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19-3 .DIFFERENTIATION The act of designing a set of meaningful differences to distinguish the company’s offering from competitors’ offerings.
Differentiation Variables 19-4 .
19-5 . Affordable: The buyer can afford to pay for the difference. Preemptive: The difference cannot be copied easily by competitors. But not all brand differences are meaningful or worthwhile. Profitable: The company will find it profitable to introduce the difference. Distinctive: The difference is delivered in a distinctive way. Superior: The difference is superior to other ways of obtaining the benefit.All products can be differentiated to some extent. A difference is worth establishing to the extent that it satisfies the following criteria: Important: The difference delivers a highly valued benefit to a sufficient number of buyers.
Coke & Pepsi differentiated through brand power. 19-6 . Rolls Royce through superior engineering. IBM differentiated along technology. DuPont’s leadership in chemical technology etc.Multiple sources of Differentiation Eureka Forbes used personal selling as the sole mean to reach consumers.
New Ariel Microshine with Carezyme. Dunlop Olympus Packaging contributing to differentiation Example: Frooti Tetrapack. Promise with clove oil. Harpic Toilet Cleaner Differentiation through product design Kinetic Honda Electronic Ignition. TTK Prestige Teflon. Titan Watches Differentiation based on quality Example: Godrej Steel Cupboards 19-7 . Differentiation Based on Functional Value Example: 3M Scotch Magic Tape.Tangible Product Attributes Differentiation Based on Ingredients/formula Example: Close Up Gel Toothpaste. Computer controlled fridge Differentiation based on additional features Example: Aristocrat suitcase with wheels.
Intangible Characteristics and Emotional Associations Jo biwi se kare pyar wo prestige se kaise kare inkar Reid & Taylor Rayban 19-8 .
variety & education Tata Salt .Desk ka namak(2002) Captain Cook (1990) .POSITIONING Southwest Airlines .Free Flowing Peter England .Mothers Love Platform-”Touch Therapy” 19-9 .Safety.Luxury Suitings Innova-(Qualis) .Spacious. trendy &Upmarket Pepsodent (1993) .Rugged High Quality Premium Casual Shoe Vicks .Low cost carrier Funskool .Honest Shirt(1997) .Long lasting protection for hours after brushing-Germ Fighting Property Woodland .Iodized salt(1983) .Honestly Impressive(2002) Reid & Taylor (1998) .
SURF EXCEL Dag Ache Hain This campaign has a huge significance It says: It is ok to soil your cloths It is ok to play in the mud It is ok to enjoy life Surf Excel hai na!!!!!!!!!!!!!! 19-10 .
you position the product in the mind of the prospect. . A piece of merchandise.” -Al Ries and Jack Trout 19-11 . But positioning is not what you do to a product. or even a person. an institution. a company. “Positioning starts with a product.Define Positioning…. a service. Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. . That is. . Positioning is what you do to the mind of the prospect.
Do organisations want to develop ‘a me too’ strategy and position themselves close to their competitors so consumers can make a direct comparison when they purchase? Or does the organisation want to develop a strategy which positions themselves away from their competitors? Offering a benefit which is superior depends much on the marketing mix strategy the organisation adopts.Developing a positioning strategy Developing a positioning strategy depends much on how competitors position themselves. 19-12 .
The company’s challenge is to convince consumers that the brand delivers all three. each brand is touted as “number one” on a particular attribute. With this approach. features) to promote. How Many Differences to Promote? 19-13 . Not everyone sticks to single-benefit positioning.” “best service.. better breath. Ries and Trout favor one consistent positioning message. Smith Kline Beecham promotes its Aquafresh toothpaste as offering three benefits: anticavity protection. benefits. Each company must decide how many differences (e.g. it will probably be best known and recalled for this strength.” “lowest price.” If a company hammers away at one positioning and delivers on it. such as “best quality.” or “most advanced technology. and whiter teeth. thus visually confirming the three benefits. Smith Kline’s solution was to create a toothpaste that squeezes out of the tube in three colors.
it might be that it tastes great or that it is less filling. it might be the mint taste or tartar control. Example: Vediocon Picture-in-picture 19-15 .Six basic strategies for product positioning By attribute or benefit This is the most frequently used positioning strategy. For a light beer. For toothpaste.
Example: Vicks. Apple positions its computers based on how the computer will be used. By use or application The users of Apple computers can design and use graphics more easily than with Windows or UNIX. Rasna 19-17 .
Only college students may participate with their campus e-mail IDs. more sophisticated cohort. Example: Raymonds Vijapat inghania 19-18 . Facebook is too cool for MySpace and serves a smaller. By user Facebook is a social networking site used exclusively by college students.
Margarine is positioned as a lower cost and healthier alternative to butter. Example: Maggie. at a moderate price 19-19 . while butter provides better taste and wholesome ingredients. A good hot pizza. delivered to your door within 30 minutes of ordering. the two minute noodle Domino’s. By product or service class Margarine competes as an alternative to butter.
" 19-20 . By competitor BMW and Mercedes often compare themselves to each other segmenting the market to just the crème de la crème of the automobile market. pretending that the number one Hertz did not exist. Avis tried unsuccessfully for years to win customers. so why go with us? We try harder. then to be successful it somehow must relate itself to the number one brand. Example: If a brand is not number one. Ford and Chevy need not apply. Finally. 2 in rent-a-cars. it began using the line: "Avis in only No.
Tiffany wants us to believe that their diamonds are of the highest quality. By price or quality Tiffany and Costco both sell diamonds. while Costco tells us that diamonds are diamonds and that only a chump will pay Tiffany prices. Examle: Karsanbhai Patel’s Nirma 19-21 .
7-Up was able to establish itself in the mind of the consumer as a desirable alternative to the standard colas. By relating itself to Coke and Pepsi as the "Uncola". 3 behind Coke and Pepsi. which was No. 19-22 . Positioning by product class dissociation Example: soft-drink 7-Up.
positively evaluate. and believe they could not find to the same extent with a competitive brand Points-of-parity (POPs) Associations that are not necessarily unique to the brand but may be shared with other brands 19-24 .Defining Associations Points-of-difference (PODs) Attributes or benefits consumers strongly associate with a brand.
(brand name) is the (frame of reference) that delivers (benefit/point of difference) because only (brand name) is reason to believe). 19-25 . and a compelling picture of how the marketer wants them to view the brand.Positioning Statement Also referred to as a brand strategy. There are four elements or components of a positioning statement: Target Audience .the proof that the brand delivers what it promises Template for a Positioning Statement: For (target audience). or brand positioning statement. a positioning statement is a succinct description of the core target audience to whom a brand is directed. positioning strategy.the attitudinal and demographic description of the core prospect to whom the brand is intended to appeal Frame of Reference .the category in which the brand competes Benefit/Point of Difference .the most compelling and motivating benefit that the brand can own in the hearts and minds of consumers relative to the competition Reason to Believe .
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