HOW TO MAKE YOUR PRODUCT

STAND OUT
DIFFERENTATION
AND
POSITIONING
 TOOLS FOR DIFFERENTIATION
Product Services Personnel Channel Image
Features Delivery Competence Coverage Symbols

Performance Installation Courtesy Expertise Media

Customer training Credibility Performance atmosphere

Durability Customer Reliability Events

consulting

Reliability Maintenance and Responsiveness

repair

Style Communication

Design
PRODUCT DIFFERENTATION
 FEATURES
Features are characteristics that supplement the product,
basic functioning.

 Most product can be offered with varying features

E.g. Automobile Mfg:

Can offer optional features
Electric window,Automatic transmission, Air conditioning

 Key factor of Japanese success………. ENHANCE

FEATURES
i.e. watches, cameras, automobiles e.t.c
 How Can Company Identify And
Select Appropriate New Features
Contact recent buyers and ask SERIES of QUESTION

1) How do you like the PRODUCT

2) Any bad features?

3) Good Features?

4) Are there any Features that can improve your satisfaction? What are they?

5) How much you would you pay for each features?

Next decide which one are WORTH ADDING

 Performance Quality
It Refers to the levels at which the product’s Primary
Characteristics operate
Buyers of Expensive Products normally compare the
characteristic of DIFFERENT BRANDS

They will pay more for better performance as long as

Higher price Do Not exceed the higher perceived
value

One of 4 performance levels: LOW

AVERAGE
HIGH
SUPERIOR
 Does higher product performance
produce higher profitability?
1. P&G is the major practitioner of product
improvement
 Combined with high initial product
performance
 Helps explain its leadership position
2. 2nd strategy maintain product quality
 Many companies leaves their quality unaltered
after its initial formulation
3. 3rd strategy reduce product quality at time
 Co’s cut the quality to offset rising costs,
hoping buyers will not notice any differences
 DURABILITY
It is a measure of the product operating expected life
Buyers pay more for Durable Products

Thus advertising that a personal computer or video

camera has the highest durability

But have little appeal

Because their features for performance level are

undergoing Rapid changes.
 RELIABILITY
It is a Measure of the probability that a product will
not malfunction or failed with in a specified time
period.

E.g. MERCEDES has more Reliability than a JAGUAR

Buyer’s are willing to pay PREMIUM for reliable

product

E.g. Reebok, Adidas shoes

 REPAIRABILITY

It is a measure of the EASE of FIXING a product that

malfunction or fails

E.g. Automobile made with standard parts that are

easily replaced has high repairability.
 STYLE
It describes how well the product looks and
feels to the buyer
E.g. Car buyers pay premium for Jaguar
automobiles
because of their extra ordinary look
EVEN THOUGH
JAGUAR’s record of reliability is poor

 STYLE has the advantage of creating

product distinctiveness that is difficult to
copy
 DESIGN: The INTEGRATING FORCE
The designer has to figure out .. How much to INVEST in
feature development, performance, reliability style & so forth

From company’s point of view, a well-designed product

would be easy to manufacture and distribute
From Customer's Point of view, a well-designed product
would be PLEASANT to look, easy to open, install, learn, how
to use, repair.
The designer has to take all this into account
As competition intensifies design will offer one of the most
potent ways to differentiate & position a co’s product &
services
E.g. true in selling APPAREL, durable equipment, retail service .
Does a design investment pays off

 Eg:-
 “Braun” a german division of gillette
 Has elevated design to a high art & has
major success
 Electric razor
 Coffee maker etc..
SERVICE DIFFERENTIATION
 DELIVERY
It refers to how well the product or services is
delivered to the customer

i.e. SPEED, ACCURACY, CARE

Buyers will often choose the supplier who has a better

Reputation for on time delivery.
For eg Dominos Pizzas
 INSTALLATION
It refers to the work done to make a product
operational in its planned location.

