Positioning of Service

POSITIONING SERVICE IN COMPETETIVE
MARKET
Nirjhar Mazumder
Associate Management Counsellor
Bangladesh Institute of Management
(BIM)
4, Sobhanbag, Mirpur Road, Dhaka1207
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NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

OF MANAGEMENT
POSITIONING
The place a
product occupies
in consumers
minds relative to
competing
products.
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NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

MANAGEMENT
POSITIONING EXAMPLE
eBays
positioning:
No matter
what it is,
you can find
it on eBay!
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MANAGEMENT
ACHIEVE
COMPETITIVE
THROUGH FOCUS
ADVANTAGE
In an industry with low barriers to entry and a

lot of competition, Every firm must manage to
find a niche position and differentiate itself from
competition. They linked up with employers
instead of individual parents, emphasized on
service quality, and used accreditation as a
selling point. As competition increases in the
service sector, service organizations must find
ways to stand out from competitors. Brand
positioning can help to create awareness,
generate interest and desire among prospective
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customers,
and increase adoption of products
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NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF MANAGEMENT
FOUR FOCUS STARTEGIES

The extent of a companys focus can be described along
two dimensionsmarket focus and service focus.
Market focus is the extent to which a firm serves few or
many markets, while service focus describes the extent
to which a firm offers few or many services.
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MANAGEMENT
Fully focused
A fully focused organization provides a limited
range of services (perhaps just a single core
product) to a narrow and specific market
segment. There are both opportunities and risks
to such a strategy. Firms has recognized expertise
in a well-defined area, it may provide protection
against would-be competitors, and then the firm
can charge high prices. The biggest risk is that
the market may be too small to get the volume of
business needed for financial success. Other risks
include the danger that demand for the service
may decrease because of alternative products, or
that purchasers in the chosen segment may be
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affected
by
an
economic
downturn.
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MANAGEMENT
Market focused
A market focused company concentrates
on a narrow market segment, but has a
wide range of services. Before choosing a
market focused strategy, managers need
to be sure that their firms have the
operational capability to do an excellent
job of delivering each of the different
services selected. They also need to
understand customer purchasing practices
and preferences.
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MANAGEMENT
Service focused
Service focused firms offer a narrow range of
services to a fairly broad market. However, as
new segments are added, the firm needs to
develop knowledge and skills in serving each
segment. This may require a broader sales
effort and greater investment in marketing
communication.
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MANAGEMENT
Unfocused
Finally, many service providers fall into
the unfocused category, because they try
to serve broad markets and provide a
wide range of services. The danger with
this strategy is that unfocused firms often
are jack of all trades and master of
none.
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MANAGEMENT
TYPES OF POSITIONING
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MANAGEMENT
Positioning by Specific Product

Benefits.
Attribute and
Here the marketer associates a product with an

attribute,
a
product
feature
or
aconsumerfeature.
A common approach is setting the brand apart
from competitors on the basis of the specific
characteristics orbenefitsoffered.
Eg. Grameen Phone (Stay Closer)
Network and Wider Accessibility.
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POSITIONINGBY PRICE/ QUALITY

The positioning is done based on
price and quality of the product.
Premium products are positioned
like this.
Eg. Rolex (high price)
Add- Din (low price)
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POSITIONINGBY
USE
OR
APPLICATION
Specific image or position for a
brand is to associate it with a
specific use or application.
Eg. Google Earth
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POSITIONINGBY PRODUCT CLASS

Oftenthe
competitionfor
a
particular Service comes from
outsidethe Serviceclass.
Eg. G-Cinema, Telefilm, Limited hour Play
etc.
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POSITIONINGBY PRODUCT USER

