Customer- Driven Marketing Strategy Chapter: 7 Lec: 6c

Differentiation and Positioning Value proposition should be thought by the company Product position The way the product is defined by consumers on important attributes- the place the product occupies in consumers’ minds relative to competing products

Differentiation and Positioning Products are created in the factory but brands are created in minds

Powerful all purpose detergent Gentle detergent for fine washables It’s fun to be young (for youngsters)

Good in performance luxury car Innovative “think different” Strong and smart “feel good everyday”

Niralla bohat hi alla “Family mixture chaye” Just do it

Positioning Maps For planning differentiation and positioning strategies, marketers use positioning maps

Positioning Map Attribute 1 Attribute 2

Positioning Map Price/ quality (Pizzahut) Price / Luxury (Car) Age / Benefit (Lucozade)

2 different Positioning of Detol

2 different Positioning of Johar Joshanda

2 different Positioning of

Choosing a Differentiation and Positioning Strategy Competitive Advantage An advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices Positioning is based on three steps 1.Identifying the different set of competitive advantages to chose from them 2.Choosing the right competitive advantage 3.Effectively deliver and communicate the right competitive advantage

Identify possible differences and competitive advantage Customer’s needs should be understandable by the company Give what you are promising as your competitive advantage e.g. Nokia (Durable phones) Placement e.g. Gourmet Price e.g. Savour Foods People e.g. Disney Image e.g. Sony (Good Quality) Symbols e.g. McDonalds (M), Nike, Swoosh

Choosing the right Competitive Advantage How many differences to promote - Some people think taking one benefit is important but there are some opinions opposite to that as well e.g. Head & Shoulders (Dandruff free hair) Panteen (Beautiful hair)

Choosing the right Competitive Advantage Which Differences to promote Important- valued for customers e.g. sunsilk Distinctive- competitors are not offering it e.g. Tide stick Superior- should not be obtained from somewhere else e.g. Mocha Coffee Communicable- Preemptive- Competitors cannot copy the difference Affordable- Buyers can afford to pay the difference Profitable-

Selecting the overall positioning strategy Value proposition The full positioning of a brand- the full mix of benefits upon which it is positioned -More for More: price equals quality -More for the same: more or less similar product, less price -The same for less: less price for same products e.g. Metro -Less for Much Less: less offering with less price e.g. Hotels with no swimming pool etc. zoom airlines -More for less: cheap tickets (not in peak season)

Developing a Positioning Statement Positioning statement A statement that summarizes company or brand positioning- it takes this form: To (target segment and need) our (brand) is (concept) that (point of difference) Communicating the Positioning statement - Inform employees and retailers etc. about it - Match it with your activities - Don't abruptly change the positioning