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Week 14 Business strategies: differentiation and focus strategies - Coggle…
Week 14 Business strategies: differentiation and focus strategies
1 Introducing differentiation
1.1 Defining broad differentiation
1.2 Differentiation vs segmentation
types
Differentiation
Segmentation
Neither
the differences
1.3 Types of differentiation
tangible
intangible,
2 Ways to differentiate
2.1 Ways to differentiate: the demand side
analysis of customer demand
What are customer preferences?
Do customers want to pay a premium price for differentiation?
The customer demand analysis
customer dimension
product dimension
Figure 14.4 Product and customer dimensions
2.2 Techniques to analyse customer preferences
Multidimensional scaling
Conjoint analysis
steps:
1-key attributes identified
2-a market research project performed
3-proportions of customers estimated
Hedonic price analysis
2.3 Ways to differentiate: the supply side
four generic areas of activity
Area 1: creating uniqueness
product (or service) features and performance
complementary services
intensity of marketing services
technology embodied in design and manufacturing process
quality of inputs
procedures related to enhancing customer experiences
skills and experience of employees
location choice
the extent of vertical integration
Area 2: developing product
internal
external
Area 3: signalling and reputation
verbal
non-verbal
Area 4: branding
2.4 Risks and boundaries of differentiation
Porter key risks of differentiation.
Imitation
Price and cost balance
Rise of differentiation focusers
3 Focus strategies: cost focus and differentiation focus
focus defintion
a specific group of buyers
a different specific and limited geographic market
when to apply
3.1 Cost focus
focuser defintion
Figure 14.7 Cost focus
3.2 Differentiation focus
a differentiation focuser definition
Figure 14.8 Differentiation focus
3.3 Risks of focus strategies
4 ‘Stuck-in-the-middle’ situation
porter view
Cronshaw view
5 Analysing and giving strategic recommendations
Figure 14.11 Distinguishing features of the five generic competitive strategies