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Positioning Services in Competitive Markets
Positioning Services in Competitive Markets
Positioning Services in Competitive Markets
Positioning Services in
Competitive Markets
Search for Competitive Advantage in Services
Requires Differentiation and Focus
GEORGE S. DAY
Basic Focus Strategies for Services (Fig. 3.1)
Narrow Wide
Unfocused
Service (Everything
Many Focused for everyone)
NUMBER
OF MARKETS
SERVED
Fully Focused
Market
(Service and
Focused
Few market focused)
Jack Trout
Uses of Positioning in
Marketing Management (Table 3.1)
Product attributes
Price/quality relationships
Reference to competitors (usually shortcomings)
Usage occasions
User characteristics
Product class
Developing a
Market Positioning Strategy (Fig. 3.3)
- Size
MARKET Define, Analyze
- Composition
ANALYSIS Market Segments
- Location
- Trends
Select
Target Segments
To Serve
INTERNAL - Resources
Marketing
- Reputation Articulate
ANALYSIS Desired Position Action
- Constraints
in Market Plan
- Values
Select Benefits
to Emphasize
to Customers
- Strengths
COMPETITIVE - Weaknesses Analyze
ANALYSIS - Current Possibilities for
Positioning Differentiation
Source: Adapted from Michael R. Pearce
Positioning of Hotels in Belleville:
Price vs. Service Level (Fig. 3.4)
Expensive
Grand
Regency
PALACE
Shangri-La
High Moderate
Service Atlantic Service
Sheraton
Italia
Castle
Alexander IV
Airport Plaza
Less Expensive
Positioning of Hotels in Belleville:
Location vs. Physical Luxury (Fig. 3.5)
High Luxury
Regency
Grand
Shangri-La
Sheraton
PALACE
Financial Shopping District Inner
District and Convention Centre Suburbs
Castle Italia
Alexander IV
Atlantic
Airport Plaza
Moderate Luxury
Positioning after New Hotel Construction:
Price vs. Service Level (Fig. 3.6)
Expensive
Mandarin
New Grand Heritage
Marriott
Continental
Action?
Regency PALACE
Shangri-La
High No action? Moderate
Service Service
Atlantic
Sheraton
Italia
Castle
Alexander IV
Less Expensive Airport Plaza
Positioning after New Hotel Construction:
Location vs. Physical Luxury (Fig. 3.7)
High Luxury
Mandarin
New Grand
Continental Heritage
Marriott Regency
Sheraton Shangri-La
Action?
PALACE
Castle Italia
Alexander IV
Atlantic
Airport Plaza
Moderate Luxury
Positioning Maps Help Managers to
Visualize Strategy