ST

P?
S T P
egmentation argeting ositioning
Segmentation: refers to the dividing of the population of possible
customers into groups.
Targeting: refers to when a firm decides which segment(s) would most
likely be interested in its service after segmenting and assessing the
attractiveness of each segment, and focusing on how to serve them well.
Positioning: refers to the unique place that the firm and/or its service
offerings occupy in the minds of its consumers.
CHAPTER 3

Positioning
Services

Presented by Group 5
 1.SEGMENTING SERVICE MARKETS

2.TARGETING SERVICE MARKETS

TABLE OF 3.POSITIONING SERVICES in competitive markets

CONTENTS 4.DEVELOPING AN EFFECTIVE POSITIONING STRATEGY

5. USING POSITIONING MAPS TO PLOT COMPETITIVE STRATEGY

6.REPOSITIONING STRATEGY
ELEMENTS OF A POSITIONING STRATEGY KEY CONCEPTS

• Segmenting service markets

• Service attributes and service levels relevant for segmentation
SEGMENTATION – Important versus determinant attributes
– Establishing service levels

• Targeting service markets through four focus strategies:

– Fully focused
– Market focused
TARGETING
– Service focused
– Unfocused

• Positioning services in competitive markets

POSITIONING • Using positioning maps to plot competitive strategy
• Developing an effective positioning strategy
1. MARKET SEGMENT
AND SERVICE
ATTRIBUTES AND
LEVELS
1.1 SEGMENTING SERVICE
MARKETS

A market segment is composed

of a group of buyers sharing
common characteristics, needs,
purchasing behavior,and
consumption patterns
1.1 SEGMENTING SERVICE
MARKETS

A target market is one that a firm has

selected from among those in the
broader market
1.1. SEGMENTING SERVICE MARKETS

Target segments should be selected with reference to

➔ Firm’s ability to match or exceed competing offerings

directed at the same segment

➔ Profit potential
1.1 SEGMENTING SERVICE MARKETS

Ex: Company A providing delivery services in Ho Chi Minh City

wants to enter the market in Hanoi
 1.1 SEGMENTING SERVICE MARKETS

Demographic segmentation
(age, gender, and
income,...)
1.1 SEGMENTING SERVICE MARKETS

Geographic segmentation
( nations, countries, climate,...)
1.1 SEGMENTING SERVICE MARKETS

Psychographic
segmentation (personality,
lifestyle, interests,...)
 Example: They are
both girls but have 2
different shopping
styles
1.1. SEGMENTING SERVICE MARKETS

Behavioral segmentation (usage,

loyalty,...)
1.1. SEGMENTING SERVICE MARKETS

Needs-based segmentation
(Convenience, Safety,...)
 Nations, regions, states, counties, cities, neighborhoods, population density
Geographic segmentation
(urban,suburban, rural), climate

Age, life-cycle stage, gender, income, occupation, education, religion,

Demographic segmentation
ethnicity,Generation, marital status

Psychographic segmentation Personality, Lifestyle, Way of Living, Aspirations...

Purchase Purpose (buy for personal use, buy as a gift,...)Benefits sought (cost savings,
good quality, specific use cases (e.g., skincare, shampoo)User status (Potential
Behavioral segmentation
Customers, First-Time Buyers, Repeat Buyers, Past Customers...)Usage rate/ occasion
(non-users, light users, or heavy users...); Loyalty status

Needs-based segmentation) Needs, Desired attributes, Solutions to Problems

1.2 SERVICE ATTRIBUTES AND LEVELS

Use research to identify and prioritize certain service

attributes that are important to specific market segments
1.2 SERVICE ATTRIBUTES AND LEVELS

However, an individual may give different priorities to attributes depending

on:

Purpose of using the Who makes the decision Timing of use Alone or with a group
service (day/week/season)
SERVICE ATTRIBUTES AND LEVELS

Eg: When choosing a

restaurant
1.2.1 IMPORTANT VS. DETERMINANT ATTRIBUTES

Consumers usually make their choices among alternative

service offerings on the basis of perceived differences between
them. However, the attributes that distinguish competing
services may not always be the most important ones.
1.2.1 IMPORTANT VS. DETERMINANT ATTRIBUTES

