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Differentiation and Positioning
Differentiation and Positioning
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Chapter Summary
This Chapter will introduce you to the following:
Fast Food Turns Healthy The Concept of Positioning The Concept of Differentiation Generic Competitive Strategies The Difference Between Physical and Perceptual Positioning Seven Steps in the Positioning Process Tools Used in the Positioning Process Unique Value Proposition
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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What is Positioning?
The place a product or brand occupies in customers minds relative to their needs Refers to competing products or brands Comprises both competitive and customer need considerations Positioning is basically concerned with differentiation
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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What is Differentiation?
As Michael Porter (1996) points out:
A company can outperform its rivals only if it can establish a difference that it can preserve
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Exhibit 7.1
Broad Target
Competitive Scope
Narrow Target
Source: Adapted from Michael Porter, Competitive Advantage, New York: The Free Press, 1985, p. 12.
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Perceptual positioning
Includes product presentation, past experiences and opinion of others
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Exhibit 7.3
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Price
Implies high or low quality
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Exhibit 7.4 (1 of 2)
2. Identify the set of determinant attributes that define the product space in which positions of current offerings are located.
3. Collect information from a sample of customers and potential customers about perceptions of each product on the determinant attributes.
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Exhibit 7.4 (2 of 2)
5. Determine customers most preferred combination of determinant attributes. 6. Examine the fit between preferences of market segments and current position of product (market positioning). 7. Write positioning statement or value proposition to guide development and implementation of marketing strategy.
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Value curve
Value curves indicate how products within a category compare (high or low) in terms of a number of attributes
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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The Limited
Nordstro m
Source: Adapted from Douglas Tigert and Stephen Arnold, Nordstrom: How Good Are They? Babson College Retailing Research Reports, September 1990. as shown in Michael Levy and Barton A. Weitz, Retailing Management (Burr Ridge, IL: Richard D. Irwin, 1992) p. 205.
Hit or Miss Dress Barn Casual corner Garfinkels T.J. Maxx Sassafras The Gap L&T Britches Kmart Sears JC Penny Marshalls Hecht Loehmanns s Woodwar d & Lothrop
Talbots
Worst value
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
Not Sweet
Sweet Nutritious
Not Nutritious
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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2. Value proposition
Similar to positioning statement Includes information about pricing relative to competitors
Both approaches reflect the unique selling proposition (USP) of the product
Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Marketing Strategy: A Decision-Focused Approach by Walker Prepared by Anton Kriz, The University of Newcastle
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