ADVERTISING AND PROMOTION MANAGEMENT

WEEK 2

Understanding Communication

Communication is derived from the Latin word ‘communis,’ meaning ‘common’. It is sharing
ideas, information, feelings, or attitudes using symbols with an ordinary meaning.
Communication is a unique tool that marketers use to persuade consumers to act in a desired
manner. Suitable communication can trigger favorable feelings that put consumers in a more
receptive frame of mind, which may encourage and lead to purchase action.
A single form does not bind communication. It can be written or spoken, a picture, an
illustration, a product demonstration, or even body language. Communication can also be
EL
symbolic, such as price, a memorable company logo, or striking packaging, conveying a special
meaning as the marketer desires. This adaptability makes communication a versatile bridge
between marketers, consumers, and their socio-cultural environments.
PT
Definitions of Communication
“Communication can be defined as the sharing of a common meaning.”
(Terrence A. Shimp and Wayne Delozier, promotion management and marketing
communication, 1986.)
N

“Communication occurs when the message that was sent reaches its destination in a form
understood by the intended audiences.”
(Donald Baack)

Marketing communication is a two-way street. It's an interactive dialogue between the

company and its audiences. Every brand contact with customers is crucial because it
communicates something that can either strengthen or weaken customers' views about the
company, keeping them engaged.

Communication Process
Communication is a process in which two or more persons, consciously or unconsciously,
attempt to influence each other through symbols or words. It is a dynamic framework that
describes how a message travels between a sender and receiver using various communication
channels. The goal is to ensure that the receiver decodes the message correctly and can provide
feedback.

Steps Involved in The Communication Process

There are seven steps in the communication process.
Step 1- Idea Formation
Step 2- Encoding
Step 3- Channel Selection
Step 4- Message Transmission
Step 5- Message Reception
Step 6- Message Decoding
Step 7- Feedback

Step 1—Idea Formation

EL
This is the starting point of the communication process. The idea could be a thought,
instruction, request, or message. Several things can influence the message, such as Culture,
Mood, Background, and the context of the communication situation.
PT

Step 2- Encoding
Encoding is the second step in communication. This phase transforms an idea into gestures and
words that successfully convey its meaning to the receiver.
N

The sender converts the idea into a format that can be transmitted, such as words, symbols,
images, or videos. This ensures that the message is understandable to the intended audience.
Nonverbal forms of communication, such as body language, facial expressions, and gestures,
can also be part of this step.

Step 3- Channel Selection

The sender chooses a way to convey the message. Deciding on the most effective channel is
imperative because it can affect how a receiver interprets verbal and nonverbal messages. The
sender selects the most effective medium or channel to deliver the message to the receiver.
Channels could be digital (social media, email), traditional (television, print), or interpersonal.

Step 4- Message Transmission

The message is sent through the chosen channel. Depending on our purpose and needs, we can
choose from several different channels, which could include:
• Voice and video calls,
• Direct messaging,
• Voice messages, and
• Emails.
The encoded message is sent through the chosen channel to reach the intended receiver. This
is the actual delivery of the message.

Step 5- Message Reception

The receiver receives the message. As the name suggests, the receiver is the person whose task
is to receive the source’s message. The receiver is as important as the source in communication
because their actions can make or break the interaction. The receiver notices and acknowledges
the message. Successful reception depends on the audience paying attention to the channel and
the clarity of the message.

Step 6- Message Decoding

EL
The receiver interprets the message. Successful communication can only happen when the
receiver cracks this code and comprehends what the source intended to say. Decoding depends
PT
on factors like language, cultural background, and prior knowledge.

Step 7- Feedback
The receiver responds verbally or nonverbally to the message. Feedback is vital in letting the
source know how the receiver has interpreted the message. Another essential function of
N

feedback in communication is to give the receiver the chance to clarify, Request additional
information, Support or object to the source’s claims, and Inform the source how to modify
their approach.

A Basic Model of Communication

Over the years, a basic model of the various elements of the communication process has
evolved. Two elements represent the major communication participants: the sender and the
receiver. The other two are the primary communication tools, i.e., message and channel. Four
others are the primary communication functions and processes, i.e., encoding, decoding,
response, and feedback. The last element, noise, refers to any extraneous factors in the system
that can interfere with the process and work against effective communication. These factors
can include physical noise, such as loud sounds, or psychological noise, such as preconceived
ideas or biases. Other examples of noise can be distractions, language barriers, or even the
receiver's emotional state.
(Source: - Advertising & Sales Promotion 3rd edition, by S H H Kazmi and Satish K Batra)

Source
EL
The sender, or source, of a communication is the person or organization that has informed the
person or group to share with another person or group. The communication process begins
when the source selects words, symbols, and pictures to represent the message delivered to the
PT
receivers. This process is known as encoding and involves putting thoughts, ideas, or
information into a symbolic form. The sender's goal is to encode the message so the receiver
will understand it.

Message
N

The encoding process develops a message containing the information or meaning. The source
hopes to convey the message, whether verbal or nonverbal, oral or written, or symbolic.
Messages must be put into a trance mid-table form appropriate for the communication channel.
In advertising, this may range from simply writing words or copy that will be read as a radio
message to producing an expensive television commercial.

Channel
The channel is the communication method from the source or sender to the receiver at the
broadest level. Personal communication channels are direct interpersonal contact with the
target individuals or groups. Salespeople serve as personal communication channels when they
deliver their sales message to buyers or potential customers. Social communication channels
such as friends, neighbors, coworkers, or family members are also personal. They often
represent word-of-mouth communication as a powerful source of information for consumers.
Many companies work hard to generate positive word-of-mouth discussions for their
companies or brands using various buzz marketing techniques. Buzz marketing is just one of
the new names for what used to be known simply as word-of-mouth communication. At the
same time, terms such as consumer-generated and viral marketing are also used to describe the
process.

