Differentiation And Positioning Strategies

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Differentiation And Positioning Strategies

  1. 1. E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 9: Differentiation and Positioning Strategies © Prentice Hall 2003
  2. 2. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  3. 3. Differentiation of Online Businesses <ul><li>Differentiation is what a company does to the product. </li></ul><ul><li>The keys to differentiating online businesses are: </li></ul><ul><ul><li>The creation of a distinctive and superior customer experience, </li></ul></ul><ul><ul><li>The development of one-to-one relationships with consumers. </li></ul></ul><ul><li>The real value added by the Internet: </li></ul><ul><ul><li>Ability to differentiate according to customer relationships, </li></ul></ul><ul><ul><li>Provide a unique experience for each customer. </li></ul></ul><ul><li>Kotler: </li></ul><ul><ul><li>Defines “ differentiation as the process of adding a set of meaningful and valued differences to distinguish the company’s offering from competitors’ offerings.” </li></ul></ul><ul><ul><li>“ A company can differentiate its market offering along five dimensions: product, services, personnel, channel, and image.” </li></ul></ul>
  4. 4. Differentiation of Online Businesses <ul><li>Offline: </li></ul><ul><ul><li>Differentiation emphasizes the product dimension. </li></ul></ul><ul><li>Online: </li></ul><ul><ul><li>Differentiation by product. </li></ul></ul><ul><ul><li>Advantages: </li></ul></ul><ul><ul><ul><li>A greater assortment of products that companies are able to offer </li></ul></ul></ul><ul><ul><ul><li>The ability to customize product offerings for individual customers. </li></ul></ul></ul><ul><ul><ul><li>A powerful new avenue for differentiating by channel, services, and image. </li></ul></ul></ul>
  5. 5. Relative Importance of Online and Offline Differentiation Dimensions
  6. 6. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  7. 7. Channel Differentiation <ul><li>The Internet: </li></ul><ul><ul><li>= a distribution channel + a communication channel + a relationship channel, </li></ul></ul><ul><ul><li>Used to forge one-to-one relationships with individual customers. </li></ul></ul><ul><li>The Internet expands: </li></ul><ul><ul><li>Companies’ geographic range + business hours + assortment of products available </li></ul></ul><ul><ul><li>The channel through which it can reach customers +display a diversified assortment of offerings + differentiate itself. </li></ul></ul>
  8. 8. Channel Differentiation <ul><li>There are multiple levels of online channel differentiation: </li></ul><ul><ul><li>Product or service information online = advantage over companies with no Web presence, </li></ul></ul><ul><ul><li>Exploits the Internet as a communication channel. </li></ul></ul><ul><ul><li>Commercial transactions online, </li></ul></ul><ul><ul><li>Exploits the Internets as a transaction and distribution channel. </li></ul></ul><ul><ul><li>The differentiation of competitors’ Internet-related service offerings. </li></ul></ul>
  9. 9. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  10. 10. Service Differentiation <ul><li>Customer service: </li></ul><ul><ul><li>Ability to receive customer feedback through e-mail 24 hours a day, </li></ul></ul><ul><ul><li>Ability to respond more rapidly to customer concerns. </li></ul></ul><ul><li>The distribution of products ordered online: </li></ul><ul><ul><li>A way to differentiate services from traditional companies. </li></ul></ul><ul><li>Online services, such as online banking and securities trading: </li></ul><ul><ul><li>Are becoming increasingly popular, </li></ul></ul><ul><ul><li>Are differentiated both by the features they offer and the service consumption experiences. </li></ul></ul><ul><ul><li>Supplement traditional offline services, but replace the traditional offline services. </li></ul></ul>
  11. 11. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  12. 12. Image Differentiation and the Customer Experience <ul><li>Image differentiation is strongly affected by the Internet. </li></ul><ul><li>Experience branding: </li></ul><ul><ul><li>When a company differentiates itself by creating a unique customer experience, </li></ul></ul><ul><ul><li>Increases customer loyalty & retention + produce referral business. </li></ul></ul><ul><ul><li>“ firms can greatly improve their ability to retain customers, target key customer segments and enhance network profitability.” </li></ul></ul>
