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•Target market
•Product
•Place (channels)
•Promotion
•Price.
Five Dimensions of
Differentiation
Regarding the tools of differentiation,
five dimensions can be utilized to
provide differentiation.
• Product
• Channel
• Image
Differentiating a Product
Features
Quality: performance and
conformance
Performance - the performance of the
prototype or the exhibited sample,
Conformance - The performance of
every item made by the company
under the same specification.
Durability/Reliability
Product quality/service/technology
Packaging
Style
Design
Services differentiation
•Ordering ease
•Delivery
•Installation
•Customer training
•Customer consulting
•Miscellaneous services
Personnel
Differentiation
•Competence
•Courtesy
•Credibility
•Reliability
•Responsiveness
•Communication
Channel
differentiation
• Coverage
•Expertise of the
channel managers
•Performance of
the channel in ease
of ordering, service
and personnel
Image differentiation
First distinction between Identity and Image - Identity is designed by the
company and through its various actions company tries to make it known to
the market.
Image is the understanding and view of the market about the company.
An effective image does three things for a product or company.
1. It establishes the product's planned character and value proposition.
2. It distinguishes the product from competing products.
3. It delivers emotional power and stirs the hearts as well as the minds
of buyers.
The identity of the company or product is communicated to the market by
• Symbols
• Written and audiovisual media
• Atmosphere of the physical place with which customer comes
into contact
• Events organized or sponsored by the company.
Developing a Positioning Strategy
Positioning is the result of differentiation decisions. It is the act of
designing the company's offering and identity (that will create a
planned image) so that they occupy a meaningful and distinct
competitive position in the target customer's minds.
While positioning a Brand ,the firm has to reckon competitors –
Especially the leader’s –positioning .Example –
While a company can create many differences, each difference created has a cost
as well as consumer benefit. A difference is worth establishing when the benefit
exceeds the cost. More generally, a difference is worth establishing to the extent
that it satisfies the following criteria.
Important: The difference delivers a highly valued
benefit to a sufficient number of buyers.
Distinctive: The difference either isn't offered by others or is offered
in a more distinctive way by the company.
1. Under positioning : Market only has a vague idea of the product. FLYING CARS
2. Over positioning : Only a narrow group of customers identify with
the product. APPLE’S I-PAD
3. Confused positioning : Buyers have a confused image of the product as it claims too
many benefits or it changes the claim too often.
CHINESE PRODUCTS
4. Doubtful positioning : Buyers find it difficult to believe the brand’s claims in view of
the product’s features, price, or manufacturer.
KARBONN MOBILES OR LAVA.
Different positioning strategies
or themes
1. Attribute positioning: The message highlights
one or two of the attributes of the product.
2. Benefit positioning: The message highlights
one or two of the benefits to the customer.
3. Use/application positioning: Claim the product
as best for some application.
4. User positioning: Claim the product as best for
a group of users. - Children, women, working
women etc.
5. Competitor positioning: Claim that the product
is better than a competitor.
6. Product category positioning: Claim as the best
in a product category Ex: Mutual fund ranks –
Lipper.
7. Quality/Price positioning: Claim best value for
price
Communicating the Company’s Positioning
• In consumer markets positioning strategy is mainly communicated
through “ADVERTISING”.