Receiver and Decoding

The receiver is the person with whom the sender shares thoughts or information. Generally,
receivers are the consumers in the target market or audience who read or see the marketer’s
message and decode it. Decoding transforms the sender’s message into a thought process
heavily influenced by the receiver’s frame of reference or field of experience, which refers to
the experiences, perceptions, attitudes, and values they bring to the communication situation.
For effective communication, the receiver's message decoding must match the sender's
encoding. This means that the receivers understand and correctly interpret what the source is
trying to communicate. While this notion of common ground between sender and receiver may
sound basic, it must often be clarified in advertising.
EL
Throughout the communication process, the message is subject to extraneous factors that can
distort or interfere with its reception. This unplanned distortion or interference is known as
noise. Errors or problems that occur in the encoding of the message, distortion in a radio or
television signal, or distractions at the point of reception are examples of noise. When you are
watching your favorite commercial on TV, and a problem occurs in the signal transmission, it
PT
will interfere with your reception, lessening the impact of the commercial.
Noise may also occur because the fields of experience of the sender and receiver don't overlap.
Lack of common ground may result in improper encoding of the message using a sign symbol
or word that is unfamiliar or has different meanings to the receiver. The more common ground
between the sender and the receiver, the less likely this type of noise will occur.
N

Response or feedback
The receiver’s reactions after seeing, hearing, or reading the message is called response.
Receivers’ responses can range from non-observable actions, such as storing information in
memory, to immediate actions, such as dialing a toll-free number to order a product advertised
on television.
Marketers are very interested in feedback, part of the receiver’s response to the sender.
Feedback, which may take various forms, closes the communication flow loop and lets the
sender monitor how the intended message is decoded and received.
Successful communication is accomplished when the marketer selects an appropriate source,
develops a compelling message or appeal that is adequately encoded, and selects the channels
or media that best reach the target audience to decode and deliver the message effectively.
Marketing Communications Flow

The marketing communication flow outlines how various stakeholders create, deliver, and
receive messages inside and outside an organization. It can be divided into external and internal
flow, each addressing different audiences and objectives.
Two types of Marketing Communications Flow are: -
1. External flow
2. Internal Flow

1. External flow
The external flow of marketing communication is directed at past, current, and potential
customers, channel members, competing and non-competing companies, and various or
other audiences who may influence the company’s operation, such as government agencies,
private agencies, and experts in the field. The communication may include advertising,
EL
personal selling, direct mail, warranties, product updates, and publicity.

2. Internal Flow
Internal flow involves various departments in a company, all the company employees, and
PT
the stockholders. When the company introduces new products, drops some existing
products, revises product prices, enters a new market, or opens new distribution outlets,
many employees often need to know what the market is doing.

Understanding Marketing Communication

N

Marketing communication is a vital part of P (called promotion), known as MarCom. It

uses various channels and tools to create and deliver messages to promote a product or
service. Marketing communication aims to influence target audiences' behaviors,
perceptions, and attitudes to support the organization's objective.
Marketing Communication involves all activities concerned with effectively
communicating product information to selected target audiences. A target audience is the
consumers to whom marketing communication messages are directed. It is difficult for a
company to target everybody in its marketing program. There will always be people with
greater need and interest in the product, the ability to buy at the quoted prices, access to the
company's distribution channel, and the potential to receive and respond to messages. These
people should be chosen as part of the company's target audience.
Integrated Marketing Communication

Integrated marketing communications (IMC) manages customer relationships that drive brand
value primarily through communication efforts. Such efforts often include cross-functional
processes that create and nourish profitable relationships with customers and other stakeholders
by strategically controlling or influencing all messages sent to these groups and encouraging
data-driven and purposeful dialog with them.
IMC includes coordinating and integrating all marketing communication tools, avenues, and
sources within a company into a seamless program to maximize the impact on end users at a
minimal cost.
Ideally, IMC is implemented by developing comprehensive databases on customer prospects,
segmenting these current and potential customers into groups with particular standard
awareness levels, predispositions, and behaviors, and developing messages and media
strategies that guide the communication tactics to meet marketing objectives. In doing this,
IMC builds and reinforces mutually profitable relationships with customers and other
important stakeholders and generates synergy by coordinating all elements in the promotional
EL
mix into a program that possesses clarity, consistency, and maximum impact.

Definition of IMC By the American Association of Advertising Agencies

“A concept of marketing communications planning that recognizes the added value of a
PT
comprehensive plan that evaluates the strategic rules of a variety of communication disciplines,
for example, general advertising, direct response, sales promotion, and public relations, and
combines these disciplines to provide clarity, consistency, and maximum communications
impact.”
N

The Evolution of Integrated Marketing Communications

During the 1980s, many companies began approaching marketing communication from a
product perspective and saw the need for more strategic integration of their promotional tools.
The decade was characterized by the rapid development of sales promotion, direct marketing,
and public relations, which began challenging advertising's role as the dominant form of
marketing communication.
Hence, the firms began moving toward Integrated Marketing Communication (IMC), which
involves coordinating the various promotional elements and other marketing activities that
communicate with our customers. As marketers embraced the concept of IMC, they began
asking their advertising agencies to coordinate using various promotional tools rather than
relying primarily on media advertising.
Consumers’ perception of a company or its various brands is a synthesis of the bundle of
messages they receive or contacts they have, such as media advertisements, price, package
design, direct marketing efforts, publicity, sales promotions, websites, point of purchase
displays, and even the type of store where a product or service is sold. The integrated marketing
communications approach seeks to have all our companies’ marketing and promotional
activities project a consistent, unified image to the marketplace.
However, this integrated marketing communication perspective has been challenged because
it focuses primarily on the tactical coordination of various communications to make them look
and sound alike. As integrated marketing Communication continues to evolve, academicians
and practitioners recognize that a product perspective is needed to view the discipline from a
whole strategic perspective to stop.

