Differentiate or Die!

Differentiation and Positioning

Who am I

- originally from Florence, Tuscany (Italy)

- living for 30 years in Finland

- degree in Electronic Engineering (EVTEK)

- degree in International Business and Marketing Management (FINTRA)

- over 10 years in designing and developing hardware+software

- over 20 years of international business experience

- for the last 3 years a business angel and angel investor

- strategic and visionary thinker

- believer in true Leadership

- customer and results oriented

- human being

more about me on www.linkedin.com/in/gianlucacioletti

www.facebook.com/gianlucacioletti

www.twitter.com/lucacioletti

Know your enemy and know yourself and you can

fight a hundred battles without disaster –

Sun Tzu, The Art of The War (544 - 496 BC)

It is not the strongest of the species that survive,

nor the most intelligent, but rather

the one most adaptable to change -

Charles Darwin (1809 – 1882)

Some wisdom…..

If we are to achieve results never before

accomplished, we must employ methods

never before attempted –

Sir Francis Bacon (1561 - 1626)

Digital Darwinism is the evolution of consumer

behaviour when society and technology evolve

faster than your ability to adapt –

Brian Solis (1970 – )

Some more wisdom…..

Jack Trout - Differentiate Or Die

Michael E. Porter - Competitive Strategy

Philip Kotler, Kevin Keller – Marketing Management

Robert M. Grant - Contemporary Strategy Analysis

Jack Trout, Steve Rivkin - The New Positioning

Some books…..

Differentiation and Positioning

Kotler defines Differentiation as the process of

adding meaningful and valued differences to

distinguish the company’s offering from the

competition.

Positioning is the act of designing the company’s

offering and image to occupy a distinctive place in

the mind of the target market.

Why and from what we have to differentiate ourselves

….. what about the customers?

Differentiate the products / services in some way in order to compete

successfully.

A differentiation strategy is appropriate where the target customer segment is not

price-sensitive, the market is competitive or saturated, customers have very

specific needs which are possibly under-served, and the firm has unique

resources and capabilities which enable it to satisfy these needs in ways that are

difficult to copy.

Successful differentiation is displayed when a company accomplishes either a

premium price for the product or service, increased revenue per unit, or the

consumers' loyalty to purchase the company's product or service (brand loyalty).

Differentiation drives profitability when the added price of the product outweighs

the added expense to acquire the product or service but is ineffective when its

uniqueness is easily replicated by its competitors. Successful brand

management also results in perceived uniqueness even when the physical

product is the same as competitors.

Differentiation Strategies

Trout and Rivkin proposed specific differentiation strategies

common to offline and online businesses:

- Being the first to enter the market.

- Owning a product attribute in the mind of the consumer.

- Demonstrating product leadership.

- Utilizing an impressive company history or heritage.

- Supporting and demonstrating the differentiating idea.

- Communicating the difference.

Differentiation Strategies

A company can differentiate along 5 dimensions:

Product

Differentiation may include: Product form, Features, Performance, Conformance, Durability, Reliability,

Reparability, Style, Design, Ordering ease, Delivery, Installation, Customer training, Customer consulting,

Maintenance

Service

Differentiation may include: Delivery, Availability, Flexibility, Versatility

Personnel

Differentiation is based on the company’s personnel as leadership, CEO, Flexibility

Channel

Differentiation is based on the used channel (usually delivery channel)

Image

Branding

Differentiation Dimensions

Bases and Strategies for Positioning

Product or service attribute

May include features such as size, color, ingredients, speed, etc.

Technology positioning

Positioning on the basis of technology shows that a company / product is on the cutting edge.

Benefit positioning

Benefit positioning is generally a stronger basis for positioning because it answers the consumer question:

What will this product / service do for me?

User category

User category positioning relies on customer segments.

Competitor positioning

Many companies position by benefits that provide advantages over their competitors.

Integrator positioning

Integrators provide everything a consumer needs in a particular product category, industry, or even in

general. Where consumers want convenience and one-stop shopping.

Repositioning Strategies

Repositioning is the process of creating a new or

modified brand, company, or product position.

A company may enhance or modify a position,

based on market feedback.

http://www.slideshare.net/dednie/differentiate-or-die-20495380

http://www.slideshare.net/bright9977/25-brand-lessons-from-jack-trout-7266739

http://www.slideshare.net/jaydip321/marketing-management-13e-philip-kotler-ppt-ch-10

http://www.slideshare.net/amandinevermeulen/marketing-management-kotler-keller?qid=0d0a9216-1ea3-41e3-88d6-ed35e08617ec&v=qf1&b=&from_search=2

http://www.slideshare.net/engemar/kotler-mm14-ch02dppt?qid=0d0a9216-1ea3-41e3-88d6-ed35e08617ec&v=qf1&b=&from_search=11

http://www.slideshare.net/Annie05/differentiation-and-positioning-strategies-presentation

http://www.slideshare.net/Jack78/kotler-keller-02?qid=d3de113c-2244-4ae3-87a3-e56af2e8fd22&v=qf1&b=&from_search=3

http://www.slideshare.net/danielbatistagalvao/philip-kotler-marketing-insights-from-a-to-z-26874769?qid=0a39dd2b-faa3-445a-8c87-598e61c02acb&v=default&b=&from_search=5

http://www.quickmba.com/strategy/generic.shtml

http://nraomtr.blogspot.fi/2011/11/marketing-strategy-differentiating-and.html

http://en.wikipedia.org/wiki/Porter's_generic_strategies

http://smallbusiness.chron.com/examples-differentiation-strategies-11755.html

http://www.polarismr.com/Portals/58820/docs/PolarisMR_Brand_Positioning.pdf

http://www.emarketing.net.cn/upload/file/2009/01/22/181232619923738.pdf

http://2012books.lardbucket.org/books/modern-management-of-small-businesses/s11-04-differentiation-and-positionin.html

http://www.artofpositioning.com/wp-content/uploads/2013/04/Fine-Art-Of-Positioning.pdf

http://www.slideshare.net/panditvidur/product-differentiation-7303192

http://www.cabrillo.edu/~dambrosini/50Web/classsessions/session16positioning.htm

Some links……….

Thanks!

Gian-Luca Cioletti

Helping people and companies to grow!

luca@moblasted.com

+358 50 342 3554