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Positioning and differentiation

Positioning and differentiation related marketing programs are responsible to pass unique selling proposition on to the customer, as they offer clarity to customer - what product is about. "Don't forget that it (your product or service) is not differentiated until the customer understands the difference." - Tom Peters

Your positioning and differentiation strategy is an integrated set of action designed to produce or deliver goods or services that customers perceive as being different in ways that are important to them. It calls for you to sell nonstandardized products to customers with unique needs.

The concept of being unique of different is far more important today than it was ten years ago. The key to successful marketing and competing is positioning and differentiation, as described by experts:
  1. Customers for life


    By: Brian Tracy
    The two most important words to keep in mind in developing a successful customer base are Positioning and Differentiation.

  1. Differentiation refers to your ability to separate yourself and your product or service from that of your competitors. And it is the key to building and maintaining a competitive advantage. This is the advantage that you and your company have over your competitors in the same marketplace - the unique and special benefits that no one else can give your customer...
Polls
  1. Make the competition irrelevant


    By: John Mehrmann
    Create differentiation within your own products or services. If you have an assortment of products or services to offer, you may have identified your differentiation already. Common examples of differentiation for products may be based on size, speed, color, components, combinations or accessories. Common examples of differentiation for services include speed, performance, quality, responsiveness, availability, ease or integration. If you are in the unique position of having only one product or service to offer potential customers then you should consider accessories, partners or other options to create a variety of levels from the perspective of your future customers. If all else fails, you can offer different levels of shipping speed or delivery...
  1. Providing customers with More Value-Added (MVA)


    By: Michael Hammer
    As Michael Hammer puts it, "MVA means that you give the customer more, perhaps far more, than you ever have before. It goes beyond simplifying your customers' interactions with you to delivering solutions to your customers' problems, of which your products and services in their native forms are but small pieces... You can visualize the principle of MVA as a ladder with your product at the bottom and the solution to your customer's problems at the top. The more help you provide your customers to fill that gap, the more value you add to them, which, of course, differentiates you from your competitors who are still scrambling around at the bottom of the ladder. Also, it is to your advantage to control as much of the ladder as you can - customers will be less likely to abandon you in favor of someone else, lower down the ladder, who offers less value. At the same time, your opportunity for margin and profit increase."

Hypercompetition is a key feature of the new economy. What used to be national markets with local companies competing for business has become a global market with everyone competing for everyone's business everywhere. With the enormous competition markets today are driven by choice - your targeted customers have too many choices, all of which can be fulfilled instantly. Choosing among multiple options is always based on differences, implicit or explicit, so you ought to differentiate in order to give the customer a reason to chose your product or service. Thus, "positioning and differentiation are the most important strategic and tactical activities in which companies must constantly engage. It is not discretionary".

Marketing decision models

 

Business strategies definition

  1. Market and product development
    1. Beta testing
    2. Market research testing
    3. Commercialization of a product
      This is often considered post-NPD (New Product Development).
  2. Business and revenue model
  3. Positioning and differentiation
  4. Multi channel distribution
    'With each new sales channel, a company expands its sales and market coverage'.
  5. Multi channel communication
    The goal of writing multi channel communication plan is to get an audience to invest their time, money or efforts in a product or service.
  6. Marketing communication mix
    The importance of online service for some organisations are indicated by bank Nationwide.
  7. Organisational capabilities
 
  1. Idea generation
    1. Opportunity analysis
      The strategy of assessing the potential for a change or enhancement to enhance the generation of revenue.
  2. Idea screening
  3. Business analysis
    1. Break even analysis
    2. Benefits of break even analysis
    3. Fourt Woodlock equation
      The tool used to determine whether the product idea will be profitable or not.
  4. Critical path analysis
  5. How to make critical path analysis?
  6. Critical path in business
  7. Logistics strategic plan
    Logistics is how to get raw materials, move them in the system, distribute and replace them.
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