Program: MBA I Semester First Year
MBA 201: Service Marketing
Unit-III
Jan- July 2024
Mr. Adarsh Kumar Gupta
Asst. Professor
Dept. of Management
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Outlines
• Prerequisite
• Student Effective Learning Outcome (SELO)
• Using Positioning Maps to Plot Competitive Strategy
• Changing Competitive Positioning
• References
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Prerequisite
Student before coming in class it's important to ensure that students have a
foundational understanding of SM Subject Learning through Provided notes
on LMS and Session in Class.
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Student Effective Learning Outcome (SELO)
• Explain the objectives of service pricing
• Develop pricing strategies
• Understand the concept of market segmentation
• Apply focused segmentation strategies
• Define service attributes
• Develop a strong positioning strategy
• Conduct internal market and competitor analyses
• Utilize positioning maps
• Implement strategies for changing competitive positioning
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Using positioning map to plot competitive strategy
A positioning map is a valuable tool you can use alongside your internal market and
competitor analysis to plot your competitive strategy. Here's how it works:
1. Define the Axes:
Choose two key attributes that are important to your target market when making
decisions about your type of service. These could be:
• Price vs. Quality
• Customization vs. Convenience
• Innovation vs. Reliability
• Technology-driven vs. Personal touch
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2. Plot Your Competitors:
• Place circles representing your competitors on the map based on how they are
perceived by the target market on the chosen attributes.
• The size of the circle can indicate a competitor's market share.
3. Plot Your Ideal Position:
• Considering your internal market analysis and competitive landscape, position
your own service offering on the map.
• This position should reflect your unique selling proposition (USP) and target the
needs of your ideal customer segment.
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4. Analyze the Map:
• Look for gaps in the market where there is little competition.
• Consider if there's an opportunity to position yourself in a
vacant space that caters to a specific customer need.
• You can also analyze how close you are to competitors and
identify areas for differentiation.
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Refine Your Strategy:
• Based on the positioning map insights, refine your marketing messages and
communication to clearly communicate your value proposition to the target
market.
• You might also consider adjusting your service offering to better align with the
chosen position.
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Benefits of Using a Positioning Map:
Visualizes the Competitive Landscape: Provides a clear picture
of how your service compares to competitors on key attributes.
Identifies Market Gaps: Helps you spot opportunities to
differentiate your service and target unmet customer needs.
Informs Strategic Decisions: Guides you in developing targeted
marketing campaigns and pricing strategies that resonate with
your ideal customer segment.
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Changing competitive positioning
Changing your competitive positioning can be a strategic move to revitalize your
brand, target new customer segments, or simply stay relevant in an evolving
market. Here's a breakdown of the process involved:
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1. Evaluating Your Current Position:
1. Evaluating Your Current Position:
• Conduct a thorough internal market analysis and competitor analysis to
•Conduct a thorough internal market analysis
understand your current standing.
and competitor analysis to understand your
current standing.
• Analyze your positioning map to see how customers perceive your brand and
•Analyze your positioning map to see how
offerings compared to competitors.
customers perceive your brand and offerings
compared to competitors.
• Identify any weaknesses in your current position that might be limiting your
•Identify any weaknesses in your current
reach or growth.
position that might be limiting your reach or
growth.
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2. Defining Your Goals for Change:
• What do you hope to achieve by changing your competitive positioning?
• Do you want to attract a new customer segment, address unmet needs in the
market, or differentiate yourself more effectively from competitors?
• Clearly define your goals to guide your repositioning strategy.
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3. Researching the Market:
• Conduct market research to identify emerging trends, customer needs, and
potential opportunities.
• Analyze your target market and understand how their preferences and
behaviors might be evolving.
• Use this research to identify potential new positioning options that align with
market trends and customer needs.
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4. Selecting Your New Position:
• Based on your research and goals, choose a new position on the competitive
landscape.
• This new position should be achievable, sustainable, and resonate with your
target market.
• Consider the feasibility of implementing the changes required to support your
new positioning strategy.
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5. Implementing the Change:
• Develop a clear communication plan to inform your target market, partners, and
employees about your new positioning.
• Revise your marketing materials, messaging, and brand identity to reflect your
chosen position.
• If necessary, adjust your service offering or product features to better align with
your new competitive stance.
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Suggested Readings:
Chowdhary, N., & Choudhary, M. (2008). Marketing of Services. MacMillan Publishers
India Limited.
Lovelock, C., & Wirtz, J. (2016). Service Marketing (8 ed.). Singapore: World Scientific.
Parasuraman, A.. Zeithaml, V. A. & Berry. L. L. (1985). A Conceptual Model of Service
Quality and Its Implication for Future Research Journal of Marketing. 49(4) (Autumn,
1985), 41-50.
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