Challenges In Positioning Of Service Brands

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Issues and challenges in the positioning of service brands: a review Charles Blankson

Research Assistant, School of Marketing, Kingston Business School, Kingston University, Kingston upon Thames, UK

Stavros P. Kalafatis

Reader in Marketing, School of Marketing, Kingston Business School, Kingston University, Kingston-upon-Thames, UK Keywords Brands, Marketing theory, Positioning, Services marketing Abstract In recent years, increasing attention has been paid to positioning and, more specifically, positioning of service brands. This is so because of the unique characteristics of services. Although some authors argue that there are no marked differences between positioning in services and that of physical goods, the vast majority of marketing scholars believe that it is difficult to embark on positioning strategies in services. Sheds some light on this issue within the context and aims to contribute to the debate.

Introduction and aim In retrospect, it is surprising to realise that after many years of scrupulous debate, the issue of a dichotomy between services and physical goods still remains. The growing acceptance that there are several overlaps between services and physical goods (Levitt, 1981) has over the years prompted concern about the issue of varying positioning strategies for services (Rathmell, 1974; Arnott, 1992; Arnott and Easingwood, 1994). It is important to know that although the concept of positioning is equally pertinent to both physical goods and services (Cowell, 1989), the latter possess characteristics such as intangibility, inseparability, perishability, heterogeneity (Bateson, 1995) and non-standardization (Berry, 1983) which make positioning of services more difficult and challenging than positioning of physical goods (Ennew et al., 1993). This assertion is evidenced in the work of Assael (1985) who states that: ... positioning a service is more difficult than positioning a product because of the need to communicate vague and intangible benefits.

Service brands are particularly different

The above is supported by de Chernatony and Dall'Olmo Riley (1997) who claim that service brands are particularly different, in that they rely on employees' actions and attitudes. Given that employees' actions and attitudes are stochastic, and that services characteristics are different from those of physical goods (Bitner, 1997), it can be inferred that it is more challenging to embark on positioning strategies in services. The foregoing is evidenced in an earlier work by Lamb and Cravens (1990), who claimed that: ... services marketing differs from goods marketing because services pose different marketing problems and opportunities from those faced by goods marketers... The authors are grateful to two anonymous reviewers of the Journal of Product & Brand Management for their helpful comments. The first author thanks Marcos Tsogas (Lecturer at Kingston Business School and PhD candidate at the University of Athens, Greece) and Dr Ogenyi Omar (Research Reader in Marketing at the London Institute) for the comments made on an earlier draft of this paper. He is also indebted to the School of Marketing, Kingston Business School for the support, both financial and moral, in the course of his doctoral studies.

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Although the issue of varying positioning in services has been opposed by some writers (Wyckham et al., 1975; Buttle, 1986), other authors including Shostack (1987) and Arnott and Easingwood (1994) believe that better strategies can be followed if positioning decisions take into account issues related to the complexity and variability of the service(s) on offer. This growing debate has resulted in a seeming two-tier school of thought aimed at providing explanation about the issue of adopting specific positioning strategies in services. While the first school claims that positioning in services need not be different from that of physical goods due to their similarities with services (Cowell, 1989), the second school of thought argues that since services are unique from physical goods in their characteristics, they warrant a different approach in their positioning strategies (Zeithaml, 1981). Taking the foregoing into account, it is interesting to realise that so far, no work in the literature has examined the seeming ongoing dichotomy of services and physical goods and their effects on positioning. The basic aim of this paper is to present a review framework that builds on researchers' concerns on the challenges facing marketers who are embarking upon positioning strategies in services. Two key issues

Two key issues (service and positioning) are therefore defined. We present a short summary of the characteristics and an overview of the challenges that these characteristics pose to positioning in services. We then highlight the two schools of thought that are debating the issue of positioning in services. We conclude by drawing attention to the key thrust of positioning in services. The concept of service The American Marketing Association (AMA) put forward a definition of service as: ``activities, benefits or satisfactions which are offered for sale, or are provided in connection with the sale of goods'' (AMA, 1960). Later on, a counter-definition was offered by Stanton, who claimed that: ``services are those separately identifiable, essentially intangible activities which provide want, satisfaction and are not necessarily tied to the sale of a product or another service. To produce a service may or may not require the use of tangible goods. However, when such use is required, there is no transfer of title to these tangible goods'' (Stanton, 1981, cited in Cowell, 1989).

