Page 117 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes

Note Always remember your competitors are trying to figure out how to get better and
get a leg up. You must continuolly assess whether a particular positioning strategy is still
valid and if not, adjust it accordingly.

Example: Wal-Mart positioned itself by saying ‘always low prices’
positioning by Quality: A service can also be positioned on certain quality standards.

Example: The Oberoi-Hilton hotels positioned themselves as high quality high price
hotels.

Task Collect ads of services that have positioned themselves well on the basis of price,
benefits, competition and quality.
Self Assessment

Fill in the blanks:
1. Positioning of a product or service means projecting an image in such a way that the
consumers perceive it distinctively to that of ........................

2. Intensive distribution where the majority of resellers stock the ........................
3. Selective distribution is the normal pattern where ‘suitable’ ........................ stock the product.

5.1.3 Positioning Process

Figure 5.1: The Process of Market Positioning

Identify Target Markets

STAGE 1 Tangible (colour, size, design)
Identify key offer
characteristics Intangible reputation, guarantees
Service Features identification
and weightage to each of them

STAGE 2
Draw a perceptual
map

Head-On/”me too”
STAGE 3
Decide on a
competitive strategy Position away/avoid competition
Less profitable; on growth

STAGE 4
Design offer attributes, USP
associated imageries

STAGE 5
Sustain a competitive
advantage
Stage 1: Identify Key Product Characteristics
The service marketer should make efforts to find out which of the offer’s features and
characteristics do consumers desire, and value most, when they make a decision to buy. Some
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