GROUP 2

Nguyễn Hà Thanh Phan Nguyễn Trần

Văn Lương Phương Ngọc Diệp Khải Nguyên Quốc Dũng
2221001642 2221001754 2221001540 2221001704 2221001543
 CHAPTER 3

POSITIONING SERVICES
IN COMPETITIVE MARKETS
OVERVIEW
OVERVIEW
1 MARKET SERVICE SEGMENTATION

2 SERVICES ATTRIBUTES AND LEVELS

3 FOCUS STRATEGIES FOR SERVICES

4 POSITIONING DISTINGUISHES A BRAND FROM ITS COMPETITORS

5 DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

6 USING POSITIONING MAPS TO ANALYZE COMPETITIVE STRATEGY

7 CHANGING COMPETITIVE POSITIONING

1.MARKET SERVICE
SEGMENTATION
1.MARKET SERVICE
SEGMENTATION

SEGMENTATION IS ONE OF THE MOST IMPORTANT CONCEPTS IN

MARKETING. SERVICE FIRMS VARY WIDELY IN THEIR ABILITIES TO SERVE
DIFFERENT TYPES OF CUSTOMER. HENCE, RATHER THAN TRYING TO
COMPETE IN AN ENTIRE MARKET, PERHAPS AGAINST SUPERIOR
COMPETITIONS, EACH FIRM SHOULD ADOPT A STRATEGY OF MARKET
SEGMENTATION, INDENTIFYING THOSE PARTS, OR SEGMENTS, OF THE
MARKET THAT IT CAN SERVE BEST.
1.MARKET SERVICE
SEGMENTATION
Market segment: composed of a group of
buyers who share common characteristics,
needs, purchasing behavior, or consumption
patterns

Target segment: a segment that a firm

has selected from among
those in the broader market and may be
defined on the basis of several
variables
1.MARKET SERVICE
SEGMENTATION
1 DEMOGRAPHIC SEGMENTATION
Widely used by D2C ecommerce brands, demographic segmentation is one of
the most simple yet effective kinds of segmentation. You can use demographic
segmentation to split your audience and create customer personas based on
objective information, such as:
Age
Gender
Income
Level of education
Religion
Profession/role in a company
1.MARKET SERVICE
SEGMENTATION
1 DEMOGRAPHIC SEGMENTATION

Luxury goods manufacturer Montblanc worked

with Yieldify to present a selection of offers across
their website. They lifted conversions by 118%
with a Father’s Day deal offering a free gift to
customers spending over £200 – a threshold that
took the spending expectations of Montblanc’s
target audience into account.
1.MARKET SERVICE
SEGMENTATION
2 GEOGRAPHIC SEGMENTATION
Geographic segmentation is the process of grouping customers based on
where they live and where they shop. People who live in the same city, state
or zip code typically have similar needs, mindsets and cultural preferences.
The real advantage of geographic segmentation is it provides an insight into
what your customers’ location says about a number of geo-specific
variables, such as their:

Climate
Culture
Language
Population density – (urban vs rural)
1.MARKET SERVICE
SEGMENTATION
2 GEOGRAPHIC SEGMENTATION

You can also use geographic segmentation to solve

practical problems. With Yieldify, global fashion brand
Nautica used geo-targeting to show different customers
when they could guarantee Christmas delivery.
Customers in rural areas had to order earlier than urban
areas, so Nautica’s delivery countdown timers adapted
according to the customer’s location.
1.MARKET SERVICE
SEGMENTATION
3. BEHAVIORAL SEGMENTATION

Behavioral segmentation is the process of grouping customers based on common

behaviors they exhibit when they interact with your brand

Gather this objective data through your website analytics and you can identify patterns in
your customers’ behavior that help predict how they’ll interact with your brand in the
future.
1.MARKET SERVICE
SEGMENTATION
3. BEHAVIORAL SEGMENTATION

For this type of segmentation, you can group your audience based on their:

Spending habits
Purchasing habits
Browsing habits
Interactions with your brand
Loyalty to your brand
Product feedback
1.MARKET SERVICE
SEGMENTATION
3. BEHAVIORAL SEGMENTATION