Here the persona of the product is
associated with the User.
Eg. Idea Abhishek Bachan
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MANAGEMENT
POSITIONINGBYCOMPETITOR
This is similar topositioningby
product class, although in this
casethe competitionis within the
same product category.
Eg. Onida TV Neighbours Envy,
Owners Pride .
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MANAGEMENT
POSITIONINGBY CULTURAL SYMBOLS

the cultural symbols are used to
differentiate the brands. Examples
would be Humara Bajaj,MDH-Degi
Mirch, Air India
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MANAGEMENT
OF POSITIONING STRATEGY
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OF MANAGEMENT
Must establish position for firm or

product in minds of target customers
Position should provide one simple,
consistent message
Position must set firm/product apart
from competitors
A company cannot be all things to all
people - must focus its efforts
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EFFECTIVE POSITIONING STRATEGY
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What customers do we serve now, and

which ones would we like to target in
future?
What does our firm currently stand for in
the minds of current and potential
customers?
What is value proposition for each of our
current service products, and what
market segments is each one targeted at?
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How well do customers in chosen

target segments perceive our service
products as meeting their needs
relative to competitors?
What changes must we make to our
offerings to strengthen our
competitive position?
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OF MANAGEMENT
PRINCIPAL USES OF POSITIONING IN MARKETING

MANAGEMENT
1. Provide useful diagnostic tool for defining and

understanding
the
relationships
between
products and markets:
- How does the product compare with competitive
offerings on specific attributes?
- How well does product performance meet consumer
needs and expectations on specific performance
criteria?
- What is the predicted consumption level for a
product
with
a
given
set
of
performance
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offered at a given price?
8characteristics

MANAGEMENT
2. Identify market opportunities for:

a. Introducing new products:
- What segments to target?
- What attributes to offer relative to the
competition?
b. Redesigning (repositioning) existing
products:
- Appeal to the same segments or to
new ones?
- What attributes to add, drop or
change?
- What attributes to emphasize in
advertising?
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c. Eliminate products that:
OF MANAGEMENT

MANAGEMENT
3. Making other marketing mix decisions to preempt, or respond to, competitive moves:
a. Distribution strategies:
- Where to offer the product (locations, types of outlet)?
- When to make the product available?
b. Pricing strategies:
- How much to charge?
- What billing and payment procedures to employ?
c. Communication strategies
- What target audience(s) are most easily convinced that the
product offers a competitive advantage on attributes that are
important to them?
- What message(s)? Which attributes should be emphasized
and which competitors if any should be mentioned as the
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IRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE
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on
those attributes?
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- Which communication channels personal selling versus
DEVELOPING AN EFFECTIVE POSITIONING

STRATEGY
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Positioning links market analysis and

competitive analysis to internal
corporate analysis
A. Market Analysis
Focus on overall level and trend of
demand and geographic locations of
demand
Look into size and potential of
different market segments
Understand customer needs
and preferences and how they
perceive the competition
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B. Internal Corporate Analysis

Identify organizations resources,
limitations, goals, and values
Select limited number of target
segments to serve
C. Competitor Analysis
Understand
competitors
strengths and weaknesses
Anticipate responses to potential
positioning strategies
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DEVELOPING A MARKET POSITIONING STRATEGY
MARKET
ANALYSIS
INTERNAL
ANALYSIS
- Size
- Composition
- Location
- Trends
- Resources
- Reputation
- Constraints
- Values
Define, Analyze
Market Segments
Select
Target Segments
To Serve
Articulate
Desired Position
in Market
Marketing
Action
Plan
Select Benefits
to Emphasize
to Customers
COMPETITOR
ANALYSIS
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- Strengths
- Weaknesses
- Current
Positioning
Analyze
Possibilities for
Differentiation
Source: Developed from an earlier schematic by Michael R. Pearce

MANAGEMENT
USING POSITIONING MAPS TO ANALYZE

COMPETITIVE STRATEGY
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Great tool to visualize competitive

positioning and map developments of
time
Useful way to represent consumer
perceptions of alternative products
graphically
Also known as perceptual maps (built
on preference maps)
Information about a product can be
obtained from market data, derived
from
ratings
by
representative
consumers or both
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Positioning Map of
Chocolates
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Positioning Maps
Visualize Strategy
Help
Managers
to
Positioning
maps
display
relative
performance of competing firms on key
attributes
Research provides inputs to development
of positioning maps - challenge is to
ensure that
Attributes employed in maps are

important to target segments
Performance of individual firms on
each attribute accurately reflects
perceptions of customers in target
segments
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Predictions can be made of how