Definitions of service

A contemporary definition provided by Kotler et al. (1996) states that: ``A service is any activity or benefit that one party can offer to another which is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product''. In an earlier work by Baker (1981), he claimed that while there appears to be a widespread consensus about the nature of services, precise definitions may be difficult to come by owing to the varied nature of the service industry. For full appreciation of historical definitions and arguments on services in chronological order, see Cowell (1989, p. 21). Apart from the underlying differences with products inferred from the definition, marketing scholars believe that the underlying differences provide the basis for varying positioning strategies in services (Zeithaml and Bitner, 1996). Taking the above definitions into account it can be inferred that service definitions in the extant literature have incorporated contemporary dynamism of the environment. Characteristics of services Services have a number of distinctive characteristics which make them different from physical goods, and subsequently affect their positioning

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strategies (Donnelly et al., 1985; Cowell, 1989; Arnott and Easingwood, 1994). These include: (1) intangibility, (2) inseparability, (3) variability, (4) perishability, and (5) ownership. To these characteristics, Berry (1980) has added: (6) non-standardisation. Summary of service characteristics

A summary of these characteristics and their implications for marketing and positioning strategies is provided in Table I. Referring to Table I, there is a degree of disagreement in the literature as to whether some of the characteristics outlined, do, in fact, show the difference between products and services. Wyckham et. al. (1975, quoted in Cowell, 1989), for instance, argue that especially the characteristics of intangibility, heterogeneity and perishability are not themselves sufficiently discriminating. The authors suggest a form of taxonomy that could be built upon the differences of marketing of services and physical goods (see, also, Zeithaml and Bitner, 1996). Against this background, several writers, including Lovelock (1992), have proposed a classification system based on how services are actually Characteristics of service Intangibility

Marketing implications Sampling difficulty Strain on promotional element of marketing mix No patents possible Difficult to judge price and quality in advance

Positioning tactics and strategies Focus on benefits and attributes Increase tangibility of service Use brand names Use personalities to personalise service. Develop reputation

Inseparability

Requires presence of producer Learn to work in larger groups Direct sale Work faster Limited scale of operations Train more service providers

Heterogeneity

Standard depends on who and Careful personnel selection and when provided training Difficult to assure quality Ensure standards are monitored Pre-package service Emphasise bespoke features Cannot be stored Match supply and demand Problem with demand effectively (e.g. reduce prices fluctuations during off-peak)

Perishability

Ownership

Customer has access to but not ownership of service activity or facility

Stress advantages of nonownership (e.g. permit easier payment system)

Standardisation

Difficulty in consistency of service delivery

Create uniformity. Instil company's ethos in personnel

Source: adapted from Cowell (1989) and Ellis and Mosher (1993)

Table I. Services characteristics and their implications for marketing and positioning strategies 108

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marketed. This view is evidenced in the author's earlier comment that: ``... if it can be shown that some services do share certain marketing-related characteristics and classification, then the stage may be set for some useful cross-fertilisation of concepts and strategies'' (Lovelock, 1983). Furthermore, in the marketing of services, there is a growing increase in the idea of ``tangibilising'' the service to facilitate positioning in service. This issue is evidenced in Arnott's (1992) definition of positioning which highlights the case for deliberately adjusting the features of the service or product. The issue of tangibilising the service to achieve effective positioning in services is revealed in a case study research presented by Yost and Tucker (1995), whose work on tangibilising a higher education service offering noted that because higher education service offering presents all the marketing challenges of the classic service delivery, Trinity University, a private university in San Antonio, Texas, USA, attempts to tangibilise its service by: ``... touting the qualifications of its faculty, capitalising on its strong liberal arts core curriculum, trumpeting the richness of its studentfaculty ratio, and stating that only faculty, not graduate students, teach at Trinity University and on being a small university''. Positioning terms and perspectives

The concept of positioning There is a consensus in the literature that although conceptually, practically and strategically positioning is a fundamental element of marketing strategy, like service, there has been no single universally accepted definition of the concept. This may, in part, be attributed to the absence of a clear theoretical basis for positioning (Rigger, 1995) and the simplicity accorded to the meaning of positioning. This state of affairs has given rise to several varying terms associated with the concept, i.e. positioning, position, product positioning, market positioning etc., but as stated by Arnott (1994), the various terminologies are simply ``several sides of the same coin'' and complement each other. The varying positioning terms and perspectives show a pattern of three underlying issues: (1) conceptual, (2) operational, and (3) strategic. It can consequently be asserted that the three underlying issues and the two positioning perspectives: (1) consumer; and (2) managerial/organisational, are encapsulated by the definition adopted for this paper and provided by Arnott (1993). He claims that: ... positioning is the deliberate, proactive, iterative process of defining, measuring, modifying and monitoring consumer perceptions of a marketable object ...