For example, Spotify provides

its users with curated daily
mixes based on the types of
genres and artists they’ve
listened to previously.
1.MARKET SERVICE
SEGMENTATION
4 PSYCHOGRAPHIC SEGMENTATION

Psychographic segmentation is the process of

grouping people together based on similar personal
values, political opinions, aspirations and
psychological characteristics.
1.MARKET SERVICE
SEGMENTATION
4 PSYCHOGRAPHIC SEGMENTATION
For example, you can group customers according to
their:
Personality
Hobbies
Social status
Opinions
Life goals
Values and beliefs
Lifestyle
1.MARKET SERVICE
SEGMENTATION
4. PSYCHOGRAPHIC SEGMENTATION
1.MARKET SERVICE
SEGMENTATION
5 NEEDS-BASED SEGMENTATION
Needs-based segmentation is a marketing strategy that involves dividing a market
into distinct groups based on the different needs, wants, preferences, and behaviors
of consumers. This approach recognizes that consumers have unique requirements
and motivations, and tailors marketing efforts to address these specific needs
within each segment.

For example, you can group customers according to their:

Needs
Desired Attributes
Solution to Problems
2. SERVICE ATTRIBUTES AND LEVEL
2. SERVICE ATTRIBUTES AND LEVEL

DEVELOPING RIGHT SERVICE CONCEPT FOR A SPECIFIC SEGMENT

Firms often use formal research to identify and prioritize which

attributes of a given service are important to specific market segments

Priorities for attributes may differ for individuals according to:

Purpose of using the service
Who makes decision
Timing of use
Whether service is used alone or with a group
Composition of that group
2. SERVICE ATTRIBUTES AND LEVEL

2.1 IMPORTANT vs. DETERMINANT ATTRIBUTES

Consumers usually make their choices among alternative

service, offerings based on perceived differences between
them

Determinant attributes: determine buyers’ choices between

competing alternatives. List of service characteristics important to
purchasers, but they are the attributes on which customers see
significant differences among competing alternatives.
2. SERVICE ATTRIBUTES AND LEVEL

2.1 IMPORTANT vs. DETERMINANT ATTRIBUTES

2. SERVICE ATTRIBUTES AND LEVEL
2.2 ESTABLISHING SERVICE LEVELS

Decisions are made on what level of

performance firm plans to offer on
each attribute

• Easily quantified attributes are easier to

understand – e.g., vehicle speed, physical
dimensions

• Qualitative attributes subject to individual

interpretation – e.g., physical comfort, noise
levels
2. SERVICE ATTRIBUTES AND LEVEL
2.2 ESTABLISHING SERVICE LEVELS

Customers often can be segmented

according to willingness to trade off price
versus service level:

• Price-insensitive customers willing to

pay relatively high price for high levels of
service

• Price-sensitive customers look for

inexpensive service with relatively low
performance
3. TARGETING SERVICE MARKETS

3.1 Standing apart from competition

3.2 Basic focus strategies for services
3.TARGETING SERVICE MARKETS
3.1. Standing apart from competition

“The diversity of ways a business can achieve competitive

advantage quickly defeats any generalizations or facile
prescriptions . . . First and foremost, 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.”

“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
WHO IS THE WINNER?
3.2. BASIC FOCUS STRATEGIES FOR SERVICES
 FULLY FOCUSED

A fully focused organization provides a limited

range of services (perhaps just a single core
product) to a narrow and specific market
segment. Developing recognized expertise in a
well-defined niche may provide protection
against would-be competitors and allow a firm
to charge premium prices.
 MARKET FOCUSED

A market focused company

concentrates on a narrow
market segment, but has a
wide range of services.
3.1.2. TARGETING SERVICE MARKETS
SERVICE FOCUSED

