Upload
sumit-acharya
View
235
Download
0
Embed Size (px)
Citation preview
8/12/2019 Strauss 5e 09
1/22
Chapter 9 Objectives
After reading Chapter 9, you will be able to:
Define differentiation and positioning and explainwhy they are important elements of marketing
strategy. Identify dimensions of differentiation and internet-
specific differentiation strategies.
Discuss how companies can position or reposition
themselves on the basis of attributes, technology,benefits, user category, relation to competitors,integrator capabilities, or reverse positioning.
9-2
2009 Pearson Education, Inc.Publishing as Prentice Hall
8/12/2019 Strauss 5e 09
2/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
The J. Peterman Story
The J. Peterman Company is a classicexample of successfully combining cleverdifferentiation with powerful positioning.
The founder established his company as a breedapart from ordinary competitors.
Every item has a description that communicatesnostalgia and romance.
Visit www.jpeterman.com and discuss whatmakes their products unique.
9-2
8/12/2019 Strauss 5e 09
3/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Kotler defines differentiation as the process ofadding meaningful and valued differences todistinguish the companys offering from the
competition. There are a number of differentiation
dimensions and strategies for their
accomplishment.
Differentiation9-3
8/12/2019 Strauss 5e 09
4/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Differentiation Dimensions
A firm can differentiate along 5 dimensions:
Product
Service
Personnel
Channel
Image
9-4
8/12/2019 Strauss 5e 09
5/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Product line differentiation is an important e-marketing strategy.
Differentiation may include customization,
bundling, and attractive pricing of products. Internet sales may not rely as heavily on product
packaging and displays as do traditionalretailers.
Packages shipped to households may requireadditional packing materials not required in bulkcase shipments to wholesalers and retailers.
Product Differentiation9-5
8/12/2019 Strauss 5e 09
6/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Service Differentiation
Customer service can be enhanced by 24-hour customer feedback through e-mail andthe ability to respond more rapidly to customer
concerns. Home delivery of groceries, online banking,
and securities trading are becomingincreasingly popular.
Today such services supplement traditionalservices, but may someday replace them.
9-6
8/12/2019 Strauss 5e 09
7/22
Personnel Differentiation
2009 Pearson Education, Inc.Publishing as Prentice Hall
9-7
The internet allows companies to deliverproducts more efficiently.
Low-cost channels
Automated processesReduced dependence on personnel
Lower transaction cost
8/12/2019 Strauss 5e 09
8/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
The internet:
Is a location-free, time-free distribution andcommunication channel.
Functions as a communication channel forcompanies that provide product or serviceinformation online.
Serves as a transaction and distribution channel
for companies that conduct online commercialtransactions.
Becomes the entire distribution channel for digitalproducts.
Channel Differentiation9-8
8/12/2019 Strauss 5e 09
9/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Image Differentiation
A company can differentiate itself by creating aunique experience online, called experience
branding.
Through experience branding firms can betterretain customers, target key segments, andenhance profitability.
Build-a-Bear extends its offline experience online. Some Web sites invite users to upload content
and comments, which gives them a competitiveedge.
9-9
8/12/2019 Strauss 5e 09
10/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Differentiation Strategies
Trout and Rivkin proposed specificdifferentiation strategies common to offline andonline businesses:
Being the first to enter the market. Owning a product attribute in the mind of the
consumer.
Demonstrating product leadership.
Utilizing an impressive company history or heritage.
Supporting and demonstrating the differentiatingidea.
Communicating the difference.
9-10
8/12/2019 Strauss 5e 09
11/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
There are 6 differentiation strategies unique toonline businesses.
Site Environment/Atmospherics
Easy downloads, accurate and clearinformation, easy navigation.
Build Trust
Strong brand recognition.
Privacy policy.
Safe and encrypted payment process fortransactions.
Internet-Specific DifferentiationStrategies
9-11
8/12/2019 Strauss 5e 09
12/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Efficient and Timely Order Processing
Pricing In the early days of the Web, companies
offered discounts as purchase incentives. Majority of firms today differentiate
themselves in other ways besides pricing.
Customer Relationship Management
Managing long-term relationships withcustomers.
Invite User-generated Content The key is to trust customers, listen, respond,
and learn.
Internet-Specific DifferentiationStrategies, cont.
9-12
8/12/2019 Strauss 5e 09
13/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Positioning is the process of creating a desiredimage for a company and its products in theminds of a chosen user segment.
The e-marketers goal is to build a position onone or more bases that are relevant andimportant to the consumer.
Firms can position brands, the company, theCEO, or individual products.
Positioning9-13
8/12/2019 Strauss 5e 09
14/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Product or service attribute
Technology positioning
Benefit positioning
User category
Competitor positioning
Integrator positioning
Bases and Strategies forPositioning
9-14
8/12/2019 Strauss 5e 09
15/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Product or Service Attribute
May include features such as size, color,ingredients, speed, etc.
Amazons 1-click checkout process is an example
of a positioning attribute. iVillage allows users to build personalized mean
menus.
Tylenol does not sell online, but provides useful
one-to-one features for pain relief and healthinformation and Tylenol greeting cards.
9-15
8/12/2019 Strauss 5e 09
16/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Technology Positioning
Positioning on the basis of technology showsthat a firm is on the cutting edge.
At Lands End, consumers can build virtual
models of themselves and try on virtual outfits.At American Airlines, customers can store seating
preferences and frequent flier accountinformation.
9-16
8/12/2019 Strauss 5e 09
17/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Benefit Positioning
Benefit positioning is generally a strongerbasis for positioning because it answers theconsumer question: What will this
product/service do for me?Miller Lite offers software that can be used as a
social organizer.
On the Valvoline motor oil site, visitors can send
greeting cards, download racing screensavers,and sign up for newsletters.
9-17
8/12/2019 Strauss 5e 09
18/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
User Category
User category positioning relies on customersegments.
Kelloggs has an interactive site for children.
Yahoo! Groups hosts forums organized byspecific interests.
Eons is a social network for baby boomers.
9-18
8/12/2019 Strauss 5e 09
19/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Competitor Positioning
Many firms position by benefits that provideadvantages over their competitors.
Companies may position themselves against:
An entire industry.
A particular firm.
Relative industry position.
I Cant Believe Its Not Butter margarinepositions itself against other margarines.
9-19
8/12/2019 Strauss 5e 09
20/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Integrator positioning
Integrators provide everything a consumer needsin a particular product category, industry, or evenin general.
Consumers want convenience and one-stopshopping:
Martha Stewarts Web site brings together business
units in one place.
TheKnot.com offers everything to do with weddings.
9-20
8/12/2019 Strauss 5e 09
21/22
Integrator positioning, cont.
2009 Pearson Education, Inc.Publishing as Prentice Hall
9-21
We can expect to see more integratorpositioning in the real estate, lending, jewelry,and hospitality industries.
zipRealty uses software that reduces the agents'work.
LendingTree and HomeGain.com help brokersfind clients more cheaply and quickly.
Blue Nile sells an estimated $129 million ofjewelry that would require 116 retail stores.
Web travel agencies can move market share tohotels that give them discounts.
8/12/2019 Strauss 5e 09
22/22
2009 Pearson Education, Inc.Publishing as Prentice Hall
Repositioning is the process of creating a newor modified brand, company, or productposition.
A company may enhance or modify a position,based on market feedback.
Yahoo! repositioned from online guide to Webportal.
Amazon repositioned from worlds largest bookstore
to Earths biggest selection.
Facebook now hosts many business page profilesand third-party applications.
RepositioningStrategies9-22