Positioning and Differentiation
Transcript of Positioning and Differentiation
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POSITIONINGAND
DIFFERENTIATION
Dr. Vandana T Khanna
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THE PROCESS OF SEGMENTATION
AND TARGET MARKETING
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POSITIONING
Target Market where we want to compete?
Differential Advantage how we wish tocompete?
Effective positioning is the act of linking
products and services to the solutions
that customers seek.
VALUE PROPOSITIONS
Scorpio, Mahindra and Mahindra
A vehicle that provides the luxury andcomfort of a car, and the adventureand thrills of an SUV
Dominos
A good hot pizza, delivered to yourdoor within 30 minutes of ordering, ata moderate price
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POSITIONING STRATEGIES
Product characteristics/consumer benefits
Price-quality
Use/approach
Product user
Culture symbol
Competitors
CHOOSING A POSITIONING
STRATEGY
Step 1. Identifying
Possible CompetitiveAdvantages
Step 2. Selecting the
Right Competit iveAdvantage
Step 3. Communicating
and Deliver ing theChosen Position
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COMPETITIVE FRAME OF
REFERENCE FOR POSITIONING
() ,
() .
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POSITIONING STATEMENTS
ExampleExampleExampleExample:::: MountainMountainMountainMountain DewDewDewDew isisisis thethethethe softsoftsoftsoft drinkdrinkdrinkdrink thatthatthatthat
givesgivesgivesgives youyouyouyou moremoremoremore energyenergyenergyenergy thanthanthanthan anyanyanyany otherotherotherother brandbrandbrandbrand
EXAMPLES OF NEGATIVELY
CORRELATED ATTRIBUTES AND
BENEFITS
Low-price vs. Highquality
Taste vs. Low calories
Nutritious vs. Goodtasting
Efficacious vs. Mild
Powerful vs. Safe
Strong vs. Refined
Ubiquitous vs.Exclusive
Varied vs. Simple
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SUCCESSFUL POSITIONING
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0.7%Fabric & skin safety on baby clothesIvory Snow0.1%Tough cleaner, aimed at Hispanic marketAriel
1.0%Outstanding cleaning for baby clothes, safeDreft
1.2%Detergent and fabric softener in liquid formSolo
1.4%Bleach-boosted formula, whiteningOxydol
1.8%Value brandDash
2.2%Stain treatment and stain removalEra
2.6%Sunshine scent and odor-removing formulaGain
2.9%Detergent plus fabric softenerBold
8.2%Tough cleaning, color protectionCheer
31.1%Tough, powerful cleaningTide
MarketShare
PositioningBrand
Positioning of
Procter & Gamble
Detergents
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DIET COKE AND COKE ZERO
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POSITIONING FOR
COMPETITIVE ADVANTAGE
Products Position - the place the product
occupies in consumers minds relative tocompeting products; i.e. Volvo positionson safety.
Marketers must:PlanPlanPlanPlan positionspositionspositionspositions totototo givegivegivegive productsproductsproductsproducts thethethethe greatestgreatestgreatestgreatestadvantageadvantageadvantageadvantage
DevelopDevelopDevelopDevelop marketingmarketingmarketingmarketing mixesmixesmixesmixes totototo createcreatecreatecreate plannedplannedplannedplannedpositionspositionspositionspositions
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PERCEPTUALMAPPING
one cannot play the positioning game withoutperceptual mapping.
It represents consumer perceptions- in (usually)two-dimensional space so that the managercan readily see where his own brand ispositioned in the mind of his prospect and inrelation to other brands.
The concept of the consumers perceptualspace forms the theoretical basis of positioning.
It helps in making positioning operational.