Service focused firms offer a narrow

range of services to a fairly broad
market. However, as new segments are
added, firms need to develop
knowledge and skills in serving each
segment.
 UNFOCUSED
Many service providers fall into the
unfocused category, because they try to
serve broad markets and provide a wide
range of services. The danger with this
strategy is that unfocused firms often are
“jacks of all trades and masters of none.”
In general, that’s not a good idea,
although public utilities and government
agencies may be obliged to do so.
4. POSITIONING DISTINGUISHES A BRAND FROM ITS
COMPETITORS
4. POSITIONING DISTINGUISHES A BRAND FROM ITS
COMPETITORS

1. Establishing a position 3. Different from

in mind's customers competitors

FOUR PRINCIPLE OF
POSITIONING STRATEGY

2. Consistent message 4. Focusing its efforts

4. POSITIONING DISTINGUISHES A BRAND FROM ITS
COMPETITORS
APPLE (FKA) THINK DIFFERENT.

2. Consistent message

3. Different from
competitors
4. POSITIONING DISTINGUISHES A BRAND FROM ITS
COMPETITORS
01

06 02

05 03

04
4. POSITIONING DISTINGUISHES A
BRAND FROM ITS COMPETITORS
01

06 02
What does our firm stand for in the
minds of current and potential
customers?
05 03

04
4. POSITIONING DISTINGUISHES A
BRAND FROM ITS COMPETITORS
01
02
06
What customers do we serve now,
and which ones would we like to
target?
05 03

04
4. POSITIONING DISTINGUISHES A
BRAND FROM ITS COMPETITORS
01

06 02
What is value proposition for our
current service products, and market
segments?
05
03
04
4. POSITIONING DISTINGUISHES A
BRAND FROM ITS COMPETITORS
01

06 02
How does each of our service
products differ from competitors’ ?

05 03

04
4. POSITIONING DISTINGUISHES A
BRAND FROM ITS COMPETITORS
01

06 02
How well do target customers
perceive our service products as
meeting their needs?
03
05
04
4. POSITIONING DISTINGUISHES A
BRAND FROM ITS COMPETITORS
01
06 02
What changes must we make to
strengthen our competitive position?

05 03

04
4. POSITIONING DISTINGUISHES A
BRAND FROM ITS COMPETITORS

One of the challenges in developing a

viable positioning strategy

Avoid over-investing in
differentiating points that are
easily replicable.
4. POSITIONING DISTINGUISHES A
BRAND FROM ITS COMPETITORS

Market-oriented Definition/ Value

Company
propositions

Focuses on providing a quick and convenience

Circle K products. Stores are often located in easily
accessible locations.

Stands out with a combination model between a

Ministop convenience store and a mini restaurant.
5. DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

After we now understand the importance of focus and the principles

of positioning, let us discuss how to develop a positioning strategy.
5. DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

POSSIBLE RESULTS WHEN

YOU FAIL IN POSITIONING
5. DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

Pushing into a position where it faces head-on

competition from a stronger competitor.
5. DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

Pushing into a position nobody else wants

because little customer demand exists.
5. DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

So blurred that nobody really knows its

distinctive competence.
5. DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

Define, Analyze
Size
Market Composition
market segments
Location
analysis Trends

Select Target
Segments to Serve

Resource
Internal Reputation Marketing
Articulate Desired
Constraints Action
analysis Values
Position In Market
Plan

Select Benefits to
Emphasize to
Customers
Competitive Strengths
Weaknesses
analysis Current positioning
Analyze Possibilities
for Differentiation
5. DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

Market analysis
01 Size

02 Composition

03 Location

04 Trends
E.g. Vfresh Juki Product of Vinamilk
5. DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

Internal analysis
01 Resource

02 Reputation

E.g. Biti’s
03 Constraints

04 Values
5. DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

Competitor analysis

01 Strengths

02 Weaknesses

03 Current positioning

E.g. The competition between Coca-Cola and Pepsi

5. DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

Position statement
The combination of Market
Analysis, Internal Analysis, and
Competitor Analysis.

E.g. 30Shine hair cutting system

Position statement: 30Shine Shop's
mission is to help Vietnamese men
have a handsome appearance and a
refreshing spirit to attract women.
6. Using Positioning Maps to
Analyze Competitive
Strategy
6.1 WHAT ARE
POSITIONING MAPS?
6.1 WHAT ARE POSITIONING
MAPS?