TOOLS OF IMC
1. Advertising
2. Direct marketing
3. Interactive slash Internet marketing
4. Sales Promotion
5. Publicity
6. Public Relations
EL
7. Personal Selling
PT
1. Advertising
Advertising is a form of paid communication in which a product, brand, or service is promoted
to attract customers’ interest and engagement. It plays an active role in integrated marketing
communication by raising awareness about the product and its good image.
N

2. Direct marketing
In direct marketing, organizations communicate directly with target customers to generate a
response or a transaction. Direct marketing is much more than direct mail and mail-order
catalogs. It involves various activities, including database management, direct selling,
telemarketing, and direct response advertisements through direct mail, the Internet, and various
broadcast and print media.

3. Interactive / Internet marketing

Interactive media allow for a back-and-forth flow of information whereby users can participate
and modify the form and content of the information they receive in real time. Internet marketing
will enable users to perform various functions, such as receiving and altering information and
images, making inquiries, responding to questions, and making purchases. Other forms of
interactive media include CD-ROMs, kiosks, interactive television, and digital cell phones.
4. Sales Promotion
Sales Promotion is an incentive or marketing activity designed to increase sales. It includes
customer loyalty, brand loyalty, or generating brand awareness. Sales promotion activities
include discounts, coupons, contests, free samples, or loyalty programs.

5. Publicity
Publicity is the notice or attention the media gives to someone or something. It's a key
component of integrated marketing communication because it helps build awareness and
credibility by leveraging third-party endorsements, such as news articles, press releases, and
media coverage.

6. Public Relations
Public relations maintains an organization's good public image. In integrated marketing
EL
communication, public relations refers to the strategic management of communications
between an organization and its various stakeholders, including customers, employees,
investors, mediums, etc. Integrated marketing communication and public relations work to
ensure that all communications are consistent and support the overall marketing strategy. It
generally aims to build and maintain a positive image.
PT
7. Personal Selling
Personal selling is a form of person-to-person communication in which a seller attempts to
assist or persuade prospective buyers to purchase the company's product or service or to act on
an idea. Unlike advertising, personal selling involves direct contact between buyers and sellers,
face-to-face or through some form of telecommunications, such as telephone sales. Personal
N

selling also involves more immediate and precise feedback because the impact of the sales
presentation can generally be assessed from the customer's reaction.

Importance of Integrated Marketing Communication

1. To increase sales
2. Awareness
3. Information
4. Improve efficiency
5. Expansion of the market
6. Brand experience
7. Adaptability
8. Engagement of customers
1. To increase sales
A proper communication mix attracts customers, increasing product or service sales.

2. Awareness
With the help of integrated marketing communications, customers became aware of the
products and services concerning brand name and availability. Hence, potential customers are
introduced to the new variety of goods available in the market.

3. Information
Whenever a new product is launched in the market, the customers need product information.
Potential customers must know about the product features, and Integrated Marketing
Communication provides this information.

4. Improve efficiency
EL
Integrated marketing communication helps streamline production and distribution schedules
and repurpose content, improving an organization's efficiency.
PT
5. Expansion of the market
Integrated marketing communication helps the organization expand its business, which
provides goodwill recognition, brand loyalty, etc.

6. Brand experience
N

Through Integrated Marketing Communication, marketers can ensure that their strategies and
tactics contribute to delivering a consistent brand experience. Customers encounter a brand
through a blog on social media, e-mail, or company website; the experience reflects the brand's
values and promise.

7. Adaptability
Integrated Marketing Communication allows marketers to adapt their strategies to changing
market conditions, consumer preferences, and emerging trends. By staying responsive,
companies can ensure that their products or services remain relevant and impactful in the
marketing landscape.

8. Engagement of customers
Integrated Marketing Communication engages marketers meaningfully with their target
audience through social media interactive content and community-building initiatives. By
fostering one-way communication and dialogue, marketers can deepen relationships with their
audience and encourage brand loyalty.

The IMC Planning Process

In developing an integrated marketing communications strategy, a company combines the
various promotional mix elements, balancing their strengths and weaknesses to produce an
effective communications program. Integrated marketing communications management
involves the process of planning, executing, evaluating, and controlling the use of the various
promotional mix elements to communicate effectively with target audiences.

The IMC planning process involves seven essential steps:

1. Review the marketing plan
2. Analyze the promotional program
3.
4.
5.
Budget determination
Develop an IMC program
EL
Analyze the communication process

6. Implement the IMC strategy

7. Monitor and evaluate IMC performance
PT
Step 1- Review of the Marketing Plan
•Assess the objectives, target audience, and marketing strategies.
•Consider the role of advertising and promotional tools.
N

•Understand the environmental factors impacting the business (economic conditions,

competitors, etc.).

Step 2- Analysis of Promotional Program Situation

•Internal Analysis: Evaluate past marketing efforts, internal resources, and organizational
capabilities.
•External Analysis: Study consumer behavior, market dynamics, and competitors.

