Marketers cannot leave to chance the way consumers position a product or brand in their minds; they must analyse the attributes which would position their product better in the market and design a marketing mix to reach the desired position. To plan a differentiation and positioning strategy, marketers use a positioning map: a graph which allows them to analyse the place a brand occupies in the market according to consumer perception in relation to other brands or an ideal brand. Topic 5 The customer oriented marketing strategy 28 The axes are the attributes of the product which consumers consider most important. Each brands position on the map indicates the brands perceived positioning along the axes. Topic 5 The customer oriented marketing strategy 29

Depending on the markets, we often find several companies striving for similar positioning; in this case, each one will have to find a way to differentiate themselves from the others. Differentiation is the creation of a unique set of benefits which attracts a substantial group of consumers within a segment. Positioning and differentiation strategies are created in three stages: Identifying a set of possible value differences providing competitive advantages which positioning can be based on. Choosing the right competitive advantages. A company may offer greater value in its product, its services, its chosen channel, its employees or its image.

Creating a positioning strategy with a combination of the differentiating elements of the company/product/brand is what we call the value proposition: the total sum of benefits differentiating and positioning a brand. The graphic below shows the possible value propositions a company can use to position its products. Winning value propositions are shown in green and losing ones in red. 2.4. Application and communication of the chosen positioning Once the positioning has been decided, the company has to convey its desired position to the target customers. The positioning strategy is not only communication but should be backed up with actions. If a company is looking for more for more positioning, it has to produce high quality products, charge a high price, distribute through exclusive or high-quality channels and advertise on quality media. Topic 5 The customer oriented marketing strategy 30 Topic 5 The customer oriented marketing strategy 31

Topic 6: Product, service and brand 1. Introduction We will now study the marketing mix, the tactical tools which marketing professionals use to implement their strategies. Let us begin with the basic element: products and services. 2. Product, service and offering In the strict sense, a product is anything which can be offered on a market, acquired, used or consumed, and which can satisfy a need or want. More broadly, it can refer to services, events, peoples, ideas, places, organisations, or a combination of any of the above. This is the point of view of marketing, where a product can be a drink, a holiday, or a Facebook profile. Due to their importance, we will also focus on services, a type of product which consists of actions performed for sale. Services are intangible and their acquisition does not lead to any kind of ownership.