Relationship between differentiation and positioning of products or services

Product Positioning and Differentiation Strategy |

relationship between differentiation and positioning of products or services

The relationship between differentiation and positioning of products and services are that both relate to features of the product and services that are offered. Positioning refers to where the company (or brand) sits in the If you looked at price versus service, the first type of supermarket would be bottom left For example, you always know that you can return goods to John Lewis. Positioning is a strategic process that marketers use to determine the place or Differentiation is the process companies use to make a product or service stand.

Positioning & Differentiation Strategies of Marketing |

Or, can it only be found in a few selected shops? Take golf equipment, as an example. Manufacturers make sets of clubs especially for the big-box stores, but they also have other models of clubs that are only available in pro shops at golf courses. A set of clubs sold and fitted by the golf professional costs more than a set sold in Walmart. Are the golf clubs fitted the golf professional worth more?

Difference Between Positioning and Differentiation | Positioning vs Differentiation

The golfer believes that yes, they are, and he's willing to pay more for this exclusive set of clubs. What About Head-to-Head Competition? When two products are similar in features, quality and price, a manufacturer needs to find a way to differentiate his product from the others.

relationship between differentiation and positioning of products or services

The strategy should focus on something that creates an advantage in the mind of the consumer. A marketing and advertising program could highlight a product's faster delivery times, better customer service or a broader selection of colors and sizes. Effective positioning and differentiation strategies start with an analysis and understanding of the desires of the buyer, and the strength of the competition.

Marketing campaigns must have a purpose and a focus, such as a focus on price or quality, and they must be designed to reach the target demographic. Positioning, which is the process of arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target customers, depends on the differentiation, and vice versa.

We will now look at the process of differentiating and positioning in more detail. Differentiation and Positioning — Closely related Activities The differentiation and positioning process consists of three steps: Identifying a set of differentiating competitive advantages on which to build a position Choosing the right competitive advantages Selecting an overall positioning strategy.

Positioning & Differentiation Strategies of Marketing

Then, the company has to deliver its promises by effectively communicating and delivering the chosen position to the selected market. Differentiation In order to achieve a strong position in the segment the company has chosen, it has to find ways to set itself apart. To do so, it has to deal with competitive advantages.

In other terms, each firm must differentiate itself and its offer by building a unique bundle of benefits. This bundle of benefits should appeal to a substantial group within the chosen and targeted segment. The firm can differentiate itself by identifying possible value differences and competitive advantages and then choosing the right ones.

relationship between differentiation and positioning of products or services

A positioning statement for the seat belt manufacturer might be, "On-time delivery and flawless manufacturing. Rather, it is often used as a check to make sure all marketing materials produced convey the essence of how the product is differentiated and positioned against competitors. Relationships among the Three Product differentiation, positioning and positioning statements go together one after the other.

Once you have decided how best to differentiate your product based on customer needs and wants, the next step is to determine how to position it in the marketplace.

The positioning statement then follows the positioning strategy. The Importance of Imagination Successful differentiation and positioning strategies depend on an imaginative approach to the marketplace. For example, if you are a tennis racket manufacturer making high-performance rackets for the serious tennis player, you might consider opening up an entirely new market segment. This might be the creation of high-performance rackets for the average player, who can then benefit from the technology previously only offered to pros.