Determinant attributes determine buyers’ choices

between competing alternatives.
1.2.1 IMPORTANT VS. DETERMINANT ATTRIBUTES

·Bank A: Bank B:

+ Advanced security: biometrics, security + Traditional security: password, SMS

alerts,… OTP

+ Higher interest rates + Low interest rates

1.2.2 ESTABLISHING SERVICE LEVELS

• The level of performance the company intends to

deliver on each attribute. Some service attributes are
easily quantified, while others are qualitative.
1.2.2 ESTABLISHING SERVICE LEVELS

Segment customers according to their willingness

to trade off between price and service level
2. TARGETING SERVICE
MARKETS
2. TARGETING SERVICE MARKETS

“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
2. TARGETING SERVICE MARKETS
2.1 Fully Focused: limited range of services to a narrow and specific market
2. TARGETING SERVICE MARKETS

OPPORTUNITIES RISKS
+ Developing recognized expertise in a + Market is too small to generate needed
well-defined niche may provide protection volume

against would be competitors

+ Demand may be displaced by generic
competition from alternative products
+ Allow firms to charge premium prices

+ Purchasers in chosen segment may be

susceptible to the economic downturn
2. TARGETING SERVICE MARKETS

2.2 MARKET FOCUS

• Narrow markets with a wide range of services

• Need to make sure that they have enough operational capability to execute and
deliver each of the service offerings

• Need to understand customer purchase practices and preferences

2. TARGETING SERVICE MARKETS

2.3 SERVICES FOCUS

• Narrow range of services to a fairly broad market

• As new segments are added, firm needs to develop knowledge

and skills in serving each segment
2. TARGETING SERVICE MARKETS

2.4 UNFOCUS

• Broad range of the market with a wide range of services

• Many services providers fall into this category

• Danger - becoming "Jack of all trades and master of none"

3. Positioning
strategy
3.1 FOUR PRINCIPLES OF POSITIONING STRATEGY

• Positioning strategy involves creating, communicating, and

maintaining distinctive difference

• Successful positioning requires businesses to understand their

customers
3.1 FOUR PRINCIPLES OF POSITIONING STRATEGY

1.A company must establish a position in the minds of its targeted customers.

2. The position should be singular, providing one simple and consistent message

3. The position must set a company apart from its competitors

4. A company cannot be all things to all people — it must focus its efforts.
3.2 POSITIONING DUSTINGUISHES A BRAND FROM ITS
COMPETITION

A good positioning strategy is to avoid

investing too much in points of difference
that can be easily copied by competitors.
3.2 POSITIONING DUSTINGUISHES A BRAND FROM ITS
COMPETITION

Failure to select a desired position in the market, and failure to

develop a marketing action plan designed to reach and hold this
position, can cause one of several undesirable outcomes
3.2 POSITIONING DUSTINGUISHES A BRAND FROM ITS
COMPETITION

Pushed to a position where it must compete with a

stronger competitor
FOUR PRINCIPLES OF POSITIONING STRATEGY

Pushed to a position where no one wants it

FOUR PRINCIPLES OF POSITIONING STRATEGY

Vague and can not differentiate from competitors.

FOUR PRINCIPLES OF POSITIONING STRATEGY

No position in the market

PERFORM POSITIONING

Positioning in Communication: is a method of combining positioning with

communication elements of the marketing mix, especially promotion
(advertisement, pr,..)
3.3 PERFORM POSITIONING

Positioning strategies become more complicated as the number of companies combining

with each other to have co-branding increases.
3.3 PERFORM POSITIONING

Positioning in product design: To increase the appeal of a product to a specific target

market segment
Ex: The electronics company offers free delivery service for orders over 1 million VND,
express delivery within 2 hours within the city and allows customers to easily track order
status via website or mobile application.
3.4 MEANING OF POSITIONING

1. Provide a useful diagnostic tool for defining and understanding the relationships
between services and markets:
3.4 MEANING OF POSITIONING

2. Identify market opportunities for

• Introducing new products
• .Redesigning (repositioning) existing products
3.4 MEANING OF POSITIONING

3. Make other marketing mix decisions to preempt or respond to competitive moves

4. DEVELOPING AN
EFFECTIVE POSITIONING
STRATEGY
• What does the business already have?

• What does the market need?

