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Chapter Eight

Chapter Eight. Differentiation and Positioning. Exhibit 8.1 Generic Competitive Strategies. Competitive Advantage. Competitive Scope. Source: Adapted from Michael Porter, Competitive Advantage, New York: The Free Press, 1985, p. 12.

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Chapter Eight

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  1. Chapter Eight Differentiation and Positioning

  2. Exhibit 8.1Generic Competitive Strategies Competitive Advantage Competitive Scope Source: Adapted from Michael Porter, Competitive Advantage,New York: The Free Press, 1985, p. 12.

  3. Exhibit 8.3Comparison of Physical and Perceptual Positioning Analysis • Physical positioning • Technical orientation • Physical characteristics • Objective measures • Data readily available • Physical brand properties • Large number of dimensions • Represents impact of product specs and price • Direct R&D implications • Perceptual positioning • Consumer orientation • Perceptual attributes • Perceptual measures • Need for marketing research • Perceptual brand positions and positioning intensities • Limited number of dimensions • Represents impact of product specs and communication • R&D implications need to be interpreted

  4. 1. Identify relevant set of competitive products serving a target market. 2. Identify the set of determinant attributes that define the “product space” in which positions of current offerings are located. 3. Collect information from a sample of customers and potential customers about perceptions of each product on the determinant attributes. Exhibit 8.4Steps in the Positioning Process(1 of 2)

  5. 4. Determine product’s current location (positioning) in the product space and intensity thereof. 5. Determine customers’ most preferred combination of determinant attributes. 6. Examine the fit between preferences of market segments and current position of product (market positioning). 7. Write positioning statement or value proposition to guide development and implementation of marketing strategy. Exhibit 8.4Steps in the Positioning Process(2 of 2)

  6. Exhibit 8.5Perceptual Map of Women’s Clothing Retailers in Washington, D.C. Washington 1990 Women’s fashion market The Limited Neiman-Marcus Saks Bloomingdale’s Macy’s Nordstrom Women’s-wear fashionability Conservative versus current versus very latest Hit or Miss Dress Barn TJ Maxx Garfinkels Sassafras The Gap Casual Corner Loehmann’s L&T Marshalls Britches Hecht’s Kmart Woodward & Lothrop Sears JC Penney Talbots Women’s-wear value for the money Worst value Best value Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990, as shown in Michael Levy and Barton A. Weitz, Retailing Management (Burr Ridge, IL: Richard D. Irwin, 1992), p. 205.

  7. Exhibit 8.6Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing the Ideal Points of a Segment of Consumers Washington 1990 Women’s fashion market The Limited Neiman-Marcus Saks Bloomingdale’s Macy’s Nordstrom Women’s-wear fashionability Conservative versus current versus very latest Hit or Miss Dress Barn TJ Maxx Garfinkels Sassafras The Gap Casual Corner Loehmann’s L&T Marshalls Britches Hecht’s Kmart Woodward & Lothrop Sears JC Penney Talbots Women’s-wear value for the money Worst value Best value Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.

  8. Exhibit 8.7Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing Five Segments Based on Ideal Points Washington 1990 Women’s fashion market The Limited Neiman-Marcus 3 2 Saks 4 Bloomingdale’s Macy’s Nordstrom Women’s-wear fashionability Conservative versus current versus very latest Hit or Miss Dress Barn TJ Maxx Garfinkels Sassafras The Gap Casual Corner Loehmann’s 1 L&T Marshalls Britches Hecht’s Kmart Woodward & Lothrop 5 Sears JC Penney Talbots Women’s-wear value for the money Worst value Best value Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.

  9. Exhibit 8.8Positioning Statement and Value Proposition for Volvo Automobiles in the United States Value Proposition • Target market: Upscale American families • Benefits offered: Safety, durability • Price Range: 20% premium over similar cars Positioning Statement For upscale American families, Volvo is the automobile that offers the utmost in safety and durability.

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