WELCOME!

MBA (WX) Lecture Session On

“Crafting and Providing Marketing

Services’’
Prof. Ashish Hathi

1 9/7/2022 Confidential – Faculty – Ashish Hathi

 Session 4

Start of Chapter 3 – Positioning Services In Competitive

Markets (Part 2)
 Basic Targeting Strategies For Services

Transporter, Charter Service Provider,

Pathology Lab, Courier Cardiac Hospital

Starbucks, Dominos,
DHL Courier

3 07-09-2022 Confidential – Faculty – Ashish Hathi

Principles of positioning
services

4
 Principles of Positioning Services

Positioning strategy – creating, communicating, and

maintaining distinctive differences that will be noticed
and valued by the customers

DHL Positioning Services

5 9/7/2022 Confidential – Faculty – Ashish Hathi

 https://www.youtube.com/watch?v=kQg198yT5FQ

6 9/7/2022 Confidential – Faculty – Ashish Hathi

1-
 Principles of Positioning Services

Positioning Principles (Jack Trout ):

• A company must establish a position in the minds
of its targeted customers.
• The position should be singular, providing one
simple and consistent message
• The position must set a company apart from its
competitors
• A company cannot be all things to all people — it
must focus its efforts.

7 9/7/2022 Confidential – Faculty – Ashish Hathi

 Principles of Positioning Services

Analyze firm’s existing offerings and to provide specific

answers to the following six questions:
1. What does our firm currently stand for in the minds of current and potential customers?
2. What customers do we serve now, and which ones would we like to target in the future?
3. What is the value proposition for each of our current service offerings, and what market
segments is each one targeted at?
4. How does each of our service products differ from those of our competitors?
5. How well do customers in the chosen target segments perceive our service offerings as
meeting their needs?
6. What changes do we need to make to our service offerings in order to strengthen our
competitive position within our target segment(s)?

8 9/7/2022 Confidential – Faculty – Ashish Hathi

 Principles of Positioning Services

Analyze firm’s existing offerings and to provide specific

answers to the following six questions:
Kevin Keller, Brian Sternthal, and Alice Tybout note:
1. What does our firm currently stand for in the minds of current and potential customers?
2. What customers do we serve now, and which ones would we like to target in the future?
“Positioning needs to keep competitors out, not draw
3. What is the value proposition for each of our current service offerings, and what market
segments is each one targeted at? them in
4. How does each of our service products differ from those of our competitors?
5. How well do customers in the chosen target segments perceive our service offerings as
meeting their needs?
6. What changes do we need to make to our service offerings in order to strengthen our
competitive position within our target segment(s)?

9 9/7/2022 Confidential – Faculty – Ashish Hathi

Using positioning maps to plot
competitive strategy

10
Using Positioning Maps to Plot Competitive
Strategy

POSITIONING MAPS ARE TOOLS TO VISUALIZE A MAP USUALLY HAS TWO ATTRIBUTES,
COMPETITIVE POSITIONING ALONG KEY ASPECTS ALTHOUGH THREE-DIMENSIONAL MODELS CAN
OF ITS SERVICES MARKETING STRATEGY BE USED TO SHOW THREE OF THESE ATTRIBUTES.

9/7/2022 Confidential – Faculty

Confidential – Ashish
– Faculty Hathi Hathi
– Ashish
11
Using Positioning Maps to Plot Competitive
Strategy

When vegetable vendor

Quotes you price, what do you check?

When you go to a legal advisor, what will

you evaluate him on?

POSITIONING MAPS ARE TOOLS TO VISUALIZE A MAP USUALLY HAS TWO ATTRIBUTES,
COMPETITIVE POSITIONING ALONG KEY ASPECTS ALTHOUGH THREE-DIMENSIONAL MODELS CAN
OF ITS SERVICES MARKETING STRATEGY BE USED TO SHOW THREE OF THESE ATTRIBUTES.

9/7/2022 Confidential – Faculty

Confidential – Ashish
– Faculty Hathi Hathi
– Ashish
12
 Example of a Positioning Map

Figure 3.12 Positioning map of Belleville’s principal business hotels: service

level versus price level
13 9/7/2022 Confidential – Faculty – Ashish Hathi
Developing an effective
positioning strategy

15
 Developing An Effective Positioning Strategy

Basic elements to writing a good positioning statement

• Target audience
• Frame of reference
• Point of Difference
• Reason to believe

16 9/7/2022 Confidential – Faculty – Ashish Hathi

 Developing An Effective Positioning Strategy

Basic elements to writing a good positioning statement

• Target audience — the specific group(s) of people that the
brand wants to sell to and serve (e.g., professionals as primary
target customers, and employers and advertisers as secondary
target audiences).
• Frame of reference — the category that the brand is
competing in (e.g., in the social networking space).

