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THE PROCESS OF SEGMENTATION AND TARGET MARKETING

POSITIONING
AND

DIFFERENTIATION
Dr. Vandana T Khanna
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POSITIONING
Positioning is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind.
Philip Kotler

VALUE PROPOSITIONS
Scorpio, Mahindra and Mahindra A vehicle that provides the luxury and comfort of a car, and the adventure and thrills of an SUV Dominos A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

Target Market where we want to compete? Differential Advantage how we wish to

compete? Effective positioning is the act of linking products and services to the solutions that customers seek.
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Dr. Vandana Khanna

POSITIONING STRATEGIES
Al Ries and Jack Trout introduced the concept of positioning. It is strategy of differentiating the products from competitors, in the mind of consumers. Positioning is done by:
Product characteristics/consumer benefits Price-quality Use/approach Product user Culture symbol Competitors

CHOOSING A POSITIONING STRATEGY

Step 1. Identifying Possible Competitive Advantages Step 2. Selecting the Right Competitive Advantage Step 3. Communicating and Delivering the Chosen Position

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Dr. Vandana Khanna

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Dr. Vandana Khanna

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COMPETITIVE FRAME OF REFERENCE FOR POSITIONING

Category Membership the products or sets of
products with which a brand competes and which function as close substitutes

POSITIONING STATEMENTS
To (target group and need) our (brand) is (concept) that (point-of-difference)
Example: Example : Mountain Dew is the soft drink that
gives you more energy than any other brand

Points-of-Difference (PODs) are attributes or

benefits consumers strongly associate with a brand, positively evaluate and believe they could not find to same extent with a competitive brand

Points-of-Parity (POPs) are associations that are

not necessarily unique to the brnad but may in fact be shared woth other brands. Associations are be in the form of category and competition
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EXAMPLES OF NEGATIVELY CORRELATED ATTRIBUTES AND BENEFITS

Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting Efficacious vs. Mild Powerful vs. Safe Strong vs. Refined Ubiquitous vs. Exclusive Varied vs. Simple

SUCCESSFUL POSITIONING
Clarity

Credibility

Successful Positioning

consistency

Competitiveness

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Dr. Vandana Khanna

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Dr. Vandana Khanna

Positioning of Procter & Gamble Detergents

Brand
Tide Cheer Bold Gain Era Dash Oxydol Solo Dreft

DIET COKE AND COKE ZERO

Market Share
31.1% 8.2% 2.9% 2.6% 2.2% 1.8% 1.4% 1.2% 1.0% 0.7% 0.1%
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Positioning
Tough, powerful cleaning Tough cleaning, color protection Detergent plus fabric softener Sunshine scent and odor-removing formula Stain treatment and stain removal Value brand Bleach-boosted formula, whitening Detergent and fabric softener in liquid form Outstanding cleaning for baby clothes, safe Fabric & skin safety on baby clothes
Dr. Vandana Khanna

Virtually identical drinks that are positioned very differently

9 Ivory Snow LO
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Ariel

Tough cleaner, aimed at Hispanic market

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POSITIONING FOR COMPETITIVE ADVANTAGE

Products Position - the place the product occupies in consumers minds relative to competing products; i.e. Volvo positions on safety. Marketers must:
Plan positions to give products the greatest advantage Develop marketing mixes to create planned positions

PERCEPTUAL MAPPING
one cannot play the positioning game without perceptual mapping. It represents consumer perceptions- in (usually) two-dimensional space so that the manager can readily see where his own brand is positioned in the mind of his prospect and in relation to other brands. The concept of the consumers perceptual space forms the theoretical basis of positioning. It helps in making positioning operational.

