Positioning would involve a psychological approach in tuning the consumers’ perception of the brand, rather than the product itself. A good positioning would help to distinguish the products of a certain brand from that of their competitor. (GARDENIA, 2009). Positioning is not a strategy. Instead it is the backbone of the business. (Ninja, 2013). Marketer need to understand their main consumer, such as age group, preference, economical status, etc. This would allow marketers to know the needs of their consumers, thus aiding in advertisement and the design of the product itself.
Besides positioning, brand identity is another essential aspect to maintain a strong customer base. (manias, 2010) In general, marketing positioning theory is divided into three sections. Article 2 summaries them into the various categories: information the consumer received daily, emotional defense, and the actual message that the consumer should receive. (manias, 2010). As the market is unpredictable, marketers have come out with strategies to reduce the potential risk that may be incurred and possible misunderstanding on the part of the targeted consumers.
Positioning is intangible and it is one of the key factors in developing throng customer base and brand equity. (Ninja, 2013). As a result, marketing positioning has relied on the attribute of the target market. Marketer would either change the specification of the product to fit the target market or change the attribute of the target group. (GARDENIA, 2009) This would allow consumer to associate themselves with the brand. In a long run, brand loyalty would be cultivated among the customer base. Hypothesis 1: Positioning is a foundation of a business. It changes base on the needs and desire of the consumer. 1. . Determinant variable 1 . Building a Coherent Corporate Identity in Start-ups (2013)- 2. Policy implications of market segmentation as a determinant of fixed-mobile service substitution: What it means for carriers and policy makers (2010)- 3. The importance of choice attributes and the positions of the airlines within the South African domestic passenger airline industry as perceived by passengers at Durban International Airport (2012) Determinant attributes of positioning is not differentiated by the best quality of service, but the attribute used by consumer to decide which service to go for (Chatty, et al. 012). All articles 1, 2 and 3 agree that the determinant attributes of positioning s to differentiate from their competitors on top of segmentation (Campbell, et al. 2012). However in article 1, it clearly differentiated from the other two articles. As it believe that a company needs to differentiate from competitors by corporate branding and the company’s culture, by focusing on the ability to communicate with customers and improving employee’s skill and attitude (Many 2013).
Article 2 and 3 on the other hand differentiate from their competitors by customer orientated factors, which focus on the comfort and satisfaction of their customers using of their services (Schuster, et al. 2009). Hypothesis 2: The determinant factors of positioning is to differentiate from competitors, this can include the corporate culture, customer satisfaction or even pricing. However, this factor is greatly influenced by the company nature and the type of industry the company is in. 1. 3. Positioning strategy 1 . Approaches for Generating and Evaluating Product Positioning Strategy (2013) 2.
Position Strategies based on Customer benefit (2012) 3. An Examination of Factors that Affect Pricing Decisions for Export Markets (2008) Positioning strategy is the expression of application of a product and service to nonusers and to occupy a specific location against competitors in consumers mind with the intention of claiming superiority over competitors (Seafloor 2013). All three articles agree that differentiating from competitors and by adopting positioning strategies that creates an added value to the product that can be interpreted by target market are prerequisites for success (Seafloor 2013) (Mustang 2012).
Articles 1 and 2 agrees that, emphasis on one positioning approach be it determinant or service attributes is not enough to identify, develop or reinforce the brand image in the mind of the consumer. Article 1 discuss on overcrowding of target market with similar products and the difficultly for consumers to choose a product or service. Therefore, companies differentiate by different options of positioning strategies like attributes of the product or service, product benefits, specific application, consumer and usage, price and quality as well as competitors.
A common strategy is positioning based on competition by creating a unique competitive advantage over competitors and effectively communicate and create a brand and product image which identifies with consumers in the market. As a result, more companies have adopted multi positioning strategies and or to introduce re-positioning to reduce direct competition and suit the attitudes of the target market (Seafloor 2013). In general, article two discusses about consumer’s perception and customer benefits. Consumers perceive high priced product as high quality products.
Therefore, companies focus on customer benefits on products which are high performance, easy to use, versatile, durable, serviceable, and prestigious as positioning strategies. It builds consumer’s trust and brand sensitivity and these affects a consumers desire to ay product with good band image (Mustang 2012). However article 3 differentiates from all other articles as it focuses on offering a framework for pricing strategy. There are three main pricing strategies. Penetration is the low profit margin set to penetrate and grab market share quickly while creating a broad customer base.
It is used to attract new customers and gain market share and when sales stabilizes, price is increased. Skimming is the pricing of product to be as high as the market can bear. This strategy is often used when a new product or service with competitive advantage introduced is in high demand. However, if few buyers are attracted, lower sales volumes can be devastating when pricing high. Finally, Competitor’s pricing is set based on competition. Companies price their products in the middle line of competitors to attract and generate consistent sales (Mesoderm 2008).
Hypothesis 3: A company has to apply the correct positioning strategy appealing through modern mentality that a brand and product is perceived desirable by the target market. 1. 4. Positioning map 1 . Theoretical Aspects of Product Positioning in the Market (2008) . A model for brand positioning of hygienic products using the most effective factors on competitive position and perceptual map technique (2012) Article one suggested that position-mapping of a brand is important in marketers as it uses graphical illustration on the perception of consumers towards the competitors’ products versus its product offerings.
The information gathered on the map could be used for product differentiation as it identifies weaknesses, strengths and similarities of brands. The article uses price and quality perception as an example of determinant actors in the map. It suggested that the desired place in the map is the mixture of attributes that consumers perceived as favorable. In addition, the Author in article two used an example of position mapping application in whitening products in the market by determining the variables needed in the map such as product shape, quality of results, price and taste.
