ssd smg l3b positioning

8/7/2019 SSD SMG L3B Positioning

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SSD SMG - 3. 1

Challenges for Service Organizations / MarketersChallenges for Service Organizations / Marketers

Service Quality defining : Intangibility & Variability

Service Quality maintaining : Integrated Offering

Org Structure : Mktng + Opns + HR interlinked Fluctuating Demand : Perishability

Balancing Act : Standardisation v/s Personalisation

Competition Thwarting : Patenting Problems / Entry

Consistent Communication : Direct communication

with customers by frontline.


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SSD SMG - 3. 2

4 Corner4 Corner--stones of Services Marketingstones of Services Marketing

Segmentation Targeting

Positioning

Marketing Mix


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SSD SMG - 3. 3

SegmentationSegmentation

Process of dividing the total market into smaller

groups , such that members of each group are :

Very similar in their buying behaviour Have common factors that influence their demand

Likely to respond similarly to a common stimulus

Have common characteristics meaningful to

design / delivery / promotion / pricing

Not attempting to be all things to all people.

Robert Pitts


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SSD SMG - 3. 4

Attributes of SegmentationAttributes of Segmentation

Any given segment should ideally be :

Relevant : Compatible with design / mktng / distbn skills

Measurable : Numbers & / or Purchasing Power

Sizeable : Voluminous enough => Prod Costs => Profits

Reachable : Communication / Distribution


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SSD SMG - 3. 5

Benefits of SegmentationBenefits of Segmentation

Easier Marketing : Less Complexity , Smaller Universe Accurate Marketing : Giving-what-they-want,Customization

Efficient Marketing : Maximum-Bang-for-Each-Buck

Identify & Develop Niche Markets : New Markets / New Buyers


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SSD SMG - 3. 6

Approaches to Target MarketingApproaches to Target Marketing

Opportunities are of4 types :

Present Markets : Present Products : Market Penetration

Present Markets : New Products : Product Development

New Markets : Present Products : Market Development

New Markets : New Products : Diversification


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SSD SMG - 3. 7


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SSD SMG - 3. 9

Understanding Buyer BehaviourUnderstanding Buyer Behaviour

Q. What do customers buy ?

A. Customers buy solutions to their problem.

Q. Do customers buy on the basis of price ?

A. No ! Customers buy Value (for money).

Q. What does value mean ?A. Sum Total of all benefits being received

(for a given price outgo).


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SSD SMG - 3. 10

Economics of MarketingEconomics of Marketing

What does the typical customer consider ?

Total Value = Total Utility derived from that purchas

(Total Value is unique to each customer,each txcn)

Is the benefits package worth the money ?

( Diff in price = Also diff in benefits )

If I do not buy this & instead buy that , how muchof satisfaction would I have ?

( Concepts of Utility & Opportunity Cost )


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SSD SMG - 3. 11

Importance of TargetingImportance of Targeting

Target Markets become reference frames

For product / position / marketing mix.

Narrows down scope of Competition.

Precision Marketing can be practised , thereby

making it cost-efficient.


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SSD SMG - 3. 12

Segmentation & Target MarketingSegmentation & Target Marketing

Is Segmentation = Target Marketing ?


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SSD SMG - 3. 13

Example of Target MarketingExample of Target Marketing

Segmentation = > Target Marketing

Eg Tourism Industry segmentation can be :

Geographic Location / Socio-Economic / Age

Income Level / Benefits /

Target Marketing : Choosing particular segments

Eg Kerala Tourism => Health Conscious

Eg Malaysia Tourism => High Spenders

Eg Himachal Tourism => Adventurists


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SSD SMG - 3. 14

Understanding PositionUnderstanding Position

A product / service offerings position is the

way the brand / service is perceivedby consumers , especially in relation to

competitive offerings.


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SSD SMG - 3. 15

Understanding PositioningUnderstanding Positioning

Positioning a product is notwhat you do

to the product , but what you do to the

mind of the prospect.

Always in the mind of the customer.

May not match with what was intended !!


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SSD SMG - 3. 16

How does Positioning Work ?How does Positioning Work ?

Consumers exposed to information overload

Bombarded with marketing communications

Competing Brands => Similar Claims =>Clutter

Consumers accept communication in the

limits of their own reference frame

Difficult to make them believe anything else

Difficult to shake-off , once believed

Once believed , the product / service occupies a

particular slot , aka a position in the mind.


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SSD SMG - 3. 17

Consumer is the King.Consumer is the King.

Rules of the Benefits PackageRules of the Benefits Package

If the customer does not believe your attributes

to be a benefit , it is not a benefit.

If the benefit is believed , but it is insignificant for

the customer , is it really a benefit ? If the customer does not believe that the benefit

will be delivered , is the promise

(of delivering that benefit ) enough?

If the customer does not perceive that what you areoffering is different , will the benefit be seen as

different?