  13. 13. Image Differentiation and the Customer Experience <ul><li>Differentiation has to be built upon the ability to create huge perceptual differences from other aspects of brand positioning. </li></ul><ul><li>The Internet’s interactivity allows companies to respond more quickly to customer requests. </li></ul><ul><li>The ever-increasing speed of the Internet allows companies to communicate more quickly with current and potential customers </li></ul><ul><li>Essential to retaining current customers and attracting new ones. </li></ul>
  14. 14. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  15. 15. Product Differentiation <ul><li>Product differentiation: </li></ul><ul><ul><li>Includes customization and bundling, </li></ul></ul><ul><ul><li>Offers a combination of products/services that the individual consumer needs + at attractive prices, </li></ul></ul><ul><ul><li>Supports one-to-one relationship building with each customer, critical for a company’s long-term success. </li></ul></ul><ul><li>Product packaging: </li></ul><ul><ul><li>Offline: packaging are design to appeal to consumers, be eye-catching, compete with other products on store shelves, and sell the product. </li></ul></ul><ul><ul><li>Online: consumers might require products with more utilitarian packaging + products will be shipped from the distributor directly to the consumer and thus never appear on retailers’ shelves. </li></ul></ul>
  16. 16. Product Differentiation <ul><li>Results: </li></ul><ul><ul><li>Products don’t need the expensive, colorful packaging for store display. </li></ul></ul><ul><ul><li>Products only need a size and shape that is functional and useful for the consumer. </li></ul></ul><ul><ul><li>Packaging minimization will reduce waste and reduce packaging costs. </li></ul></ul><ul><ul><li>Lower prices, or more reinvestment in higher-quality, single-layer packaging enhancements. </li></ul></ul>
  17. 17. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  18. 18. Personnel Differentiation <ul><li>In the past, personalized service and one-to-one relationships required the interaction of skilled personnel. </li></ul><ul><li>Now, the Internet allows companies to “deliver their products and services through low-cost channels that automate the process and remove the expensive human element.” </li></ul><ul><li>Lower transaction & marketing costs = cost leadership advantage over offline companies. </li></ul><ul><li>Cost reduction for the end user & higher levels of service. </li></ul><ul><li>BUT as more companies offer products and services online, this cost advantage between online and offline operations will gradually shrink over time. </li></ul>
  19. 19. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  20. 20. Customer Relationship <ul><li>The Internet has made pricing information widely available to suppliers, customers, and competitors. </li></ul><ul><ul><li>Reduces price differences between suppliers, </li></ul></ul><ul><ul><li>Reduces the importance of price competition and increases the importance of differentiation. </li></ul></ul><ul><li>Important to create brand loyalty and use the Internet to build one-to-one relationships with customers. </li></ul>
  21. 21. Customer Relationship <ul><li>Data mining is used to predict customer behavior+ differentiate product and service offerings for individual customers = a way of fostering the one-to-one relationship. </li></ul><ul><li>BUT this can have the opposite effect of driving away customers who object to providing their personal preferences to companies online, or who unexpectedly find a completely different customized experience every time they visit a company Web site. </li></ul><ul><li>The solution = allow the customers the freedom to opt-out and remain anonymous, or to provide personal information for customization purposes. </li></ul>