17 9/7/2022 Confidential – Faculty – Ashish Hathi

 Developing An Effective Positioning Strategy

Basic elements to writing a good positioning statement

• Point of Parity — Considered features here may not be best or
may beat the competitor but to complete alongside the best. Points
of parity are the primary points in which you can compete with
your competitor and try to stay in the race.
• Need not be same to same — Apple has range of iPhone 11 and 11
Pro, 11 Pro Max with the primary new features such as the
telephoto lens and a wide-angle camera along with 12-megapixel
primary camera.
POP for competitors – 12 megapixel camera (not patented); On the
other hand, wide-angle camera and telephoto lens maybe in patent
with Apple and possibly could not be replicated by competitors
which is why I could offer other features such as HDR photos or an
enhanced portrait mode or wide-angle selfie which result is similar to
the primary feature of iPhones but do not exactly copy them.

20 9/7/2022 Confidential – Faculty – Ashish Hathi

 Developing An Effective Positioning Strategy

Basic elements to writing a good positioning statement

• Point of Difference — This is a unique feature providing a
competitive advantage that no other product gives you and
has an edge over the competitors.
The most compelling benefit offered by the brand that stands
out from its competition (e.g., largest network of professionals
and recruiters to help advance your career, develop your
business acumen, industry knowledge and personal
development).
• Reason to believe — proof that the brand can deliver the
benefits that are promised. (e.g., our network is many times
bigger than that of our nearest competitor).

21 9/7/2022 Confidential – Faculty – Ashish Hathi

 Developing An Effective Positioning Strategy -
POD

• Establishing point of parity and point of difference

Competition Brand

P-O-D P-O-P
Attacks –Ve
Your Brand

P-O-D correlated Brand Edge

aspect
Competition
P-O-P Edge
Me Too
• BMW known for Luxury-Performance will always strive so as
not to allow competition attack any one of them
22 9/7/2022 Confidential – Faculty – Ashish Hathi
 Developing An Effective Positioning Strategy -
POD
• Establishing point of parity and point of difference

POP – Considered features here may not be best or beat the competitor but to
complete alongside the best. Points of parity are the primary points in which you
can compete with your competitor and try to stay in the race.

23 9/7/2022 Confidential – Faculty – Ashish Hathi

 Positioning Services in Competitive
Marketing

The outcome of integrating the 3 Cs and the STP analyses is the

positioning statement that defines the desired position of the
organization in the marketplace.
With this understanding, marketers can now develop a specific plan
of action that includes;
o its positioning strategy along the 7 Ps of services marketing,
o its customer relationship management
o and loyalty strategies,
o and its service quality
o and productivity strategies.

24 9/7/2022 Confidential – Faculty – Ashish Hathi

 In-Class Discussion

• For such a competitive LUXURY HOTEL market,

developing a positioning is crucial. You need to direct your
marketing team with basic guidelines to follow.
o Q1 – For you to pursue customer-driven service marketing
strategies, what do you identify as important attributes and
determinant attribute from your service delivery eco-system?
o Q2 – For developing your positioning, you need to understand
your competitive position. Which framework will you use to
understand it?

25 9/7/2022 Confidential – Faculty – Ashish Hathi

 Session 4

Start of Chapter 5 – Distributing Services Through

Physical And Electronic Channels
 Services Marketing:
People, Technology, Strategy

CHAPTER 5

Distributing Services Through Physical And

Electronic Channels

27
27
 Chapter Layout
• Key questions for designing an effective service
distribution strategy.
• Using intermediaries effectively
• Distributing service internationally
• Entering international markets

28
 What is being distributed?

30
30
 Distinguishing Various Services
• Relate to the core service as well as to supplementary
services.
• Which petal of Flower of Service can you relate it with.
• Delivery of core services may need physical assets.
• Delivery of supplementary services can happen through an
alternative means – wide distribution, cost-effectively.
• Face-to-face, online, by phone, or by email, and then make a
booking through one of these same channels. Similarly, you
can purchase tickets through an agency without the need for
an advance trip to the facility itself.

31
 Distinguishing Various Services
• Relate to the core service as well as to supplementary
services.
• Which petal of Flower of Service can you relate it with.
These questions determine the customer’s
• Delivery of core
service services may
experience, whichneed
is aphysical
functionassets.
of how the
• Deliverydifferent elements of
of supplementary the Flower
services of Service
can happen are an
through
distributed
alternative means –and delivered
wide through
distribution, physical and
cost-effectively.
electronic channels.
• Face-to-face, online, by phone, or by email, and then make a
booking through one of these same channels. Similarly, you
can purchase tickets through an agency without the need for
an advance trip to the facility itself.

