Positioning Services + TB Chapter 3 Flashcards
Customer analysis
Overall examination of market characteristics
Customer needs and related characteristics and behaviours
Competitor analysis
Current positioning
Strengths and weaknesses
Company analysis
Current brand positioning and image
Resources
Limitations
Segmentation
Dividing population of possible customers into groups with common service-related characteristics
Targeting
Choose one/more segments to focus on
Positioning
Unique place in the minds of customers
Differentiation forms first step to creating unique positioning
Segmenting service markets
Market segmentation such as demographic, psychographic, behavioural, need-based, etc
Important service attribute
May not always be the decider for a service
eg: safety on long distance flights
Determinant attribute
Less important service characteristics that are however still important to determine a buyers choice
eg: large leg room on long distance flights
Segmenting based on service levels
Easily quantifiable attributes are easier to understand and more generalized
Qualitative attributes are ambiguous and subject to individual interpretation
Four focus strategies to narrow down target segments
Fully focused
Market focused
Unfocused
Service focused
Fully focused strategy
Provides a limited range of services to a narrow and specific market segment
eg: PJ charter services focus on high-net-worth individuals or corporations
Market focused strategy
Offers a wide range of services to a narrowly defined target segment
eg: boxing, personal training, etc targeted to gym-goers
Service focused strategy
Offer a narrow range of services to a fairly broad market
eg: starbucks
Unfocused strategy
Serve broad markets and provide a wide range of services
Generally not a good idea for firms unless government ran
Opportunities and risks in fully focused strategy
Opps:
Expertise in niche
Premium pricing
Risks:
Market size
Demand
Susceptibility to economic downturn
The four principles of positioning services
A company must establish a position in the minds of targeted customers
The position should be singular, providing one simple and consistent message
The position must set the company apart from its competitors
A company cannot be all things to all people - it must focus its efforts
Six questions for effective positioning
What does the firm stand for?
What customers do we serve and would like to target?
What is the value proposition of our current service product?
How do our offerings differ?
How well do target customers perceive our offerings to meet their needs?
What changes do we make to strengthen position?
Positioning maps
Display relative performance of competing firms on key attributes
Four elements to a good positioning
Target audience
Frame of reference
Point of difference
Reason to believe
Target audience (good positioning element)
The specific group(s) of people that the brand wants to sell to and serve
Frame of reference
The category that the brand is competing in
Point of difference
The most compelling benefit offered by the brand that stands out from its competition
Reason to believe
Proof that the brand can deliver the benefits that are promised
