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Services Competitive: Positioning in Markets
Services Competitive: Positioning in Markets
Chapter 3:
Positioning Services
in Competitive Markets
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 1
Overview of Chapter 3
Services Marketing
Market Segmentation
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 2
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 3
Standing Apart from the
Competition
Services Marketing
George S. Day
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 4
Basic Focus Strategies for Services
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 5
Considerations for using Focused
Strategies
Services Marketing
Opportunities Risks
➔ Developing recognized ➔ Market is too small to
expertise in a well-defined generate needed volume
niche may provide ➔ Demand may be displaced
protection against would- by generic competition
be competitors from alternative products
➔ Allows firms to charge ➔ Purchasers in chosen
premium prices segment may be
susceptible to economic
downturn
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 6
Considerations for using Focused
Strategies
Services Marketing
Market focused
➔ Narrow market segment with wide range of services
➔ Need to make sure firms have operational capability to do and
deliver each of the different services selected
➔ Need to understand customer purchasing practices and
preferences
Service focused
➔ Narrow range of services to fairly broad market
➔ As new segments are added, firm needs to develop knowledge and
skills in serving each segment
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 7
Considerations for Using
Focus Strategies
Services Marketing
Unfocused
➔ Broad markets with wide
range of services
➔ Many service providers fall
into this category
➔ Danger – becoming a “jack
of all trades and master of
none”
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 8
Services Marketing
Market Segmentation
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 9
Market Segmentation
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 10
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 11
Developing Right Service Concept
for a Specific Segment
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 12
Important vs. Determinant Attributes
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 13
Establishing Service Levels
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 14
Services Marketing
Positioning Distinguishes a
Brand from its Competitors
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 15
Four Principles of Positioning
Strategy
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 16
Principles of Positioning
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 17
Services Marketing
Developing an Effective
Positioning Strategy
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 18
Developing an Effective Positioning
Strategy
Services Marketing
Market Analysis
➔ Focus on overall level and trend of demand and geographic
locations of demand
➔ Look into size and potential of different market segments
➔ Understand customer needs and preferences and how they
perceive the competition
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 19
Developing an Effective Positioning
Strategy
Services Marketing
Competitor Analysis
➔ Understand competitors’ strengths and weaknesses
➔ Anticipate responses to potential positioning strategies
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 20
Market, Internal, and Competitive
Analyses
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 21
Anticipating Competitive Response
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 22
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 23
Using Positioning Maps to Plot
Competitive Strategy
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 24
Positioning of Hotels in Belleville:
Price vs. Service Level
Services Marketing
Expensive
Grand
Regency
PALACE
Shangri-La
High Moderate
Service Atlantic Service
Sheraton
Italia
Castle
Alexander IV
Airport Plaza
Less Expensive
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 25
Positioning of Hotels in Belleville:
Location vs. Physical Luxury
Services Marketing
High Luxury
Regency
Grand
Shangri-La
Sheraton
PALACE
Castle Italia
Alexander IV
Atlantic
Airport Plaza
Moderate Luxury
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 26
Positioning After New Construction:
Price vs. Service Level
Services Marketing
Expensive
Mandarin
New Grand Heritage
Marriott
Continental
Action?
Regency PALACE
Shangri-La
High No action? Moderate
Service Service
Atlantic
Sheraton
Italia
Castle
Alexander IV
Less Expensive Airport Plaza
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 27
Positioning After New Construction:
Location vs. Physical Luxury
Services Marketing
High Luxury
Mandarin
New Grand
Continental Heritage
Marriott Regency
Sheraton Shangri-La
Action?
PALACE
Castle Italia
Alexander IV
Atlantic
Airport Plaza
Moderate Luxury
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 28
Positioning Maps Help Managers to
Visualize Strategy
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 29
Services Marketing
Changing Competitive
Positioning
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 30
Repositioning
Services Marketing
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 31
Summary
Services Marketing
Focus Strategies:
➔ Fully focused
➔ Service focused
➔ Market focused
➔ Unfocused
Positioning links:
➔ Market Analysis
➔ Internal Analysis
➔ Competitive Analysis
Slide © 2011 by Lovelock & Wirtz Services Marketing 7/e Chapter 3 – Page 33