Positioning and Differentiation of Services

Positioning is defined as the process of establishing and maintaining a distinctive place in the market for an organization and or its individual product offerings Positioning strategy is the choice of target market segments which determine where the business competes and the choice of differential advantage, which dictates how it competes

Positioning Strategies
Attribute positioning-based on attribute e.g Allahabad Bank positions itself as oldest bank Benefit positioning e.g ICICI Bank with good number of ATMs and internet banking Use /application positioning-e.g SBI for educational loans User positioning-for e.g India as a destination for pilgrimage centres Competitor positioning-Service is positioned against competitors e.g IIPM against IIMs Category positioning- e.g Disney world as entertainment park Quality/price positioning for e.g: Oberois as high quality, high price hotels

Value Chain in Services

Organization needs to analyze costs related to each activity Customers value chain to be evaluated i.e companys product or service fitting in customers value chain Obtaining cost advantages compared to competitors Reducing costs or increasing performance of customer

Differentiation
Differentiation to decide the number of benefits and attributes from that of the competitors The attributes for Differentiation are as follows:a) Important b) Distinctive c) Superior d) Communicable e) Preemptive-cannot be copied f) Affordable g) Profitable

Steps in Developing Positioning Strategy

Determining levels of positioning:a) Service level-LIC offering different life policies b) Corporate level- LIC as Trustworthy and Reliable company c) Category level-LIC as insurance company with various investment options

Identification of Attributes
Company should identify attributes offered by product class e.g:-Hotel offering free sauna bath Customers considers specific uses offered by particular company e.g:-Insurance products offered for investment options Customers make decision on price of services in comparison to perceived delivered value e.g Amount spend on MBA degree in comparison to package received after completion Services ability to serve the needs of particular set of users e.g. Goa for fun loving youth Service provider should provide rational and emotional benefits to customers e.g Customers preference for particular airlines for his liking of crew members

Location of Attributes on Positioning Map

Positioning maps can be developed for each segment in target market and these maps will show the positions of different players as per perceptions of customers in segments The basis for positioning a) Objective positioning- physical attributes of product or service b) Subjective positioning-customers image of service or both

Evaluating Positioning Options

Strengthening present positions against competitors by providing efficient service Identifying unoccupied market position Repositioning the competitors e.g Airtel repositioned from premium brand to mass brand

Implementing Position
Marketing Mix for implementation of positioning strategy:a) Service e.g Customer service provided at Hilton Hotels b) Price e.g Insurance companies having different policies with different pay outs c) Location e.g On-line banking is more attractive to busy traveler d) Promotion e.g McDonalds I am lovin it e) People e.g Customer care executives are given customer service training f) Processes e.g Banks can reposition service on the basis of technology i.e Using Internet stressing on convenience of customers