differentiating & positioning the market offering
TRANSCRIPT
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DIFFERENTIATING & POSITIONING THE MARKET OFFERING
BY:-SONAM KHURANA
NEHA SINGHAL
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What is a Product?
A Product is anything that can be offered to a market to satisfy a want or need, including
physical goods, services, experiences, events, persons, places, properties, organizations,
information, and ideas.
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Ashok Leyland is known for
its products
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Figure 12.1 Components of the Market Offering
Attractiveness of the market
offering
Value-based prices
Product features and quality
Services mix and quality
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Figure 12.2 Five Product Levels
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Product Classification Schemes
DURABILITY & TANGIBILITY
INDUSTRIAL GOODS
CONSUMER GOODS
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Durability and Tangibility
Nondurablegoods
ServicesDurablegoods
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Consumer Goods Classification
Convenience
Unsought
Shopping
Specialty
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Industrial Goods Classification
Materials and parts
Supplies/ business services
Capital items
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What is Differentiation?
• Ensuring that products and services have a unique element to allow them to stand out from the rest.
• In business terms, to differentiate means to create a benefit that customers perceive as being of greater value to them than what they can get elsewhere.
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Nature’s Basket,
focusing on high-end
consumers, differentiated
itself from other mass
retail outlets.
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Product Differentiation
• Product form• Features• Customization• Performance• Conformance• Durability• Reliability• Repairability• Style
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Design Differentiation
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Service Differentiation
• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance and repair• Returns
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Ginger Hotels has carved a
profitable niche through its innovative
service configuration
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Developing products for rural markets • Products should be designed keeping in mind the
rural conditions• Packaging is one of the key drivers of success in
rural areasIssue of transfer and storage: Rugged packingThe issue of affordability: small-unit packs
• Brand elements should be decided keeping in mind rural consumers
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What is Positioning?
Positioning is the act of designing the company’s offering and
image to occupy a distinctive place in the mind of the target
market.
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Positioning of Café
Coffee Day
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CCD VS BARISTA
CCD• CCD Differentiated
the brand by crafting a unique position in the young consumers’ mind.
BARISTA• BARISTA is
positioned as a premium coffee retail outlet for the upwardly mobile executives.
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Value Propositions
BRAND, PRODUCT, & COMPANY TARGET CUSTOMERS BENEFITS CUSTOMER FOCUSED -
VALUE PROPOSITION
Scorpio, SUV, Mahindra & Mahindra
Lifestyle-Oriented Consumers luxury & comfort
A vehicle that provides the luxury and comfort
of a car, and the adventure and thrills of
an SUV (sport utility vehicle-light trucks).
Domino's, Pizza Convenience-minded pizza lovers
Delivery, Speed, & good quality
A good hot pizza, delivered to your door within 30 minutes of
ordering, at a moderate price.
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Defining AssociationsPoints-of-difference (PODs)• Attributes or benefits
consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand.
• The brand must demonstrate clear superiority.
Points-of-parity(POPs)• Associations that
are not necessarily unique to the brand but may be shared with other brands.
• There is a zone or range of tolerance or acceptance.
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EXAMPLES
POD APPLE (DESIGN) NIKE
(PERFORMANCE) LEXUS (QUALITY)
POP VS POD• VISA (MOST
WIDELY AVAILABLE CARD) VERSUS AMERICAN EXPRESS (PRESTIGE)
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CHOOSING POPs AND PODs
• POPs:-Category Points Of ParityCompetitive Points Of Parity
• PODs:-Desirability Delivery Capability
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POPs
CATEGORY POINT OF PARITY
• They represent necessary – but not sufficient-conditions for brand choice.
• Example - Travel Agency
COMPETITIVE POINTS OF PARITY
• These are the associations designed to negate competitors’ POD.
• Example – Dettol & Savlon
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CATEGORY MEMBERSHIP
The products with which a brand competes & which function as close substitutes.
EXAMPLE – BMW (THE ULTIMATE
DRIVING MACHINE)
UMBRELLA CATEGORY
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Conveying Category Membership
Announcing category benefitsAnnouncing category benefits
Comparing to exemplarsComparing to exemplars
Relying on the product descriptor
Relying on the product descriptor
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Consumer Desirability Criteria for PODs
RelevanceRelevance
DistinctivenessDistinctiveness
BelievabilityBelievability
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Deliverability Criteria for PODs
FeasibilityFeasibility
CommunicabilityCommunicability
SustainabilitySustainability
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Examples of Negatively Correlated Attributes or 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
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FACTORS – DIFFERENTIATION STRATEGY
• COMPETITIVE ADVANTAGE;• LEVERAGEABLE ADVANTAGE; &• CUSTOMER ADVANTAGE.
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Differentiation Strategies
Product
Channel Image
Personnel
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Product Differentiation
• Product form• Features• Performance• Conformance• Durability• Reliability• Reparability
• Style• Design• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance
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Personnel Differentiation: Singapore Airlines
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Channel Differentiation:Eureka Forbes
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Image Differentiation
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THANK YOU…