positions may change in light of future
developments
Simple graphic representations are
often easier for managers to grasp than
tables of data or paragraphs of prose
Charts and maps can facilitate visual
awakening to threats and
opportunities, suggest alternative
strategic directions
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ELEMENTS OF POSITIONING
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The Product:
This is where the consumer decides how
important the product is and what meaning
it has and how he relates it with his need.
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The Company
Every product comes from a company and
every company has its own Image.
Better Company profile, Better the
perceived value of the product.
In some cases the brand name overshadows
the name of the company. Eg. Partex
Amber Group
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The Competition
Product Positioning is done in relation to
various competitive offerings.
Most of the cases a products are
compared with the dominant brand in
the same category.
Selecting a slot distinctly different from
the competitors can avoid direct
confrontation with them.
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The Consumer
To re-enforce, Positioning is essentially based on
consumer perceptions rather than factual
evaluations.
It becomes very important, to examine, what is the
perceived value of the product for the consumer.
To Analyze this, we should be through with
Consumer Behavior.
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POSITIONING METHODS
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Positioning Methods for a

product depends upon the
nature of the product.
One Cannot position all the
product in a same way.
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IMPULSE GOODS
Products like Chocolates, Soft drinks are
generally purchased without a lot of
deliberation. Here, Availability, Brand
Awareness and Positioning Plays a key
role. Simple slogans like Thanda
Matlab Coca Cola, Kuch Meetha Ho
jaye, Works good and gives a strong
brand recall during the purchase.
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OF MANAGEMENT
DAILY USE ITEMS

Daily use products like Soaps, Toothpaste,
Shampoos, command a brand loyalty and are
purchased as a habit on a regular basis.
Here the positioning effort are aimed at
promoting habitual buying of the same brand.
The Basic aim becomes to influence the habit
of the consumer.
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SPECIALTY ITEMS
Specialty Products like shoes, garments this
segment of products involve deliberation
as the consumers look for different
combinations of Styles, Features and Price.
The Marketer tries to highlight the products
features. Tries to build emotional appeal.
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CONSUMER DURABLES
Products like Refrigerators, Washing Machines,
Television sets are the products which are not
purchased frequently. The consumer gathers
fair information about the product before
making the purchase decision.
Marketer tries to win the consumer by
positioning the brands superiority over
others. Mainly Known as USP.
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INDUSTRIAL PRODUCTS
Now
a
days,
Industrial
product
manufacturers have also begun to
position its products.
Classification
of
Industrial
Product:
categories
ofgoodsandservices
bought by organizations for use in
productionor in the operation of their
business;
classes
include
installation,accessories,raw materials,
component
parts,
supplies,
andservices.
Marketers
mainly
stresses
on
The
quality,
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Ingredients,
productivity,
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CHANGING COMPETITIVE POSITIONING
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Positions evolve in response to

changing
market
structures,
technology, competitive activity,
and the nature of firm itself
Firm may have to make significant
change in existing position
Revising
service
characteristics;
redefining target market segments;
abandoning
certain
products;
withdrawing
from
certain
market
segments
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Positioning of Service

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POSITIONING SERVICE IN COMPETETIVE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

In an industry with low barriers to entry and a

FOUR FOCUS STARTEGIES

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

Positioning by Specific Product

Here the marketer associates a product with an

POSITIONINGBY PRICE/ QUALITY

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF MANAGEMENT

POSITIONINGBY PRODUCT CLASS

POSITIONINGBY PRODUCT USER

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

POSITIONINGBY CULTURAL SYMBOLS

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

Must establish position for firm or

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

EFFECTIVE POSITIONING STRATEGY

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

What customers do we serve now, and

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE OF

How well do customers in chosen

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

PRINCIPAL USES OF POSITIONING IN MARKETING

1. Provide useful diagnostic tool for defining and

PRINCIPAL USES OF POSITIONING IN MARKETING

2. Identify market opportunities for:

PRINCIPAL USES OF POSITIONING IN MARKETING

DEVELOPING AN EFFECTIVE POSITIONING

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

Positioning links market analysis and

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

B. Internal Corporate Analysis

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

DEVELOPING A MARKET POSITIONING STRATEGY

Source: Developed from an earlier schematic by Michael R. Pearce

USING POSITIONING MAPS TO ANALYZE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

Great tool to visualize competitive

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

Attributes employed in maps are

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

Predictions can be made of how

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

Positioning Methods for a

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE

DAILY USE ITEMS

NIRJHAR MAZUMDER, AMC, BANGLADESH INSTITUTE