3.2

• The primary difference between direct and indirect competitors is the business type.
• Direct competitor: the competing business must be in the same specific industry as the company under consideration.
• Indirect competitor: a business that offers the same product/service, but not as their primary service.
• Points-of-difference (POD) are the aspects of the product offering that are relatively distinct from the offerings of like competitors.
• Points-of-Parity (POP) are the aspects of the product offering that are largely similar to the offerings of competitors.
• An appropriate balance of POD and POP is required for market success.
• Too much reliance on POP in product positioning results in a perceived as “me-too” product offering.
• Too little emphasis on POD results in a perceived as “not meeting the core needs” of the target market.
• USP signifies the advertising should give consumers a compelling reason to buy a product that competition could not match.
• The POD should be unique and should be sustainable as well.
• Updating positioning raises two main issues: Laddering and Reacting.
• Laddering: how the brand meaning is further deepened in the minds of the consumer.
• Reacting: how due to competitive action a brand is forced to react as it loses its POD.
• Attributes are descriptive features that characterize a product.
• Benefit is the personal benefit and meaning attached to product attributes.
• Do nothing: if competitor brands are unlikely to create a sustainable POD because they do not have the resources, continue the building process.
• Go on the defensive: further, invest in strengthening POP and POD if competitors are trying to disrupt your POD.
• Go on the offensive: competition causes damage, completely change the positioning of the brand, very risky for an established brand.
• Brand mantra: a 3-5 words shorthand encapsulation of your brand position.
• The brand mantra should describe the nature of the product/service and the benefits the brand provides.
• The brand mantra should clarify the core target customers.
• The brand mantra should explain how exactly the brand provides the benefits and in what ways.