POSITIONING AND DIFFERENTIATION

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POSITIONING AND DIFFERENTIATION

• Dr. Metzner

EMGT451 2/2004
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PORTERS GENERIC STRATEGIES

• Low Cost (Experience Curve)
• Product Differentiation (Quality)
• Market Focus (Value-Added)

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POSITIONING CRITERIA

• Important
• Distinctive
• Superior
• Communicable
• Preemptive
• Affordable
• Profitable

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The BCG Competitive Advantage Matrix

• NUMBER OF APPROACHES
• TO ACHIEVE ADVANTAGE
• FEW MANY
• LARGE VOLUME SPECIALIZED
• SIZE OF THE
• ADVANTAGE
• SMALL STALEMATED FRAGMENTED

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PRODUCT DIFFERENTIATION(QUALITY)

• FEATURES
• PERFORMANCE
• RELIABILITY
• DURABILITY

• CONFORMANCE
• SERVICEABILITY
• AESTHETICS
• PERCEIVED QUALITY

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SERVICE DIFFERENTIATION

• EASE OF ORDERING
• DELIVERY
• INSTALLATION
• CUSTOMER TRAINING

• CONSULTING SERVICES
• REPAIR
• ABILITY TO REACH PEOPLE
• MISCELLANEOUS

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PERSONNEL DIFFERENTIATION

• Competence
• Courtesy
• Credibility
• Reliability
• Responsiveness
• Communication

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CHANNEL DIFFERENTIATION

• Coverage
• Expertise
• Performance

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IMAGE DIFFERENTIATION

• Symbols
• Written and Audiovisual Media
• Atmosphere
• Events

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Automotive Market Positioning Map (1984)
HAS A TOUCH OF CLASS A CAR ID BE PROUND TO
OWN DISTINCTIVE LOOKING
PORSCHE
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LINCOLN
BMW
4
CADILLAC
MERCEDES
SPIRITED PERFORMANCE SPORTY LOOKING FUN TO
DRIVE APPEALS TO YOUNG PEOPLE
CHRYSLER
PONTIAC
2
CONSERVATIVE LOOKING
BUICK
CHEVROLET
APPEALS TO OLDER PEOPLE
FORD
DATSUN
1
TOYOTA
DODGE
3
PLYMOUTH
VW
VERY PRACTICVAL GOOD GAS MILEAGE AFFORDABLE
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Engineering Management 451
Advanced Marketing Management
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