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Differentiation and Product Positioning
 

Differentiation and Product Positioning

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    Differentiation and Product Positioning Differentiation and Product Positioning Presentation Transcript

    • Differentiation and Product Positioning Chat Session
    • Differentiation and Product Positioning
      • Take a position on one of the following:
        • Your political candidate for Election 2008
        • The War on Terror
        • Getting a college education
        • The brand of ketchup you buy
        • Child-rearing in the year 2008
    • Differentiation and Product Positioning
      • Now, jot down a few “talking points”
      • Outline that position
      • Then, think about the following:
        • Is it different than another person who you may have discussed this with? If so, how so and why?
        • If not, how could you make your position different? Make it stand out? Persuade people to take your side?
    • Differentiation and Product Positioning
      • Positioning and differentiating products is similar
        • Why do you drink the soft drink you do?
          • Was it the advertising?
          • Was it the taste?
          • Was it the marketing, the public relations?
          • Other?
      • Why do you shop at the stores you do?
        • Branding?
        • Behavior?
        • Buying habits?
    • Differentiation and Product Positioning
      • Developing and communicating a positioning strategy
        • Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
          • What is a value proposition? It’s a cogent reason why the target market should buy the product.
          • Examples? Think about the type of clothing you buy? What’s the company’s value proposition? Do you fit the target market? Why? How?
    • Differentiation and Product Positioning
      • Four major positioning errors:
        • Underpositioning
        • Overpositioning
        • Confused positioning
        • Doubtful positioning
          • Note: when a customer has to ask: “what do you sell, manufacture, or what is it?—it’s time to create a clear positioning plan.
    • Differentiation and Product Positioning
      • Positioning possibilities:
        • Attribute positioning (size, number of years in existence)
        • Benefit positioning (the leader in a certain benefit)
        • Use or application positioning (best to use)
        • User positioning (best for user group)
        • Competitor positioning (better than others)
        • Product category positioning (leader in certain product category)
        • Quality or price positioning (best value for the money)
    • Differentiation and Product Positioning
      • After you’ve determined this strategy, then you have to communicate the company’s positioning
        • A marketing plan should include a positioning statement. TO (TARGET A GROUP OR NEED), OUR (BRAND) is (CONCEPT) THAT (POINT-OF-DIFFERENCE).
          • Examples
          • Write your statement for Exact
    • Differentiation and Product Positioning
      • Differentiation
        • What makes you different from your spouse or siblings or friends or colleagues?
          • To differentiate is to set a meaningful and valued difference to distinguish you (or a company) from others (or competitors).
    • Differentiation and Product Positioning
      • While all products can be differentaited to some extent, not all brand differences are meaningful or worthwhile. A difference is stronger to the extent that it satisfies the following:
        • Important
        • Distinctive
        • Superior
        • Pre-emptive
        • Affordable
        • Profitable
    • Differentiation and Product Positioning
      • Tools you can use in differentiation
        • Boston Consulting Group distinguishes four types of industries based on the number of competitive advantages and their size.
        • Volume industry
        • Stalemated industry
        • Fragmented industry
        • Specialized industry
              • P.317 Kotler
    • Differentiation and Product Positioning
      • Key to competitive advantage is product differentiation
        • Products variation by:
          • Form
          • Features
          • Performance Quality
          • Conformance Quality
          • Durability
          • Reliability
          • Repairability
    • Differentiation and Product Positioning
      • Services differentiation by:
        • Ordering ease
        • Delivery
        • Installation
        • Customer training
        • Customer consulting
        • Maintenance and repair
        • Miscellaneous services
    • Differentiation and Product Positioning
      • Personnel differentiation
        • Better training people…
          • 6 characteristics
            • Competence
            • Credibility
            • Courtesy
            • Reliability
            • Responsiveness
            • Communication
    • Differentiation and Product Positioning
      • Channel differentiation
        • How company’s design their distribution channels’ coverage, expertise and performance
    • Differentiation and Product Positioning
      • Image differentiation
        • Buyers respond differently to company and brand images
          • Identity is the way that a company aims to identify or position itself or its product
          • Image is the way the public perceives the company or its products
            • Symbols, colors, slogans, special attributes
            • Physical plant
            • Events and sponsorships
            • Multiple image-building techniques
    • Differentiation and Product Positioning
      • Product life-cycle marketing strategies
        • Position and differentiation must change as the company and product life-cycle changes
        • Givens:
          • Products have a limited life.
          • Product sales pass through distinct stages, posing different challenges, opportunities and problems for seller (think of a house).
          • Profits rise and fall at different stages of product life cycle.
          • Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life-cycle stage.
    • Differentiation and Product Positioning
      • Product life cycle
        • Introduction: Slow sales growth as product debuts
        • Growth: Rapid market acceptance and substantial profit improvement
        • Maturity: Slowdown in sales growth because product as achieved acceptance
        • Decline: Sales show a downward drift and profits erode
    • Differentiation and Product Positioning
      • Style, fashion and fad life cycles
        • This is a special cycle
          • Style: basic and distinctive mode of expression
          • Fashion: currently acceptable; fashion pass through 4 stages: distinctiveness, emulation, mass-fashion, decline
          • Fads: fashions that come quickly into public view, are adopted with great zeal, peak early and decline fast
    • Differentiation and Product Positioning
      • Marketing strategies for each life cycle
        • Introduction
          • Pioneer advantage
        • Growth
          • Early adopters; new competitiors
        • Maturity
          • 3 phases: growth, stable, decaying maturity
            • Market modification
            • Product modification
            • Marketing-mix modification
        • Decline
          • Some firm withdraw or die
          • Must find strong reasons for retention
          • Modifications for survival
    • Differentiation and Product Positioning
      • Market evolution
        • Stages in evolution
          • Emergence
          • Growth
          • Maturity
          • Decline