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004 Session

The document discusses differentiation and positioning strategies. It explains that positioning is how a product is defined by consumers based on important attributes and where it sits relative to competitors. Examples are given of how Domino's and Pizza Hut position themselves. The document then outlines steps companies can take to differentiate themselves, including through their product, service, channels, people, or image. It also discusses value propositions and positioning statements. Finally, it covers the marketing mix and the four P's of product, price, place, and promotion.

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Akhil Joseph
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47 views30 pages

004 Session

The document discusses differentiation and positioning strategies. It explains that positioning is how a product is defined by consumers based on important attributes and where it sits relative to competitors. Examples are given of how Domino's and Pizza Hut position themselves. The document then outlines steps companies can take to differentiate themselves, including through their product, service, channels, people, or image. It also discusses value propositions and positioning statements. Finally, it covers the marketing mix and the four P's of product, price, place, and promotion.

Uploaded by

Akhil Joseph
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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M D01

Marketing Management
Session 4

Deepak Sundrani
Differentiation
and
positioning
Positioning
Product position
The way the product is defined by
consumers on important attributes the
place the product occupies in consumers
mind relative to competing products.
Example : Pizza
Example

Dominos pizza ( delivery in


30 minutes, so order home delivery)

Pizza hut (eat there)


Positioning is not what you do to a
product. Positioning is what you do to the
mind of the prospect. That is, you position
the product in the mind of the prospect.
Steps in
Differentiation and positioning task
Step 1 Identify set of possible customer
value differences that provide
competitive advantages upon
which to build a position
Step 2 - Choosing the right competitive
advantage
Step 3 - Selecting an overall positioning
strategy.
How can a company
differentiate itself ?
1) Product differentiation features, performance,
style and design , example Indica car more car
per car, Colgate fights tooth decay, Reva,
Promise toothpaste, Kinetic Honda electric start.
2) Service differentiation speed, convenience,
careful delivery Dominos pizza 30 minutes
3) Channel differentiation Direct channel /
superior channel Amazon.com, Caterpillar
4) People differentiation L&T
5) Image differentiation Royale, 5 star hotels
Selecting an overall
positioning strategy
Value proposition the full mix of benefits
upon which the brand is differentiated.

It is the answer to customers question :


Why I should buy your product?
Possible value propositions
Benefit - price combinations
1) More for More Mercedes
2) More for the same Lexus compared
features of competitor Mercedes ans showed Lexus had
more benefits than Merc but price was same.
3) Same for less Walmart
4) Less for less Low cost Airlines
5) More for less Moser Baer DVD ( 3 movies
for Rs. 45) , Bajaj Auto, Cox and Kings
More for Less Value Proposition
Positioning Statement
Statement that summarises company or
brand positioning.
Form / Template :
To [target segment and need]
our (brand)
is (concept)
that (point of difference)
Positioning statement for Nano
To those customers who own 2 wheelers
but want a car
our Nano
is an affordable car
that gives the advantages of 4 wheeler at
a price lower than any other car.
NICMAR positioning statement ?
NICMAR positioning statement ?
To the Construction / Real Estate Industry
which needs efficient techno-managers,
NICMARIAN is a well trained engineer on
whom you can rely to complete your
projects in time with good quality.
Marketing Mix
Marketing mix
is the set of controllable, tactical marketing
tools that the firm blends to produce the
response it wants in the target market.

The marketing mix consists of everything


the firm can do to influence the demand
for its product.
McCarthy classified these tools into 4
broad groups that he called the 4 Ps of
marketing:
1) Product goods and service combination
2) Price amount of money customer has to pay
3) Place availability of product
4) Promotion activities that communicate
merits of product and persuade target
customers to buy it
Product
1) What does the customer want from the
product?
2) What features does it have to meet the needs?
3) How and where will the customer use it?
4) How does it look like?
5) What size(s) and colour(s) should it be?
6) What is it to be called?
7) How is it branded?
8) How is it different versus your competitors?
Price
1) What is the value of the product or
service to the buyer?
2) Are there established price points for
products or services in this area?
3) Is the customer price sensitive?
4) What discounts should be offered to trade
customers?
5) How will your price compare with your
competitors?
Place
1) Where do buyers look for your product or
service?
2) If they look in a store, in what kind?
3) How do you access the right distribution
channels?
4) What do your competitors do and how
can you learn from them and/or
differentiate?
Promotion
(Marketing communications)
1) Where and when can you get across your
marketing messages to your target market?
2) Will you reach your audience by advertising in
the press or on TV or radio or any other
means?
3) When is the best time to promote?
4) How do your competitors do their promotions
and how does that influence your choice of
promotional activity ?
1) Product
Variety #
Quality
Design
Features
Brand name
Packaging
Sizes
Services
Variety of Colgate toothpastes
Colgate Dental Cream
Colgate Max Fresh
Colgate Active Salt
Colgate Total
Colgate Sensitive
Colgate Kids
Colgate Herbal
Colgate Cibaca
Colgate Fresh Energy Gel
Colgate Maxwhite
1) Product
Variety
Quality #
Design
Features
Brand name
Packaging
Sizes
Services
8 dimensions of quality
by David Garvin , Harvard Business Review (Nov/Dec 1987) , Page 101-109

1. Performance, (primary operating characteristics)


2. Features, (supplement)
3. Reliability, (probability of failure is less)
4. Conformance, (meet established standards)
5. Durability, (long lasting)
6. Serviceability, (ease of repair)
7. Aesthetics, (looks) and
8. Perceived quality ( based on reputation).

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