Upload
neelotpalreddy
View
222
Download
0
Embed Size (px)
Citation preview
8/7/2019 Positioning Services in Competitve Markets
1/18
P OSITIONING SERVICES INCOMPETITVE MARKETS
8/7/2019 Positioning Services in Competitve Markets
2/18
COMPLETE POSITIONINGSTRATEGY FOR SERVICES
Intensifying competition
Must be selective intargeting customers
focus efforts on
customers it can servebest
Emphasize competitiveadvantage
8/7/2019 Positioning Services in Competitve Markets
3/18
B ASIC FOCUS STRATEGIES FORSERVICES
BREADTH OF SERVICE OFFERINGS
Narrow
Many
Few
Wide
ServiceFocused
Unfocused(Everythingfor everyone)
MarketFocused
Fully Focused
(Service andmarketfocused)
NUMBER OFMARKETSSERVED
8/7/2019 Positioning Services in Competitve Markets
4/18
RISKS AND OPPORTUNITIES OF AFULLY FOCUSED STRATEGY
O pportunities
Developing recognized expertise in a well-defined nichemay provide protection against would-be competitors
Allows firms to charge premium prices
Risks
Market may be too small to generate needed volume of business
Demand for a service may be displaced by genericcompetition from alternative products
Purchasers in chosen segment may be susceptible toeconomic downturn
8/7/2019 Positioning Services in Competitve Markets
5/18
THE KEY CONCEPTS OF MARKETINGP OSITIONING STRATEGY
FORMULATION
8/7/2019 Positioning Services in Competitve Markets
6/18
A business must set itself apart from itscompetition. To be successful it must identify and promote itself as the best provider of attributes that are important to target customers
George S. Day
Co-Director of the Mack Center for Technological Innovation at the WhartonSchool of the University of Pennsylvania
8/7/2019 Positioning Services in Competitve Markets
7/18
Targeting PositioningSegmentation
8/7/2019 Positioning Services in Competitve Markets
8/18
ESTAB LISHING SERVICELEVELS AND T IERS
N eed to make decisions on servicelevels level of performance firm
plans to offer on each attribute
Can often segment customersaccording to willingness to trade off price versus service level
Service tier-ing: Positioning strategybased on offering several price-basedclasses of service concept
8/7/2019 Positioning Services in Competitve Markets
9/18
FOUR P RINCIPLES OFP OSITIONING STRATEGY
Must establish position for firm or product in minds of customers
Position should be distinctive, providing one simple,consistent message
Position must set firm/product apart from competitors
A company cannot be all things to all people must focusits efforts
Jack TroutAu thor
The New Positioning
8/7/2019 Positioning Services in Competitve Markets
10/18
8/7/2019 Positioning Services in Competitve Markets
11/18
P RODUCT P OSITIONING VERSUSCOPY P OSITIONING
Positioning often associated with communication mix,notably advertising, promotion, PR
Copy PositioningUse of imagery to differentiate and add glamour toservicesSome slogans promise a specific benefit to makecompany stand out from competitors
Growing number of firms engage in co-branding, for
example:Jointly offered credit card by American Airlines, Citibank,and Visa
Positioning guides firm to marketing strategydevelopment
8/7/2019 Positioning Services in Competitve Markets
12/18
MARKET, I NTERNAL, ANDCOMPETITOR ANALYSIS
S ource: Developed from an earlier schematic by Michael R. Pearce
- Size- Composition- Location- Trends
MarketingActionPlan
MARKETANALYSIS
INTERNALANALYSIS
- Resources- Reputation- Constraints- Values
COMPETITOR ANALYSIS
- Strengths- Weaknesses- Current
Positioning
Define, AnalyzeMarket Segments
SelectTarget SegmentsTo Serve
ArticulateDesired Positionin Market
Select Benefitsto Emphasizeto Customers
AnalyzePossibilities forDifferentiation
8/7/2019 Positioning Services in Competitve Markets
13/18
USING P OSITIONING MAPS TOP LOT COMPETITIVE STRATEGY
Useful way to represent consumer perceptions
Typically confined to two attributes, but 3-D models canbe used to portray positions on three attributessimultaneously
Information about a product can be obtained frommarket data
If consumer perceptions of service characteristics differsharply from "reality" as defined by management, thenmarketing efforts may be needed to change theseperceptions
Also known as p erce p t u al ma p s
8/7/2019 Positioning Services in Competitve Markets
14/18
P OSITIONING OF HOTELS :P RICE VERSUS SERVICE LEVEL
Expensive
Shangri-LaH igh
ServiceModerateService
Grand
Regency
Sheraton
Italia
CastleAlexander IV
Airport Plaza
PALACE
Atlantic
Less Expensive
8/7/2019 Positioning Services in Competitve Markets
15/18
P OSITIONING MAPS HELPMANAGERS TO VISUALIZE STRATEGY
Display relative performance of competing firms
Research provides inputs to development of positioning maps challenge is to ensure that
Attributes important to target segmentsaccurately reflects perceptions of customers
Position development in the future
Simple graphic representationsVisual awakening to threats and opportunities
8/7/2019 Positioning Services in Competitve Markets
16/18
REPOSITIONING
Positions evolve in response to changingmarket structures, technology, competitiveactivity, and the nature of firm itself Firm may have to make significant change inexisting position
Improving negative brand perceptions mayrequire extensive redesign
Repositioning introduces new dimensionsthat other firms cannot immediately match
8/7/2019 Positioning Services in Competitve Markets
17/18
VODAFONE P OSITIONING
W here you go thenetwork follows you
Hutch as a brand tried toconnect with consumers ina simple,honest and realmanner , while Vodafone is
a more young and funbrand.so consumers willsee a shift reflecting amore vibrant brand
8/7/2019 Positioning Services in Competitve Markets
18/18THANK YOU