Step 3- Analysis of Communication Process

•Evaluate how communication is received and processed by the target audience.
•Identify the most effective communication channels to reach and influence the audience.
Step 4- Budget Determination
•Allocate resources to various marketing tools based on priorities and expected returns.
•Ensure the budget is flexible and can be adjusted per campaign performance.

Step 5- Develop an Integrated Marketing

Communications Program Develop specific strategies for each marketing tool; these are:-
• Advertising
• Direct Marketing
• Internet/Interactive Marketing
• Sales Promotions
• Public Relations
• Personal Selling
EL
Step 6- Integrate and Implement Marketing Communications Strategies
such as;-
 Integrate promotional mix strategies
PT
 Create and produce advertisements
 Purchase media time and space
 Design and implement direct marketing programs
 Design and distribute sales promotional materials
 Design and implement public relations publicity programs
 Design and implement interactive / Internet marketing programs
N

Step 7- Monitor, Evaluate, and Control Integrated Marketing Communications Program

 Evaluate promotional program results
 Take measures to control and adjust promotional strategies

Positioning
Positioning has been defined as the art and science of fitting the product or service to more
segments of the broad market in such a way as to set it meaningfully apart from the competition.
The position of the product, service, or even store is the image that comes to mind and the
attributes consumers perceive to relate to any product.
Positioning relates to the project's image and brand relative to competing cortex or brands. The
position of the product or brand is the key factor in communicating its benefits and
differentiating it from the competition.
Positioning strategies generally focus on either the consumer or the competition. While both
approaches involve associating product benefits with consumer needs, the former does so by
linking the product with the benefits the consumer will derive or creating a favorable brand
image; the latter approach positions the product by comparing it with the benefit it offers with
the competition.
The positioning statement should reflect what the organization stands for and is about. Its
values and offerings should be apparent from the statement. It should address the consumers'
needs. Customers should be told how the company’s product will fulfill their needs, and these
needs should be specific and measurable, something that the customers want.

Definition of positioning
“Positioning is the art of selecting, out of several unique selling propositions, the one which
will get you maximum sales.”
Rosser Reeves

Introduction to Positioning Strategy

EL
To create a position for a product or service, Trout and Ries suggest that managers engage in
strategic thinking by asking themselves six basic questions. Those questions are:-
PT
1) What position, if any, do we already have in the prospect's mind? This information must
come from the marketplace, not the manager's perceptions.
2) What position do we want to own?
3) What companies must be outgunned if we are to establish that position?
N

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?

Positioning According to Ries and Trout

a) Strengthen own current position
b) Grab an unoccupied position
c) De-position
d) Re-position
e) Product ladders
a.) Strengthen own current position
The basic positioning approach is not to create something new and different. But to manipulate
what's already up there in the mind. Today's marketplace needs to be more responsive to the
strategies that worked in the past. There are just too many products, too many companies, and
too much marketing noise. This involves reinforcing the brand’s existing position in the
consumer's mind by emphasizing its core values, benefits, or unique features.

b.) Grab an unoccupied position

Identify a gap in the market and create a position that no competitor currently owns. This
strategy is ideal for brands introducing new products or entering untapped niches.

c.) De-position
This involves challenging or weakening a competitor's position by pointing out their flaws or
inadequacies. It's a way to make the brand appear superior by comparison.

d.) Re-position
EL
This strategy involves changing or adjusting a brand's position to suit consumer perceptions
better or react to market shifts. It could include changing the target audience, messaging, or
PT
product features.
e.) Product Ladders
The concept of "product ladders" suggests that consumers rank brands in their minds within
specific product categories. A brand’s goal is to either be at the top of the ladder or differentiate
itself meaningfully if it cannot secure the top spot.
N

Positioning According to Treacy and Wiersema

• Value Disciplines Overview
Treacy and Wiersema proposed that companies can achieve market leadership by excelling in
one of three value disciplines while meeting minimum industry standards in the other two. This
approach helps businesses establish their position in the marketplace and build a competitive
edge. The three disciplines are:
1. Product Leader
2. Operational Excellent Firm
3. Customer Intimate Firm
Each discipline represents a unique way of delivering value to customers and aligning the
organization's efforts around a specific strategy.
1.) Product Leader
Companies focusing on product leadership are innovators. They aim to deliver cutting-edge,
high-quality products or services that redefine the industry and meet future customer needs.

2.) Operational Excellent Firm

Companies adopting this discipline focus on efficiency, reliability, and cost-effectiveness. They
aim to deliver consistent quality at the lowest possible price while ensuring a seamless
customer experience.

3.) Customer Intimate Firm

Companies excelling in customer intimacy build strong, personalized client relationships. They
focus on understanding and meeting individual customer needs rather than catering to the
masses.
EL
Positioning according to Subroto Sengupta
According to Subroto Sengupta, positioning strategies revolve around convincingly answering
the following questions by the brand itself. The brand or product manager must determine
PT
which plan is best suited in a given situation to position the brand or the firm as the case may
be:
a.) Who am I? The brand's identity, lineage, or family.
b.) What am I? What are the functional capabilities of the brands?
N

c.) For whom am I, the consumer segment I serve best, and

d.) Why me? Powerful reasons to choose me over any other alternative.
Consumers position the product anyway, with or without the help of marketers. It is
advantageous for the marketer to plan the positions that will give them products the most
significant advantage in the target market rather than risk the position into chance. The entire
marketing mix is tailored to communicate the product's planned position effectively.

