Product position is the way customers perceive a

This preview shows page 7 - 10 out of 17 pages.

Product position is the way customers perceive a product or service on important attributes when comparing it with other products and services. Positioning is the combination of emotional attributes that customers experience while looking at a product or service . Positioning Maps show consumer perceptions of brands versus competing products on important buying dimensions. These dimensions include:
7/6/2020 OneNote {f4c60b26-1c11-4d9d-ac8f-affb92a53751}&action=edit&w… 8/17 Product differentiation – Ferrari vs. an entry level car. Service differentiation – First Class, Business Class, Premier Economy, and Economy in airlines. Channels of distribution – Direct Marketing, Wholesalers, Distributors, Retailers, and Online. People – Work Environment, Company Culture, Opportunities for Career Development, Diversity, Great Place to Work, and Equal Opportunity. Image – The Body Shop vs. companies that use chemicals and animal testing, Green Companies vs. Polluting Companies. Value Proposition is the full mix of benefits upon which a firm positions its brands 3. Customer focus and loyalty A focus on service quality is the foundation for meeting customer expectations Loyalty refers to customers’ intention to continue doing business with a company, increase their spending , or say good things about the company (or refrain from saying bad things). The latest research shows that loyalty has a lot more to do with how well companies deliver on their basic, even plain-vanilla promises than how dazzling the service experience might be. Delighting customers does not build loyalty; reducing their effort – the work they must do to get their problem solved – does . Acting deliberately on this insight can help improve customer service , reduce customer service costs , and decrease customer churn . Consider customer loyalty as two pies – one containing factors that drive loyalty and the other containing factors that drive disloyalty . REMOVE OBSTACLES . In particular, customers are frustrated: Having to contact the company repeatedly . Having to be transferred to get an issue resolved. Having to repeat information . Having to switch from one service channel to another (for example, from a web-based service to a telephone call). 4. Customer focus and service quality Production and consumption of many services are inseparable . Quality occurs during service delivery, at the interaction between the customer and the contact person from the service firm.
7/6/2020 OneNote {f4c60b26-1c11-4d9d-ac8f-affb92a53751}&action=edit&w… 9/17 Service Quality is a comparison between Expectations and Performance . 5. Service quality components RELIABILITY: Reliability means consistency of performance and dependability. Also, means that the firm honors its promises. Accurate, Correct, Timely.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture