strategies for ser mkt-positioning+diff

7/29/2019 Strategies for Ser Mkt-Positioning+Diff

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POSITIONING

In a highly competitive environment there is a risk that the customers may perceive most ofthe services as being alike with little difference.

They may thus make their choice based on price.

Positioning strategy therefore is aimed at creating and maintaining a distinctive differencethat will be noticed and valued by the customers with whom the company would like to

develop long term relationship.

For successful positioning you have to understand

Target customers preferences Competitors offerings


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DIFFERENTIATION

DIFFERENTIATION APPROACHES FOR EFFECTIVE POSITIONING

Product Differentiation Personnel Differentiation Features Competence

Performance Courtesey

Conformance Credibility

Durability Reliability

Reliability Communication

Style

Image Differentiation Service Differentiation

Symbols Delivery (Speed, Accuracy)

Written , audio/visual media Installation

Atmosphere Customer Training

Events Consulting Services

Repairs


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POSITIONINGcontd/--

SEGMENTATION

Segmentation is a process by which a large heterogeneous market isdivided into smaller homogenous groups each having distinct

characteristics

FOR SEGMENTATION TO BE EFFECTIVE IT MUST BE

I) MEASURABLETHE SIZE, PURCHASING POWER, DEFINING

CHARACTERISTICS

II) SUBSTANTIALTHE SEGMENT MUST BE SUBSTANTIALLY LARGE

AND PROFITABLE

III) ACCESSIBLEIT MUST BE EASY FOR THE CO TO REACH AND

SERVICE THE SEGMENT


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POSITIONING contd/--

(SEGMENTATION)

DIFFERENTIABLETHE SEGMENT MUST BE DISTINCTCONCEPTUALLY AND MUST RESPOND DIFFERENTLY TO DIFFERENT

MARKETING INPUTS

ACTIONABLETHE SEGMENT SHOULD BE SUCH THAT VARIOUSMEASURES CONTEMPLATED BY THE CO SHOULD BE POSSIBLE

ETHICAL CHOICESTHE COS MUST ADHERE TOBASIC ETHICS WHEN ADDRESSING TO CERTAIN VULNERABLE

GROUPS

SEGMENT INTERRELATIONSHIPS

THE COS MUST STUDY THE COST PERFORMANCE ETC


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POSITIONING contd/--

(TARGETING)

SEGMENTATION IS A PRELUDE TO TARGETING

TARGETING IS A PROCESS BY WHICH COS DECIDE WHICHSEGMENT TO ENTER

A CO MAY ENTER MORE THAN ONE SEGMENT

TARGETING IS DONE BY EVALUATION OF SEVERAL VARIABLES OFVARIOUS SEGMENTS IE SALES/PROFITS ETC


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POSITIONING

contd/--

ROLE OF RESEARCH

At this stage it is necessary to decide what attribute of a given service do the

customers prefer and how well do customers perceive it in competing brands.

This is generally conducted through market research.

It should be borne in mind that the same set of people may choose different

attributes depending upon

The purpose of the service

Who makes the decision

The timing

The individual is using the service alone/in a group

Composition of the group


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STAGE I

Identify key

offer attributes

STAGE 2

Draw

perceptual Map

STAGE 3

Decide On

Competitive

strategy

Tangible, colour

size

Intangible-reputation, guarantees,

service features

Head-On/Me Too

Position Away/Avoid

Competition

Less Profitable On

growthSTAGE 4

Design offer attributes,

imageriesUSP

STAGE 5

Sustain competitiveadvantage


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STEP II PERCEPTUAL MAP

WestSide

Shoppers

Stop

CrossRoads/

Pyramid

Low RangeWide Range

Low Prices

High Prices

Sheetal Boutique

Globus

Pantaloons

Babubhai Jagjivan Das

Apna Bazar

Marks & Spencer

Big Bazar

Fashion Street


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POSITIONING DECISION

I) HEAD ON POSITIONING

II) AVOID COMPETITION

HEAD ON POSITIONING

Here the market is crowded and you have to compete with several playerbut you

see the possibility of profits if you do well If intensity of rivalry increases, margins are likely to get squeezed

Price war may start

AVOIDING COMPETITION

This is certainly a very tempting route but there is a trap here. The market may bevery limited with low growth.

If the position demands high service with low price the business will not besustainable

If the position has high price with low service, bad word ofmouth service willdrive you out of business.


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High Price

Competitive

Failure

Low Service High Service

Low Price

Fashion Street

Financial Failure

Nordstorm

TBZ

SHEET


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DIFFERENTIATING THE PRODUCT

After positioning your product, you have to give it certain features that

differentiate it from the competitors.

CitibankUnfixed Deposits

SBIMagnum

Global trust Bankstate of the art

Hutch---emotional Bonding

ICICIdistribution Network

HOSPITALS

Apollo/Hinduja/Govtdifferent price levels


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SUSTAINING THE ADVANTAGE

Companys self-perception

Company

Customers perception of Co

Cos perception of customers

Customer

Customers perception of

themselves

Competitor

Competitors perception of

themselves

Comp perception of co

Cos perception of comp


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RE-POSITIONING

Sometimes cos have to make significant change in the existing

position

This is known as Re-positioning

This could revising service standards, vacating a segment and

entering a new segment.

There may be legal/ethical issues.

Improving negative brand perceptions may involve re-positioning.


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CONCLUSION

Ultimately, positioning involves a strategic manipulation of the firmsmarket mix variables: product, price, promotion, physical facilities,

people and processes.

Each of these marketing mix variable is controllable. When

effectively combined, the marketing mix can off-set the effects of theuncontrollable factors that exist in every companys operating

environment such as technological advances ,consumer needs,new

and existing competitors, governmental regulations, economic

conditions and effects of seasonality, which are constantly changing

the environment in which a firm operates.

strategies for ser mkt-positioning+diff

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