  22. 22. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  23. 23. Product-Service Differentiation Strategies <ul><li>Differentiation strategies: </li></ul><ul><ul><li>Being the first to enter the market, </li></ul></ul><ul><ul><li>Owning a product attribute or quality in the consumer’s mind, </li></ul></ul><ul><ul><li>Demonstrating product leadership, </li></ul></ul><ul><ul><li>Utilizing an impressive company history or heritage, </li></ul></ul><ul><ul><li>Supporting and demonstrating the differentiating idea, </li></ul></ul><ul><ul><li>Communicating the difference. </li></ul></ul>
  24. 24. Product-Service Differentiation Strategies <ul><li>E- marketing strategy revolves around the image and product information available on the Web. </li></ul><ul><ul><li>A strong brand image helps to attain “ownership” of a product. ( Amazon.com ), </li></ul></ul><ul><ul><li>Customers are drawn to brands they trust, an attraction that is enhanced by a positive company history. Monster.com has essentially gained ownership of online job searches. </li></ul></ul>
  25. 25. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  26. 26. Differentiation Strategies <ul><li>Traditional strategies still apply to e-marketing. </li></ul><ul><li>BUT some differentiation strategies are unique to marketing on the Web: </li></ul><ul><ul><li>Site Environment/ Atmospherics </li></ul></ul><ul><ul><li>Tangibilize the Intangible </li></ul></ul><ul><ul><li>Trust </li></ul></ul><ul><ul><li>Efficiency and Timeliness </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>CRM </li></ul></ul>
  27. 27. Internet-Specific Differentiation Strategies <ul><li>Customer tracking </li></ul><ul><li>Seamless communication </li></ul><ul><li>Greater relationship efficiency </li></ul><ul><li>Be aware of competitor pricing </li></ul><ul><li>Potential customer savings </li></ul><ul><li>Deliver what is promised to customers </li></ul><ul><li>Deliver in a timely manner </li></ul>6. CRM 5. Pricing 4. Efficiency and Timeliness <ul><li>Clearly state privacy policy </li></ul><ul><li>Use encryption for secure transactions </li></ul><ul><li>Images </li></ul><ul><li>Virtual tours </li></ul><ul><li>Realistic descriptions </li></ul><ul><li>Look and feel of site </li></ul><ul><li>User friendly </li></ul><ul><li>Accurate portrayal of company and product </li></ul>3. Trust 2. Tangibilize the Intangible (Watson et al. 2000) 1. Site Environment/ Atmospherics (Watson et al. 2000)
  28. 28. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  29. 29. Site Environment/Atmospherics <ul><li>Atmospherics = the in-store ambiance created by brick-and-mortar retailers. </li></ul><ul><li>Web sites can be differentiated by providing visitors with a positive environment to visit, search, purchase, and so forth. </li></ul><ul><li>Visitors want a site that: </li></ul><ul><ul><li>Easily downloads, </li></ul></ul><ul><ul><li>Portrays accurate information, </li></ul></ul><ul><ul><li>Clearly shows the products and services offered, </li></ul></ul><ul><ul><li>Is easily navigated. </li></ul></ul><ul><li>If customers like the home page, they will view additional pages and ultimately become a paying customer. </li></ul>
  30. 30. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  31. 31. Tangibilize the intangible <ul><li>An online product or service cannot be seen except by an image or description. </li></ul><ul><li>The goal: make offerings seem more tangible by showing them in a realistic and customer-friendly manner, using: </li></ul><ul><ul><li>Virtual tours, </li></ul></ul><ul><ul><li>3-D images, </li></ul></ul><ul><ul><li>Product image enlargements, </li></ul></ul><ul><ul><li>Trial downloads, </li></ul></ul><ul><ul><li>Customer reviews. </li></ul></ul>
  32. 32. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  33. 33. Build trust <ul><li>Trust = a key issue on the Internet: </li></ul><ul><ul><li>Customers are expected to pay online, </li></ul></ul><ul><ul><li>Their information is tracked for personalized service or supply chain management. </li></ul></ul><ul><li>Trust-building should be an integral part of a Web site’s marketing strategy. </li></ul><ul><li>Trust may be built in as a by-product of strong brand recognition: </li></ul><ul><li>Company sites with lower brand recognition must project a secure environment: </li></ul><ul><ul><li>Clearly define company’s privacy policy+ strictly enforced it </li></ul></ul><ul><ul><li>Use a safe and encrypted payment process for transactions. </li></ul></ul><ul><ul><li>A live person can be contacted if customers encounter problems on the Web site, require personal assistance, or need to exchange or return a purchase. </li></ul></ul>
