1. in Competitive Markets
Services Marketing, 7e, Global Edition
Chapter 3:
Positioning Services
in Competitive Markets

2. Overview of Chapter 3 1. Focus Strategies for Services
2. Market Segmentation
3. Service Attributes and Levels
4. Positioning Distinguishes a Brand from its Competitors
5. Developing an Effective Positioning Strategy
6. Using Positioning Maps to Analyze Competitive Strategy
7. Changing Competitive (re)Positioning

3. 1. Focused Strategies for Services

4. Standing Apart from the Competition: 藍海策略
“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
在競爭中致勝的唯一方法，就是打消競爭的念頭。 ~ 金偉燦

5. Basic Focus Strategies for Services

6. Considerations for using Focused Strategies
1. Fully focused: Limited range of services to narrow and specific market, e.g., Shouldice Hospital
Risks
Market is too small to generate needed volume
Demand may be displaced by generic competition from alternative products
Purchasers in chosen segment may be susceptible to economic downturn
Opportunities
Developing recognized expertise in a well- defined niche may provide protection against would-be competitors
Allows firms to charge premium prices

7. Considerations for using Focused Strategies
2. Market focused, e.g., Rentokil Initial, IBM (B2B)
Narrow market segment with wide range of services
Need to make sure firms have operational capability to do and deliver each of the different services selected.
3. Service focused, e.g., Starbucks
Narrow range of services to fairly broad market
As new segments are added, firm needs to develop knowledge and skills in serving each segment.

8. Considerations for Using Focus Strategies
4. Unfocused, e.g., Toshiba (142 years), GE
Broad markets with wide range of services, 無所不做 ：家電，半導體，核電廠，個人電廠，醫療設備
Many service providers fall into this category, 中國 家電廠商崛起
Danger – becoming a “jack of all trades and master of none”, 資源稀釋
* 2016~ 家電賣給中國 美的集團，個人電廠合併入 VAIO, 醫療設備賣給 Canon (為了東芝的技術,2600項專利)
轉型到: B2B企業零件市場，大量投資在：半導體，核電廠 ，捨得才能聚焦。

9. 2. Market Segmentation

10. Market Segmentation
Firms vary widely in their abilities to serve different types of customers. （第一不如唯一！行行出狀元!）
A market segment is composed of a group of buyers sharing common characteristics, needs, purchasing behavior, and consumption patterns. （分類:15~35歲女性脖 子以上的飾物）
Target segments should be selected with reference to
Firm’s ability to match or exceed competing offerings directed at the same segment. （or 別人的機會）
Not just profit potential.

11. 3. Service Attributes and Levels

12. 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

13. Important vs. Determinant Attributes
Consumers usually choose between alternative service offerings based on perceived differences between them
Determinant attributes determine buyers’ choices between competing alternatives
service characteristics that are important to purchasers, IPA
Air travel: 1. safety（不能妥協）, 2. price （預算型）, convenience times（起降、轉）? If 班次少，Actually!

14. Establishing Service Levels
Make decisions on service levels – level of performance firm plans to offer on each attribute
Easily quantified attributes are easier to understand – e.g., price, punctuality of transportation services
Qualitative attributes subject to individual interpretation – e.g., hotel's degree of luxury, physical comfort, noise levels
Can often segment customers according to willingness to trade off price vs. service level:
Price-insensitive customers willing to pay relatively high price for high levels of service
Price-sensitive customers look for inexpensive service with relatively low performance (min requirement)

15. 4. Positioning Distinguishes a Brand from its Competitors

16. Four Principles of Positioning Strategy
1. Must establish position for firm or product in minds of customers
2. Position should be distinctive, providing one simple, consistent message
3. Position must set firm/product apart from competitors
4. A company cannot be all things to all people – must focus its efforts

17. A New chain of child-care center: low-cost or differentiation (ROQ)?
Avoid trap of investing too heavily in points of differences that are easily copied!
What does our firm stand for in the minds of current and potential customers?
What customers do we serve now, and which ones would we like to target?
What is value proposition for our current service products, and market segments?
How does each of our service products differ from competitors’?
How well do target customers perceive our service products as meeting their needs?
What changes must we make to strengthen our competitive position?

