PRODUCT DIFFERENTIATION & POSITIONING

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DIFFERENTIATION The act of designing a set of meaningful differences to distinguish the company’s offering from competitors’ offerings. 19-3 .

Differentiation Variables 19-4 .

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.  Affordable: The buyer can afford to pay for the difference.  Preemptive: The difference cannot be copied easily by competitors.  Superior: The difference is superior to other ways of obtaining the benefit. 19-5 . But not all brand differences are meaningful or worthwhile.  Distinctive: The difference is delivered in a distinctive way.All products can be differentiated to some extent.  Profitable: The company will find it profitable to introduce the difference.

Coke & Pepsi differentiated through brand power. 19-6 . IBM differentiated along technology. Rolls Royce through superior engineering.Multiple sources of Differentiation Eureka Forbes used personal selling as the sole mean to reach consumers. DuPont’s leadership in chemical technology etc.

Computer controlled fridge  Differentiation based on additional features Example: Aristocrat suitcase with wheels. Titan Watches  Differentiation based on quality Example: Godrej Steel Cupboards 19-7 . Promise with clove oil. Dunlop Olympus  Packaging contributing to differentiation Example: Frooti Tetrapack. New Ariel Microshine with Carezyme.Tangible Product Attributes  Differentiation Based on Ingredients/formula Example: Close Up Gel Toothpaste. Harpic Toilet Cleaner  Differentiation through product design Kinetic Honda Electronic Ignition.  Differentiation Based on Functional Value Example: 3M Scotch Magic Tape. TTK Prestige Teflon.

Intangible Characteristics and Emotional Associations  Jo biwi se kare pyar wo prestige se kaise kare inkar  Reid & Taylor  Rayban 19-8 .

Low cost carrier Funskool .Luxury Suitings Innova-(Qualis) .Safety.Rugged High Quality Premium Casual Shoe  Vicks .Honest Shirt(1997) . variety & education Tata Salt .Desk ka namak(2002) Captain Cook (1990) .POSITIONING Southwest Airlines .Mothers Love Platform-”Touch Therapy”         19-9 . trendy &Upmarket Pepsodent (1993) .Long lasting protection for hours after brushing-Germ Fighting Property  Woodland .Free Flowing Peter England .Spacious.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 .

A piece of merchandise. a service. an institution. you position the product in the mind of the prospect. That is.” -Al Ries and Jack Trout 19-11 . or even a person. . . Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Positioning is what you do to the mind of the prospect. But positioning is not what you do to a product. a company.Define Positioning…. . “Positioning starts with a product.

Developing a positioning strategy  Developing a positioning strategy depends much on how competitors position themselves. 19-12 . 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.

better breath. How Many Differences to Promote? 19-13 .. features) to promote. Smith Kline’s solution was to create a toothpaste that squeezes out of the tube in three colors. Smith Kline Beecham promotes its Aquafresh toothpaste as offering three benefits: anticavity protection. Ries and Trout favor one consistent positioning message.” “lowest price. such as “best quality. The company’s challenge is to convince consumers that the brand delivers all three.” If a company hammers away at one positioning and delivers on it. each brand is touted as “number one” on a particular attribute.  Not everyone sticks to single-benefit positioning. Each company must decide how many differences (e. benefits.” “best service.g. it will probably be best known and recalled for this strength.” or “most advanced technology. and whiter teeth. thus visually confirming the three benefits. With this approach.

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For toothpaste. Example: Vediocon Picture-in-picture 19-15 . For a light beer.Six basic strategies for product positioning  By attribute or benefit This is the most frequently used positioning strategy. it might be that it tastes great or that it is less filling. it might be the mint taste or tartar control.

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 By use or application The users of Apple computers can design and use graphics more easily than with Windows or UNIX. Apple positions its computers based on how the computer will be used. Rasna 19-17 . Example: Vicks.

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. Only college students may participate with their campus e-mail IDs. more sophisticated cohort.

the two minute noodle Domino’s. By product or service class Margarine competes as an alternative to butter. Margarine is positioned as a lower cost and healthier alternative to butter. at a moderate price 19-19 . while butter provides better taste and wholesome ingredients. delivered to your door within 30 minutes of ordering. A good hot pizza. Example: Maggie.

pretending that the number one Hertz did not exist. 2 in rent-a-cars." 19-20 . Ford and Chevy need not apply. Finally. then to be successful it somehow must relate itself to the number one brand. 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. Example: If a brand is not number one. it began using the line: "Avis in only No. so why go with us? We try harder. Avis tried unsuccessfully for years to win customers.

Examle: Karsanbhai Patel’s Nirma 19-21 . Tiffany wants us to believe that their diamonds are of the highest quality. while Costco tells us that diamonds are diamonds and that only a chump will pay Tiffany prices. By price or quality Tiffany and Costco both sell diamonds.

By relating itself to Coke and Pepsi as the "Uncola". which was No. 19-22 . Positioning by product class dissociation Example: soft-drink 7-Up. 3 behind Coke and Pepsi. 7-Up was able to establish itself in the mind of the consumer as a desirable alternative to the standard colas.

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positively evaluate.Defining Associations Points-of-difference (PODs)  Attributes or benefits consumers strongly associate with a brand. 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 .

19-25 . a positioning statement is a succinct description of the core target audience to whom a brand is directed. (brand name) is the (frame of reference) that delivers (benefit/point of difference) because only (brand name) is reason to believe). and a compelling picture of how the marketer wants them to view the brand.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 . positioning strategy.the category in which the brand competes Benefit/Point of Difference .the attitudinal and demographic description of the core prospect to whom the brand is intended to appeal Frame of Reference .the proof that the brand delivers what it promises  Template for a Positioning Statement: For (target audience). or brand positioning statement.Positioning Statement  Also referred to as a brand strategy.  There are four elements or components of a positioning statement: Target Audience .

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