Define the relationship between differentiation and positioning of products or services

Differentiation and Positioning - at Marketing-Insider!

define the relationship between differentiation and positioning of products or services

Differentiation• Kotler defines differentiation as the process ofadding meaningful and valued Development of one-to-one relationships with customers. Bases and Strategies for Positioning– Product or service attribute. 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. Strategies might be to target low priced buyers, position a product as high What Are the Demographics of the Target Market? highlight a product's faster delivery times, better customer service or a broader [Differentiated Marketing Strategy] | Difference Between Differentiated Marketing Strategy and.

define the relationship between differentiation and positioning of products or services

These questions must be answered to develop a marketing and advertising plan that appeals to the target market. For example, look at a profile of people who purchase hybrid car. Typically, they have higher incomes, are older than the average car buyer, they practice yoga, go hiking, drink decaffeinated coffee and eat more organic foods and yogurt than other markets.

So, you wouldn't try to sell corn dogs and a gas-guzzling SUV to this demographic.

define the relationship between differentiation and positioning of products or services

Is the Market Price Sensitive? Price is always a consideration for the consumer, but how sensitive is it, really?

Differentiation and Positioning

A product can be low-priced, but the customer still needs to believe that he is receiving good value for his money. Many car buyers are highly sensitive to prices.

  • Difference Between Positioning and Differentiation
  • Differences Between Product Differentiation & Market Segmentation
  • Product Positioning and Differentiation Strategy

Manufacturers try to accommodate the price shopper by offering cars with smaller engines and fabric upholstery instead of leather. Automobile drivers are aggressive hunters of the lowest price for gasoline. They will drive several miles just to save a few cents per gallon.

Will Buyers Pay Higher Prices? Consumers believe that if a product is expensive, that it must be of high quality and therefore is worth the listed price. In this situation, marketers focus their advertising on the product's superior features and how its performance exceeds that of the competition. Five Guys restaurants sell hamburgers, hot dogs, french fries and milkshakes. Nothing new here, except they charge higher prices than McDonald's and Burger King.

Five Guys has been able to position its food as being made from the highest quality products, and that Five Guys is worth the price it charges. Consumers believe this strategy, and they stand in line to buy. Product Differentiation Product differentiation is the incorporation of attributes, such as quality or price, into a product to encourage the intended customers to perceive it as different and desirable.

For example, if your company sells seat belts to automotive manufacturers, perhaps your unique value is never-fail, on-time delivery with no rejected belts. If other seat belt manufacturers are not meeting these desired goals, you will have a unique advantage against your competition, and will have differentiated your seat belts from those of your competitors.

Difference Between Positioning and Differentiation | Positioning vs Differentiation

Product Positioning Positioning is how you provide your product or service brand identification as you go to market. It is the next step after you have determined how to differentiate your product or service.

In the seat belt example, the seat belt manufacturer can market itself on the premise that it does not miss delivery times and that its products are free of flaws. The product is positioned against those of competitors on the basis of timely delivery and excellence in manufacturing.

What is the difference between ‘positioning’, ‘differentiation’ and ‘brand’

All of the seat belt manufacturer's major marketing efforts should emphasize this positioning in the marketplace. Positioning Statement A positioning statement is a short sentence or phrase that conveys the essence of the differentiation and positioning strategies and is developed after these have been set. This statement is used as a marketing tool by which to judge all marketing materials to see if they are in keeping with the strategies.

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.