18. Nicolas Hayek, 平價、時尚的 Swatch 手表 Segmentation, Targeting, Positioning

19. 5. Developing an Effective Positioning Strategy

20. Developing an Effective Positioning Strategy
Positioning links market analysis and competitive analysis to internal corporate analysis
1. Market Analysis
Focus on overall level and trend of demand and geographic locations of demand
Look into size and potential of different market segments
Understand customer needs and preferences and how they perceive the competition

21. Developing an Effective Positioning Strategy
2. Internal Corporate Analysis
Identify organization’s resources, limitations, goals, and values, 衡外情，量己力:人無我有，人有我優，人優我轉
Select limited number of target segments to serve
3. Competitor Analysis
Understand competitors’ strengths and weaknesses
Anticipate responses to potential positioning strategies,

22. Market, Internal, and Competitive Analyses

23. Anticipating Competitive Response
Competitors might pursue same market position
Independently do same positioning analysis and arrive at similar conclusions, 台灣的大學及 EMBA SWOT 分析結果都相似？
Threatened by new strategy, take steps to reposition own service
New entrant plays “follow the leader”, benchmarking, copy, 紅海
Conduct internal corporate analysis for challengers and analyze possible effects of alternative moves
Impact of price cut on demand, market share, and profits
Responses of different segments to changes in service attributes, e.g., - lower price, offer + higher service level on some attributes, 捨，添

24. 6. Using Positioning Maps to Analyze Competitive Strategy

25. Using Positioning Maps to Plot Competitive Strategy
Great tool to visualize competitive positioning and map developments of time
Useful way to represent consumer perceptions of alternative products graphically
Typically confined to two attributes, but 3-D models can be used to portray positions on three attributes simultaneously
Information about a product can be obtained from market data, derived from ratings by representative consumers, or both

26. Positioning of Hotels in Belleville: Price vs
Positioning of Hotels in Belleville: Price vs. Service Level, 易量化屬性：策略群組成員數 (2, 5, 3)
Expensive
Shangri-La
High
Service
Moderate
Grand
Regency
Sheraton
Italia
Castle
Alexander IV
Airport Plaza
PALACE
Atlantic
Less Expensive

27. Positioning of Hotels in Belleville: Location vs
Positioning of Hotels in Belleville: Location vs. Physical Luxury 不易量化屬性：策略群組成員數 (1, 6, 3)
High Luxury
Shopping District
and Convention Center
Shangri-La
Moderate Luxury
Financial
District
Inner
Suburbs
Grand
Regency
Sheraton
Italia
Castle
Alexander IV
Airport Plaza
PALACE
Atlantic

28. Dynamic, (re)Positioning After 4 New Construction: Price vs
Dynamic, (re)Positioning After 4 New Construction: Price vs. Service Level,群組成員 (2,5,3): ( ) or (5, 2, 4, 3)
Expensive
Shangri-La
High
Service
Moderate
Heritage
Mandarin
New Grand
Marriott
Continental
Regency
Sheraton
Italia
Alexander IV
Airport Plaza
PALACE
Atlantic
No action?
Action?
Less Expensive
Castle

29. After 4 New Construction: Location vs
After 4 New Construction: Location vs. Physical Luxury, (1,6,3): (3, 8, 3) or (2, 2, 5, 2, 3)
High Luxury
Shangri-La
Financial
District
Inner
Suburbs
Heritage
Mandarin
New Grand
Marriott
Continental
Regency
Sheraton
Italia
Alexander IV
Airport Plaza
PALACE
Atlantic
No action?
Action?
Moderate Luxury
Castle
Shopping District
and Convention Center

30. Positioning Maps Help Managers to Visualize Strategy
Research provides input
Attributes 量化，質化
Performance of individual firms on each attribute accurately reflects perceptions of customers in target segments
Predictions can be made of how positions may change in light of future developments
Charts and maps can facilitate “visual awakening” to threats and opportunities, suggest alternative strategic directions. "投資高人力服務 Service 勝於 奢侈傢俱裝潢 Luxury” Price 不輕易動，Location 不能變

31. 7. Changing Competitive Positioning

32. Repositioning
Firm may have to make significant change in existing position, dynamic: t-1, t, t+1, t+2
Revising service characteristics; redefining target market segments; abandoning certain products; withdrawing from certain market segments
Improving negative brand perceptions may require extensive redesign of core product
Repositioning introduces new dimensions into positioning equation that other firms cannot immediately match.
* Innovation and change.

33. Summary Focus Strategies:
Fully focused
Service focused
Market focused
Unfocused
Market Segmentation – buyers share common characteristics
Service attributes– determinant attributes are often the ones most important to customers

34. Summary Positioning links:
Market Analysis
Internal Analysis
Competitive Analysis
Positioning maps are useful for plotting competitive strategy:
Identify potential competitive responses
Help executives to visualize strategy