Chapter 7Positioning Services in Competitive Markets.ppt

Summary – Chapter 7 The importance of adopting focussed strategies Distinction between important and determinant attributes in consumer decision making Clarify the key concepts underlying competitive positioning strategy Using Positioning Maps to Plot Competitive Strategy Focus Underlies the Search for Competitive Advantage Intensifying competition makes it important to differentiate products In mature market, only way to grow may be to take a share from competitors Must be selective in targeting customers Rather than compete in an entire market, firm must focus efforts on customers it can serve best Emphasize competitive advantage on those attributes that will be valued by customers in target segment s Standing Apart from the Competition A business must set itself apart from its competition. To be successful it must identify and promote itself as the best provider of attributes that are important to target customers George S. Day Basic Focus Strategies for Services  Fig 7.1 Risks and Opportunities of a Fully Focused Strategy Opportunities Developing recognized expertise in a well-defined niche may provide protection against would-be competitors Allows firms to charge premium prices Risks Market may be too small to generate needed volume of business Demand for a service may be displaced by generic competition from alternative products Purchasers in chosen segment may be susceptible to economic downturn Rests upon good market segmentation Developing Right Service Concept for a Specific Segment Use research to identify and prioritize which attributes of a given service are important to specific market segments Individuals may set different priorities according to: Purpose of using the service Who makes decision Timing of use Whether service is used alone or with a group Composition of that group Importance of Determinant Attributes Consumers choose between alternative service offerings based on perceived differences between them Attributes that distingui