A diagram that plots the

perceived positions of different
brands or offerings in a given
market segment
Example

Brand
positioning map
in the dating
connection
service industry
 Use price and
quality as the
axes, and place
each brand
according to
how customers
perceive them
Above are the most common and
common positioning maps
6.2 WHY SHOULD
USE THE
POSITIONING MAPS
6.2 WHY SHOULD USE
THE POSITIONING MAPS

Visualize the Competitive

Landscape
6.2 WHY SHOULD USE
THE POSITIONING MAPS

Identify Gaps and

Opportunities
6.2 WHY SHOULD USE
THE POSITIONING MAPS

Refine Your Targeting

6.2 WHY SHOULD USE
THE POSITIONING MAPS

Develop Winning Strategies

6.2 WHY SHOULD USE
THE POSITIONING MAPS

Improve Communication
6.2 WHY SHOULD USE
THE POSITIONING MAPS

Make Data-Driven Decisions

 6.3 HOW TO CREATE A
POSITIONING MAP

01 02 03 04

Define the Identify Research and Analyze, Refine

market Key Service Plot Your and develop
Attributes Service Include Your Positioning
Competitors Statement
 6.3.1 DEFINE THE MARKET
CHOOSE THE
01 COUNTRY OR 03
REGION YOU
WISH TO STUDY

IDENTIFY DECIDE IF YOU

THE WANT TO TRACK
CONSUMER 02 04
THE ENTIRE
NEEDS MARKET FOR A
PRODUCT
 6.3.2 IDENTIFY KEY
SERVICE ATTRIBUTES
Pick the two most relevant attributes for both your target
market and the success of your marketing service.

Here are some examples specific to marketing services,

but you can choose what best fits your situation:
 Industry Attribute 1 Attribute 2 Example

Marketing Broad reach vs. Targeted audience; Full-service vs.

Focus Expertise
Services Specialty service (e.g., social media marketing)

Expertise in specific industries (e.g., healthcare) vs.

Consulting Industry Client Service
High-touch, personalized consulting vs. Data-
Services Focus Approach
driven, remote approach

Budget-friendly vs. Premium cleaning packages;

Cleaning
Price Customization Basic cleaning vs. Deep cleaning with add-on
Services
services

Fastest delivery time vs. Widest variety of delivery

Delivery Services Speed Selection
options (e.g., groceries, restaurants)

IT Support Technical Response In-depth knowledge of complex systems vs. Quick

Services Expertise Time response and troubleshooting for basic issues
 · Delivery Speed: How quickly the service delivers.

· Price: The cost of the service relative to competitors

6.3.3 Research and Plot Your Service Include
Competitors

Identify your main competitors in Gather information about their

the marketing services space. services:
Consider both established agencies
and smaller, niche players.

Then draw a graph with the two Place a circle or marker for your
chosen attributes on the axes marketing service on the graph
based on where it falls on the two
chosen attributes.
 6.3.3 Research and Plot Your
Service Include Competitors

For example
 Plot each service
on the graph based
on the ratings.
6.3.4 Analyze, Refine and develop Your
Positioning Statement

Positioning map analysis is an important tool to

help businesses understand their position in
the market compared to competitors. Thanks
to that, businesses can identify their strengths,
weaknesses, opportunities and threats to come
up with an effective marketing strategy.
 6.3.4 Analyze, Refine and develop Your
Positioning Statement
Determine
specific Optimize
marketing goals marketing budget

Understand the Developing an Track and evaluate the

business's position in effective marketing effectiveness of
the market strategy marketing strategies
6.3.4 Analyze, Refine and develop Your
Positioning Statement

