Relying on the product descriptor. The product descriptor that follows the brand name is often a
Unfortunately, consumers typically want to maximize both of the negatively correlated attributes or benefits. Much of the art and science of marketing is dealing with trade-offs, and
positioning is no different. The best approach clearly is to develop a product or service that performs well on both dimensions. GORE-TEX was able to overcome the seemingly conflicting
product images of “breathable” and “waterproof ” through technological advances. When in- depth and quantitative interviews and focus groups suggested that consumers wanted the
benefits of technology without the hassles, Royal Philips launched its “Sense and Simplicity” advertising campaign for its Philips brand of electronics, using print, online, and television
advertising.
22
Some marketers have adopted other approaches to address attribute or benefit trade-offs: launching two different marketing campaigns, each one devoted to a different brand attribute or
benefit; linking themselves to any kind of entity person, place, or thing that possesses the right kind of equity as a means to establish an attribute or benefit as a POP or POD; and even attempt-
ing to convince consumers that the negative relationship between attributes and benefits, if they consider it differently, is in fact positive.
Differentiation Strategies
To build a strong brand and avoid the commodity trap, marketers must start with the belief that you can differentiate anything. Competitive advantage is a company’s ability to perform in one or
more ways that competitors cannot or will not match. Michael Porter urged companies to build a sustainable competitive advantage.
23
But few competitive advantages are sustainable. At best, they may be leverageable. A leverageable advantage is one that a company can use as a springboard to
new advantages, much as Microsoft has leveraged its operating system to Microsoft Office and then to networking applications. In general, a company that hopes to endure must be in the business of
continuously inventing new advantages.
24
For a brand to be effectively positioned, however, customers must see any competitive ad- vantage as a customer advantage. For example, if a company claims its product works faster than
its competitors, it won’t be a customer advantage if customers don’t value speed. Select Comfort has made a splash in the mattress industry with its Sleep Number beds, which allow consumers
to adjust the support and fit of the mattress for optimal comfort with a simple numbering index.
25
Companies must also focus on building customer advantages.
26
Then they will deliver high customer value and satisfaction, which leads to high repeat purchases and ultimately to
high company profitability.
Progressive
Progressive gained a competitive advantage in the mid-1990s when it became one of the first auto insurance companies to sell direct to consumers via
the Internet. The company’s early adoption of technology enabled it to offer a unique service: In addition to providing free online quotes for its own policies, Progressive also provided
quotes from up to three competitors, information that until then had been available only
through insurance agents. In addition to saving its customers time, Progressive was able to save them money by showing that, in many cases, its policies were more competitively priced. Once Progressive
Pr ogr
essive
Progressive supports its low-price point-of-difference by providing
competitive quotes online.
won new customers’ business, it mobilized an army of 12,000 claims adjusters who will speed right to an accident scene—and often cut a check right on the spot. It has further enhanced its competi-
tiveness by adding innovative service features such as an “accident concierge,” who handles all aspects of the claims and repair process for customers, and online policy management that enables
customers to make payments and change coverage any time. These customer advantages made Progressive the 3rd largest auto insurer in the United States by 2006, up from 48th in 1980, with
12 million customers.
27
MEANS OF DIFFERENTIATION
The obvious means of differentiation, and often the ones most compelling to consumers, relate to aspects of the product and service reviewed in
Chapters 12 and 13. Swatch offers colorful, fashionable watches; GEICO offers reliable insurance at discount prices. In competitive markets, however, firms may need to go beyond
these. Consider these other dimensions, among the many that a company can use to differentiate its market offerings:
• Employee differentiation. Companies can have better-trained employees who provide supe-
rior customer service. Singapore Airlines is well regarded in large part because of its flight at- tendants. The sales forces of such companies as General Electric, Cisco, Frito-Lay,
Northwestern Mutual Life, and Pfizer enjoy an excellent reputation.
28
• Channel differentiation. Companies can more effectively and efficiently design their dis-
tribution channels’ coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding. Back in 1946, pet food was cheap, not too nutritious,
and available exclusively in supermarkets and the occasional feed store. Dayton, Ohio–based Iams found success selling premium pet food through regional veterinarians, breeders, and
pet stores.
• Image differentiation. Companies can craft powerful, compelling images that appeal to con-
sumers’ social and psychological needs. The primary explanation for Marlboro’s extraordinary worldwide market share around 30 percent is that its “macho cowboy” image has struck a
responsive chord with much of the cigarette-smoking public. Wine and liquor companies also work hard to develop distinctive images for their brands. Even a seller’s physical space can be a
powerful image generator. Hyatt Regency hotels developed a distinctive image through its atrium lobbies.
• Services differentiation. A service company can differentiate itself by designing a better
and faster delivery system that provides more effective and efficient solutions to consumers. There are three levels of differentiation.
29
The first is reliability: Some suppliers are more re- liable in their on-time delivery, order completeness, and order-cycle time. The second is
resilience: Some suppliers are better at handling emergencies, product recalls, and inquiries. The third is innovativeness: Some suppliers create better information systems, introduce bar
coding and mixed pallets, and in other ways help the customer.
EMOTIONAL BRANDING
Many marketing experts believe a brand positioning should have both rational and emotional components. In other words, a good positioning should
contain points-of-difference and points-of-parity that appeal both to the head and to the heart.
To do this, strong brands often seek to build on their performance advantages to strike an emo- tional chord with their customers. When research on scar-treatment product Mederma found that
women were buying it not just for the physical treatment but also to increase their self-esteem, the marketers of the brand added emotional messaging to what had traditionally been a practical
message that stressed physician recommendations: “What we have done is supplement the rational with the emotional.”
30
A person’s emotional response to a brand and its marketing will depend on many factors. One increasingly important factor is a brand’s authenticity.
31
Brands such as Hershey’s, Kraft, Crayola, Kellogg’s, and Johnson Johnson that are seen as authentic and genuine can evoke
trust, affection, and strong loyalty.
32
Guinness celebrated its heritage, quality, and authenticity with a 250th anniversary marketing campaign whose ads depict consumers all over the world
toasting the brand.
33
Brand consultant Marc Gobé believes emotional brands share three specific traits: 1 strong people-focused corporate culture, 2 a distinctive communication style and philos-
ophy, and 3 a compelling emotional hook.
34
Saatchi Saatchi CEO Kevin Roberts advocates that brands strive to become lovemarks. Brands that are lovemarks, according to Roberts, com-
mand both respect and love and result from a brand’s ability to achieve mystery, sensuality, and intimacy:
35