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L3: Positioning Services in Competitive Markets (1️⃣ The 3Cs (Customer…
L3: Positioning Services in Competitive Markets
1️⃣ The 3Cs
Customer Analysis: Overall examination of market characteristics, customer needs and related characteristics and behaviour
Competitor Analysis: Current positioning, strengths and weaknesses
Company Analysis: Current brand positioning and image, resources, limitations and resources
2️⃣ Positioning Strategy (STP)
Targeting
Targeting service markets through 4 focus strategies: fully-focused, market-focused, service-focused, unfocused
Positioning
Positioning services in competitive markets
Develop an effective positioning strategy
Using positioning maps to plot a competitive strategy
Segmentation
Service attributes and service levels relevant for segmentation
Segmenting service markets
5️⃣ Segmentation
Developing right service concept for a specific segment
Use research to identify and prioritise which attributes of a given service are important to specific market segments
Individuals may set different priorities for purpose of using that service, who makes decisions, timing of use, whether service is used alone/group, composition of that group
Firms vary widely in ability to serve different types of customers
Market segment: characteristics, needs, purchase behaviour, consumption patterns
Various ways to segment: demo, psycho, behavioral, need-based
Adopt strategy of segmentation, identify those whom the firm can serve best
Important vs determinant attributes
Attributes that distinguish services are not most important
Determinant attributes are most important - service characteristics that are most impt consumers, customers see significant differences between competing alternatives on these attributes
Consumers choose between different offerings based on perceived differences
4️⃣ Targeting
Achieving competitive advantage thru' 4 Focus Strategies
Strategies
Unfocused (Wide offerings, many markets served)
Fully focused (Narrow offerings, few markets served)
Market focused (Wide offerings, few markets served)
Service focused (Narrow offerings, many markets served)
3️⃣ Positioning
4 Principles
Position must provide 1 simple, consistent message
Position must set firm/product apart from competitors
Must establish position for firm/product in minds of consumers
A company cannot be all things to all people - must focus its efforts
Develop an Effective Positioning Strategy
Frame of reference: category the brand is competing in
Point of difference: most compelling benefit offered by brand that stands out
Target audience
Reason to believe: proof that brand can deliver the benefits that are promised
Using Positioning Maps to Analyse Competitive Strategy
Represent consumer perceptions of alternative products graphically
Mapping future scenarios to identify potential competitive responses
Visualise competitive positioning