INMA_A01.QXD

Decision 4: Positioning and differentiation strategy (including

the marketing mix)

Stage 3 in Figure 4.12 is positioning. Deise et al. (2000) suggest that in an online context,

companies can position their products relative to competitor offerings according to four

main variables: product quality, service quality, price and fulfilment time. They suggest

it is useful to review these through an equation of how they combine to influence cus-

tomer perceptions of value or brand:

Product quality 
Service quality

Customer value (brand perception) = ––––––––––––––––––––––––––––––––

Price 
Fulfilment time

Strategies should review the extent to which increases in product and service quality

can be balanced against variations in price and fulfilment time. Chaston (2000) argues that

there are four options for strategic focus to position a company in the online marketplace.

STRATEGY FORMULATION

Figure 4.15Euroffice e-mail (www.euroffice.co.uk)

Source: Adapted from the company web site press releases and Revolution(2005a)

Positioning
Customers’ perception
of the product offer
relative to those of
competitors.