32
 People, Possession,
mental, information
processing

How should a service be

distributed?
33
33
How Should A Service Be
Distributed?
Six options for service delivery

34
 The Service Transaction Is
Customers Visit the Service Site
• Location, Own-rental, set-up, identity, ambiance,
convenience for customer, exclusivity or general
facility, supplementary facility services,

35
 The Service Transaction Is Service
Provider Go To Their Customers

• Mandatory – Boiler repair

• Traditional (Now turning leaf to make service
provider to go to customer site)
• Profitable niche – Pizza delivery, veterinary dog’s
doctor
• ??
• The rental of both equipment and labor at the
customer’s site – Electric Generator
36
 The Service Transaction Is
Conducted Remotely
• A customer may never see the service
facilities or meet service personnel face-to-
face when dealing with a service firm
through remote transactions.
• Logistics providers offer service firms integrated,
reliable and cost-effective solutions
• Examples:
– Repair services Reverse Logistics
– Web and app-delivered services

37
 The Service Transaction Is
Conducted Remotely

www.starwoodhotels.com
38
 Factors That Attract Customers To
Use Online Services
• Convenience.
• Ease of search
• A broader selection.
• Potential for better prices.
• 24/7 service with prompt delivery.

39
 Where should a service
facility be located?
40
40
 Collaborative-Collective Learning Task

Where Should a Service Facility Be Located?

(closer to customer, specific area, within country, outside country)
• Dental clinic
• B’Blunt Beauty salon
• DHL hub
• Laundry chain’s collection shop
• Laundry chain’s washing/DC facility
• Customer care of multi-global company

41
 Where Should A Service Facility
Be Located? (1 of 3) - Intrinsic
Strategic Location Considerations

• Customer needs – proximity, speed

• Nature of service delivery operations – customer
end?
• Buying frequency – frequent, periodic,
occasional
• Accessibility preference – Specific/no preference
• Price sensitivity – willingness to pay
• Competitive activity – Presence, future plan

42
 Where Should A Service Facility
Be Located? (2 of 3) - Extrinsic
Tactical Location Considerations
Key Factors:
– Population size and characteristics.
– Pedestrian and vehicular traffic and its characteristics.
– Convenience of access for customers.
– Nature of nearby businesses and stores.
– Availability of labor.
– Availability of site locations, rental costs, and
contractual conditions and regulations.

43
 Where Should A Service Facility
Be Located? (3 of 3)
• Locational Constraints
– The need for economies of scale and operational
requirements may restrict choice of locations.

• Innovative Location Strategies

– Innovative distribution strategies can be at the core of
powerful new service models.
Kiosk
– Mini Stores - An interesting innovation among multi-site Taco Bells
service businesses involves creating numerous small service
Subways at
factories to maximize geographic coverage.
Burger King
– Locating in Multi-purpose Facilities - The most obvious
locations for consumer services are close to where
Society with
customers live or work
essential services

44
 When should service be
delivered?
47
47
When Should Service Be
Delivered?
• 24/7 service — 24 hours a day, 7 days a week,
around the world.
• Factors determining the opening hours -
customer needs and wants and the economics
of opening hours
• Extended Operating Hours - Pressure from
consumers, Changes in legislation, Economic
incentives to improve asset utilization,
Availability of employees to work during
"unsocial" hours, Automated self-service
facilities
48
 The role of intermediaries

49
49
 The Role Of Intermediaries
• Many service organizations find it cost-effective to
outsource certain aspects of distribution.
• This delegation predominantly concerns
supplementary service elements.
• Analysis of benefits and costs of alternative
distribution channels.
• Many service firms have achieved brand equity by
migrating their customers and sales to lower cost
channels to remove intermediaries, a process also
called disintermediation.

50
 Analysis Of Benefits And Costs Of
Alternative Distribution Channels

51
 Alternative Sales Channels in the
Hospitality Industry

52
 Franchising (1 of 2)
Definition:
A franchise is the agreement or license between two
legally independent parties which gives: (a) a person
or group of people (franchisee) the right to market a
product or service using the trademark or trade name of
another business (franchisor); (b) the franchisee the right
to market a product or service using the operating methods
of the franchisor; (c) the franchisee the obligation to pay the
franchisor fees for these rights, and (d) the franchisor the
obligation to provide rights and support to franchisees.

Franchising

53
 https://www.youtube.com/watch?v=8UsT8OzfiVI

54 9/7/2022 Confidential – Faculty – Ashish Hathi

1-
What Makes Franchising
Attractive?
• Investment
• Long Term Commitment
• Local Knowledge
• Franchisor Success Factors include:
– The ability to achieve a larger size with a more recognizable
brand name.
– Offering franchisees fewer supporting services but longer-
term contracts.
– Having lower overhead per outlet.
– Providing accurate and realistic information about expected
characteristics of franchise operations, and support given.
– Building a cooperative rather than controlling relationship.

55
 Franchising Opportunities in India

56
 Distributing services
internationally
57
57
 How to go international?

58
 In-Class Discussion
• This is about the LUXURY HOTEL service.
• Customer like a specific service, brand and variant
thereof, but numerous other aspects need to be
closed. Also true for most of the other services.
o Q1 - Provide an idea of where will the service delivery take
place.
o Q2 – Where should Taj Palace Hotel locate their new hotel
at Kerala?

61 9/7/2022 Confidential – Faculty – Ashish Hathi

61
Strategic Management

62