positioning and differentiation

8/13/2019 Positioning and Differentiation

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POSITIONINGAND

DIFFERENTIATION

Dr. Vandana T Khanna

8/23/2013 Dr. Vandana Khanna 8/23/2013 Dr. Vandana Khanna

THE PROCESS OF SEGMENTATION

AND TARGET MARKETING

8/23/2013 Dr. Vandana Khanna

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


SUCCESSFUL POSITIONING


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


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


A PERCEPTUAL MAP OF

SUPERMARKETS

A

B

C

D

X

G

EF

Highprice

Lowprice

Narrowproductrange

Wideproductrange


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


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


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

the market.8/23/2013 Dr. Vandana Khan na

DEVELOPING COMPETITIVE

DIFFERENTIATION

Product Service

Personnel Image

Areas for Competitive

Differentiation


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

Dr. Vandana Khanna


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

Dr. Vandana Khanna


PERSONNEL

DIFFERENTIATION

CustomerTraining

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DIFFERENTIATION

Personnel: Singapore Airlines

Raymonds

Dr. Vandana Khanna


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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

Dr. Vandana Khanna


Coverage Expertise

Performance

CHANNEL

DIFFERENTIATION

CHANNEL

DIFFERENTIATION



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.


positioning and differentiation

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