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Positioning And Differentiation Of Services Pdf

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Positioning: 5 Strategies to Stand Out From Your Competitors

Positioning is one of the fundamental elements of marketing, both for consumer products and B2B Business to Business. Where does a brand sit in the hearts and minds of customers? These associations that consumers hold with a brand reflect their positioning.

Five common positioning strategies are also discussed. Marketing establishes the brand identity, influencing consumer perceptions of its position in the market relative to the alternatives available from competitors. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect. Before determining its position in the market, a firm should decide on a segment of the market that they want to target.

This is where positioning comes in. A business must decide how to make their brand as attractive as possible to this group of customers they want to target. This target market defined by demographics such as gender, location and age as well as criteria based on their consumer behaviour. Effectively positioning a product or service gives it a USP Unique selling proposition. A USP is an attractive feature or characteristic of a brand that differentiates it from similar alternatives.

In a modern marketplace cluttered with so many choices with similar benefits, you want your brand to stand out from the rest. It becomes more memorable and can have a competitive advantage over alternatives.

Your USP is your unique benefit to entice customers to purchase your brand over another. Brands must communicate This USP with their target audience. They do not try and position themselves as the fastest, cheapest or best tasting. Instead, their USP is that they are a family-friendly restaurant. They position themselves to target families. A USP and positioning statement is similar.

The biggest difference is that a USP is product or service-centric and focuses on what sets your product or service apart from competitors; where a business creates their positioning statement after the USP, focusing on the primary benefit of the product or services for their target market. A positioning statement should be no longer than a paragraph, and should discuss the following:.

Market research helps businesses to understand their market and customers more intimately. Consumers must see credibility in your positioning, so provide evidence to justify the claim of your brand in your positioning. Do not just say you are the fastest or best quality, state HOW you are. A successful positioning strategy relies on a deep understanding of the marketplace you want to compete in. It identifies how your company is different from the competitors and the conditions and opportunities in the marketplace.

A big mistake that many businesses make is assuming that positioning is just a marketing strategy. It should be one of the foundations of the business strategy.

After all, you cannot position a product as a high-quality offering in your marketing if the product itself cannot back up those claims. Positioning must be a cohesive effort between the business strategy and sales and marketing tactics. It is far more than just a communication strategy. This is the only way the product or service will deliver on customer expectation and the promises of its positioning. Organisations must clearly define their positioning across the value chain, otherwise, communication loses focus and can become confusing.

There are five main strategies upon which businesses can base their positioning. Using product characteristics or benefits as a positioning strategy associates your brand with a certain characteristic that is beneficial to customers. Brands consistently communicate the most unique benefit or characteristic of the product with consumers.

Positioning your products or services based on price is associating your brand with competitive pricing. Usually, with pricing positioning strategy, a brand aims to be the cheapest or one of the cheapest in the market, and value becomes their position. For example, Supermarket chains often have a house brand with very low-price products in many product categories. Their lower logistical and distribution costs allow them to price their products lower than the competitors, so price-sensitive buyers will often purchase them without knowing the price because they know it is often the cheapest option.

Brands can also position based on price if they find a gap in the market at a certain price point. Being the only option in a certain price range becomes your market position. Often brands extend their product lines to fill a gap in the market.

Often the price and quality of a product align, certainly in the mind of the consumer, as the high price is often associated with high quality. Often these brands do not communicate their price point, but instead high quality or prestige is the focal point of communication, to create a desire so customers want the product regardless of the price. Note that luxury does not always mean better quality, but customers still believe it is better because of the reputation of the brand due to their long-term brand positioning strategies.

Associating your product with a particular use is another way to position your brand in the market. For example, meal replacement supplements can be of use to anyone lacking time or wanting a quick convenient meal. There are also meal replacements designed specifically for people who want performance in the gym, so high in calories and added vitamins and minerals.

Often the former meal replacement target males and the diet low-calorie option target females. Both are meal replacements, but different positioning. Competitor based positioning focuses on using the competition as a reference point for differentiation. The product or services becomes unique. Brands can also use the competition as a reference point to follow a similar strategy.

If a particular brand has a large market share, their positioning strategy must be attractive to a large group of customers, so you try and convert some of their customers by offering a similar product with similar benefits at the same price point. Businesses can create a perceptual map of the positioning of the dominant brands in a marketplace to identify any gaps and opportunities in that market.

Positioning perceptual map example. The positioning map compares brands competing in a marketplace by illustrating consumer perceptions of those brands by using two key variables. For example, businesses can apply price and quality for most markets; but the map should focus on the primary consumer needs or product benefits you want to understand, which will vary depending on the market.

