The document discusses differentiation and positioning strategies. It defines differentiation as creating differences in a firm's product that set it apart from competitors through distinct features, services, or characteristics. Positioning refers to creating a mental image of the product and its benefits in the minds of customers. While differentiation is based on the actual product, positioning depends on customers' perceptions of the product's real or perceived advantages relative to others. The document also notes that differentiation can be achieved through product descriptors or customer support services.

1. ][Welcome to
Marketing Strategy
Differentiating Strategy for
Attractive Market

2. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
DIFFERENTIATING STRATEGIES

3. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Differentiation
• Differentiation involves creating differences in the firm’s product
offering that set it apart from competing offerings.
• Differentiation typically has its basis in distinct product features,
additional services, or other characteristics.
• Positioning refers to creating a mental image of the product offering
and its differentiating features in the minds of the target market.
• This mental image can be based on real or perceived differences
among competing offerings.
• Whereas differentiation is about the product and the marketing
program, positioning is about customers’ perceptions of the real or
perceived benefits that the offering possesses.
1-3

4. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Differentiation Positioning
Differentiation involves creating
differences in the firm’s product
offering that set it apart from
competing offerings.
Positioning refers to creating a
mental image of the product
offering and its differentiating
features in the minds of the target
market.
Differentiation typically has its
basis in distinct product features,
additional services, or other
characteristics.
This mental image can be based on
real or perceived differences among
competing offerings.
Whereas differentiation is about the
product and the marketing
program, positioning is about
customers’ perceptions of the real
or perceived benefits that the
offering possesses

5. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Bases for Differentiation
•Product Descriptors
•Customer Support Services
1-5

6. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Generic Competitive Strategies
Lower Cost Differentiation
Broad Target
Cost Leadership
Strategy
Differentiation
Strategy
Narrow Target Focus Strategy
Focus Strategy
(Differentiation
Based)
Competitive Advantage
Competitive
Scope
Source: Adapted from Michael Porter, Competitive Advantage,New York: The Free Press, 1985, p. 12.
7-5

7. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
1-7

8. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 Thank You 
1-8