POSITIONING: HOW MANY IDEAS TO PROMOTE

When it comes to positioning and how many ideas or points should be promoted, marketing
experts like Ries and Trout suggest the following:
1. One Core Idea
2. Supporting Ideas
a) Core Idea with Supporting Benefits:
 b) Multiple Attributes for Complex Products

1.) One Core Idea

Focus on a Single, Clear Idea: Successful positioning involves promoting one core idea or
benefit that sets the product or brand apart from competitors. Overloading customers with
multiple messages can dilute the brand's identity and confuse the target audience.

2.) Supporting Ideas

While focusing on one dominant idea is ideal, some strategies incorporate supporting ideas:
a) Core Idea with Supporting Benefits
Marketers can promote secondary features or benefits, but these must support the core
positioning without overshadowing it.
b)Multiple Attributes for Complex Products
EL
In some instances, like industrial products or services, multiple ideas may need to be conveyed
(e.g., durability, cost-efficiency, and sustainability). However, even here, a single overarching
message is recommended.
PT
Positioning Approaches Based on the Number of Ideas

1. Single-Idea Positioning
It is Intense, and it focuses on the message. It works best for a niche audience or clear brand
differentiation.
N

2. Dual-Idea Positioning
It Combines two complementary ideas to build a stronger appeal.

3. Multi-Idea Positioning
Promoting more than two attributes or benefits is common for large, established brands with
diverse product lines.

Positioning errors
A brand is a perceptual entity that exists in consumers' perceptual world. In attempts to create
a brand's position, strategies must guard against some positioning errors, as suggested by Philip
Kotler (BOOK-‘Marketing Management' the Millennium edition, Prince-Hall of India).
1.) Under Positioning
2.) Over Positioning
3.) Confused Positioning
4.) Doubtful Positioning

1.) Under Positioning

This refers to buyers who have only a vague idea of the brand and consider it just another “me-
too” brand in a crowded product category. The brand is not seen to have any distinctive
association.
For example, Nano

2.) Over Positioning

In this situation, buyers have to narrow the brand's image. Thus, buyers might think Apple only
EL
makes costly computers when Apple offers several affordable models.

3.) Confused Positioning

Sometimes, an attempt to create too many associations or reposition the brand frequently
PT
confuses the buyers.
For example, Airtel payments bank and Idea Cellular TVC (honeybunny) ads.

4.) Doubtful Positioning

N

This situation may arise when customers find brand claims unbelievable, keeping in view the
product features, tries, or the manufacturer.
For example, fair and handsome.

Fixing a positioning Strategy

It is essential to fix a competitive point of reference by defining a customer target market and
the nature of competition. Proper positioning requires establishing the correct points of parity
and points of difference associations. They are:-
1.) Points-of-parity
2.) Points-of-difference

1.) Points-of-parity
It means those associations that are not necessarily unique to the brand in some way but may
be shared with other brands. These associations can be of two types.
a.) category points-of-parity
b.) Competitive points-of-parity
a.) category points-of-parity
It refers to associations consumers consider necessary within a particular product or category
to make it a legitimate and credible offering. They may be required but need more in themselves
for brand choice.
For example, consumers might only consider a bank a bank if it offers a savings account
facility, fixed deposit, checkbooks, and other services like ATMs.
b.) Competitive points-of-parity
Its associations attempt to discard or weaken competitors' points of difference associations,
such as some benefits. If a brand offers the same benefits plus more in some other areas, it will
likely emerge more potent and have a better competitive position.

2.) Points-of-difference
EL
It refers to intense, favorable, and unique associations for a brand in consumers' perception.
These may be related to virtually any type of attribute or benefit association, functional but
PT
performance-related or imagery-related psychological considerations, to become a point of
difference in the minds of consumers. It includes-
a.) Assessment of consumers’ perceptions of competition
b.)Determining competitor's position
c.) Analyzing the consumer's preference
N

d.) Monitor the position

a.) Assessment of consumers perceptions of competition
After defining the competition, it is essential to determine how consumers perceive the
competing products. To do this, a set of product attributes, such as product characteristics,
consumer benefits, product uses, or product users, is chosen for comparison. The task is to
identify relevant attributes and avoid any others that would be superfluous.
b.) Determining competitor's position
This is to determine how all the competing brands, including the company's own, are positioned
and their relative position in the consumer's perceptual map. Which competing brands do
consumers consider similar, and which are deemed dissimilar?
c.) Analysing the consumer's preference
The analysis discussed so far would determine where the product's perceptual map should be
positioned. The next step requires the identification of segments or clusters of customers who
prefer this product location in the perceptual maps. Customers who value a particular set of
attributes or benefits would form a segment in which an ideal product is preferred over all
others.
d.) Monitor the position
Making subjective decisions about which position is appropriate may become reasonably
straightforward. However, in many situations, it may become necessary to rethink.

POSITIONING
Positioning has been defined as the art and science of tailoring a product and service to one or
more segments of the broad market to set it meaningfully apart from the competition.

Understanding The Different Components of Positioning

Clear guidance could improve positioning execution. Most people need to improve at
positioning because there are no clear guidelines on properly performing this activity. Some
EL
methods assume prior knowledge about product benefits and competitive advantages, which
can lead to vague or ineffective positioning.
The following components will help in effectively positioning the product:
1. Competitive Alternatives
PT
2. Unique Attributes
3. Value
4. Target Market Characteristics
5. Market Category
N

6. Relevant Trends

1. Competitive Alternatives
Before marketers think about positioning their products, they must consider what their
customers would use or do if their product is non-existent. This anticipation of how customers
feel will help them to define the broader segment of what is known to the users.

