1.

      Brands can be differentiated on the basis of many variables; however, five differentiation
strategies are emphasized in the text. List and briefly characterize the five differentiation
strategies. (Group 1)

The five differentiation strategies are : Product, Personnel, Channel, Image and Services.

Product Differentiation

Product differentiation is a marketing strategy designed to distinguish a company's products or

services from the competition. Product differentiation goes hand in hand with developing a strong
value proposition so that a product or service is attractive to a target market or audience. By
product Form, Features, Performance quality, Conformance quality, Durability, Reliability,
Repairability, Style, Packaging and Design. For example, Tesla differentiates itself from other auto
brands because their cars are innovative, high-end, and battery-operated. Also, their customer service
is convenient and fast.

Personnel Differentiation

Having better-trained people or employees, it has 6 characteristics: Competence, Courtesy,

Credibility, Reliability, Responsiveness and Communication. For example, McDonald's people are
courteous, they are very friendly in greeting and serving customers when they step in the store.

Channel Differentiation

Companies can achieve competitive advantage through the way they design their distribution
channels’ coverage, expertise and performance. For example, MUL company. makes its cars
available to customers through several distribution channels. The company realised that there is a
huge market for second hand cars and this market is dominated by unorganised players. To cater to
this situation, MUL established a separate distribution channel by opening ‘True Value’ outlets which
act as intermediaries between buyers and sellers.

Image Differentiation

Consumers respond differently to company & brand images. Image - how the public perceives the
company or its products. Identity - how a company aims to identify/position itself or its product. For
Example, Starbucks has successfully differentiated its image in the industry as a premium, customer-
friendly, and ethical brand. All these factors make it highly popular and this becomes a source of
competitive advantage. Apart from premium quality products, it is known for ethical business and a
customer-friendly environment at its stores. Customer experience and ethical business practices
fundamentally define the Starbucks brand apart from premium products and prices.

Services Differentiation

When the physical product cannot be differentiated, the companies resort to service differentiation
through addition of new services or modification of older ones or the combination of both. Main
service differentiators: Ordering ease, Delivery, Installation, Customer training, Customer
consulting, Maintenance & Repair. For example, Ordering ease- Dell Computers made the ordering
of computers so simple that customers who are not aware of new developments in the field can find
various options to select from and get the deliveries in plenty of time.

Source:? lecture note 7-17 https://www.yourarticlelibrary.com/products/5-most-important-

differentiation-variable-of-a-product/22175
2.      Assume that you are a marketing manager that is trying to stimulate creative thinking on the part
of your department. You would like your department to come up with a series of questions that
might be used to generate new consumer-based points of differentiation. Write five questions to
get your group started with their assignment. (group 2)

How do people become aware of their need for your product & service?

 Did the customer see your product because of your advertisement?

 Were people aware of your product because your company posted a very funny video related
to your product?

How do consumers find your offering?

 How do they buy from you 

 How do they find information you (is it website or walk in to the store)
 Do they hear from their friend/agent

How do consumers make their final selection?

 How do they choose?

 Do they compare between 2 companies with the price/certain benefit of the product?

How do consumers order & purchase your product ?

 Consumers order online/order in the store?

 If consumers tend to order online, the company needs to make sure that the online presence is
everywhere. Consumers can see on lazada/shopee or everywhere.

 https://www.lazada.com.my 
 https://shopee.com.my/Women-Clothes-cat.11000538?
gclid=Cj0KCQiAgP6PBhDmARIsAPWMq6koW9XHXSMJYmKZOvGB4_SjfPgKGB-
tgkHAZiqCsuqq0XWIpnF5tnkaAuFlEALw_wcB 

 https://corporate.padini.com/

What happens when product/service is delivered?

 Whether are there any advantage that consumer can find from product/service

Source: Lecture note, chapter 3 slide 5&6

3.      What is the goal of positioning? (Group 3)

The goal of positioning is to locate the brand in the minds of consumers to maximize the
potential benefit to the firm. Besides, the goal is to establish the image or identity of a brand. It
reveals or product so that consumers perceive it in a certain way.

The result of positioning is the successful creation of a customer-focused value proposition, a

cogent reason why the target market should buy the product.  

Positioning requires for similarities and differences between brands be defined and
communicated. 
 Deciding on positioning requires determining a frame of reference by identifying target markets,
competition and identifying the ideal points-of-parity and points-of-difference brand associations.

Source:

Chp 3 slide 20, 21

https://actingcolleges.org/library/acting-questions/read/241064-what-is-the-goal-of-
positioning#question-0

4.      With respect to positioning, explain points-of-parity and points-of-difference. (Group 4)

Points-of-difference (PODs) are attributes or benefits consumers strongly associate with a brand,
positively evaluate it and believe that they cannot find the same extent with a competitive brand.
Creating strong, favorable and unique associations as point-of-differences is a real challenge/not
easy, but essential in terms of competitive brand positioning.

E.g. Back in 1958, Hup Seng ( 合成 ), which translate to "Success with Teamwork" in
Chinese, was established as Hup Seng Co., a partnership by the four founding Directors of
the Group who are brothers. Due to business expansion and increased capital requirements,
Hup Seng Co. was dissolved in 1974 and HSPM was then founded with all the assets and
liabilities of the partnership transferred thereto. 3 years later in 1977, HSHY was
incorporated to manage trading and in 2005, HSIB acquired 100% equity interest in In-
Comix. (HUP SENG)

Points-of-parity (POPs) are associations that are not necessarily unique to the brand but may in fact,
be shared with other brands. These types of associations come in two basic forms: category and
competitive.

Source: Lecture note 31-32

5.      There are three main ways to convey a brand’s category membership. What are those
three ways? (Group 5)

1. Announcing category benefits. To reassure consumers that a brand will deliver on

the fundamental reason for using a category, marketers frequently use benefits to
announce category membership.

For example, Mr DIY had few categories of their household category, such as
furnishings, house care, home improvement, kitchen & dining and living & bath.

Source: https://www.mrdiy.com.my/household 

2. Comparing to exemplars. Well-known, noteworthy brands in a category can also

help a brand specify its category membership.
 3. Relying on the product descriptor. The product descriptor that follows the brand
name is often a concise means of conveying category origin.

Source: slide 28 & https://www.citeman.com/1020-establishing-category-membership.html 

https://quizlet.com/au/237779927/positioning-flash-cards/

6.      In choosing points-of-difference, one of the primary considerations is that consumers find points-
of-difference desirable. There are three key consumer desirability criteria for points-of-difference.
What are those three criteria?

1. Relevance - PODs relevant & important

2. Distinctiveness -PODs distinctive & superior
3. Believability - PODs believable & credible
*exam need write more

Source:Lecture note, slide 32