Explain steps in developing a service positioning strategy

Explain steps in developing a service positioning strategy.

Ans.    According to Jack Trout, positioning strategy must establish position for firm or product in minds of customers. should be distinctive, providing one simple, consistent message, must set firm/product apart from competitors and must focus its efforts

1.      Determining the levels of positioning: Step one is to settle on which level needs positioning attention and focus. For e.g. Vodafone has separate corporate plans and individual plans

2.      Identification of attributes: After step one, specific attributes that customers seek comes into play. For e.g., the purpose of using the .banking service may be different for business and personal service seekers. Timing also influences choice of service. For e.g. choice of going to a restaurant will be different for a corporate meeting or a weekend family brunch. The service seeker also evaluates alternatives available to him/her and makes a choice basis his perception. This choice need not necessarily reflect the most important attribute he seeks in a service. For e.g. a customer using the services of a particular bank ranks ‘rate of interest as the most important feature. But mostly all banks will have similar rates. so he makes his choice basis other factors like, bank timings. atmosphere, friendly staff. net banking facility etc. the service seekers perceptions of this process is the basis for developing positioning map.

3.      Location of attributes on a positioning map: Positioning maps is a useful way to represent consumer perceptions of alternative products in visual format. They are typically two attributes, but nowadays, 3-D models can be used to portray positions on three attributes simultaneously. They are also known as perceptual maps. Positioning maps can be developed for each segment in the target market and these maps will show the positions of different players, as per the perceptions of the consumers in these segments. Mapping future scenarios help identify potential competitive responses and helps in visualization of strategy.

For e.g. Lets look at pi icing and service as the two attributes on a positing map – Both Taj and Hyatt do understand their present status and accordingly have the brand communication to the target audience.

4.      Evaluating position options: According to Ries and Trout, there are 3 positioning options:

(a)     Strengthening current position against competitors: This means to better ones own services and thus strengthening the current position against competitors

(b)     Identifying an unoccupied market position: This means to identify and fill the unoccupied and unnoticed .gaps through better service delivery.

(c)     Repositioning the competition: This means to frequently reposition in order to attain a better position as compared to the competitor can be achieved through advertising and innovation.

5.      Implementing positioning: The positioning should be communicated to the target audience by all employees, policies and advertising.