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Differentiation & Positioning

The document discusses differentiating a company's market offer and positioning strategy. It covers differentiating based on products, services, personnel, channels and image. It also discusses positioning concepts and strategies to avoid, as well as alternative positioning approaches a firm can take.

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Alkhair Sangcopan
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18 views

Differentiation & Positioning

The document discusses differentiating a company's market offer and positioning strategy. It covers differentiating based on products, services, personnel, channels and image. It also discusses positioning concepts and strategies to avoid, as well as alternative positioning approaches a firm can take.

Uploaded by

Alkhair Sangcopan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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3.

3 DIFFERENTIATING THE
MARKET OFFER

3.4 POSITIONING STRATEGY:


Features of Effective Positioning
Presenter
ALIANAH HASSANALI
3.3 DIFFERENTIATING
THE MARKET OFFER
THE CONCEPT OF DIFFERENTIATION

Philip Kotler has defined DIFFERENTIATION as


“the act of designing a set of meaningful differences
to distinguish the company’s offering from
competitor’ s offerings”.
DIFFERENTIATION OPPORTUNITIES
ACCORDING TO THE TYPE OF INDUSTRY
 THE VOLUME INDUSTRY: If an industry can gain only a few
but large competitive advantages.
 THE STALEMATED INDUSTRY: If an industry enjoys only a
few competitive advantages of small sizes.
 THE FRAGMENTED INDUSTRY: If a particular industry
enjoys many competitive advantages of small sizes.
 THE SPECIALIZED INDUSTRY: If an industry enjoys quite a
large number of differentiation advantages.
MAJOR DIFFERENTIATING VARIABLES
AVAILABLE TO FIRMS

A. B. C.
PRODUCTS SERVICES PERSONNEL

D.
E. IMAGE
CHANNEL
A. PRODUCT DIFFERENTIATION
Product differentiation can be made on the basis of form, features,
performance, conformance, durability, reliability, style, and design.
 FORM: It essentially means differentiating on the basis of size,
shape, physical structure.
 FEATURES: The characteristics that supplement the basic
function of the product.
 PERFORMANCE QUALITY: It refers to the level at which the
product’s primary characteristics operate.
A. PRODUCT DIFFERENTIATION
 CONFORMANCE QUALITY: Buyers expect products to have a
high conformance quality, which is the degree to which all the
produced units are identical and meet the promised specifications.
 DURABILITY: a measure of the product’s expected operating
life under natural or stressful conditions, is a valued attribute for
certain products.
 RELIABILITY: is a measure of the probability that a product
will not malfunction or fail within a specified time period.
A. PRODUCT DIFFERENTIATION
 REPAIRABILITY: is a measure of the ease of fixing a product
when it malfunctions or fails.
 STYLE: describes the products look and feel to the buyer.
 DESIGN: is the totality of the features that affect how a product
looks and functions in terms of customer requirements.
B. SERVICE DIFFERENTIATION
 ORDERING EASE: refers to how easy it is for the customer to
place an order with the company.
 DELIVERY: It refers to how well the product or service is
delivered to the customer.
 INSTALLATION: It refers to the work done to make a product
operational in its planned location.
 CUSTOMER TRAINING: refers to training the customer’s
employees to use the vendor’s equipment properly and efficiently.
B. SERVICE DIFFERENTIATION
 CUSTOMER CONSULTING: refers to data, information
systems and advising services the seller offers to the buyers.
 MAINTENANCE AND REPAIR: It describes the service
program for helping customers keep purchased the products in
good working order.
 MISCELLANEOUS SERVICES: Companies can find other
ways to differentiate customer services. They can offer an
improved product warranty or maintenance contract.
C. PERSONNEL DIFFERENTIATION
Better-trained personnel exhibit 6 characteristics:
 COURTESY: Respectful, friendly and considerate
 COMPETENCE: Skill and knowledge
 CREDIBILITY: Trustworthy
 RELIABILITY: perform service consistently and accurately
 RESPONSIVENESS: Quick response to customer problems
 COMMUNICATION: Make an effort to understand the customer
and communicate clearly.
D. CHANNEL DIFFERENTIATION
Companies can gain competitive advantage through the way they
design their distribution channels’ coverage, expertise and
performance.
E. IMAGE DIFFERENTIATION

IMAGE is the way the public perceives the company


and its products. ‘It is the final impression of a
product or company that a customer receives
through both his physical sense and psychological
experiences’.
E. IMAGE DIFFERENTIATION
The image must be communicated for it work. The communication
must be through:
 SYMBOLS: Logos
 MEDIA: to convey a story, a mood, a claim-something
distinctive.
 ATMOSPHERE: Physical settings
 EVENTS: By sponsoring of events
3.4 POSITIONING
STRATEGY: Features of
Effective Positioning
THE CONCEPT OF POSITIONING (PRODUCT)
AND THE POSITIONING STRATEGY

POSITIONING is a process whereby a


company establishes an image of its product in
the minds of consumers relative to the image of
competitors’ product offerings.
A positioning strategy is the design of a marketing
program consisting of the following decisions:
• The product or service offering
• How distribution will be accomplished
• Choice of pricing strategy, and
• Selection of a promotional strategy
POSITIONING ERRORS THAT A COMPANY
SHOULD AVOID
• UNDER-POSITIONING: If buyers sense ambiguity about a
company’s claim.
• OVER-POSITIONING: If buyers develop a very focus or
insular/narrow image toward the brand.
• CONFUSED POSITIONING: If buyers are found to be confused
about the image either due to too many claims made by the seller or
frequent changes brought in the positioning of the brand.
• DOUBTFUL POSITIONING: If buyers are found to be suspicious
about the claims of the sellers.
ALTERNATIVE POSITIONING
STRATEGIES AVAILABLE TO A FIRM
• ATTRIBUTE POSITIONING: If a company positions itself in
terms of certain attribute such as years of experience it has.
• BENEFIT POSITIONING: The company tries to establish its
brand as offering benefit in one or more areas.
• USE/APPLICATION POSITIONING: If the product is
positioned as best in certain use or application.
• USER POSITIONING: Where product is positioned as best for
certain user group/ segment.
ALTERNATIVE POSITIONING
STRATEGIES AVAILABLE TO A FIRM
• COMPETITOR POSITIONING: a producer tries to establish his
product as superior than his competitor/s.
• PRODUCT CATEGORY POSITIONING: a product is positioned
as best/leader in particular product category.
• QUALITY/PRICE POSITIONING: the seller tries to give market
the idea that his product offers best value to consumers money.
Thank you!
Any questions?

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