Vendors can differ in the quality of their

Installation service

e.g. WATER FILTER (aqua guard)

IBM deliver all the equipment to site at the same
time
 CUSTOMER TRAINING
Refers to training the customer's employees to use vendor
equipment properly and efficiently.

E.g. X-Ray equipment in hospitals

E.g. MC Donald requires its new FRANCHISEE to attend

Hamburger university for 2 weeks to learn how to run
franchisee.
 CONSULTING SERVICE
Refers to data, information system, and
advising services that the seller offers free or
for a price to buyer.

For e.g. Milliken Company

 REPAIR
Describes the quality of repair service available to
buyer’s of the company product

E.g. CATERPILLAR claims to offer better and faster

repair service for its heavy-construction equipment
anywhere in the world
PERSONNEL DIFFERENTIATION
Companies can gain a strong competitive advantage thru
hiring and training people than their competitors do

E.g. Wal-mart has differentiated its superstores by assigning

to each store a store employee to be a “PEOPLE GREETER”
who welcome shopper

Give advice on where to find their respective items

 PERSONNEL DIFFERENTIATION
(contd….)
BETTER TRAINED PEOPLE EXHIBIT 6 CHARACTERISTICS

1. COMPETENCE: The employees possess the required skill

and knowledge

2. Courtesy: The employees are friendly, respectful and

considerate

3. Credibility: The employees as trustworthy

4. Reliability: The employees perform the service with

consistency and accuracy

5. Communication: The employees make an effort to

understand the customs and communication clearly
CHANNEL DIFFERENTIATION
Its all about DISTRIBUTION CHANNELS-

Coverage

Expertise

Performance
 IMAGE DIFFERENTATION
Even when competing offers looks the same, buyers may
respond differently to the company or BRAND IMAGES

E.g. Consider success of Marlboro cigarettes

 Market share 30% world-wide

 Marlboro’s “MACHO COWBOY” image
 IDENTITY v/s IMAGE
A successful brand personality does not came about itself. It is
result of conscious IDENTITY building programme

Identify building tools are Names, LOGOS, SYMBOL,

ATMOSPHERE, EVENTS.

Identity is the way the public perceives the company

The company design its identity in order to shape the public image

Developing a strong image calls for creativity and handwork

The image cannot be implanted in public’s mind overnight

The image must be conveyed thru every mind available

communication vehicle
 SYMBOLS
A strong image consists of one or more symbols that triggers
company or brand recognition

Company might choose some object such as

e.g. Apple (Apple computer),

To symbolize quality of organisation
New Perfume – SRK (Shahrukh khan)
 WRITTEN
AND
AUDIO/VISUAL MEDIA
EVENTS:
1) MUMBAI: Pune cycle Race (Balsara)
2) Reliance cricket world-cup

ATMOSPHERE:
The physical space in which the organisation
produces or delivers its product image
generates
 Differentiating and Positioning
the market offer
Can we create a sustainable Differential Advantage
over
competition?

What are the major differentiating attributes available

to firms?

How can the firm choose on effective positioning in

market?

How can a firm communicate its positioning to

market?
 Create my
“ The delta factor ”
Want to move away from unaware price
competition?

Can I move away from price comparison?

Can I add value to them?

 To create a
competitive Advantage
You need to create a differential advantage to customers by offering benefit
which are perceptible (tangible). Eg. Flat t.v. performance

Create a unique position (intangible) for your product in your customer’s

mind

Hammer customer again and again

Repeated exposure repetition.

 Product Differentiation

Which market segment or group of customer’s users is it

primarily aimed at?

How is it designed and offered to meet the specific needs of

the target audience?

What specific reason or benefit are offered to justify its

purchases?
 Tangible ---- Fundamental product features
----- Cosmetics product features
Eg; refrigerator (compressor)
Eg; computer (processor)

Intangible : Brand image, warranty, after sales service.