See below for an example of a positioning map. In conclusion, your positioning in the market determines where your brand sits relative to competitors. It is important for brands to have a point of difference and to emphasise it in their marketing. Find out how to syndicate your content with B2C. Daniel Hopper is a marketing consultant based in New Zealand. Connect with him on Linkedin. Business owner of BYB Marketing , who specialises in brand management and marketing strategy to help businesses achieve their sales goals.

Join over , of your peers and receive our weekly newsletter which features the top trends, news and expert analysis to help keep you ahead of the curve. Toggle navigation Business 2 Community. Twitter Facebook LinkedIn Flipboard 0. Positioning statement A USP and positioning statement is similar. Positioning based on product characteristics Using product characteristics or benefits as a positioning strategy associates your brand with a certain characteristic that is beneficial to customers.

Positioning based on price Positioning your products or services based on price is associating your brand with competitive pricing. Positioning based on quality or luxury Often the price and quality of a product align, certainly in the mind of the consumer, as the high price is often associated with high quality.

Positioning based on product use or application Associating your product with a particular use is another way to position your brand in the market. Positioning based on competition Competitor based positioning focuses on using the competition as a reference point for differentiation.

Positioning Perceptual Maps Businesses can create a perceptual map of the positioning of the dominant brands in a marketplace to identify any gaps and opportunities in that market. Positioning perceptual map example The positioning map compares brands competing in a marketplace by illustrating consumer perceptions of those brands by using two key variables.

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Mapping Your Competitive Position

When you position a product or service, you answer these questions:. Perhaps one of the following positions appeals to you : Volvo, for example, positions itself as a family of premium vehicles that are well designed for performance, innovation, and safety. Kia strives to position itself as delivering practical, utilitarian vehicles that offer high quality and value for the price. Differentiation is closely related to positioning. Ideally these qualities are things that 1 customers value when they are evaluating choices in a purchasing decision, and 2 competitors cannot easily copy. When both conditions exist, the offering is more attractive to target customers.

Product differentiation is a process used by businesses to distinguish a product or service from other similar ones available in the market. The goal of this tactic is to help businesses develop a competitive advantage and define compelling unique selling propositions USPs that set their product apart from competitors. Organizations with multiple products in their portfolio may use differentiation to separate their various products from one another and prevent cannibalization. In this article, we will provide an overview of product differentiation and answer several common questions about this process. In many industries, the barrier to entry has dropped significantly in recent years. As a side effect, these industries have seen substantial increases in competitive products. Product differentiation helps your organization answer this question and focus on the unique value a product brings to its users.


PDF | Introducing a “disruptive” technology into an existing service market Differentiation Via Technology: Strategic Positioning of Services.


Differentiation and Positioning Strategy: A Toss of the Same Coin

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A simple chart shows how much a customer will pay for a perceived benefit. You can draw such a map quickly and objectively, without having to resort to costly, time-consuming consumer surveys or subjective estimates of the excellence of your product and the shortcomings of all the others. Second, track the price your customers actually pay wholesale or retail?

Differentiation and positioning considerations are relevant to each element of the marketing mix as well as to onground and online marketplaces. The small business should be working toward a competitive advantage The ability to perform in one or more ways that competitors cannot or will not match. Differentiation, setting yourself apart from the competition, is one of the most important and effective marketing tools available to small business owners.

Segmenting-targeting-positioning

Positioning is defined as the process of establishing and maintaining a distinctive place in the market for an organization and or its individual product offerings Positioning strategy is the choice of target market segments which determine where the business competes and the choice of differential advantage, which dictates how it competes. Positioning Strategies Attribute positioning-based on attribute e. Value Chain in Services Organization needs to analyze costs related to each activity Customers value chain to be evaluated i. Differentiation Differentiation to decide the number of benefits and attributes from that of the competitors The attributes for Differentiation are as follows:a Important b Distinctive c Superior d Communicable e Preemptive-cannot be copied f Affordable g Profitable. Identification of Attributes Company should identify attributes offered by product class e. Goa for fun loving youth Service provider should provide rational and emotional benefits to customers e.

In marketing , segmenting, targeting and positioning STP is a broad framework that summarizes and simplifies the process of market segmentation. Segmenting a market has widely been debated over the years as researchers have argued over what variables to consider when dividing the market. Approaches through social, economic and individual factors, such as brand loyalty, have been considered [3] along with the more widely recognized geographic, psychographics, demographic and behavioral variables proposed by Philip Kotler. They must, however, avoid over-fragmenting the market as the diversity can make it difficult to profitably serve the smaller markets. There are two approaches to segmenting a market — a discovery approach or an analytic approach. Each approach is appropriate to the type of business and market they are approaching. An analytic approach is a much more research and data based approach, where two sets of information are derived and used to segment the market.

Product Differentiation

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Positioning and differentiation are connected in important ways. Effective positioning for a product or service is based on the differentiating characteristics or.

Curtis B. 30.05.2021 at 12:41

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