Page 116 - DMGT522_SERVICES MANAGEMENT

Unit 5: Market Positioning

The offer, thus, has to be positioned in their minds to enable them to recognise the offer as Notes
distinct from the crowd and to be persuaded that the offer is the best offer for them.
Note: Always remember your competitors are trying to figure out how to get better and get a
leg up. You must continually assess whether a particular positioning strategy is still valid and if
not, adjust it accordingly.

5.1.1 Four Principles of Positioning

The four principles of positioning are:

1. A service firm must position itself in the target segment’s mind.
2. The position should be singular, with one simple, consistent message.
3. The position must set the service firm and the service product apart.
4. A service firm cannot be all things to all people; should focus on certain segments.

5.1.2 Positioning and Differentiation of the Service

 Positioning by Attributes: A service provider positions the service based on some unique
feature or attribute.

Example: Reliance Communications positions itself as the No.1 network in India

Allahabad Bank positions itself as the oldest bank in India
 Positioning by Benefits: A service can be also being positioned based on the benefits
sought by the consumers. Consumers usually tend to analyse the benefits of the service
before using it so this type of positioning may work well.

Example: Insurance companies mostly position on benefits like Max New York Life
Insurance positions itself by saying ‘karo jyada ka irada’.
 Positioning by User: The services are also positioned for specific types of users groups.

Example: MTV positions itself as a channel for youngsters

 Positioning by use: Service is positioned as the best option for a certain use or application.

Example: SBI positions itself as the best bank for seeking educational loan Citi Financial
positions itself as bank which processes loans quickly and without hassles.

 Positioning by Competition: Services are positioned as against the competitors.

Example: Avis positioned itself against Hertz by saying that ‘We work harder’. Hertz
replied by saying that ‘We are hertz, they are not’.

 Positioning by Service Category: The service provider positions itself as the category
leader and becomes inseparable with service.

Example: Xerox is the leader in photocopiers, so much that mostly people refer to
photocopy as Xerox.
 Positioning by Price: A service can also be positioned based on particular prices.

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