2. Unique attributes
Unique attributes are the secret sauce, like the things one can do but others can’t. ” This is
something an individual has that others don’t. In most cases, some products possess unique
features from other products. The idea here is to clearly outline them so that people will
understand how a particular product is different and better.
3. Value
People buy the products because of the value they get from them. However, an individual can’t
rely on their own words to showcase value. One must include the current customers' opinions
and other fact-based statements.

4. Target Market Characteristics

Once customers know what the marketer is selling, the marketer also needs to figure out who
is most likely to purchase the product. This step is about figuring out the category of people
who care primarily about the things the marketer brings to the table. To identify the people who
will quickly buy what the marketer has to offer, marketers must be particular about the
product’s unique attributes.

5. Market category
Customers need to understand what the marketer is offering clearly. To give customers a point
EL
of reference, the marketer must place their product in an existing category. This categorization
will help people determine what the marketer’s company does, its competitors, and how its
product is potentially better than others.

6. Relevant trends
PT
When appropriately used, trends can convince customers to pay attention to what the marketer
offers. All components should first be examined individually and then glued together. The step
is to see what customers are already doing. Once the marketer gathers information, they better
articulate their unique attributes and show the world how to help them.
N

Steps in Positioning
Good positioning is a 10-step process. They are:-
Step 1: Understand the customers who love your product
Step 2: Form a positioning team
Step 3: Align your positioning vocabulary and let go of your positioning baggage
Step 4: List your actual competitive alternatives
Step 5: Isolate your unique attributes or features
Step 6: Map the attributes to value “themes.”
Step 7: Determine who cares a lot
Step 8: Find a market frame of reference that puts the marketer's strengths at the center
Step 9: Add layers on a trend, but do it thoughtfully
Step 10: Capture the positioning so it can be shared

Step 1: Understand the customers who love your product

Understanding the customers who love your product is the first step in effective positioning.
Some customers like what the marketers do, and others love what the marketers do. To position
their product better, the marketer must focus on those who adore them. Examining why
consumers consume marketers' products can help marketers see patterns and understand what
the positioning should be. If any marketer is new to the market and has yet to acquire happy
customers, their best strategy is to put their product in front of a large audience. This will help
them to gather critical feedback.

Step 2: Form a positioning team

Everyone in a company can contribute to the product positioning. The marketer must gather
the point of view of each department in the company because different people experience
products differently. Once the data has been collected, a new statement can be formulated.
EL
Statements based on the experience of a large user base are better than statements from a single
person. The important thing here is to bury the old ways of thinking and try a different
approach.
PT
Step 3: Align your positioning vocabulary and let go of your positioning baggage
The primary purpose of positioning is to help the marketer associate their product with the best
product in the market and make their values evident to the customer. This often requires them
to abandon their initial assumption of what they have created so that they can focus on the
category that best describes their value propositions. Marketers should abandon what they
currently think about their product and adopt a new, unbiased view.
N

Step 4: List your actual competitive alternatives

Marketers understand who their real competitors are in customers' minds. To do this, the best
question they can ask themselves is, “What would our loyal customers do if we didn’t exist?”
What often comes to mind is their competitors. Many times, “using a pen and paper, " “hiring
someone, " or even not doing anything at all will also help.

Step 5: Isolate your unique attributes or features

Marketers should list all their capabilities to find their unique features that others don’t. Once
they have a complete list of attributes, they should focus on the characteristics that can drive
real benefit. But it doesn’t simply state that the marketers have the best customer support.
Step 6: Map the attributes to value “themes.”
Mapping attributes to value "themes" involves organizing a product's unique features or
capabilities into broader themes that resonate with customers on an emotional or functional
level. These themes represent the benefits or reasons customers should care about the product.
The benefit to the customer is not that the marketer has incredible support; the benefit comes
from their customers feeling safe when using the services and getting a timely response to their
inquiries.

Step 7: Determine who cares a lot

Only some people will care about the product. Or at least the customers won’t care equally.
"Determine Who Cares a Lot" refers to identifying the people who resonate most with a product
or service. This step is critical for positioning and ensures all efforts are directed toward those
consumers who are most likely to purchase or benefit from the offering.

Step 8: Find a market frame of reference that puts the marketer's strengths at the center
EL
Here, the marketer has to make their value evident to potential customers. To do this, they need
to place their product in a category. This category will create certain assumptions in the
customers' minds, so marketers need to be very careful. The best way to position the product
is by creating a new market based on an existing one.
PT
Step 9: Add layers on a trend, but do it thoughtfully
The perfect positioning combines the product’s strengths with the market context the marketer
aims for. Adding layers to a trend thoughtfully means integrating popular or current trends into
the product or marketing strategy to enhance its relevance without compromising its
N

authenticity or core values. It’s about leveraging what’s popular or emerging in the market to
make the product more appealing, but in a manner that aligns with the brand identity and
resonates with the target audience.

Step 10: Capture the positioning so it can be shared

Clearly define the product's unique value and key benefits concisely and quickly. Marketers
should ensure that the product resonates with their target audience and aligns with their needs
so it can be shared consistently across teams and marketing channels.

Making the positioning decision

Let's take a look at how marketers make the positioning decision:-

1.) An economic analysis should guide the decision
2.) Positioning usually implies a segmentation commitment
3.) If the advertising is working, stick with it.
4.) Don’t try to be something you are not
5.) Consider symbols

1.) An economic analysis should guide the decision

Economic analysis, especially of market size and penetration probability, is crucial to
determining whether the positioning decision is likely to succeed. This involves considering
demographic trends and how they may affect the demand for a product.