  34. 34. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  35. 35. Efficient and timely order processing <ul><li>One of the strongest motivators for customers who make Web-based purchases is the ease of ordering. </li></ul><ul><li>Organizations must market their alliances and delivery timeliness as an important benefit. </li></ul><ul><li>By following its promises, the company will build customer loyalty + receive referrals from satisfied customers.. </li></ul>
  36. 36. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  37. 37. Pricing <ul><li>Pricing as a method of differentiation has come under scrutiny. </li></ul><ul><li>When products were first offered on the Web, companies tended to offer price discounts as an incentive. </li></ul><ul><li>Today, prices are relatively comparable on the Web. </li></ul><ul><li>The majority of firms are choosing to differentiate themselves using methods other than pricing. </li></ul><ul><li>Pricing is easy to imitate and non-price differentiation is more enduring for all but the price leaders. </li></ul>
  38. 38. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  39. 39. Customer Relationship Management <ul><li>Price is less used for differentiation + barriers to entry decrease on the Internet, </li></ul><ul><li>customer relationship management is becoming more predominant as a means of differentiation. </li></ul><ul><li>Netflix rent movies on DVD by mail: </li></ul><ul><ul><li>Customers set up personal lists of the movies they want to rent. </li></ul></ul><ul><ul><li>Customers can rent three or more DVD movies at one time—with no return deadlines or late return penalties. </li></ul></ul><ul><ul><li>After viewing a movie, customers slip it into the prepaid return envelope to mail it back to Netflix; a few days later, they receive the next DVD on their list. </li></ul></ul><ul><li>Netflix builds customer relationships one at a time through customer-driven personalization and convenience. </li></ul>
  40. 40. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  41. 41. Other Strategies <ul><li>“ E-Marketing Opportunity Model” developed by Feeny helps companies define their customers and products in order to determine the degree of differentiation required. </li></ul><ul><li>3 e-marketing opportunities: </li></ul><ul><ul><li>Enhancing the selling process, </li></ul></ul><ul><ul><li>Enhancing the customer buying process, </li></ul></ul><ul><ul><li>Enhancing the customer usage experience. </li></ul></ul><ul><li>Firms use perceived product differentiation and frequency of purchase to choose the best strategies. </li></ul>
  42. 42. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  43. 43. Positioning Strategies <ul><li>Positioning: </li></ul><ul><ul><li>Help to create a desired image for a company and its products in the minds of a chosen user segment, </li></ul></ul><ul><ul><li>Concerns brands, the company itself, or individual products, </li></ul></ul><ul><ul><li>Help to control brand image. </li></ul></ul><ul><li>The concept is simple: To be successful, a company must: </li></ul><ul><ul><li>Differentiate itself and its products from all others, </li></ul></ul><ul><ul><li>Position itself among its competitors in the public's mind to carve out its own market niche. </li></ul></ul><ul><ul><li>Positioning is the process of creating this image. </li></ul></ul><ul><ul><li>A position is the resulting view of the firm or brand from the consumer perspective. </li></ul></ul>
  44. 44. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  45. 45. Bases for Positioning on the Web <ul><li>Firms can position on the basis of: </li></ul><ul><ul><li>Product or service attributes (“the smallest cell phone”), </li></ul></ul><ul><ul><li>High-tech image (“our cell phones handle e-mail”), </li></ul></ul><ul><ul><li>Benefits (“fits in your pocket”), </li></ul></ul><ul><ul><li>User categories (“best cell phone for college students”), </li></ul></ul><ul><ul><li>Comparison with competitors (“our phone is less expensive than the Nokia”), </li></ul></ul><ul><ul><li>Take an integrator position (“a full range of electronic products and services”). </li></ul></ul>
