows:

1.Convertible: High likely to switch brands
2.Shallow: Not ready to switch, but may be considering alternatives
3.Average: Comfortable with their choice; unlikely to switch in the future
4.Entrenched: Highly loyal; unlikely to change in the foreseeable future

From customer perspective the model also classifies nonusers of a brand into four groups based on their openness to trying the brand from low to high, as follows:

1.Strongly unavailable: Strongly prefer their current brand

2.Weakly unavailable: Preference lies with their current brand, although not

strongly

3.Ambivalent: As attracted to the other brand as to their current choice