A framework for brand positioning strategies: What positioning strategies should be used to build an effective and efficient brand portfolio?

Gelder, Pascal van (2013) A framework for brand positioning strategies: What positioning strategies should be used to build an effective and efficient brand portfolio?

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Abstract:Most mass marketing markets are dead. Today's consumers need variety and choice and organizations need to use more than one brand to serve a certain market share. As a result, there are several brands available on most markets. Each of these brands is usually meant for a specific target audience, a so-called market segment. Organizations should establish and communicate the offering's distinctive benefits to each market segment by using market positioning. Market positioning could be based on several brand properties. This research shows that most brands are positioned on values, target audience, emotional benefits, as prototype brand and on price. Based on the most used positioning strategies of existing brands, fifteen more concrete strategies were defined. Eight of those positioning strategies were considered to be appealing. Overall, positioning strategies based on the price, quality, knowledge and experience, simplicity, giving a comfort feeling, sustainability, attention for the individual customer and the possibility to customize the product or service seemed to be appealing. Brands positioned on target audience and positioned as prototype brand were popular in terms of recall, recognition and purchase intention. But, respondents didn't answer that they prefer a brand meant for their target audience, a brand which matches their personality, the best brand or the most innovative brand. Therefore, it's expected that consumers prefer these brands more conscious. The product category's entity (product or service) and price level seemed to have influence on whether positioning strategies were considered to be appealing. In general, more positioning strategies were considered to be appealing for services and higher priced product categories. The positioning strategy "sustainability" was also influenced by personal characteristics. Moreover, the involvement in the product category and purchase frequency had influence on the degree to which positioning strategies were considered to be appealing. To build an effective and efficient brand portfolio, organizations should market multiple brands which all fulfill a specific role in the minds of the target audience. To do so, brands should use a prototype brand and brands distinguished based on other benefits. Those benefits should include the price/quality ratio, sustainability and the market approach (mass approach or a more individualistic approach). All brands should simply offer the product or service and give a comfort feeling by meeting the segment's demands. Of course, the product category's entity, the price level and the characteristics of the target audience should be taken into consideration when choosing a positioning strategy.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:05 communication studies
Programme:Communication Studies MSc (60713)
Link to this item:http://purl.utwente.nl/essays/63595
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