  46. 46. Product or Service Attribute <ul><li>Attributes = product or service features such as size, color, ingredients, speed, and so forth. </li></ul><ul><li>A patented product or process, such as Amazon’s one-click check-out process, is an idea basis for positioning. </li></ul><ul><li>iVillage allows users to build their own meal menus at its site using criteria such as ingredients and calorie counts. (www.ivillage.com) </li></ul><ul><li>Pillsbury adds value through ideas, recipes, an advice service on its site (www.pillsbury.com). </li></ul>
  47. 47. Technology Positioning <ul><li>Positioning on the basis of technology shows that a firm is on the cutting. </li></ul><ul><li>At the Lands’ End Web site: </li></ul><ul><ul><li>Women can build virtual models based on their physical features such as hair color, skin tone, hair style, and face shape. </li></ul></ul><ul><ul><li>Users can then see how Lands’ End apparel would look on themselves by trying virtual outfits on the model. The model can be rotated for front, side, and back views. </li></ul></ul><ul><li>The American Airlines site: </li></ul><ul><ul><li>Offers various tools to allow customers to manage their flight arrangements: Frequent flier account management, personalized travel planning, and personalized seat selection when booking flights. </li></ul></ul><ul><ul><li>Customers can store user-profile information on preferred destinations, seating preference, companion travelers, and frequent flier rewards status and billing. </li></ul></ul>
  48. 48. Benefit Positioning <ul><li>Benefits: </li></ul><ul><ul><li>The flip side of attributes—the customers’ perspective of what the feature will do for them. </li></ul></ul><ul><ul><li>This positioning is generally a stronger basis because of its customer orientation. </li></ul></ul><ul><li>The Polo Web site: </li></ul><ul><ul><li>Focuses on how its products shape an entire lifestyle. </li></ul></ul><ul><ul><li>Its products are designed to help customers contemplate a dream world of adventure, style, and culture. </li></ul></ul><ul><li>The Miller Lite Beer Web site: </li></ul><ul><ul><li>Offers a software package that can be downloaded and used as a social organizer for arranging meetings, mostly for entertainment. </li></ul></ul><ul><ul><li>The Miller icon is then permanently present on the desktop, reminding the customer about the brand on a daily basis. </li></ul></ul>
  49. 49. User Category <ul><li>This positioning relies on customer segments. </li></ul><ul><li>It is successful when the segment has some unique quality that ties product benefits more closely to the group than to other segments. </li></ul><ul><li>Kellogg’s : </li></ul><ul><ul><li>The company has set up an interactive Web site for children, </li></ul></ul><ul><ul><li>They can register online and enter code numbers found on Kellogg’s cereal packages, then use the codes as “money” on related Web sites or even earn interest in a “special” bank. </li></ul></ul><ul><li>Yahoo! Geo Cities : </li></ul><ul><ul><li>Hosts Web user pages that are organized into neighborhoods based on specific interests. </li></ul></ul><ul><ul><li>Consumers can connect with others who share the same interests. </li></ul></ul>
  50. 50. Competitor positioning <ul><li>Many firms position by touting specific benefits that provide advantages over competitive offerings. </li></ul><ul><li>Online or offline companies often position themselves: </li></ul><ul><ul><li>Against an entire industry (“I Can’t Believe It’s Not Butter” margarine), </li></ul></ul><ul><ul><li>Against a particular firm (Amazon.com for toys), </li></ul></ul><ul><ul><li>According to relative industry position (AOL is the ISP connection leader and Earthlink a challenger). </li></ul></ul>
