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Marketing Management
MKT 301
Positioning & Differentiating
The Market Offering Through
the Product Life Cycle
Table of Contents
No Contents
1 Developing & Communicating a Positioning Strategy
2 Positioning Errors
3 Types of Positioning
4 Adding Further Differentiation
5 Differentiation Tools
6 Differentiation Variables
Developing & Communicating
a Positioning Strategy
Marketing strategies are built on:
Segmentation
Targeting
Positioning
A company identifies the different needs and groups
in a market place, targets those needs and groups
that it can satisfy in a superior way, and then
positions its offerings so that the target market
recognizes the company’s distinctive offering and
image
Developing & Communicating
a Positioning Strategy
Positioning
• It is the act of designing the company’s offering and
image to occupy a distinctive place in the mind of the
target market
• Value proposition is the end result of positioning; a
reason as to why the target market should buy the
product
Example
Company &
Product
Target
Customers
Benefits Price Value
Proposition
Nandos –
Chicken
Quality
conscious
consumers of
chicken
Healthy 15% premium Healthy, tender
chicken at a
moderate
premium price
Domino’s -
Pizza
Convenience
minded pizza
lovers
Delivery speed
and good
quality
12% premium Hot, tasty pizza
delivered to
your door at a
moderate price
Positioning Errors
• Under positioning
• Over positioning
• Confused positioning
• Doubtful positioning
Positioning Possibility
• Attribute positioning - company position it self on an
attribute.. Size, number of years existence
• Benefit positioning – positioned as the leader in a
certain benefit
• Use or application positioning – positioning the
product as best for some use
• User positioning – position the product as best for
some user group
Positioning Possibility
• Competitor positioning – product claim to be better in
some way
• Product category positioning – positioned as the
leader in a certain category
• Quality or price positioning – positioned as offering
the best value
Adding Further Differentiation
• Important
• Distinctive
• Superior
• Preemptive
• Affordable
• Profitable
Differentiation Tools
Volume Industry Stalemated Industry
Differentiation Tools
Fragmented Industry Specialized Industry
Differentiation Variables
Product Services Personnel Channel Image
Form Ordering Ease Competence Coverage Symbols
Features Delivery Courtesy Expertise Media
Performance Installation Credibility Performance Atmosphere
Conformance Customer
Training
Reliability Events
Durability Customer
Consulting
Responsiveness
Reliability Maintenance &
Repair
Communication
Reparability
Style
Design
Product Differentiation
Form - color, size , shape Feature – Varying feature
Product Differentiation
Performance Quality-
low, average, high and
superior
Conformance – Meet the
promised specification
Product Differentiation
Durability – long lasting,
durable quality
Style – Describe products
look and feel the
customer to buy
Service Differentiation
Ordering Ease – how easy
to place order
Delivery – Speed,
accuracy, care attending
Service Differentiation
Installation – Make
product operational on
the planed area
Customer training – Train
the customer how to
operate the product
Service Differentiation
Maintenance and repair – Maintenance and repair
service program for helping customers
Miscellaneous service – Find other ways to
differentiate customer service
Personnel
• Competence
• Courtesy
• Credibility
• Reliability
• Responsiveness
• Communication
Channel
• Coverage
• Expertise
• Performance
Image
• Symbols
• Media
• Atmosphere
• Events

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Positioning & Differentiating The Market Offering Through the Product Life Cycle