61c4302 Positioning

Amity Business School


MBA Class of 2010, Semester III

PositioningProf. P K Bansal

Amity Business SchoolSERVICE

POSITIONING

• Service offering's position is the way it is

perceived by consumers particularly in relation

to competing offerings.

• The service position is what is in the customer’s

mind, whether or not it is the image planned or

desired by the organisation.


• Service positioning is useful in establishing a

new service image, as well as for

maintaining and repositioning existing

image.

• It may not necessarily be communicated

through advertising only, but can and should

be established through all elements of

services marketing mix.

Amity Business SchoolPOSITIONING

DIMENSIONS

Services can be positioned on variety of

dimensions:

SERVICE QUALITY

– Reliability

– Responsiveness means responding to

customers' desire for prompt, "Willing to help"

service.


– Assurance is used where trust and confidence in

the service provider are particularly critical.

Industries like, insurance, health care.

– Empathy is customer's desire for caring,

individualised attention.

– Tangibles may also be the focus of a positioning

strategy. It can be on product quality, price etc. It is,

associated with a service organisation are highly

visible to customers. because tangibles, particularly

the physical environment


EVIDENCE OF SERVICE

– People:

– It refers to the contact employees and customers who

may be in the service facility.

– How these people will look, act, and influence the

service position in the customer’s mind?

– Disney Corporation works hard to hire and train

contact employees to convey a consistent image and

reinforce the position of the Disney theme parks as

places for fun.


– It includes dress codes and uniform, the package of

the service provider, is the physical representation of

the service leading to the mental image and

positioning in customer’s mind. Uniform like doctor’s

white coat can suggest consistency of service by

reinforcing a message of standardisation or the

lawyer’s black coat, the police uniform the power of

law.

– Standardised uniform may work at cross-purpose if

desired image is one of flexibility.


PHYSICAL EVIDENCE

– It includes tangible communication, price, physical

environment, and guarantees etc.

– They may not be rated high by consumers in terms of

their influence on quality but they are critical for

positioning and solidifying an image.

The tangible evidence used for a high-end executive

education experience for example, would be different

from the evidence used to position a daylong seminar

aimed at mass audience.


PROCESS

– It includes the Flow of activities, Steps in the

process, and Flexibility of process.

– The work on service blueprinting has forged a

connection between service processes as structural

elements that can be engineered for strategic

service positioning purposes.

– Service process can be defined in terms of two

variables:


The two variables are:

– Complexity (number of steps involved in delivery of

service)

– Divergence (execution latitude, or variability of the

steps)


Low Divergence High

Complexity

Low

Forensic

Testing Lab

Hospital

Services

Outpatient

Clinic Poly Clinic

Process Matrix


Low Divergence

• Uniform Treatment, Reduced Costs,

Improved Productivity, Easy Distribution,

Volume-oriented Positioning, Increased

Reliability.

High Divergence

• Customization, Flexibility, Low Volumes

Higher Price, Difficult Control and

Distribution, Niche Positioning.


Low Complexity

• Focused Resources on a Narrower

Service Offerings, Easy Distribution.

High Complexity

• Greater Penetration in market by addition

of More Services, Increased Revenue from

each Customer.

61c4302 Positioning

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