Marketing Strategy and Competitive Positioning pdf ebook

Competitive positioning: concerned with how customers perceive the alternative offer-
ings on the market, compared with each other – for example, how do Audi, BMW 
and Mercedes medium-price saloon cars compare in value, quality and ‘meaning’ or 
image?
● 
Market segmentation: described as how we as marketers can divide the market into 
groups of similar customers, where there are important differences between those groups – 
for example, what are the characteristics of medium-price saloon car buyers that relate 
to their product preferences and buying behaviour?
● 
Customer needs: while positioning and segmentation are different concepts, ulti-
mately they are linked by customer needs, in the sense that the most robust form of 
segmentation focuses on the customer benefits that matter most to different types of 
customer, while the strongest competitive positions to take are those where custom-
ers recognise that a supplier or product is the one they choose because it best meets 
their needs.
the country. ‘We expect it to be the first city in the 
world to adopt AVs as the primary means of trans-
port,’ says Mr Cameron. The number of such com-
munities is growing fast as America ages. 
There are other reasons why retirement commu-
nities and AVs fit together neatly. People generally 
prefer to retire to warm, sunny regions, so there is 
little risk of snow confusing an AV’s sensors. Because 
the roads are private property, there are fewer report-
ing requirements on AV operators and the regulatory 
situation is much simpler. And because everyone is 
retired, demand for rides is consistent throughout 
the day, which should make it easier to handle peaks 
without the need for a large fleet. 
Voyage is now operating six prototype AVs in The 
Villages, with safety drivers on board for the time 
being to monitor performance and handle unexpected 
situations. It is also testing in a retirement community 
in San José. As part of its deal to become the exclu-
sive provider of AV services in these places, Voyage 
granted a 0.5% stake in the firm to the owners of the 
two communities. That helps align incentives, says 
Mr Cameron. The final pricing model has yet to be 
decided. But he favours monthly contracts covering 
a certain number of trips (just as mobile-phone plans 
provide set amounts of calls and data). 
Replacing car ownership for the aged may be eas-
ier than providing ride-sharing for young urbanites. 
‘The state of the art in AVs is not ready for downtown 
San Francisco,’ says Mr Cameron. A 93-year-old 
woman who rode in one of Voyage’s cars told him 
that she recalls travelling in a horse-drawn cab as a 
young girl. In old age, some people retreat into their 
past. But some Americans in retirement may already 
be living in the future. 
Source : from The Economist print edition | Business (21/02/19).
Discussion questions 
1 
How could the market for self-driving cars be 
segmented?
2 
Why are retirement towns suited for autono-
mous vehicles?

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CHAPTER 7 SEGMENTATION AND POSITIONING PRINCIPLES
In this sense, positioning and segmentation are distinct parts of the strategy process and 
provide us with some extremely powerful tools; but, ultimately, they are linked by the central 
issue of focusing on satisfying the customer’s needs in ways that are superior to competitors.
Operationally, positioning and segmentation may be linked in the way shown in 
Figure 7.2. This suggests that the sequence in planning can be the following:
●