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Dr. Vandana Khanna

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Dr. Vandana Khanna

PERCEPTUAL MAPPING
Identify a set of competing brands Identify important attributes Conduct quantitative research Plot brands on two dimensional maps C D
Wide product range

A PERCEPTUAL MAP OF SUPERMARKETS

A B
High price

G F
Low Dr. Vandana Khanna price

Narrow product range

X E

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Positioning and Product Differentiation

COMPONENTS OF THE MARKET OFFERING

Value-based prices

Attractiveness of the market offering

Product features and quality

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Services mix and quality

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REPOSITIONING STRATEGIES
Product
Same Same Image repositioning Different Product repositioning

POSITIONING FOR COMPETITIVE ADVANTAGE: STRATEGIES

Product Class Away from Competitors Against a Competitor
E B F

Product Attributes
G

Market
Different Intangible repositioning Tangible repositioning

Benefits Offered
D

Usage Occasions

Users
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STEPS TO CHOOSING AND IMPLEMENTING A POSITIONING STRATEGY

Step 1. Identifying a set of possible competitive advantages: Competitive Differentiation. Step 2. Selecting the right competitive advantage. Step 3. Effectively communicating and delivering the chosen position to the market.
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DEVELOPING COMPETITIVE DIFFERENTIATION

Product Service

Areas for Competitive Differentiation

Personnel
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Image

SELECTING THE RIGHT COMPETITIVE ADVANTAGES

Important Profitable
Criteria for Determining Which Differences to Promote

DIFFERENTIATION
Differentiated products feature meaningful and valuable differences that distinguish the companys offering from the competition. Differences are stronger when they are important, distinctive, superior, preemptive, affordable, and profitable.

Distinctive

Affordable Preemptive
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Superior

Communicable
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PRODUCT DIFFERENTIATION
Conformance Quality

EXAMPLES OF POSITIONING
Santoor Soap : Benefits of Haldi & Chandan - meri twacha se meri umre ka pata hi nahi chalta Lux : Soap of the filmstars McDonalds : Food, Family, Fun Dettol : Antiseptic Properties Hitachi A/C : Power of Silence Big Bazaar : Isse Sasta aur Achha Kahin Nahi

Form

Features

Performance

Quality

Durability

Reliability

Repairability

Style

Design

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Dr. Vandana Khanna

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Dr. Vandana Khanna

SERVICES DIFFERENTIATION

EXAMPLES OF POSITIONING
Vodafone : wherever we go, the network follows / happy to help Vichare Courier : Cheap and efficient delivery of courier Dell Computers : Customized PC offering Eureka Forbes : Excellent Customer Service Forshe : Taxi Services - of / for / by women Croma : We help you to buy

Ordering Ease

Installation

Customer Consulting

Miscellaneous Services

Delivery

Customer Maintenance Training & Repair

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Dr. Vandana Khanna

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Dr. Vandana Khanna

PERSONNEL DIFFERENTIATION

DIFFERENTIATION
Personnel: Singapore Airlines Raymonds

Communicatio n

Competence Credibility

Reliability

Courtesy

Customer Responsiveness Training

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Dr. Vandana Khanna

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Dr. Vandana Khanna

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IMAGE DIFFERENTIATION
Media Atmosphere

IMAGE DIFFERENTIATION
Femina Miss India - event Filmfare Awards - event Lead India Contest of Times of India - event Economic Times Awards for Corporate Excellence - event McDonalds Ronald McDonald - symbol Caf Coffee Day - atmosphere Teach India Times of India initiative - event Standard Chartered Marathon - event Air India Maharaja symbol Crossword atmosphere Sunsilk Gang of Girls - use of Blogs ( media ) to create differentiation
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Symbols

Events

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CHANNEL DIFFERENTIATION
Coverage Expertise

CHANNEL DIFFERENTIATION
Channel : Eureka Forbes Direct Marketing of Aquaguard Oriflame Cosmetics

Performance

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Dr. Vandana Khanna

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Dr. Vandana Khanna

Important

SUMMARIZING STP
Distinctive
The process of market segmentation is based on the principle that not all customers have the same needs. They are many different variables which can be used for segmenting consumer and industrial markets. The 5 criteria for successful segmentation are: effective, measurable, accessible, actionable and profitable. There are 4 generic target marketing strategies: undifferentiated, differentiated, focus and customised marketing. Positioning is the key tool for conveying how companies meet customer needs with products and services.
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Profitable

Differences Worth Establishing

Affordable Superior

Preemptive

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Dr. Vandana Khanna