2.) Positioning usually implies a segmentation commitment

Positioning often involves focusing on specific market segments and ignoring others. This
requires commitment and discipline to avoid distractions from other potential customers. Yet
EL
the effect of generating a distinct, meaningful position is to focus on the target segments and
not to be constrained by the reaction of other segments.

3.) If the advertising is working, stick with it.

PT
An advertiser will often tire of a positioning strategy and the advertising used to implement it
and will consider changing. If an advertising campaign succeeds, staying consistent and
avoiding changing it too quickly is essential. Brand identity takes time to build, and frequent
changes can confuse consumers.
N

4.) Don’t try to be something you are not

It is tempting but naive, unusually fatal, to decide on a positioning strategy that exploits a
market need or opportunity but assumes that the product is something it is not. Before
positioning a product, it is essential to determine the position of the various competitors. One
approach is to scale the competitors on the various identified attributes. It’s necessary to
position a product based on its accurate attributes and not by claiming qualities it doesn't have.
Falsely positioning a product can lead to brand distrust.

5.) Consider symbols

Symbols, whether logos, mascots, or other brand elements, can play a significant role in
positioning by creating strong associations with the brand.

Positioning Approaches are as follows;

• Positioning by Attributes and Benefits
• Positioning by Price / Quality
• Positioning by User application
• Positioning by Product Class
• Positioning by Product User
• Positioning by Competitor
• Positioning by Cultural Symbols
• Positioning by Corporate Identity
• Positioning by Brand Endorsement
• Positioning by Use of Occasion and Time
• Repositioning
• Global Consumer Culture Positioning (GCCP)


EL
Positioning by Attributes and Benefits
This is the most common approach to positioning and involves setting the brand apart from
competitors based on specific brand attributes or the benefits offered. Marketers attempt to
identify salient benefits significant to customers in their purchase decisions.
PT
Consumers buy products because they offer some benefit, not just because they are futuristic.
Features become essential to the consumer, and only then can one or more of those features
provide the unique benefits the consumer seeks.

 Positioning by Price / Quality

N

Consumers' quality expectation levels differ depending on their socioeconomic status in a large,
heterogeneous market. This offers many opportunities for price quality levels and positioning.
Using prices characteristic of the brand. High-quality or image and value pricing can reflect a
competitive price.
Another dimension of price-quality position is that the product is positioned on high quality,
and prices are kept high to communicate this high quality. Access to quality, such as perfume,
is only possible in some product categories. The high price becomes an indicator of high
quality. Premium brands positioned at the high end of the market used this positioning.

 Positioning by User Application

Positioning by User Application involves associating a product with a specific use or
application. This strategy highlights how the product solves particular needs or fits certain
situations. It is a way for brands to target and appeal to consumers by clearly demonstrating
how and when the product should be used. This positioning approach can also help broaden
the market by encouraging new uses for a product, thus expanding its user base and increasing
market share. By positioning a product for multiple applications, brands can effectively
"liberate" their product from a narrow, original use. Expanding the target audience can drive
brand growth as more people recognize the product’s broader utility.

 Positioning by Product Class

Positioning by Product Class is a strategy where a brand or product is positioned not within its
immediate product category but against products from a different class. This strategy often
involves rethinking or broadening how consumers view the product compared to other
offerings, which may compete indirectly. It allows a product to be associated with an entirely
different category, offering consumers an alternative way to satisfy a particular need.

 Positioning by Product User

This strategy associates a brand with a type of person or group that uses a product or service.
The brand manager can determine a target segment for which the product will be positioned.

 Positioning by Competitor
EL
This strategy involves positioning a company or brand against a competitor. Often, another
form of positioning is used to differentiate the brand.
Positioning by a competitor may be used because the competitor enjoys a well-established
PT
image in the market. The marketer wants the consumers to believe that the brand is superior,
or at least as good as the competitor offers. It is like telling people that you live next to the
residence of a famous person rather than getting involved in explaining the locality or streets.


N

Positioning by Cultural Symbols

Many advertisers use symbols that have acquired cultural meaning and associate a brand with
these symbols to differentiate it from competitors. The essential task is to identify something
significant to people that other competitors are not using and associate the brand with that
symbol.

 Positioning by Corporate Identity

Positioning by Corporate Identity involves leveraging a company's established reputation and
credibility to enhance the perceived value and trustworthiness of a new product or brand. The
idea is that the strength of the corporate identity—such as its brand name, values, and consumer
trust—can be used to position a new offering as competitive or superior simply because it
comes from a recognized and respected company.
This positioning strategy is often used for brand extensions or line extensions, where a
company introduces new products under its established brand name or sub-brand, associating
them with its proven quality and reliability track record. By doing so, companies build on the
trust they've already earned, making it easier for consumers to accept the new product or
service.

 Positioning by Brand Endorsement

Positioning by Brand Endorsement is a strategy where marketers use the name or reputation of
a robust and well-established brand to endorse a new product or line extension. This strategy
relies on the established credibility, trust, and recognition of the parent brand to introduce new
products, ensuring that the latest offerings are accepted by consumers more quickly and with
greater confidence. Essentially, the brand name is "endorsing" the latest product, suggesting it
shares the same high standards and reliability as the parent brand.

 Positioning by Use of Occasion and Time

This positioning approach aims to find an occasion or time of use and sit on it.

