Week 3 Lecture

Differentiation and Positioning in Marketing

Page 1

• Title: Differentiation and Positioning

  • Course Module: MKTG1001 WEEK 3

Page 2: Today's Focus

• Key Areas of Study:

  • Understanding and applying differentiation

  • Understanding and applying positioning and competitive advantage

Page 3: Customer-Driven Market Strategy

• Steps in Strategy Development:

  • Select Customers to Serve

    • Segmentation: Divide the total market into smaller segments.

    • Targeting: Select the segment(s) to enter.

  • Create Value for Targeted Customers

    • Differentiation: Differentiate the market offering to create superior customer value.

    • Positioning: Position the market offering in the minds of target customers.

Page 4: Process of Differentiation and Positioning

• Key Steps:

  • Identifying a set of differentiating competitive advantages

  • Choosing the right competitive advantages

  • Selecting an overall positioning strategy

  • Developing a positioning statement

Page 5: Identifying Competitive Edge

• Importance of Understanding Differentiation:

  • Know what makes your business unique and competitive.

  • Understand customer needs through research.

  • Analyze competition and their offerings.

  • Examples of differentiation:

    • Tesla

    • Airbnb

    • Netflix

Page 6: Market Offerings and Choices

• Example of Competitors in Streaming Services:

  • Wide choices:

    • NETFLIX

    • HBOmax

    • Disney+

    • hotstar

  • Low price competitors:

    • plutov

    • hulu

    • prime video

  • Limited choice, high price competitors

Page 7: Consumer Perception by Price and Quality

• Price vs Quality Matrix Example:

  • High Price/Quality:

    • Audi, Honda

  • Low Price/Quality:

    • DACIA, KIA, FORD, CITROËN, RENAULT

Page 8: Positioning Map Creation

• Introduction to Creating a Positioning Map

  • Visual tool for understanding market position relative to competitors

Page 9: Continued Learning on Positioning Mapping

• Further examples and exercises on positioning maps

Page 10: Selecting Competitive Factors

• Factors to Consider:

  • Customer needs and preferences

  • Market analysis

  • Brand strengths and resources

  • Sustainability and feasibility

  • Unique value and market positioning

Page 11: Nike's Value Proposition

• EMPOWERING ATHLETES

  • Core message and positioning in the market

Page 12: Subway's Value Proposition

• FRESH, CUSTOMISABLE AND HEALTHY

  • Key aspects of positioning strategy

Page 13: Kmart's Value Proposition

• AFFORDABLE AND TRENDY EVERYDAY ESSENTIALS

  • Emphasizes value for everyday consumers

Page 14: Differentiation Questions

• Thought Exercise:

  • What differentiates Kmart from Big W and Target?

  • Key aspects of market competition

Page 15: Developing a Positioning Statement

• Structure of Positioning Statement:

  • Formula: To (target segment and need), our (brand) is (concept) that (point of difference).

  • Example:

    • "To young men who lead active lives, Lynx body spray will enable you to smell good and be cool, giving you confidence in every situation."

Page 16: Supporting Position

• The Marketing Mix Must Support Positioning:

  • Product

  • Promotion

  • Price

  • Place

Page 17: Starbucks' Positioning

• Emphasis on experience and quality in coffee offerings

Page 18: Amazon's Value Proposition

• ONE STOP ONLINE SHOPPING EXPERIENCE

  • Broad range of products and services

Page 19: Recap of Key Concepts

• Overview of Differentiation and Positioning:

  • Importance of standing out in the consumer's eyes

  • Examining brand positioning statements

  • Utilizing marketing mix for communication

  • Steps on differentiation and positioning for real-world application.