E-Marketing4/EJudyStrauss,AdelI.El-Ansary,andRaymond FrostChapter 9: Differentiation and PositioningStrategies1000007001070100111101000010010111010010C2006PrenticeHall000
©2006 Prentice Hall 9-1 E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 9: Differentiation and Positioning Strategies
Chapter 9 ObjectivesAfterreadingChapter9youwillbeableto:Define differentiation andpositioningandexplain whythey are important elementsofmarketing strategy.Identify dimensionsof differentiation andInternet-specific differentiation strategiesDiscusshowcompaniescanpositionorreposition themselves on the basis of attributestechnology, benefits, user category, relation tocompetitors,orintegrator capabilities1700100001117010000100701110100102006PrenticeH
©2006 Prentice Hall 9-2 Chapter 9 Objectives • After reading Chapter 9 you will be able to: • Define differentiation and positioning and explain why they are important elements of marketing strategy. • Identify dimensions of differentiation and Internet-specific differentiation strategies. • Discuss how companies can position or reposition themselves on the basis of attributes, technology, benefits, user category, relation to competitors, or integrator capabilities
The J. Peterman StoryTheJ.PetermanCompanyisaclassicexampleofsuccessfullycombiningcleverdifferentiationwithpowerful positioningThefounderestablishedhiscompanyasabreedapartfrom ordinarycompetitorsVisit jpeterman.com and discuss what makestheirproducts“unique.0007000170000000707070070C2006PrenticeHal
©2006 Prentice Hall 9-3 The J. Peterman Story • The J. Peterman Company is a classic example of successfully combining clever differentiation with powerful positioning. • The founder established his company as a breed apart from ordinary competitors. • Visit jpeterman.com and discuss what makes their products “unique
Differentiation.Kotlerdefinesdifferentiationastheprocessofadding meaningfulandvalued differencestodistinguishtheproductfromthe competitionThere are a number of differentiationdimensions and strategies fortheiraccomplishment07001070100111101000010010111010010C2006PrenticeHal
©2006 Prentice Hall 9-4 • Kotler defines differentiation as the process of adding meaningful and valued differences to distinguish the product from the competition. • There are a number of differentiation dimensions and strategies for their accomplishment. Differentiation
Differentiation DimensionsAfirmcandifferentiatealong5dimensions·ProductServicesPersonnelChannelImage1000007001070100111101000010010111010010C2006PrenticeHall000
©2006 Prentice Hall 9-5 Differentiation Dimensions • A firm can differentiate along 5 dimensions: • Product • Services • Personnel • Channel • Image
Product DifferentiationTheInternetdifferentiates itselfbyprovidingalimitlessassortmentofproductsDifferentiationmayincludecustomization,bundling and attractive pricing of productsInternetsalesmaynotrelyasheavilyonproductpackagingasdotraditional retailersPackagingminimizationwill reducewasteandcosts.00000017000007000700070C2006PrenticeHal
©2006 Prentice Hall 9-6 • The Internet differentiates itself by providing a limitless assortment of products. • Differentiation may include customization, bundling and attractive pricing of products. • Internet sales may not rely as heavily on product packaging as do traditional retailers. • Packaging minimization will reduce waste and costs. Product Differentiation
Service Differentiation.Customerservicecanbeenhancedby24hourcustomerfeedback through e-mail..Homedelivery ofgroceriesand online bankingand securities trading are becomingincreasinglypopular.Todaysuchservicessupplementtraditionalservices,butmaysomedayreplacethem7007:070100111701000010010111010010C2006PrenticeHal
©2006 Prentice Hall 9-7 Service Differentiation • Customer service can be enhanced by 24 hour customer feedback through e-mail. • Home delivery of groceries and online banking and securities trading are becoming increasingly popular. • Today such services supplement traditional services, but may someday replace them
Channel DifferentiationThe Internet is a location-free.time-freedistribution and communication channelTheInternetservesasatransactionanddistribution channelTheInternetprovideshighlyspecializedpersonalservicesand“doityourself"websites7001070100111001000010010111010010C2006PrenticeHal
©2006 Prentice Hall 9-8 • The Internet is a location-free, time-free distribution and communication channel. • The Internet serves as a transaction and distribution channel. • The Internet provides highly specialized personal services and “do it yourself” websites. Channel Differentiation
Image DifferentiationAcompanycandifferentiateitselfbycreatingaunique experience online,called“experiencebrandingThe Internet's interactivity allows companiestorespondmorequicklytocustomerrequests·FastercommunicationRetain currentcustomers andattractnewones.7001:070100111101000010010111010010C2006PrenticeHal
©2006 Prentice Hall 9-9 Image Differentiation • A company can differentiate itself by creating a unique experience online, called “experience branding.” • The Internet’s interactivity allows companies to respond more quickly to customer requests. • Faster communication. • Retain current customers and attract new ones
Differentiation StrategiesDifferentiationstrategiesareparticularlyimportantonthe Internet.Internetmarketing strategy revolves aroundcompany imageandproductinformation availableonthe Web.Specificstrategiesmayinclude:Beingthefirsttoenterthemarket..Owning a product attribute orquality in themind oftheconsumer.7000000110000070070070070C2006PrenticeHal
©2006 Prentice Hall 9-10 Differentiation Strategies • Differentiation strategies are particularly important on the Internet. • Internet marketing strategy revolves around company image and product information available on the Web. • Specific strategies may include: • Being the first to enter the market. • Owning a product attribute or quality in the mind of the consumer