customer- driven marketing strategy chapter: 7 lec: 6c
TRANSCRIPT
Customer- Driven Marketing Strategy
Chapter: 7
Lec: 6c
Differentiation and Positioning
• Value proposition should be thought by the company
• Product position
The way the product is defined by consumers on important attributes- the place the product occupies in consumers’ minds relative to competing products
Differentiation and Positioning
Products are created in the factory but brands are created in minds
Powerful all purpose detergent
Gentle detergent for fine washables
It’s fun to be young (for youngsters)
Good in performance luxury car
Innovative “think different”
Strong and smart
“feel good everyday”
Niralla bohat hi alla
“Family mixture chaye”
Just do it
Positioning Maps
• For planning differentiation and positioning strategies, marketers use positioning maps
Positioning Map
1 2 3
2
1
54
4
5
Attribute 1
Attribute 2
Positioning Map
• Price/ quality (Pizzahut)
• Price / Luxury (Car)
• Age / Benefit (Lucozade)
2 different Positioning of Detol
2 different Positioning of Johar Joshanda
2 different Positioning of
Choosing a Differentiation and Positioning Strategy
Competitive Advantage An advantage over competitors gained by
offering greater customer value, either through lower prices or by providing more benefits that justify higher prices
Positioning is based on three steps1. Identifying the different set of competitive
advantages to chose from them2. Choosing the right competitive advantage3. Effectively deliver and communicate the right
competitive advantage
Identify possible differences and competitive advantage
• Customer’s needs should be understandable by the company
• Give what you are promising as your competitive advantage
e.g. Nokia (Durable phones)• Placement e.g. Gourmet • Price e.g. Savour Foods• People e.g. Disney• Image e.g. Sony (Good Quality)• Symbols e.g. McDonalds (M), Nike, Swoosh
Choosing the right Competitive Advantage
• How many differences to promote
- Some people think taking one benefit is important but there are some opinions opposite to that as well
e.g. Head & Shoulders (Dandruff free hair)
Panteen (Beautiful hair)
Choosing the right Competitive Advantage
Which Differences to promote• Important- valued for customers e.g. sunsilk• Distinctive- competitors are not offering it e.g. Tide stick• Superior- should not be obtained from somewhere else
e.g. Mocha Coffee• Communicable-• Preemptive- Competitors cannot copy the difference• Affordable- Buyers can afford to pay the difference • Profitable-
Selecting the overall positioning strategy
• Value proposition The full positioning of a brand- the full mix of
benefits upon which it is positioned- More for More: price equals quality- More for the same: more or less similar product,
less price- The same for less: less price for same products e.g.
Metro- Less for Much Less: less offering with less price
e.g. Hotels with no swimming pool etc. zoom airlines
- More for less: cheap tickets (not in peak season)
Developing a Positioning Statement
• Positioning statement
A statement that summarizes company or brand positioning- it takes this form:
To (target segment and need) our (brand) is (concept) that (point of difference)
• Communicating the Positioning statement
- Inform employees and retailers etc. about it
- Match it with your activities
- Don't abruptly change the positioning