• Who are the competitors rivals and

what are their strengths and weaknesses

4. DEVELOPING A MARKET POSITIONING STRATEGY

Research and analysis are the basis for developing an effective positioning
strategy, designed to emphasize both opportunities and challenges for a company
in a competitive market.
A MODEL FOR DEVELOPING A MARKET POSITIONING STRATEGY
 4. DEVELOPING A MARKET POSITIONING STRATEGY

4.1 MARKET ANALYSIS

Addressing such factors as the overall level and trend of demand and the geographic
location of this demand
DEVELOPING A MARKET POSITIONING STRATEGY

4.2 INTERNAL CORPORATE ANALYSIS

• Focus on identifying the firm's resources, strengths and

weaknesses, goals

• How the firm's values shape the way it operates.

DEVELOPING A MARKET POSITIONING STRATEGY

4.3 COMPETITOR ANALYSIS

• Provides marketing strategists with the strengths and weaknesses

of competitors

• Benefits of the service should be focused on the target segment

 DEVELOPING A MARKET POSITIONING STRATEGY

4.4 POSITION STATEMENT

MARKET ANALYSIS INTERNAL CORPORATE COMPETITOR

ANALYSIS ANALYSIS
 DEVELOPING A MARKET POSITIONING STRATEGY

4.4 POSITION STATEMENT

This statement clearly states the desired position of the organization and the
position of each type of service

• Competitors are also pursuing the same market position and

have similar analyses and solutions.

• Rivals feel threatened by new strategies and take steps to

reposition their services
5. USING POSITIONING
MAPS TO PLOT
COMPETITIVE STRATEGY
 POSITIONING MAPS
Positioning maps show consumer perception of marketer’s brand versus competing products
on important dimensions.
POSITIONING MAPS
• Positioning maps are great tool to visualize competitive positioning and map
developments of time
• Using the positioning map is a useful way to represent consumer perceptions of
alternative products graphically
POSITIONING MAPS
• Typically confined to two attributes, but 3-D models can be used to portray
positions on three attributes simultaneously
• Information about a product can be obtained from market data, derived
from ratings by representative consumers, or both
 An Example of Applying
Positioning Maps to the Hotel
Industry: Palace Hotel
POSITIONING MAPS
The factors they will consider before making a decision to rent a room are
• Luxury and comfort in physical amenities.

• Quality and service level of the hotel

POSITIONING MAPS

The four attributes selected for study are:

• Price

• The rooms-per-employee ratio

• Level of physical luxury

• Location
POSITIONING MAPS

Positioning Map of Belleville’s Principal Business Hotels: Service Level Versus Price Level (Before New Competition)
POSITIONING MAPS

Positioning Map of Belleville’s Principal Business Hotels: Location Versus Physical Luxury (Before New Competition)
POSITIONING MAPS

Positioning Map of Belleville’s Business Hotels: Service Level Versus price level
POSITIONING MAPS

Positioning Map of Belleville’s Business Hotels: Location Versus Physical Luxury

6. REPOSITIONING STRATEGIES
IN A COMPETITIVE MARKET
REPOSITIONING STRATEGIES IN A COMPETITIVE MARKET

REASONS FOR REPOSITIONING

• Respond to changes in the market and customer needs

• Seek new opportunities

• Compete with strong competitors in the market.

REPOSITIONING STRATEGIES IN A COMPETITIVE MARKET

REPOSITIONING METHODS

Adding or removing services within the

target market segment
REPOSITIONING STRATEGIES IN A COMPETITIVE MARKET

REPOSITIONING METHODS

Withdrawing market offerings and eliminating

some business lines to focus more on a specific
type of service
REPOSITIONING STRATEGIES IN A COMPETITIVE MARKET

REPOSITIONING METHODS

Expanding service offerings with the expectation of increasing

revenue and customer numbers.
FINAL THOUGHTS
GROUP
5