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Segmentation, Targeting and Positioning - page 16 / 20

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Positioning for Competitive Advantage

Product differentiation: little variation (chicken, steel); highly differentiated (automobiles, clothing, furniture).

Form – size, shape (aspirin – color, coating, shape)

Features – Oral – B (added blue dye in the center bristles that fades)

Durability – vehicles, kitchen appliances, must not be subject to rapid technological obsolescence (PC, Video cameras)

Reliability – which company, which manufacturer? (real estate)

Reparability – (auto mobiles)

Services differentiation: speedy, convenient, careful delivery.

Personnel differentiation: better trained personnel. (courteous, professional, smiley)

Channel differentiation: channels’ coverage, expertise, and performance. Caterpillar, Dell

Image differentiation: company or brand image Sony

Symbols: McDonald’s golden arches, apple for Apple computer.

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