Product Differentiation

and
Product Positioning

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 Product Differentiation
 Tangible Product Attributes  Service Differentiation
 Ingredients  Order Ease
 Functional Value  Delivery
 Additional Features  Installation
 Packaging  Guarantees
 Financial arrangements
 Design
 Customer Training
 Product Quality
 Maintenance
 Channel Differentiation  Disposal
 Image Differentiation  Personnel Differentiation

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 Positioning

Positioning is the development

of a marketing mix to occupy
a specific place in the minds
of customers within target
markets
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 Why Concept Of Positioning Is
Important?

 Perceptual processes of
customers
 Greater competition
 Growing volume of commercial
messages
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 Positioning Approaches

 Specific product features

 Specific usage occasions
 User category
 Price
 Delivery

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 Which Difference to
promote?
 Important
 Distinctive
 Superior
 Preemptive
 Profitable

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 Positioning Errors

 Under Positioning
 Over Positioning
 Confused Positioning
 Doubtful Positioning

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 Steps Required for Effective
Positioning

 Documenting
 Differentiating
 Deciding
 Designing
 Delivering
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 Components of the
Product Personality
Core Features

The Brand Name

The Associated Package and

Features Label 10
Five Product Levels
Potential product
Augmented product
Expected product
Basic product
Core benefit

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 Consumer-Goods
Classification
Convenience Products Shopping Products
Buy frequently & immediately Buy less frequently
> Low priced > Gather product information
> Many purchase locations > Fewer purchase locations
> Includes: > Compare for:
• Staple goods • Suitability & Quality
• Impulse goods • Price & Style
• Emergency goods

Specialty Products Unsought Products

Special purchase efforts
> Unique characteristics
> Brand identification
> Few purchase locations
New innovations
> Products consumers don’t
want to think about.
>Require much advertising &
personal selling

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 Industrial-Goods
Classification

Raw Material Component Parts

Process Material Capital Equipment

Accessory Equipment Consumable Supplies

Business Services
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