Service Marketing

POSITIONING
SERVICES IN
COMPETITIVE
MARKETS
Submitted by:
PIYUKSHA PARGAL 37MBA18
SUPRIYA GUPTA 61MBA18
Agenda Style
01 What is positioning in services?
02 Developing effective positioning strategies

linking 3Cs with STP
03 Using positioning maps to effectively position

services
04 Relevant Case studies

WHAT IS POSITIONING ?
Brand positioning is an act of designing the company’s

offering and image to occupy a distinct place in the
mind of the target market.
– Philip Kotler
Timely
Food
Shipping of Reliable
delivery on
merchandis insurance
time
e
“
“To succeed in our over-communicated society, a company must
create a position in the prospect’s mind, a position that takes
into consideration not only a company’s own strengths and
weaknesses, but those of its competitors as well.”
Al Reis and Jack Trout

Thought leaders who coined the term “positioning” as related to marketing”
DIFFERENT AND VISIBLE
CUSTOMER-DRIVEN SERVICES MARKETING
STRATEGY
How do they compete ?

Speed delivered Convenience
Avoiding Errors
Service Encounter Providing extra

Positioning by
repositioning
7
DEVELOPING AN EFFECTIVE POSITIONING
STRATEGY
MARKET
ATTRACTIVENESS
Market size and growth
Profitability
Market trends
CUSTOMER NEEDS
Under- or unserved Define and
needs
More valued benefits Analyze
Market
Segments
▶ Needs-based
segmentation
followed by demographic,
psychographic, and
behavioral segmentation
STRATEGY
Competitor
Analysis
▶ Current positioning
▶ Strengths
▶ Weaknesses
STRATEGY
Company Select Target

Analysis Segments to Serve
▶ Determine customers the
▶ Current positioning firm can serve best
and ▶ Identify and analyze
brand image possibilities for
▶ Strengths differentiation
▶ Weaknesses ▶ Decide on focus strategy
▶ Values (i.e., service, market, or fully
focused)
▶ Select benefits to emphasize
to customers
Benefits must be
meaningful to customers
Benefits must not be well
met by competitors
STRATEGY
Articulate Desired
Position in the
Market
Determine Services
▶ Positioning must address Marketing Strategy
an attractive market and Action Plan
▶ Positioning must give a ▶ Positioning strategy
sustainable competitive
advantage over competition ▶ 7 ‘P’s of services marketing
▶ Customer relationship
management strategy
▶ Service quality and

productivity strategy
Elements of a Positioning Strategy Key
Concepts ( STP)
• Segmenting service markets
• Service attributes and service levels relevant for segmentation
Segmentation – Important versus determinant attributes
– Establishing service levels
Targeting service markets through four focus strategies:
– Fully focused
Targeting – Market focused
– Service focused
– Unfocused
• Positioning services in competitive markets
• Using positioning maps to plot competitive strategy
Positioning • Developing an effective positioning strategy
IMPORTANT V/S DETERMINANT
SERVICE ATTRIBUTES
Very important for the consumers but do not distinguish

company’s services from one another. However do
influence customer’s choice at this point.
Actually determine buyer’s choice between competing

alternatives but may not be important to the customer.
Basic 4 Strategies of services
AIRTEL
Power to keep in touch

( 1995- 1998) ( 1999- 2001) ( 2002- 2003)
( 2003- 2008)
AIRTEL
2016 onwards
POSITIONING
STRATEGY in
It is concerned with creating and maintaining distinctive differences
that will be noticed and valued by those customers with whom the
services
firm would most like to develop long-term relationship.
JACK TROUT’s 4 Principles of
positioning
▫ Must establish position for firm or product in minds of

customers
▫ Position should be distinctive, providing one simple,
consistent message
▫ Position must set firm/product apart from competitors
▫ A company cannot be all things to all people – must focus
its efforts
What is value How does each of
proposition for our service
our current products differ
service products, from
and market competitors’? How well do target
What customers segments? customers
do we serve now, perceive our
and which ones service products
would we like to as meeting their
target? needs?
What does our Avoid trap of What changes

firm stand for in investing too must we make to
the minds of heavily in points of strengthen our
current and differences that are competitive
potential position?
customers?
easily copied!
19
Using Positioning Maps to Plot
Competitive Strategy
• Also called perceptual mapping

• Great tool to visualize competitive positioning and map developments of
time.
• Useful way to represent consumer perceptions of alternative products
graphically
• Typically confined to two attributes, but 3-D models can be used to
portray positions on three attributes simultaneously
• Information about a product can be obtained from market data, derived
from ratings by representative consumers, or both
Using Positioning Maps to Plot
Competitive Strategy
• Identify the most critical attributes
• Visual picture of a service’s distinctive characteristics
• Identify the nature of competitive threats and opportunities
• Highlight gaps between customer and management
perceptions about competing services
Positionin
g Map of
Airlines
POSITIONING MAP OF SOCIAL MEDIA SITES
Professional
High member count Low member count
Amateur
 Café Coffee Day
 Barista
 Da France Coffee
 Seven Beans
 Nescafe
 Brewers
 Starbucks
 Coffee 9
Positioning Maps Help Managers to
Visualize Strategy
Research provides input to development of positioning maps –
challenge is to ensure that Attributes employed in maps are
important to target segments
Performance of individual firms on each attribute accurately

reflects perceptions of customers in target segments
Predictions can be made of how positions may change in light of

future developments
Charts and maps can facilitate “visual awakening” to threats and

opportunities, suggest alternative strategic directions
How can A GOOD
POSITIONING
STATEMENT be
written ? Target
Audience
Point Of
Difference
Frame Of Reason To
Reference Believe
THANKS!
Any questions?
29

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POSITIONING

02 Developing effective positioning strategies

03 Using positioning maps to effectively position

04 Relevant Case studies

Brand positioning is an act of designing the company’s

Al Reis and Jack Trout

Service Encounter Providing extra

Company Select Target

▶ Service quality and

Very important for the consumers but do not distinguish

Actually determine buyer’s choice between competing

Power to keep in touch

▫ Must establish position for firm or product in minds of

What does our Avoid trap of What changes

• Also called perceptual mapping

High member count Low member count

Performance of individual firms on each attribute accurately

Predictions can be made of how positions may change in light of

Charts and maps can facilitate “visual awakening” to threats and

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