61c4302 Positioning


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61c4302 Positioning

  1. 1. Amity Business School Amity Business School MBA Class of 2010, Semester III Positioning Prof. P K Bansal
  2. 2. SERVICE Amity Business School POSITIONING • Service offering's position is the way it is perceived by consumers particularly in relation to competing offerings. • The service position is what is in the customer’s mind, whether or not it is the image planned or desired by the organisation.
  3. 3. Amity Business School • Service positioning is useful in establishing a new service image, as well as for maintaining and repositioning existing image. • It may not necessarily be communicated through advertising only, but can and should be established through all elements of services marketing mix.
  4. 4. POSITIONING Amity Business School DIMENSIONS Services can be positioned on variety of dimensions: SERVICE QUALITY – Reliability – Responsiveness means responding to customers' desire for prompt, "Willing to help" service.
  5. 5. Amity Business School – Assurance is used where trust and confidence in the service provider are particularly critical. Industries like, insurance, health care. – Empathy is customer's desire for caring, individualised attention. – Tangibles may also be the focus of a positioning strategy. It can be on product quality, price etc. It is, associated with a service organisation are highly visible to customers. because tangibles, particularly the physical environment
  6. 6. Amity Business School EVIDENCE OF SERVICE – People: – It refers to the contact employees and customers who may be in the service facility. – How these people will look, act, and influence the service position in the customer’s mind? – Disney Corporation works hard to hire and train contact employees to convey a consistent image and reinforce the position of the Disney theme parks as places for fun.
  7. 7. Amity Business School – It includes dress codes and uniform, the package of the service provider, is the physical representation of the service leading to the mental image and positioning in customer’s mind. Uniform like doctor’s white coat can suggest consistency of service by reinforcing a message of standardisation or the lawyer’s black coat, the police uniform the power of law. – Standardised uniform may work at cross-purpose if desired image is one of flexibility.
  8. 8. Amity Business School PHYSICAL EVIDENCE – It includes tangible communication, price, physical environment, and guarantees etc. – They may not be rated high by consumers in terms of their influence on quality but they are critical for positioning and solidifying an image. The tangible evidence used for a high-end executive education experience for example, would be different from the evidence used to position a daylong seminar aimed at mass audience.
  9. 9. Amity Business School PROCESS – It includes the Flow of activities, Steps in the process, and Flexibility of process. – The work on service blueprinting has forged a connection between service processes as structural elements that can be engineered for strategic service positioning purposes. – Service process can be defined in terms of two variables:
  10. 10. Amity Business School The two variables are: – Complexity (number of steps involved in delivery of service) – Divergence (execution latitude, or variability of the steps)
  11. 11. Process Matrix Amity Business School Low Divergence High Forensic Hospital Testing Lab Services Complexity Outpatient Poly Clinic Clinic Low
  12. 12. Amity Business School Low Divergence • Uniform Treatment, Reduced Costs, Improved Productivity, Easy Distribution, Volume-oriented Positioning, Increased Reliability. High Divergence • Customization, Flexibility, Low Volumes Higher Price, Difficult Control and Distribution, Niche Positioning.
  13. 13. Amity Business School Low Complexity • Focused Resources on a Narrower Service Offerings, Easy Distribution. High Complexity • Greater Penetration in market by addition of More Services, Increased Revenue from each Customer.