Chapter 3 - Services

8/18/2019 Chapter 3 - Services

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Positioning Services in CompetitiveMarkets

Chapter

Three

3


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Overview of Chapter 3

4

Customer-Driven Services Marketing Strategy

Segmenting Service Markets

Targeting Service Markets

Positioning Services

Using Positioning Maps to Analyze CompetitiveStrategy


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Customer-Driven Services Marketing StrategyDeveloping a services marketing positioning strategy (Fig

!"#

5


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Customer-Driven Services Marketing StrategyCustomer, Competitor an Company !na"ysis #3Cs$

%

$ Customer analysis %verall e&amination o' market characteristics Customer nees an relate characteristics an

)ehaviors

$ Competitor analysis Current positioning Strengths an *eaknesses

$ Company analysis Current )ran positioning an image +esources ,imitations an constraints


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Conucting S&O' !na"ysis of the Company

(


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Customer-Driven Services Marketing StrategySegmentation, 'argeting an Positioning

)

$ Segmentation Diviing population o' possi)le customers into groups *ith

common service-relate characteristics

Similar nees *ithin same segment i''erentnees )et*een segments

$ Targeting Choose one.more segments to 'ocus on

$ Positioning Uni/ue place in the mins o' customers

Di''erentiation 'orms 'irst step to creating uni/ue

positioning


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*


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Market Segmentation

+

Firms vary *iely in a)ility to serve i''erent types o'

customers Aopt strategy o' market segmentation

ienti'ying those

parts o' market can serve )est

A market segment is compose o' a group o' )uyers

sharing common0

Characteristics1ees

Purchasing )ehavior

Consumption patterns


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Segmenting ServiceMarkets MarketSegmentation++

$ 4arious *ays to segment markets Demographics 5 on its o*n *ill not result in

meaning'ul segments Psychographic segmentation 6 use'ul 'or

strengthening )ran ientity an

creating emotional connection

3ehavioral segmentation 6 'ocuses ono)serva)le

)ehavior 1ees-)ase segmentation 6 'ocuses on *hat

customers truly *ant in a service


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Deve"oping ight Service Concept fora Specific Segment

+.

Use research to ienti'y an prioritize *hich

attri)utes o' a given service are important

to speci'ic market segments

7niviuals may set i''erent prioritiesaccoring to0 Purpose o' using the service

2ho makes ecision

Timing o' use

2hether service is use alone or *ith a group

Composition o' that group


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'argeting the right group of customers

+3


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/mportant vs0 Determinant !ttri1utes

+4

Consumers usually choose )et*een alternativeservice o''erings )ase on perceivei''erences )et*een them

Attri)utes that istinguish competing services 'rom

one another are not necessarily the mostimportant ones

7mportant attri)utes are not necessarily thoseattri)utes that etermine *hich service )ran

the consumer 'inally selects


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/mportant vs0 Determinant !ttri1utes

+5

/mportant attri1utes2 are met )y all competing service proviers o not necessarily s*ay the purchase ecision in

'avor o' one service provier as oppose to

another

Determinant attri1utes etermine )uyers‟ choices

)et*een competing alternatives Service characteristics that are important to

purchasers Customers see signi'icant i''erences )et*een

competing alternatives on these attri)utes


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Determinant attri1utes for 1usiness trave""ers

+%


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sta1"ishing Service eve"s

+(

1ee to make ecisions on service levels 6

level o' per'ormance 'irm plans to o''er

on each attri)ute 8asily /uanti'ie attri)utes are easier to

unerstan an generaliza)le 6 eg vehicle spee

physical imensions 9ualitative attri)utes are am)iguous an su):ect

to iniviual interpretation 6 eg physical com'ortnoise levels


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sta1"ishing Service eve"s

+)

Can o'ten segment customers accoring to

*illingness

to give up some level o' service 'or a lo*er price

Price-insensitive customers *illing to pay relativelyhigh price 'or high levels o' service on eachimportant attri)ute

Price-sensitive customers look 'or ine&pensiveservice *ith relatively lo* per'ormance on many

key attri)utes (eg Services 7nsights !;Capsule


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Capsu"e ote"s #what type of customer an what aretheir service e6pectations7 #rea Service /nsight 30.$

+*


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'argeting Service Markets Achieve Competitive Avantage through Focus

(Fig !=#

.


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Consierations for 8singthe 9ocus Strategies #+$

.+

9u""y focuse ,imite range o' services to narro* an speci'ic market

%pportunities

Developing recognize e&pertise in a *ell-e'ine niche

may provie protection against *oul-)e competitors Allo*s 'irms to charge premium prices

+isks Market may )e too small to generate neee volume

o' )usiness Deman 'or a service may )e isplace )y generic

competition 'rom alternative proucts

Purchasers in chosen segment may )e suscepti)le to

economic o*nturn


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6amp"e of a fu""y focuse strategy – private aircharter for :/Ps

..