 Repositioning
EL
It involves altering or changing the position of a product or brand and usually occurs because
of stagnant or declining sales. No matter how well a product appears, the marketer may be
forced to decide on repositioning in response to new opportunities or threats. The product may
be provided with new features but may be associated with new users and offerings to existing
PT
or new markets.

 Global Consumer Culture Positioning (GCCP)

The framework is supported by research from Alden, Steenkamp, and Batra in their seminal
1999 paper, "Brand Positioning Through Advertising in Global Markets," which introduced
N

GCCP as one of the key strategies for positioning brands in international markets. Highlights
of Global Consumer Culture Positioning(GCCP)
Brands using this strategy present their products as part of a global culture that appeals to
consumers who see themselves as global citizens. These consumers are often attracted to
cosmopolitan values, trends, and lifestyles seen as modern and universally aspirational.
• Brands often use similar marketing messages, imagery, and branding across different
countries, ensuring their product is recognized as part of a global experience. The messaging
typically emphasizes universality rather than local cultural specifics.
• It often leverages aspirational themes such as innovation, technology, luxury, and modernity.
The products are associated with high-quality global standards, international trends, and
cutting-edge design or performance.
• It connects products with a specific lifestyle that appeals to global consumers, often focusing
on modernity, sophistication, or urban living.
• Instead of adapting to local cultures, GCCP focuses on being "culturally neutral." or
"culturally inclusive," promoting a relevant brand identity across different markets and
avoiding specific local cultural cues.

Bowman’s Strategy Clock

Bowman's Strategy Clock is a strategic model that explores different options for a company to
position itself in the market based on price and perceived value (differentiation). Cliff
developed it in 1996 and expanded on Michael Porter’s Generic Strategies, offering more
detailed insights into competitive positioning.
The clock has eight strategic positions that companies can adopt to gain a competitive
advantage. These positions are arranged around a circular "clock," where each position
corresponds to a different approach to balancing price and value delivered to customers.

Bowman’s Strategy Clock

Low Price / Low Value (Position 1) EL
This strategy offers products at a low price and low perceived value. It can lead to survival in
highly price-sensitive markets, but margins are very low, and competition is intense. Customers
are only interested in price and are not concerned about the quality of the product.
Low Price (Position 2)
PT
Here, the focus is on being the lowest-cost provider in the market. The goal is to win market
share by offering the lowest possible prices, often achieved through economies of scale or cost-
cutting. With the ability to keep prices low due to economies of scale and efficient operations,
companies using this strategy can gain a significant market share and dominate the market.
N

Hybrid (Position 3)
This involves offering products at a low price but with higher perceived value. It allows firms
to differentiate while maintaining a competitive price, appealing to price-sensitive customers
and those who value quality.

Differentiation (Position 4)
The aim is to increase perceived value without focusing on price. Products or services are
marketed as unique and superior in quality, features, or brand image. Companies can also
charge premium prices.

Focused Differentiation (Position 5)

This strategy targets a niche market where customers are willing to pay a premium for highly
specialized or luxury products. The emphasis is on exclusivity and exceptional quality.

Risky/Higher Margins (Position 6)

Companies adopting this strategy charge a higher price without significantly improving the
product's value. This can only work temporarily in a market with little competition, as
customers may soon realize they're not getting extra value for the higher price.

Monopoly Pricing (Position 7)

Charging high prices for low-value products is often seen as a strategy by businesses trying to
"exploit" their position or customers. However, this strategy tends to fail in a competitive
market as customers look for better value elsewhere. Due to a lack of competition, firms can
extract maximum profits.

Loss of Market Share (Position 8)

EL
Offering low-value products at a standard price is undesirable, as customers can find better
alternatives at the same price. Companies in this position will likely lose market share if they
change their strategy.
PT
REFERENCES
• Rossiter, J. R., & Percy, L. (1987). Advertising and promotion Management. McGraw-
Hill Book Company.
N

• Sengupta, S. (2016). Brand positioning: Strategies for Competitive Advantage. Tata

McGraw-Hill.

• Ries, A., & Trout, J. Positioning: The Battle for Your Mind (Revised).

• Alden, D.L., Steenkamp, J. E. M., & Batra, R. (1999). Brand positioning Through
advertising in Asia, North America, and Europe: The role of global consumer culture.
Journal of Marketing, 63(1), 75-87

• Bowman, C., & Faulkner, D. (1995). Competitive and corporate strategy. London: Irwin
Publishing

• Advertising & Sales Promotion 3rd edition, by S H H Kazmi and Satish K Batra
• Advertising & Promotions an IMC perspective, by Kruti Shah and Alan D'Souza

• Advertising Management, by Jaishri Jethwaney and Shruti Jain

• Advertising and Promotion- An Integrated Marketing Communications Perspective, 7th

edition, by George E Belch, Michael a Belch, Keyoor Purani

• Jaishri, Jethwaney, and Jain Shruti. "Advertising management." Oxford University

Press, New Delhi, ISBN 13 (2006): 978-0.

• Kazmi, S. H. H., and Satish K. Batra. Advertising and sales Promotion. Excel Books
India, 2008.

• Terrence A. Shimp and Wayne Delozier, promotion management and marketing

communication, 1986.

• EL
Yoram J. Wind, Product Policy: Concepts, Methods and Strategy, Addison- Wesley
Publishing Co. 1982.

• Merle C. Crawford, New Products Management, Irwin Series in marketing, Irwin 1987.
PT

• David A. Aaker and Gary J Shansby, “Positioning Your Product,” Business Horizons,
May-June 1982.
N