Specific differential Strategies

 Higher quality.
 Higher status and image.
 Brand name.
 Convenience
 Changing distribution channel.
 What is the difference between
Features and Benefit?

Commonly mixed up

Features are---- What you offer What the customer

gets.

Benefits are ---- What the customer really needs.

 A product is its benefit

If you ask your customer what they want:

 They respond:
eg; We don’t want sandpapaer, we want smooth surface
Eg: We don’t want ½” drill, we want ½” hole.

 So tell us what your product can do for us--- the

benefits.
 Key question to ponder

Distinguish between Segmentation and Differential

Do they mean the same thing.

Can company use one or both.

What follows What?

What is relationship between Segmentation and

Differential.
 Differentiation Segmentation
Is always manmade , use different Segment occurs naturally in market.
product by design Marketer has to discover segments.

Focuses on Competition: we always Focuses on consumer :

difference to move away from always takes into account change,
competition. preference and desire of consumer .
eg: Maruti 800

Focuses on Manufacturing Focuses on demand: it identifies

- Easy passage in market emerging opportunity to capitalize
- Create niche market for myself by the firm.

Differentiated may or may not need Segmentation always needs

the segmentation. eg Pepsi differentiation after, identifying the
segment. We still need to
differentiate against competition.
 POSITIONING
DEFINITION:
It is an act of designing the company’s
offering and image to occupy a
distinctive place in the
mind of the target market.
 WHY
Positioning???
All the elements of Marketing plan
potentially affect the Position.

U can know ur target (customers),

competitors, Pricing etc…..

Helps to solve marketing mix problem.

Positioning is important only
for consumer product
Positioning is not what u do to
the Product it is what u do to
the customers minds.
For a product to succeed within a chosen
target market :
How well it is Positioned within the
market?
How well it is perceived to perform
relative to competitive offerings &
customer’s needs in target segment?
When Positioning

Consider these points….

Which market segment or group of
customers is it primarily aimed at ?

How is it Designed & offered to meet the

specific needs of the target audience?

What specific reason or benefit are

offered to justify its purchases ?
 Positioning Approach

OR

Positioning Possibilites
 G
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P OAttribute
Use or Application positioning
User positioning
Competitor positioning
Product category positioning
Quality or price positioning
Benefit positioning
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P OAttribute positioning:
A company positions itself on an attribute
Such as size or number of years in
existence.
e.g.Disneyland can advertise itself as the
largest theme park in the world.
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P OUse or Application positioning:
Positioning the product as best for some
user or application.

e.g.Japanese DEER PARK can position itself

for the tourist who has an hour to catch
some quick entertainment.
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P OUser positioning:
Positioning of product as best for some
user group.
Magic mountain can advertise itself as best
for “thrill seekers”.
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P OCompetitor positioning:
The product claims to be better in some
way than a named competitor.

A TV. company can compare its TV. with

its competitors product n show that their
product is superior.
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P OProduct category positioning:
The product is positioned as a leader in a
certain category.
e.g. car company
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P OQuality or price positioning:
The product is positioned as offering the
best value money.

e.g. Tata indica

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P OBenefit positioning :
The product is positioned as a leader in
certain benefit.

Knott’s Berry farm may try to position itself

as the leader in a theme park that delivers a
fantasy experience such as living in the old
west.
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P O S
BEWARE

A company must avoid the following

four positioning errors.………
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P OUnder positioning:
Some companies discover that buyers have
only a vague idea of the brand.
Buyers don’t really sense anything special
about it.
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P OOver Positioning:
Buyers may have too narrow image of a
brand.
Thus a consumer might think a company’s
product starts at Rs. 5000/- when infact it
now offer affordable products at Rs.
1000/-
 G
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P O
Confused positioning:
Buyers might have a confused image of a
brand resulting from..
- Too many claims

- Frequent changing of brand’s positioning .

 G
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P O Doubtful positioning:
Buyers may find it hard to believe the
brands claims in view of
- Product features
- Product price…..