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Positioning A Service in The Marketplace

Chapter 10 Positioning a service in the Marketplace Lovelock and Wright Principles of Service Marketing and Management 2 / E Slide (c)2002 by Lovelock Associates. Position should be distinctive, providing one simple, consistent message 3. Position must set firm / product apart from competitors 4. Firm cannot be all things to all people--must focus.

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31 views

Positioning A Service in The Marketplace

Chapter 10 Positioning a service in the Marketplace Lovelock and Wright Principles of Service Marketing and Management 2 / E Slide (c)2002 by Lovelock Associates. Position should be distinctive, providing one simple, consistent message 3. Position must set firm / product apart from competitors 4. Firm cannot be all things to all people--must focus.

Uploaded by

talk2smitha
Copyright
© Attribution Non-Commercial (BY-NC)
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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Chapter 10 Positioning a Service in the Marketplace

Lovelock and Wright Principles of Service Marketing and Management 2/E

Slide 2002 by Lovelock Associates

Four Principles of Positioning Strategy


1. Must establish position for firm or product in minds of
customers

2. Position should be distinctive, providing one simple,


consistent message

3. Position must set firm/product apart from competitors 4. Firm cannot be all things to all people--must focus
Jack Trout
Lovelock and Wright Principles of Service Marketing and Management 2/E Slide 2002 by Lovelock Associates

Basic Focus Strategies (Fig. 10.1)


BREADTH OF SERVICE OFFERINGS

Narrow
Service Focused

Wide
Unfocused (Everything for everyone)

Many
NUMBER OF MARKETS SERVED

Few

Fully Focused (Service and market focused)

Market Focused

Source: Robert Johnston


Lovelock and Wright Principles of Service Marketing and Management 2/E Slide 2002 by Lovelock Associates

Uses of Positioning in Marketing Management (Table 10.1)


Understand relationships between products and markets
compare to competition on specific attributes evaluate products ability to meet consumer needs/expectations predict demand at specific prices/performance levels

Identify market opportunities


introduce new products redesign existing products eliminate non-performing products

Make marketing mix decisions, respond to competition


distribution/service delivery pricing communication
Lovelock and Wright Principles of Service Marketing and Management 2/E Slide 2002 by Lovelock Associates

Possible Dimensions for Developing Positioning Strategies


Product attributes Price/quality relationships

Reference to competitors (usually shortcomings)


Usage occasions User characteristics Product class
Lovelock and Wright Principles of Service Marketing and Management 2/E Slide 2002 by Lovelock Associates

Developing a Market Positioning Strategy (Fig. 10.2)


MARKET ANALYSIS
- Size - Composition - Location - Trends Define, Analyze Market Segments

Select Target Segments To Serve

INTERNAL ANALYSIS

- Resources - Reputation - Constraints - Values

Articulate Desired Position in Market Select Benefits to Emphasize to Customers

Marketing Action Plan

COMPETITIVE ANALYSIS

- Strengths - Weaknesses - Current Positioning

Analyze Possibilities for Differentiation


Source: Adapted from Michael R. Pearce

Lovelock and Wright Principles of Service Marketing and Management 2/E

Slide 2002 by Lovelock Associates

Positioning of Hotels in Belleville: Price vs. Service Level (Fig. 10.3)


Expensive

Grand

Regency

PALACE

Shangri-La
High Service Sheraton Atlantic Moderate Service

Italia Castle Alexander IV Airport Plaza Less Expensive


Lovelock and Wright Principles of Service Marketing and Management 2/E Slide 2002 by Lovelock Associates

Positioning of Hotels in Belleville: Location vs. Physical Luxury (Fig. 10.4)


High Luxury

Grand Sheraton PALACE


Financial District Shopping District and Convention Centre

Regency

Shangri-La

Inner Suburbs

Castle Atlantic

Italia

Alexander IV

Airport Plaza Moderate Luxury


Lovelock and Wright Principles of Service Marketing and Management 2/E Slide 2002 by Lovelock Associates

Positioning after New Hotel Construction: Price vs. Service (Fig. 10.5)
Mandarin New Grand Heritage Marriott Continental Expensive

Action? Regency High Service

PALACE
Shangri-La No action? Atlantic Sheraton Italia Castle Alexander IV Airport Plaza
Slide 2002 by Lovelock Associates

Moderate Service

Less Expensive
Lovelock and Wright Principles of Service Marketing and Management 2/E

Positioning after New Hotel Construction: Location vs. Physical Luxury (Fig. 10.6)
High Luxury Mandarin

New Grand
Continental Action? PALACE Financial District No action? Shopping District and Convention Centre Italia Alexander IV Atlantic Airport Plaza Inner Suburbs Heritage Marriott Sheraton Shangri-La Regency

Castle

Moderate Luxury
Lovelock and Wright Principles of Service Marketing and Management 2/E Slide 2002 by Lovelock Associates

10

Services as Substitutes for Owning and/or Using Goods (Fig. 10.7)

Own a Physical Good

Rent the Use of a Physical Good


Rent Rent Hire

Perform the Work Oneself


Hire Someone to Do the Work

Drive Type Hire Hire

own car
on own word processor

car and drive it


word processor and type

chauffeur to drive car typist to use word proc.

a taxi or limousine work to secretarial service

Send

Lovelock and Wright Principles of Service Marketing and Management 2/E

Slide 2002 by Lovelock Associates

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New Service Development: A Hierarchy of New Service Categories


Major service innovations--new core products for previously
undefined markets

Major process innovations--using new processes to deliver


existing products and offer extra benefits

Product line extensions--additions to current product lines Process line extensions--alternative delivery procedures Supplementary service innovations--adding new or improved
facilitating or enhancing elements attributes of current products

Service improvementsimproving performance on certain


Style changes--visible changes in service design or scripts
Lovelock and Wright Principles of Service Marketing and Management 2/E Slide 2002 by Lovelock Associates

12

Elements of a Hotel Offering: Trading off Room Price vs. Features/Services


External factors Room features Food-related services Lounge facilities Services (e.g., reception) Leisure facilities Security

Lovelock and Wright Principles of Service Marketing and Management 2/E

Slide 2002 by Lovelock Associates

13

Success Factors in New Service Development


Market synergy
Good fit between new product and firms image/resources Advantage vs. competition in meeting customers needs Strong support from firm during/after launch Firm understands customer purchase decision behavior

Organizational factors
Strong interfunctional cooperation and coordination Internal marketing educates staff on new product and competition Employees understand importance of new services to firm

Market research factors


Scientific studies conducted early in development process Product concept well defined before undertaking field studies
Lovelock and Wright Principles of Service Marketing and Management 2/E Slide 2002 by Lovelock Associates

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Customer-Led versus Market-Oriented Philosophies of Management


Customer-led businesses
Focus on understanding expressed desires of customers in currently served markets Risk: may miss new developments, lose market leader position if listen too closely to current customers

Market-oriented businesses
Understand current and latent customer desires plus competitors plans, capabilities Scan market more broadly, have longer-term focus Pursue customer satisfaction, but set limits on being led by customers, especially during periods of rapid change
Lovelock and Wright Principles of Service Marketing and Management 2/E Slide 2002 by Lovelock Associates

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