PERCEPTUALMAPPING
Identify a set ofcompeting brands
Identify importantattributes
Conduct quantitativeresearch
Plot brands on twodimensional maps
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A PERCEPTUAL MAP OF
SUPERMARKETS
A
B
C
D
X
G
EF
Highprice
Lowprice
Narrowproductrange
Wideproductrange
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Positioning and Product Differentiation
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Value-based prices
Services mixand quality
Product featuresand quality
Attractiveness ofthe market offering
COMPONENTS OF THE
MARKET OFFERING
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REPOSITIONING STRATEGIES
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POSITIONING FOR COMPETITIVE
ADVANTAGE: STRATEGIES
Against a
Competitor
Usage
Occasions
Away from
Competitors
Product
Attributes
Product
Class
Benefits
Offered
Users
B
A
ED
CH
G
F
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STEPS TO CHOOSING AND
IMPLEMENTING A POSITIONING
STRATEGY
Step 1. Identifying a set of possiblecompetitive advantages: CompetitiveDifferentiation.
Step 2. Selecting the right competitiveadvantage.
Step 3. Effectively communicatingand delivering the chosen position to
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DEVELOPING COMPETITIVE
DIFFERENTIATION
Product Service
Personnel Image
Areas for Competitive
Differentiation
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SELECTING THE RIGHT
COMPETITIVE ADVANTAGES
Criteria
for
Determining
Which
Differences
to
Promote
Affordable Superior
Profitable
Preemptive
Distinctive
Important
Communicable
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DIFFERENTIATION
Differentiatedproducts feature meaningful andvaluable differences that distinguish thecompanys offering from the competition.
Differences are stronger when they areimportant, distinctive, superior, preemptive,affordable, and profitable.
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PRODUCT
DIFFERENTIATION
Form Features Perfor-
mance Quality
Conform-ance
Quality
Durability Reliability Repair-
ability Sty le Design
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EXAMPLES OF
POSITIONING
Santoor Soap : Benefits of Haldi & Chandan- meri twacha se meri umre ka pata hi nahi
chalta Lux : Soap of the filmstars
McDonalds : Food, Family, Fun
Dettol : Antiseptic Properties
Hitachi A/C : Power of Silence
Big Bazaar : Isse Sasta aur Achha KahinNahi
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Delivery
SERVICES
DIFFERENTIATION
OrderingEase
Maintenance& Repair
CustomerTraining
Installation CustomerConsulting
Miscellaneous
Services
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EXAMPLES OF
POSITIONING
Vodafone : wherever we go, the networkfollows / happy to help
Vichare Courier : Cheap and efficientdelivery of courier
Dell Computers : Customized PC offering
Eureka Forbes : Excellent CustomerService
Forshe : Taxi Services - of / for / by women
Croma : We help you to buy
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PERSONNEL
DIFFERENTIATION
CustomerTraining
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DIFFERENTIATION
Personnel: Singapore Airlines
Raymonds
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Media Atmosphere
Symbols
Events
IMAGE
DIFFERENTIATION Femina Miss India - event
Filmfare Awards - event
Lead India Contest of Times of India - event Economic Times Awards for Corporate Excellence
- event
McDonalds Ronald McDonald - symbol
Caf Coffee Day - atmosphere
Teach India Times of India initiative - event
Standard Chartered Marathon - event
Air India Maharaja symbol
Crossword atmosphere
Sunsilk Gang of Girls - use of Blogs ( media ) tocreate differentiation
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IMAGEIMAGEIMAGEIMAGE
DIFFERENTIATIONDIFFERENTIATIONDIFFERENTIATIONDIFFERENTIATION
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Coverage Expertise
Performance
CHANNEL
DIFFERENTIATION
CHANNEL
DIFFERENTIATION
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Differences WorthEstablishing
Affordable Superior
Profitable
Preemptive
Distinctive
ImportantSUMMARIZING STP
The process of market segmentation is based onthe principle that not all customers have the sameneeds.
They are many different variables which can beused for segmenting consumer and industrial
markets. The 5 criteria for successful segmentation are:
effective, measurable, accessible, actionable andprofitable.
There are 4 generic target marketing strategies:undifferentiated, differentiated, focus andcustomised marketing.
Positioning is the key tool for conveying howcompanies meet customer needs with productsand services.
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