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Consierations for 8singthe 9ocus Strategies #.$

.3

Market focuse 1arro* market segment *ith *ie range o'

services

1ee to make sure 'irms have operationalcapa)ility to o an eliver each o' the

i''erent services selecte 1ee to unerstan customer purchasing

practicesan pre'erences Service focuse

1arro* range o' services to 'airly )roa

market As ne* se ments are ae 'irm nees to


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Market 9ocuse #entoki"$ – rea Service /nsight303 on page ()

.4


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Consierations for 8singthe 9ocus Strategies #3$

.5

8nfocuse 3roa markets *ith *ie range o' services Many service proviers 'all into this

category Danger 6 )ecome a >:ack o' all traes an

master o' none?


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9our Princip"es of Positioning Strategy

.%

Must esta)lish position 'or 'irm or prouct in mins

o'

target customers

Position shoul provie one simpleconsistent message

Position must set 'irm.prouct apart 'rom

competitors

A company cannot )e all things to all people - must

'ocus its e''orts

Jack Trout


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Positioning 2 One ;ey Message -


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Positioning ServicesSi6 =uestions for ffective PositioningStrategy

.)

" 2hat oes our 'irm currently stan 'or in the mins o'

current

an potential customers@

; 2hat types o' customers o *e serve no* an *hich ones

*oul *e like to target in 'uture@

! 2hat is value proposition 'or each o' our current serviceproucts an *hat market segments is each one targete

at@

P iti i g S i


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Positioning ServicesSi6 =uestions for ffective PositioningStrategy

Avoid trap of investing too heavily in points of

differences that are easily copied

.*


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ey marketing mi& elements o'

3reaTalk s‟ positioning

strategy

33

Positioning Services


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Positioning ServicesDeve"oping an ffective PositioningStrategy

3+

$ Point o' i''erence

Most compelling )ene'it o''ere )y )ran that

stans out 'rom competitors

$ +eason to )elieve

Proo' that )ran can eliver the )ene'its that arepromise


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Points of ifference, points of parity an points of contention

3.


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8sing Positioning Maps to!na"y>e Competitive Strategy

reat tool to visualize competitive positioningan map evelopments o' time

Use'ul *ay to represent consumer perceptions

o' alternative proucts graphically Typically con'ine to t*o attri)utes )ut !-D

moels can )e use to portray positions on threeattri)utes simultaneously

Also kno*n as perceptual maps 7n'ormation a)out a prouct can )e o)taine 'rom

market ata erive 'rom ratings )y

representative consumers or )oth

33


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Selecte courier services0

positioning map o' spee o' elivery versus cost

34


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An e&ample o'positioning o' a

lu&ury hotel 6

Du)ai s‟

3ur: Al Ara)

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Using Positioning Maps to Analyze Competitive Strategy

Positioning o' 3elleville


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Positioning o' 3elleville


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9uture Positioning o' 3elleville


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9uture Positioning o' 3elleville


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Positioning Maps e"p Managersto :isua"i>e Strategy

4

Positioning maps isplay relative per'ormance o'

competing 'irms on key attri)utes

+esearch provies inputs to evelopment o'positioning maps - challenge is to ensure

that

Attri)utes employe in maps are important to

targetsegments

Per'ormance o' iniviual 'irms on each attri)ute accurately

re'lects perceptions o' customers in target segments


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Positioning Maps e"p Managersto :isua"i>e Strategy(cont’d)4+

Preictions can )e mae o' ho* positions may

change in light o' 'uture evelopments

Simple graphic representations are o'ten easier

'or managers to grasp than ta)les o' ata orparagraphs o' prose

Charts an maps can 'acilitate >visual

a*akening? to threats an opportunities suggestalternative strategic irections

S f Ch 3


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Summary for Chapter 32Positioning Services /n Competitive Markets #+$

4.

$ 8''ective positioning starts *ith the !Cs then segmentation targetingan positioning

$ Market segmentation 'orms the )asis 'or 'ocuse strategies

$

Service attri)utes that are eterminant attri)utes are o'ten the onesmost

important to customers

$ Four 'ocus strategies0

Service 'ocuse

Fully 'ocuse

Market 'ocuse

Un'ocuse

S f Ch 3


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Summary for Chapter 32Positioning Services /n Competitive Markets #.$

43

$ Positioning istinguishes a )ran 'rom its competitors

$ Segmentation targeting an positioning integrates *ith

customer competitor an company analyses to give us a

positioning statement

$ To evelop a positioning statement *e nee

Target auience

Frame o' re'erence

Point o' i''erence

+eason to )elieve

S f Ch t 3


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Summary for Chapter 32Positioning Services /n Competitive Markets #.$

44

$ Positioning maps are use'ul 'or plotting

competitive strategy

Mapping 'uture scenarios help ienti'y potential competitive

responses

Positioning charts help visualization o' strategy

Documents

Chapter 3 - Services