  51. 51. Integrator Positioning <ul><li>Some companies want to be known for providing everything a consumer needs in a particular product category, industry, or even in general (e.g., Wal-Mart). </li></ul><ul><li>This is a particularly important strategy online because busy consumers want convenience and one-stop shopping. </li></ul><ul><li>Martha Stewart’s Web site: </li></ul><ul><ul><li>Brings together a wide spectrum of business units in one place, </li></ul></ul><ul><ul><li>Effectively communicates the core identity of the brand—improving the quality of living in the home and encouraging do-it-yourself ingenuity, </li></ul></ul><ul><ul><li>Is linked to Kmart’s site, where Martha Stewart’s branded domestics products are sold. </li></ul></ul>
  52. 52. Overview <ul><ul><ul><li>Differentiation of Online Businesses </li></ul></ul></ul><ul><ul><ul><li>Channel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Service Differentiation </li></ul></ul></ul><ul><ul><ul><li>Image Differentiation and the Customer Experience </li></ul></ul></ul><ul><ul><ul><li>Product Differentiation </li></ul></ul></ul><ul><ul><ul><li>Personnel Differentiation </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship </li></ul></ul></ul><ul><ul><ul><li>Product-Service Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Differentiation Strategies </li></ul></ul></ul><ul><ul><ul><li>Site Environment/Atmospherics </li></ul></ul></ul><ul><ul><ul><li>Tangibilize the intangible </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Efficient and timely order processing </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Customer Relationship Management </li></ul></ul></ul><ul><ul><ul><li>Other Strategies </li></ul></ul></ul><ul><ul><ul><li>Positioning Strategies </li></ul></ul></ul><ul><ul><ul><li>Bases for Positioning on the Web </li></ul></ul></ul><ul><ul><ul><li>Repositioning on the Web </li></ul></ul></ul>
  53. 53. Repositioning on the Web <ul><li>Positioning alone won't make a product successful. </li></ul><ul><li>Marketers must also be sensitive to how the market perceives and views the company and the product. </li></ul><ul><li>Based on market feedback, a company must be flexible enough to react to those opinions by enhancing or modifying a position. </li></ul>
  54. 54. Repositioning on the Web <ul><li>Repositioning: </li></ul><ul><ul><li>Is the process of creating a new or modified brand, company, or product position. </li></ul></ul><ul><ul><li>Is a long-term challenge when attempting to change the way customers perceive their brands. </li></ul></ul><ul><ul><li>Companies can easily check on progress by tracking customers' preferences and habits on the Internet. </li></ul></ul><ul><li>Amazon has repositioned itself within the last few years: </li></ul><ul><ul><li>Originally Amazon was positioned as the world’s largest bookstore. </li></ul></ul><ul><ul><li>Today it promises the “Earth’s biggest selection” of a variety of products from music to electronics and more. </li></ul></ul>
  55. 55. Key Terms <ul><ul><li>Atmospherics </li></ul></ul><ul><ul><li>Differentiation </li></ul></ul><ul><ul><li>Position </li></ul></ul><ul><ul><li>Positioning </li></ul></ul><ul><ul><li>Repositioning </li></ul></ul>
  56. 56. Review Questions <ul><ul><li>How does differentiation differ from positioning? </li></ul></ul><ul><ul><li>What levels of online channel differentiation exist as options for companies? </li></ul></ul><ul><ul><li>What is the goal of experience branding? </li></ul></ul><ul><ul><li>How do site atmospherics affect online differentiation? </li></ul></ul><ul><ul><li>Why should e-marketers try to tangibilize the intangible? </li></ul></ul><ul><ul><li>Why is benefit positioning so powerful? </li></ul></ul><ul><ul><li>Why would an e-marketer choose to use competitor positioning? Integrator positioning? </li></ul></ul>
  57. 57. Discussion Questions <ul><ul><li>Why is a company able to directly control the differentiation of its brand but not its positioning? </li></ul></ul><ul><ul><li>The positioning rule of thumb states that “Mediocrity deserves no praise.” What does this mean? Do you agree with this statement? Explain your answer. </li></ul></ul><ul><ul><li>How might an online company react if a rival embarks on competitor positioning in an unflattering way? </li></ul></ul><ul><ul><li>Are customers likely to be confused by an integrator positioning that suggests a Web site sells anything and everything? What are the advantages and disadvantages of this positioning? </li></ul></ul>

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