GROUP M1 ABHILASHA NEHA PRIYADARSHINI ANUPAM ARVIND

Intensifying competition in service sector threatens firms with no distinctive competence and undifferentiated offerings
Slowing market growth in mature service industries means that only way for a firm to grow is to take share from competitors Rather than attempting to compete in an entire market, firm must focus efforts on those customers it can serve best Must decide how many service offerings with what distinctive (and desired) characteristics

A business must set itself apart from its competition. To be successful it must identify and promote itself as the best provider of attributes that are important to target customers
GEORGE S. DAY

BREADTH OF SERVICE OFFERINGS

Narrow Wide
Unfocused (Everything For everyone)

NUMBER OF MARKETS SERVED

Many

Service focused

Few

Fully focused (Service and market focused)

Market focused

1. Must establish position for firm or product in minds of customers 2. Position should be distinctive, providing one simple, consistent message 3. Position must set firm/product apart from competitors 4. Firm cannot be all things to all people--must focus

Understand relationships between products and markets

compare to competition on specific attributes evaluate products ability to meet consumer needs/expectations predict demand at specific prices/performance levels

Identify market opportunities

introduce new products redesign existing products eliminate non-performing products

Make marketing mix decisions, respond to competition

distribution/service delivery pricing communication

 Product

attributes relationships

Price/quality Reference

to competitors (usually shortcomings) occasions

Usage User

characteristics class

Product

Define, Analyze Market Segments

MARKET ANALYSIS

- Size - Composition - Location - Trends

Select Target Segments To Serve

INTERNAL ANALYSIS

- Resources - Reputation - Constraints - Values

Articulate Desired Position in Market

Select Benefits to Emphasize to Customers

Marketing Action Plan

COMPETITIVE ANALYSIS

- Strengths - Weaknesses - Current Positioning

Analyze Possibilities for Differentiation

Expensive

Grand

Regency

PALACE

High Service

Shangri-La
Sheraton Atlantic

Moderate Service

Italia Castle Alexander IV Airport Plaza

Less Expensive

High Luxury

Grand Sheraton PALACE

Financial District Shopping District and Convention Centre

Regency

Shangri-La

Inner Suburbs

Castle Atlantic

Italia

Alexander IV
Airport Plaza Moderate Luxury

Mandarin New Grand Heritage Marriott Continental

Expensive

Action? Regency High Service

PALACE
Shangri-La No action? Atlantic Sheraton Italia Castle Alexander IV Airport Plaza Moderate Service

Less Expensive

Positioning maps display relative performance of competing firms on key attributes Research provides inputs 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 the light of new developments in the future Simple graphic representations are often easier for managers to grasp than tables of data or paragraphs of prose Charts and maps can facilitate a visual awakening to threats and opportunities and suggest alternative strategic directions