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SSD SMG - 3. 18

A successful positionA successful position

Is the one which establishes & maintains

a distinctive and desirable place for itself

in the consumers mind relative to

competing organizations or their offerings.


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SSD SMG - 3. 19

Why Positioning .Why Positioning .

To differentiate your offering / brand

To cut through the clutter

To get the consumer to know the real you

To get the consumer to believe that your

set of benefits are superior value vis--vis

those offered by the competition ).


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SSD SMG - 3. 20

Selecting a PositionSelecting a Position

What is the current position of the service in the

mind of the target market? (Market Research)

What are the strengths / CCs that we have which

the competition has not positioned itself on ? (Map)

What position does the firm want to make its own?

(Identifying Gaps or Holes)

Who & What must get out-positioned for doing so?

(Nature & Communication Package of Competition)

How can we go about doing this?(Mkting Approach)


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SSD SMG - 3. 22

Mini Case Example for PositioningMini Case Example for Positioning

Marriotts Residency Inn

Name : Evocative of a private place of abode Slogan : Home-away-from-Home

Location : Central , Residential Areas

Communication : Based on home,neighbourhood

Physical Look : Homely Interiors , Fireplaces , etc

Marketing Mix : All elements in support


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SSD SMG - 3. 23

Impact of PositioningImpact of Positioning

Employee skills & attitudes HRR / Training

Employee Customer Interaction Training / Expectations Mngmnt

Customer Care Initiatives / Responsiveness - Empowerment

Policies , Procedures & Practices Support Systems


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SSD SMG - 3. 24

Bases for PositioningBases for Positioning

Products / Services can be positioned on these dimensions :

Why ? ( Needs that they satisfy )

What for ? ( Benefits that they deliver )

What ? ( Specific service features )

When & How ? ( of the usage of service )

Who ? ( Users of the service )


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SSD SMG - 3. 25

Positioning by ReliabilityPositioning by Reliability

Customer Confidence that the service will be

delivered as stated by the provider.

Ability to perform service dependably & accurately.

eg FedEx : The World on Time

When it absolutely , positively , has to get thereeg Sahara: 98 % on time


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SSD SMG - 3. 26

Positioning by AssurancePositioning by Assurance

For Trust & Confidence sensitive offerings

Eg Insurance / Healthcare / Banking

Eg PNB : The name you can bank upon

Eg LIC : Jindagi ke saath bhi , jindagi ke baad bh


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SSD SMG - 3. 28

Positioning by ResponsivenessPositioning by Responsiveness

Focusing on prompt , speedy service

Eg American Express => Standards => T/A Time

Eg Radisson Hotels => Yes, I can.


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SSD SMG - 3. 29

Positioning by TangiblesPositioning by Tangibles

Physical features forming part of the

total experience .

Commonly used by Tourism / Eateries / Retailing

Eg Goa Tourism => Beaches / Fun / Food

Eg Crossword => Space / Caf / Sit-Downs


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SSD SMG - 3. 30

Positioning by CompetitionPositioning by Competition

Compelling the consumer to view

the competitor differently.

Re-positioning the Competition !

Eg Wise Chips v/s Pringles

Only Potatoes.Vegetable Oil.Salt.

Head-On comparison with a Competitor

Eg Indica with C segment cars / B kill


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SSD SMG - 3. 31

Positioning by EndorsementPositioning by Endorsement

Use of celebrity endorsement

+ ve rub-off of celebrity attributes

Eg Tendulkar / Visa Card

Dependability / Popularity / Universal Appeal


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SSD SMG - 3. 32

Applying the 1Applying the 1stst Mover AdvantageMover Advantage

to Positioning .to Positioning .

Principle of the First-Mover Advantage

Being 1st , helps to grab invaluable mind-space

Being 1st , need not be always with a new product

1st can be achieved thru 1st-in-Positioning.

Eg Haywards 5000 = > 1st with a adult beer position

Eg Miller Lite = > 1st with a light beer position

Eg Volkswagen Beetle = > Think Small


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SSD SMG - 3. 33

Applying the Brand Name for Positioning.Applying the Brand Name for Positioning.

Cigarettes for Women : Virginia Slims

Anti-Dandruff Shampoo : Head & Shoulders

Fresh-Breath Toothpaste : Close-Up


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SSD SMG - 3. 34

Corporate v/s Product PositioningCorporate v/s Product Positioning

Hypothetical Example of the HDFC Family

HDFC Group : Where people love to Work

HDFC Realty : Built by people just like you

HDFC Insurance : Managed by people just like you

HDFC Recruitment : Work where people love to work


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SSD SMG - 3. 35

Linking Segmentation to PositioningLinking Segmentation to Positioning

Segmentation => Target Marketing TM needs to understand brands relevance

Positioning gives that connectivity

Marketing Mix has to keep reinforcing that


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SSD SMG - 3. 36

Thank YouThank You

For YourFor YourParticipationParticipation

ssd smg l3b positioning

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