Positioning Services in Competitive Markets Outline
SERVICE MARKETING CHAPTER 3 : Positioning Services in Competitive Markets
Overview of Chapter 3
• Achieve Competitive Advantage through Focus
• Market Segmentation Forms the Basis for Focused Strategies
• Service Attributes and Levels
• Developing an Effective Positioning Strategy
• Using Positioning Maps to Analyze Competitive Strategy
Achieve Competitive Advantage Through Focus
Focus Underlies the Search for Competitive Advantage
• Intensifying competition makes it important to differentiate products
• In mature markets, only way to grow may be to take share from competitors
• Brand positioning helps create awareness, generate interest and desire among potential customers and increase adoption of service products
• Emphasize competitive advantage on those attributes that will be valued by customers in target segment(s) Standing Apart from the Competition
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 to target customers (and do it at a profit) -George S. Day
Basic Focus Strategies for Services
(Fig. 3.2) Considerations for Using the Focus Strategies
1. Fully focused
-Limited range of services to narrow and specific market
2. Opportunities
-Developing recognized expertise in a well-defined niche may provide protection against would-be competitors
-Allows firms to charge premium prices
3. Risks
-Market may be too small to generate needed volume of business
-Demand for a service may be displaced by generic competition from alternative products
-Purchasers in chosen segment may be susceptible to economic downturn
4. Market focused
-Narrow market segment with wide range of services
-Need to make sure firms have operational capability to deliver each of the different services selected
-Need to understand customer purchasing practices and preferences
5. Service focused
-Narrow
Overview of Chapter 3
• Achieve Competitive Advantage through Focus
• Market Segmentation Forms the Basis for Focused Strategies
• Service Attributes and Levels
• Developing an Effective Positioning Strategy
• Using Positioning Maps to Analyze Competitive Strategy
Achieve Competitive Advantage Through Focus
Focus Underlies the Search for Competitive Advantage
• Intensifying competition makes it important to differentiate products
• In mature markets, only way to grow may be to take share from competitors
• Brand positioning helps create awareness, generate interest and desire among potential customers and increase adoption of service products
• Emphasize competitive advantage on those attributes that will be valued by customers in target segment(s) Standing Apart from the Competition
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 to target customers (and do it at a profit) -George S. Day
Basic Focus Strategies for Services
(Fig. 3.2) Considerations for Using the Focus Strategies
1. Fully focused
-Limited range of services to narrow and specific market
2. Opportunities
-Developing recognized expertise in a well-defined niche may provide protection against would-be competitors
-Allows firms to charge premium prices
3. Risks
-Market may be too small to generate needed volume of business
-Demand for a service may be displaced by generic competition from alternative products
-Purchasers in chosen segment may be susceptible to economic downturn
4. Market focused
-Narrow market segment with wide range of services
-Need to make sure firms have operational capability to deliver each of the different services selected
-Need to understand customer purchasing practices and preferences
5. Service focused
-Narrow