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Positioning of Services
Module III MRS MBA Retail Sem 2 Sunetra Saha

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To succeed in an overcommunicated society, a company must create a position in the prospects mind, a position that takes into consideration not only the companys own strengths and weaknesses, but those of its competitors as well. Al Ries and Jack Trout

Market segmentation

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Mass customization: offering a service with some individualized product elements to a large number of customers at a relatively low price Microsegmentation: targeted at a small group of customers that share certain relevant characteristics at a specific point of time

Target segments

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Research for specific segment

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Attributes

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Determinant attributes: those that determine buyers choices among competing alternatives, list of service characteristics that are important to the buyers , wherein customers see significant differences among competing alternatives Important attributes: points of differentiation among competing services

Positioning

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Positioning

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The sum of beliefs, attitudes and impressions that a person or a group has of an object Current image Mirror image Wish image Company must establish a position of value for its service in the minds of the target market

Distinguishing characteristics
Importance Distinctiveness Communicability Superiority Affordability Profitability

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Market analysis

Size Composition Location trends

Define, analyze Market segments Select target Segments to serve Articulate Desired position In market Select benefits to emphasize To customers Analyze possibilities for differentiation Marketing Action Plan

Internal Analysis

Resources Reputation Constraints values

Competitor Analysis

Strengths Weaknesses Current positioning

Positioning process
1. Market positioning 2. Psychological positioning * objective positioning * subjective positioning 3. Positioning approach

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Market positioning

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The process of identifying and selecting markets or segments, that represent business potential, to determine the criteria for competitive success.
Questions to be asked: What is important to the target market? How does the target market perceive the service offering? How does the target market perceive the competition? What attributes should a service offering use to differentiate itself to make the best use of its resources?

1. 2. 3. 4.

Psychological positioning

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Enables marketers to create a unique product image with the objective of creating interest and attracting customers. It involves the use communication to convey the firm or its offering identity and image to the target market.

Psychological positioning

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Objective positioning: Creation of an image of service offering that reflects physical features and functional features. Subjective positioning: It is the (mental perceptions) image and other attributes perceived by the customer and not the physical aspects of the offering.

Positioning approaches

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Positioning by attributes, features or customer benefits Positioning by price value Positioning by use of application Positioning by users or class of users Position with respect to product class Positioning against competition Positioning by endorsement

Positioning approaches
Positioning by quality dimensions Reliability Assurance Tangibility Empathy Responsiveness

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Positioning approaches
Positioning by service evidence Lo People w Physical evidence div ers Process: Complexity ity Diversity
High complexity
Forensic Testing lab

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Hospital Services General practitioner Specialist treatment only Diagnostic service only

H i g h d i v e r s i t y

Retailer or orthopedic supplies X-ray labs

Medical counseling

Low complexity

Positioning maps
Graphical representation of consumers perceptions about different products and services
high

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Price

Q ua lit y of se rvi ce
low

Premium position

Best value or niche Cheapest

One off sales or cherry picking

High

low

Marketing Mix

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The specific combination of marketing elements used to achieve an organization's/ individuals objectives and satisfy the target market.
product Physical evidence Elements of Service mix price

process

promotion

people

place

Corporate objectives& resources Market and Competitive analysis Marketing assets statement Customer portfolio Market knowledge Marketing implementation skill Product line Positioning strategy Reputation of brands

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Resource Allocation analysis

Operating assets statement Physical facilities Equipment Information technology Human resources (nos. & skills) Alliances & partnerships Cost structure Service operations concept Nature of processes Geographic scope of operations Service marketing concept Scheduling Benefits to customers Facilities design and layout User costs Human resource Leverage thro partnerships & self-service Specific tasks assigned to front stage Backstage operations Service delivery process