Structural Positioning of

Process

Presented By –
Kushal Garg
Introduction
Process is an important element
of the marketing mix that
determines how a service should
be created and delivered to the
customer.
Components

• Complexities
Number of steps or activities involved in
service delivery.
• Divergence
The extent of deviation of delivery
process from the standards.
 Florist – Figure 1

Take Select Select Arrange Collect

flowers
Deliver
order container flowers payment

Range of Range of Range of

containers flowers arrangements
 Example of a florist (Fig 1)

• Low Complexity
– Very few steps
• High Divergence
– Variety of options
– Highly customised
 Florist – Figure 2
A
A
B

A
B
Take
order B
A Deliver
A
Select A
Collect
container B
payment
B
A
B
B

Select Select
flowers Arrangement
 Example of a Florist (Fig 2)

• Greater Complexity
– More steps
• Less Divergence
– Reduced number of options
– More standardised
Re-positioning Strategies

• Increased Complexities
• Decreased Complexities
• Increased Divergence
• Decreased Divergence
Increased Complexity

• Add more steps

There are
so many
• Advantages I can’t
make up
choices!

my mind!
– Greater revenue
• Disadvantages
– May be confusing
– Service quality may drop
– Risky if the competitors
specialize
Decreased Complexity

• Reduce number of steps

• Simplify the service delivery process
• Advantages
– Increased specialisation
– Narrower service offering
• Disadvantages
– Give the impression of limited
service
Increased divergence

• Increase variability of the service offering

• Customization of the service offering
– Increase options
• Advantages
– Can charge higher prices - profitable
• Disadvantage
– More difficult to control
– Customers may not be prepared to pay
higher price
Reduced divergence

• Less variation in the service offering

• Standardise the service offering
– Reduce options
Advantages and Disadvantages

• Advantages • Disadvantages
– Reduces costs – Less flexible
– Improves – Less tailored to
individual needs
productivity
– May be less
– Makes distribution profitable
easier
– Increases reliability
– Reduces variability
 THANK YOU

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