for Mgnt. 2 subject - Human Resource and Development Pasig Catholic College

1. Service Marketing : Chapter 7
Positioning a Service
in the Marketplace
Presented by:
Jean F. Baylon
BSBA4 – Major in Mktg.-Mgnt
Instructor: Mr. Abelito Quiwa

2. Positioning a Service In the Marketplace
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Achieve Competitive Advantage through Focus
Four Focus Strategies
Identifying and Selecting Target Segments
Using Research to Develop a Service Concept
for a Specific Segment
Important versus Determinant Attributes
Creating a Competitive Position
Copy Positioning Versus Product Positioning
Positioning’s Role in Marketing Strategy
Steps in developing a Positioning Strategy
Using Positioning Maps to Plot Strategy: An
Example from the Hotel Industry

3. Positioning a Service In the Marketplace
By the end of this chapter, students should be able to:
 Know the focus strategies that are available
to service business
 Tell the difference between important and
determinant attributes for consumer choice
and positioning services
 Understand how to use service levels for
positioning services.
 Know the key concepts underlying
competitive positioning strategy

4. Positioning a Service In the Marketplace
By the end of this chapter, students should be able to:
 Know when it is appropriate to reposition
an existing service offering
 Understand how to develop an effective
positioning strategy using market,
internal, and competitor analysis.
 Demonstrate how positioning maps help
to analyze competitive positioning

5. Positioning a Service In the Marketplace
 Every firm must managed to find a niche
position and differentiate itself from
competition.
 Brand positioning can help to create
awareness, generate interest and desire
among prospective customers, and
increase adoption of products and
services

6. Positioning a Service In the Marketplace
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Fully focused: A fully focused
organization
provides
a
limited range of services.
Market focused: A market
focused
company
concentrates on a few market
segment, but has a wide
range of services.
Service
focused:
Service
focused firms offer a narrow
range of services to a fairly
broad market.
Unfocused: Finally, many
service providers fall into the
unfocused category, because
they try to serve broad
markets and provide a wide
range of services.

7. Positioning a Service In the Marketplace
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A market segment is one where a group of
buyers share common characteristics, needs,
purchasing behaviors, or consumption patterns.
A target segment is one that a firm has selected,
from among those in the broader market, and
defined on the basis of several variables.

8. Positioning a Service In the Marketplace
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The purpose of using the service.
Who makes the decision.
The timing of use (time of day/week/season).
Whether the individual is using the service
alone or with a group.
Who is in the group.

9. Positioning a Service In the Marketplace
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Consumers usually make their choices
between alternative service offerings
based on the perceived differences
between them.

10. Positioning a Service In the Marketplace
 A company must establish a
position in the minds of its
target customers.
 The position should have one
simple and consistent message.
 The position must set a
company apart from its
competitors .
 A company cannot be all things
to all people—it must focus its
efforts.

12. Positioning a Service In the Marketplace
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Positioning is a marketing concept that outlines what a
business should do to market its product or service to its
customers.
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Provide useful diagnostic tool for defining and
understanding the relationships between products and
markets
Identify market opportunities
Introducing new products
Redesigning (repositioning) existing products
Eliminate products that: Do not satisfy consumer needs
Distribution strategies
Pricing strategies
Communication strategies
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13. Positioning a Service In the Marketplace
 Market Analysis -The focus is on the overall
level and trend of demand, and the geographic
location of this demand.
 Internal Corporate Analysis - The objective is
to identify the organization’s, limitations, its
goals, and how its values shape the way it does
business.
 Competitive Analysis - Analysis of competitors
helps firms to understand the strengths and
weaknesses competitors have.

14. Positioning a Service In the Marketplace
 Positions are rarely
static. They need to
evolve over time in
response to changing
market structures,
technology.

15. Positioning a Service In the Marketplace
 ”Perpetual Mapping”
 Useful way of representing consumers
perceptions of alternative products
graphically

16. Positioning a Service In the Marketplace
 Managers of the Palace, a
successful four-star hotel,
developed a positioning map of
their own and competing hotels.
This helped them to develop a
better understanding of future
threats to their current market
position, in a large city that we
will call Belleville.

17. Positioning a Service In the Marketplace
Figure 7.3 Positioning map of Belleville’s principal
business hotels: Service Level versus Price Level

18. Positioning a Service In the Marketplace
Figure 7.4 Positioning map of Belleville’s principal business
hotels: Positioning map of Location versus Physical Luxury

19. Positioning a Service In the Marketplace
Figure 7.5 Positioning map of Belleville’s principal business
hotels, Following New Construction: Service Level versus
Price Level.

20. Positioning a Service In the Marketplace
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Most service businesses face strong and often
increasing competition. Marketers need to find ways
of creating meaningful competitive advantages for
their products. Ideally, they should be targeting
segments that they can serve better than other
providers. The concept of positioning is valuable
because it forces explicit recognition of the different
attributes comprising the overall service concept. It
also emphasizes the need for marketers to
understand which attributes determine customer
choice behavior.

21. Positioning a Service In the Marketplace
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Positioning maps provide a visual way of
summarizing research data and displaying how
different firms are performing, relative to one
another, on key attributes. Combined with
information on the preferences within different
segments – including the anticipated demand from
such segments – positioning maps may suggest
opportunities for creating new services or repositioning existing ones to take advantage of
unserved market needs. If offering such a service is
seen as compatible with the organization’s resources
and values, the firm may be able to develop a
profitable niche for itself in the market.

22. HAPPY GRADUATION! haha