Customer- Driven Marketing Strategy

Chapter: 7

Lec: 6c

Differentiation and Positioning

• Value proposition should be thought by the company

• Product position

The way the product is defined by consumers on important attributes- the place the product occupies in consumers’ minds relative to competing products

Differentiation and Positioning

Products are created in the factory but brands are created in minds

Powerful all purpose detergent

Gentle detergent for fine washables

It’s fun to be young (for youngsters)

Good in performance luxury car

Innovative “think different”

Strong and smart

“feel good everyday”

Niralla bohat hi alla

“Family mixture chaye”

Just do it

Positioning Maps

• For planning differentiation and positioning strategies, marketers use positioning maps

Positioning Map

1 2 3

2

1

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4

5

Attribute 1

Attribute 2

Positioning Map

• Price/ quality (Pizzahut)

• Price / Luxury (Car)

• Age / Benefit (Lucozade)

2 different Positioning of Detol

2 different Positioning of Johar Joshanda

2 different Positioning of

Choosing a Differentiation and Positioning Strategy

Competitive Advantage An advantage over competitors gained by

offering greater customer value, either through lower prices or by providing more benefits that justify higher prices

Positioning is based on three steps1. Identifying the different set of competitive

advantages to chose from them2. Choosing the right competitive advantage3. Effectively deliver and communicate the right

competitive advantage

Identify possible differences and competitive advantage

• Customer’s needs should be understandable by the company

• Give what you are promising as your competitive advantage

e.g. Nokia (Durable phones)• Placement e.g. Gourmet • Price e.g. Savour Foods• People e.g. Disney• Image e.g. Sony (Good Quality)• Symbols e.g. McDonalds (M), Nike, Swoosh

Choosing the right Competitive Advantage

• How many differences to promote

- Some people think taking one benefit is important but there are some opinions opposite to that as well

e.g. Head & Shoulders (Dandruff free hair)

Panteen (Beautiful hair)

Choosing the right Competitive Advantage

Which Differences to promote• Important- valued for customers e.g. sunsilk• Distinctive- competitors are not offering it e.g. Tide stick• Superior- should not be obtained from somewhere else

e.g. Mocha Coffee• Communicable-• Preemptive- Competitors cannot copy the difference• Affordable- Buyers can afford to pay the difference • Profitable-

Selecting the overall positioning strategy

• Value proposition The full positioning of a brand- the full mix of

benefits upon which it is positioned- More for More: price equals quality- More for the same: more or less similar product,

less price- The same for less: less price for same products e.g.

Metro- Less for Much Less: less offering with less price

e.g. Hotels with no swimming pool etc. zoom airlines

- More for less: cheap tickets (not in peak season)

Developing a Positioning Statement

• Positioning statement

A statement that summarizes company or brand positioning- it takes this form:

To (target segment and need) our (brand) is (concept) that (point of difference)

• Communicating the Positioning statement

- Inform employees and retailers etc. about it

- Match it with your activities

- Don't abruptly change the positioning