POSITIONING OF SERVICES

Professor Musadiq A. Sahaf

The Business School

University of Kashmir
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Intended Outcome
To examine the concept and nature of

positioning; To identify and examine the issues involved in positioning; and To study the process of formulating the positioning strategy.

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Positioning: Conceptual Context

The image that a brand occupies in the customer's mind on important attributes relative to rival brands.
The concept of positioning stems from a consideration of how a service provider desires his users to view his offering in comparison to his competitors.
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Positioning: Conceptual Context

Positioning is concerned with identification, development and communication of differential advantage that makes the services of a service provider perceived as superior and distinctive to those of his competitors in the mind of target users.

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Positioning Errors
Under-positioning customers have only vague

ideas about the company and do not perceive anything distinctive about it Over-positioning Customers have too narrow an understanding of the company, product, or brand Confused positioning Frequent changes and contradictory messages confuse customers Doubtful positioning claims made for the product or brand are not regarded as credible

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Positioning Strategy
Deciding the desired perception by market target usersand designing the marketing program to meet (and exceed) users value requirements.

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How Positioning Works

Objective Match the organizations distinctive capabilities with the user value requirements for the market target (How do we want to be perceived by targeted users?)
Desired result Gain a relevant, distinct, and enduring position by the targeted users that they consider important. Actions by the organization Design and implement the positioning strategy (marketing program) for the market target.

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Market Analysis:
Size Location Trends

Definition and analysis of market segments

Selection of most appropriate target market segments to serve Internal Corporate Analysis:
Resource Constraints Values

DEVELOPING A MARKETING POSITIONING STRATEGY

Articulation of desired position in the marketplace

Marketing Action Plan

Selection of which benefits to emphasize to users Competitive Analysis:

Strengths Weaknesses Current Position (as Perceived by users Analysis of possibilities for effective Sahaf 2011 differentiation against competitors

Questions associated with the Formulation of Positioning Strategy

What would the scope of a positioning

strategy-an industry, a firm, a group of product or an item of product mix? What attributes are used by the consumers to form the perception about the market offering? How the positioning options are evaluated?
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Steps in Developing a Positioning Strategy

Determining levels of Positioning
Identification of key attributes of importance to

selected segments Location of attributes on a positioning map Evaluating positioning options Implementing positioning

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Determining levels of Positioning

Industry Positioning

Organizational Positioning The Levels of Positioning Product Group Positioning

Product Positioning

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Identifying and selecting Key Attributes

Attributes represent the major factors that influence the buying behaviour of the consumers.
Price quality Convenience Value Prestige

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Location of Attributes on Positioning Map

The measurement and display of consumers

perception (on the attributes) through perceptual map which is a graphic representation of a consumer's perception of a firm's offering on specific service attributes relative to other competing brands.
Map is usually confined to two dimensional

model where consumers perception is demonstrated across two attributes of a firms marketing offering.
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Location of Attributes on Positioning Map

High Quality

Service D

Service B Service G Less Expensive

Service F Expensive Service A

Service C

Service H

Service E

Low Quality

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Evaluating Positioning Options

By attributes/benefits
By price/quality By use/application

By competitor
By product user By product class

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Implementing Positioning
Every constituent of the service

organization must strengthen the desired position in the market. The organizations employees, policies, system and communication need to facilitate in the execution of positioning strategy

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