The articles has undeniable differences in discussing positioning; as mentioned above, article two uses industries, such as looking at various shopping malls in the United States of America (Newsflash, et al. 012) , it used position mapping to identify the hypothesis on price and quality relationship. However, Article one failed to provide examples about its positioning theory into a real life application as well as hypothesis to its research. Furthermore, though both articles uses quantitative analysis, Article two went further to its research by using qualitative analysis to find out the perception of its target market.
Hence, according to another book Qualitative research will provide more in depth information when it comes to business positioning (Erickson, et al. 2008). Hypothesis : The positioning map gives marketers a better view and understanding of the organization standing by consolidating the collected data into a graph. 2. Organization (Raffles hospital) 2. 1. Positioning Raffles Hospital is a private tertiary healthcare institution located near Bug’s Junco with a 24-Hour Emergency and Specialist Clinics with services spanning across 3 disciplines.
Being one of the leaders in the area of private healthcare, they comma a medical fee higher than that of public hospitals. In addition, her staffs are vie to be more caring with the ‘human touch’. Raffles Hospital marketed herself as an institution understanding the diverse needs of her patients, both emotionally an medically. Hence they will be working with the patients to meet their concerns. Treatments plan are discussed with the patients to allow them to have a greater in the therapy. 2. 2.
Determinant variable Applying back to raffles hospital, the organization focus more on corporate brand as clearly seen as when people think of raffles hospital, they will relate it to luxury five star healthcare (sacrifice, 2013). In addition, as a leading private health care provider in Singapore and South East Asia, having a high level of service and revisionism’s is never enough. To maintain its high standards as the leading private healthcare provider, Raffles hospital constantly upgrade, purchase and e invent new technology and surgical procedural (raffles medical, 2013). . 3. Positioning strategies Based on the article above, three positioning strategies identified are Competitor, Customer benefit and pricing strategies and can be applied in context to Raffles Hospital. Positioning strategy based on Competitors in reference to article one ca seen in context with the comparison of RE to other private hospitals. Private host like Glassless, Met Elizabeth and raffles provides medical services, better comfort and services than public hospitals at slightly varying high cost (MOM, 2011).
Howe private hospitals like Glassless do not have full time doctors, patients either ha visit at the allocated time or schedule and book a time slot before their visit. Consultation with the doctor is also subjected to the availability of time slot (Glassless 2013). Raffles hospital differentiate by operating like public hospital the private sector, they have full time doctors stationed, equipped with wider ran f expensive drugs, better equipment, specialized departments and in house operation theatres, effectively positioning itself as providing high quality health c Positioning strategy based on consumer benefits referring to article two.
Hospital like Mount Elizabeth provides the facilities and nursing care, but its specialists AR independent operators and there could be a huge variation in the fees they char Raffles however, operates like a public hospital and it has specialists on its payroll (Chalk, 2012). It builds consumer’s trust that the doctors would not overcharge (Raffles medical group, 2013).
In general, Raffles place emphasis on customer be like providing a group of passionate and caring staff that strives to make visiting comfortable experience, Clinics Island wide for check-up, shorter wait variety of drugs, experienced and professional doctors, alternative tree substantial consultation time for each patient (Sacrifice, 2013). Posit based on pricing referring to article three. Raffles hospital uses a mi skimming and competitor pricing. Raffles uses skim pricing when co hospital as operations or treatment can easily cost 20 to 40% more the hospitals for varying services (MOM, 2011).
However, the cost is come customers by ‘human touch’ services such as better beds, all round c patient doctors that calm and explain every step in detail. Another m competitor pricing strategy, Raffles is positioned slightly higher than pricing when comparing to private hospitals (Sacrifice, 2013). However hospital stations and markets its brand in many other countries roar apart from Singapore Oust landed, 2011). Raffles are reputed for excel expertise and good service therefore, consumers perceive high price more reasonable as they also provide high quality treatment and SE medical group, 2013). 2. 4. Positioning map
The articles above provided insights and understanding about posit and services in various markets. Moreover, the comparison among co suggested by the articles could apply to RE case. Determinant Factor was identified such as price and quality. According to a research on h could indicate high quality it indicated that psychological aspects on consumers could affect perceived value of the products (Druid Hansen Hence Applying back to RE, the daily ward price comparison between Singapore versus the quality services provided based on the SERVER determine the variables needed in order to extract a positioning map
SURVIVAL is being supported by the five dimensions (Tangibility, reel responsiveness, assurance and empathy). Tangibility refers to the physical facilities and equipment the service provide. This will be amplified in the case of Raffles Hospital. Due t consumers will expect better equipment and faculties as compared t hospitals. Raffles Hospital has positioned itself as an institution Provo quality but costly healthcare. Reliability refers to the service provider’s dependability to deliver the service accurately. Raffles hospital is known to have good reputation international patient.
Raffles Medical Group, 2013) The institution h approximately a million patients annually. (Sacrifice, 2013). Only wit and excellent medical expertise will the reputation of the hospital be positively. As a result, Raffles Hospital is able to attract the attention been around the world seeking medical attention. Responsiveness refers to the service provider’s willingness and ABA prompt service. Raffles hospital had a total of 388 hospital bed an staff. (Sacrifice, 2013) Sufficient manpower and facilities is avail comprehensive service to the patients. Hence, they are able to area the patient’s need and concern.