DIFFERENTIATING & POSITIONING THE MARKET OFFERING

BY:-SONAM KHURANA

NEHA SINGHAL

What is a Product?

A Product is anything that can be offered to a market to satisfy a want or need, including

physical goods, services, experiences, events, persons, places, properties, organizations,

information, and ideas.

Ashok Leyland is known for

its products

Figure 12.1 Components of the Market Offering

Attractiveness of the market

offering

Value-based prices

Product features and quality

Services mix and quality

Figure 12.2 Five Product Levels

Product Classification Schemes

DURABILITY & TANGIBILITY

INDUSTRIAL GOODS

CONSUMER GOODS

Durability and Tangibility

Nondurablegoods

ServicesDurablegoods

Consumer Goods Classification

Convenience

Unsought

Shopping

Specialty

Industrial Goods Classification

Materials and parts

Supplies/ business services

Capital items

What is Differentiation?

• Ensuring that products and services have a unique element to allow them to stand out from the rest.

• In business terms, to differentiate means to create a benefit that customers perceive as being of greater value to them than what they can get elsewhere.

Nature’s Basket,

focusing on high-end

consumers, differentiated

itself from other mass

retail outlets.

Product Differentiation

• Product form• Features• Customization• Performance• Conformance• Durability• Reliability• Repairability• Style

Design Differentiation

Service Differentiation

• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance and repair• Returns

Ginger Hotels has carved a

profitable niche through its innovative

service configuration

Developing products for rural markets • Products should be designed keeping in mind the

rural conditions• Packaging is one of the key drivers of success in

rural areasIssue of transfer and storage: Rugged packingThe issue of affordability: small-unit packs

• Brand elements should be decided keeping in mind rural consumers

What is Positioning?

Positioning is the act of designing the company’s offering and

image to occupy a distinctive place in the mind of the target

market.

Positioning of Café

Coffee Day

CCD VS BARISTA

CCD• CCD Differentiated

the brand by crafting a unique position in the young consumers’ mind.

BARISTA• BARISTA is

positioned as a premium coffee retail outlet for the upwardly mobile executives.

Value Propositions

BRAND, PRODUCT, & COMPANY TARGET CUSTOMERS BENEFITS CUSTOMER FOCUSED -

VALUE PROPOSITION

Scorpio, SUV, Mahindra & Mahindra

Lifestyle-Oriented Consumers luxury & comfort

A vehicle that provides the luxury and comfort

of a car, and the adventure and thrills of

an SUV (sport utility vehicle-light trucks).

Domino's, Pizza Convenience-minded pizza lovers

Delivery, Speed, & good quality

A good hot pizza, delivered to your door within 30 minutes of

ordering, at a moderate price.

Defining AssociationsPoints-of-difference (PODs)• Attributes or benefits

consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand.

• The brand must demonstrate clear superiority.

Points-of-parity(POPs)• Associations that

are not necessarily unique to the brand but may be shared with other brands.

• There is a zone or range of tolerance or acceptance.

EXAMPLES

POD APPLE (DESIGN) NIKE

(PERFORMANCE) LEXUS (QUALITY)

POP VS POD• VISA (MOST

WIDELY AVAILABLE CARD) VERSUS AMERICAN EXPRESS (PRESTIGE)

CHOOSING POPs AND PODs

• POPs:-Category Points Of ParityCompetitive Points Of Parity

• PODs:-Desirability Delivery Capability

POPs

CATEGORY POINT OF PARITY

• They represent necessary – but not sufficient-conditions for brand choice.

• Example - Travel Agency

COMPETITIVE POINTS OF PARITY

• These are the associations designed to negate competitors’ POD.

• Example – Dettol & Savlon

CATEGORY MEMBERSHIP

The products with which a brand competes & which function as close substitutes.

EXAMPLE – BMW (THE ULTIMATE

DRIVING MACHINE)

UMBRELLA CATEGORY

Conveying Category Membership

Announcing category benefitsAnnouncing category benefits

Comparing to exemplarsComparing to exemplars

Relying on the product descriptor

Relying on the product descriptor

Consumer Desirability Criteria for PODs

RelevanceRelevance

DistinctivenessDistinctiveness

BelievabilityBelievability

Deliverability Criteria for PODs

FeasibilityFeasibility

CommunicabilityCommunicability

SustainabilitySustainability

Examples of Negatively Correlated Attributes or Benefits

• Low-price vs. High quality

• Taste vs. Low calories

• Nutritious vs. Good tasting

• Efficacious vs. Mild

• Powerful vs. Safe• Strong vs. Refined• Ubiquitous vs.

Exclusive• Varied vs. Simple

FACTORS – DIFFERENTIATION STRATEGY

• COMPETITIVE ADVANTAGE;• LEVERAGEABLE ADVANTAGE; &• CUSTOMER ADVANTAGE.

Differentiation Strategies

Product

Channel Image

Personnel

Product Differentiation

• Product form• Features• Performance• Conformance• Durability• Reliability• Reparability

• Style• Design• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance

Personnel Differentiation: Singapore Airlines

Channel Differentiation:Eureka Forbes

Image Differentiation

THANK YOU…