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Chapter 3:
Positioning Services
in Competitive Markets
Chapter 3 Page 1
Overview of Chapter 3
Services Marketing
Chapter 3 Page 2
Services Marketing
Chapter 3 Page 3
Services Marketing
George S. Day
Chapter 3 Page 4
Services Marketing
Chapter 3 Page 5
Services Marketing
Opportunities
Developing recognized
expertise in a well-defined
niche may provide
protection against wouldbe competitors
Allows firms to charge
premium prices
Purchasers in chosen
segment may be
susceptible to economic
downturn
Chapter 3 Page 6
Services Marketing
Market focused
Service focused
Chapter 3 Page 7
Services Marketing
Unfocused
Chapter 3 Page 8
Services Marketing
Market Segmentation
Chapter 3 Page 9
Market Segmentation
Services Marketing
Chapter 3 Page 10
Services Marketing
Chapter 3 Page 11
Services Marketing
Timing of use
Chapter 3 Page 12
Services Marketing
Chapter 3 Page 13
Services Marketing
Chapter 3 Page 14
Services Marketing
Positioning Distinguishes a
Brand from its Competitors
Chapter 3 Page 15
Services Marketing
Chapter 3 Page 16
Principles of Positioning
Services Marketing
Chapter 3 Page 17
Services Marketing
Developing an Effective
Positioning Strategy
Chapter 3 Page 18
Services Marketing
Chapter 3 Page 19
Services Marketing
Competitor Analysis
Chapter 3 Page 20
Services Marketing
Chapter 3 Page 21
Services Marketing
Chapter 3 Page 22
Services Marketing
Chapter 3 Page 23
Services Marketing
Chapter 3 Page 24
Services Marketing
Expensive
Grand
Regency
High
Service
PALACE
Shangri-La
Sheraton
Atlantic
Moderate
Service
Italia
Castle
Less Expensive
Slide 2010 by Lovelock & Wirtz
Alexander IV
Airport Plaza
Chapter 3 Page 25
Regency
Grand
Sheraton
Shangri-La
PALACE
Financial
District
Shopping District
and Convention Center
Castle
Inner
Suburbs
Italia
Alexander IV
Atlantic
Airport Plaza
Moderate Luxury
Slide 2010 by Lovelock & Wirtz
Chapter 3 Page 26
Services Marketing
Expensive
Action?
Regency
High
Service
PALACE
Shangri-La
No action?
Sheraton
Moderate
Service
Atlantic
Italia
Less Expensive
Slide 2010 by Lovelock & Wirtz
Castle
Alexander IV
Airport Plaza
Chapter 3 Page 27
Services Marketing
High Luxury
Mandarin
New Grand
Heritage
Marriott
Sheraton
Shangri-La
Continental
Action?
Regency
PALACE
Financial
District
No action?
Inner
Suburbs
Shopping District
and Convention Center
Castle
Alexander IV
Atlantic
Italia
Airport Plaza
Moderate Luxury
Slide 2010 by Lovelock & Wirtz
Chapter 3 Page 28
Services Marketing
Chapter 3 Page 29
Services Marketing
Changing Competitive
Positioning
Chapter 3 Page 30
Repositioning
Services Marketing
Chapter 3 Page 31
Summary
Services Marketing
Focus Strategies:
Fully focused
Service focused
Marketfocused
Unfocused
Chapter 3 Page 32
Summary
Services Marketing
Positioning links:
Market Analysis
Internal Analysis
Competitive Analysis
Chapter 3 Page 33