Positioning map analysis is a useful tool

for all businesses, regardless of size or
industry. Businesses should perform
positioning map analysis regularly to
update their position in the market and
adjust marketing strategies accordingly.
VIETNAM AIRLINES (V): POSITIONED AS OFFERING RELATIVELY
HIGH SERVICE QUALITY WITH A MID-TO-HIGH PRICE RANGE.
THIS SUGGESTS IT AIMS TO BALANCE QUALITY AND PRICE,
APPEALING TO TRAVELERS WHO SEEK GOOD SERVICE WITHOUT
THE PREMIUM PRICE TAG OF TOP-TIER AIRLINES.
SINGAPORE AIRLINES (S): HIGH SERVICE QUALITY AND HIGH
PRICE, APPEALING TO PREMIUM CUSTOMERS.
AIRASIA (A): LOW SERVICE QUALITY BUT VERY AFFORDABLE,
TARGETING BUDGET-CONSCIOUS TRAVELERS.
CATHAY PACIFIC (C): SLIGHTLY LOWER THAN SINGAPORE
AIRLINES IN SERVICE QUALITY BUT STILL HIGH, WITH A HIGH
PRICE.
JETSTAR PACIFIC (J): SLIGHTLY HIGHER SERVICE QUALITY
THAN AIRASIA, WITH LOW PRICES, TARGETING BUDGET-
CONSCIOUS TRAVELERS LOOKING FOR A BIT MORE COMFORT.
7. Changing Competitive Positioning
The market changes Rebranding

Such a strategy, known as repositioning, could mean revising service characteristics or

redefining target market segments.
7.1 Changing Perceptions through Advertising
Improving negative brand perceptions may require extensive redesign of the
core product or supplementary services

Omo (Unilever) Campaign “Dirt is good”

7.1 Changing Perceptions through Advertising
Omo (Unilever) Campaign “Dirt is good”
Omo has created a significant shift in customer
perception regarding children playing and getting dirty
7.2 Innovation in Positioning
We can identify 7 categories of new services.
7.2.1 Major service innovations
New core products for markets that have not been previously defined, include
both new service characteristics and radical new processes.

VinFast (Vingroup)
7.2.1 Major service innovations
VinFast (Vingroup)
VinFast has pioneered the development of electric vehicles
in Vietnam, investing in charging stations and electric
vehicle support services
7.2.2 Major process innovations
Using new processes to deliver existing core products in new ways
with additional benefits

Viettel
7.2.2 Major process innovations
Viettel
Viettel has implemented AI and chatbot technologies in its
customer service, allowing for the quick resolution of
customer inquiries and requests 24/7
7.2.3 Product line extensions
Additions to current product lines by existing firms. These new services
may be targeted at existing customers to serve a broader array of needs,
designed to attract new customers with different needs, or both.

Starbucks
7.2.3 Product line extensions
Starbucks
Starbucks, famous for its coffee shops, has expanded
its services to include light lunches.
7.2.4 Process line extensions
They do often represent distinctive new ways of delivering existing products, either
with the intent of offering more convenience and a different experience or of
attracting new customers

The Eshop Acecook Vietnam (Acecook) website

 7.2.4 Process line extensions
The Eshop Acecook Vietnam (Acecook) website
Provide customers with a more convenient and faster shopping experience. It is
designed for busy consumers who cannot visit stores and prefer to place orders
online for home delivery
7.2.5 Supplementary service innovations
Adding new facilitating or enhancing service elements to an existing core
service, or significantly improving an existing supplementary service

Themed restaurants like Rainforest

7.2.5 Supplementary service innovations
Themed restaurants like Rainforest
These cafes are designed to entertain customers with features such
as aquariums, live parrots, waterfalls, fiberglass monkeys, and
talking trees that provide environmental information
7.2.6 Style changes
Represent the simplest type of innovation, typically involving no changes in
either processes or performance. However they are often highly visible,
create excitement
Vinamilk
7.2.6 Style changes
Vinamilk
In a recent rebranding, Vinamilk has changed its logo to be more
minimalist and modern. This new logo design has successfully
attracted consumers.
8. Conclusion
Service companies must create competitive
advantages by responding to specific customer
needs and developing a distinctive service
strategy
Positioning
Services in Successful positioning involves aligning market
Competitive opportunities and threats with the firm's strengths
Markets and weaknesses

Successful service firms focus their resources on

key service elements and target segments they
can serve better, offering superior performance on
valued attributes
THANK'S FOR
WATCHING