Related activities

According to the author, the application of positioning involves certain related activities, i.e. defining the dimensions of a particular perceptual space that adequately represents the target audience's perception; measuring objects' locations within that space and modifying actual characteristics of the perceptions via a communications strategy. Put another way, the process

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of positioning can be described as iterative and requires deliberate and proactive involvement of the marketer. Taking the author's definition into account, it can be inferred that effective positioning strategies in either services or physical goods may be achieved if the specific differentiating characteristics are appreciated by the marketer. Lack of coherent definitions

It is, however, important to note that the lack of coherent definitions for positioning (Crosier, 1981; Arnott, 1992, 1993, 1994) and the difficulties involved in the implementation of the positioning process by practitioners (de Chernatony, 1994) has invariably given rise to comments about the lack of appreciation of the positioning concept (Pollay, 1985). Such predicament was first expressed in the writings of Aaker and Shansby (1982) who stated that: ``positioning means different things to different people'', and in the main their comments remain true today. According to Rigger (1995), the absence of a rigorous definition is inhibiting both practitioner and academic scholars in developing appropriate means of measuring the operationalisation of positioning. In addition, owing to the confusion surrounding the term ``services'' (Buttle, 1986), marketers who are embarking on positioning strategies in services are confronted with unique challenges (Easingwood and Mahajan, 1989). It is important to note that concern has been raised about the extent to which marketers actually embark on comprehensive analysis of data to help in their positioning strategies (Piercy, 1991; quoted in de Chernatony, 1994). The interface between services/physical goods and positioning In recent years, there has been concern regarding the difficulty encountered in the positioning of services. GroÈnroos (1990), for example, writes that managing services is, to a large extent, different from the traditional management of manufactured goods. In fact, apart from a few authors who have written to the contrary (see, for example, Wyckham et al., 1975; Buttle, 1986), several authors have taken the view that although the concept of positioning is equally pertinent to both goods and services, due to the latter's differentiating characteristics, positioning of services is more difficult than positioning of physical goods (Cravens and Lamb, 1989; Bateson, 1995). It is also believed that better strategies can be followed if positioning decisions take into account issues related to the complexity and variability of the service(s) on offer (Shostack, 1987; Gabbott and Hogg, 1994).

Overlaps between services and goods

At the same time, there is a growing acceptance of the fact that there are several overlaps between services and goods (Levitt, 1981), which has prompted concern about the bases of the argument for varying positioning strategies for services discussed earlier. For instance, as was noted by Middleton (1983), the whole debate about the characteristics of goods and services is a question of semantics and rather confusing for practitioners and students alike. The above discussion leaves one to conclude that there seems to be a two-tier school of thought arguing for and against variations in services positioning. The first school of thought: those who argue against varying positioning strategies in services Levitt's (1981) paper, ``Marketing intangible products and product intangibles'', argues strongly for marketers and marketing researchers to refrain from concentrating all their efforts on the differences between services and goods. Although the author accepts that there are special difficulties facing sellers of intangibles in retaining customers, he insists that

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the ongoing process of distinguishing between companies based on whether they market services or goods has only limited utility, adding that: all products, whether they are services or goods possess a certain amount of intangibility ... services like insurance and transportation, of course, are nearly entirely intangible ... and even goods, while they can be seen, often cannot be tried out before they are bought (Levitt, 1981).

Everybody sells intangibles

According to Levitt, one useful way of halting such arguments is to refer to services and goods as ``intangibles'' and ``tangibles''. This way, he asserts, will encompass all types of companies which, in one way or the other, sell intangibles. As was put by the author, ``everybody sells intangibles in the marketplace, no matter what is produced in the factory'' (Levitt, 1981). Cowell (1989, p.115), in support of Levitt, questions the relevance of creating distinct dichotomies in the marketing of goods and services and asserts that customers derive benefits and satisfactions from service products in the same way that they will for physical goods. Cowell's writings examine the relationships and relevance of some of the concepts conventionally used in the product planning and development context of the tangible product with that of intangible products. Supporting the first school of thought that there are after all, no marked differences between physical goods and services, and therefore positioning strategies need not be different for services marketing, Cowell notes that, for example, the decisions underpinning the development of the service product are the same as those for that of physical products, adding that: ... service product strategies are no less important to service marketing organisations than they are to organisations marketing goods, ... characteristics of intangibility and people orientation do not invalidate the relevance of product planning and development to service settings.

The second school of thought: those who argue for services-related positioning strategies In spite of the fact that several writers have noted the similarity between physical goods and services, this is refuted by some scholars including Zeithaml (1981), who supports services' unique characteristics and therefore claims that services necessitate different positioning strategies and tactics from those used when assessing goods. The author draws on a framework based on search, experience and credence qualities. The search qualities are attributes that consumers can determine prior to purchasing a product. These include attributes such as colour, style, price, fit, feel, hardness, smell, etc. These are, unlike services, pertinent to physical goods such as clothing, furniture and jewellery, which can usually be determined and evaluated prior to purchase. Experience qualities only realised after purchase

The experience qualities, however, are attributes which can only be realised after purchase or during consumption and include characteristics such as taste, wearability and purchase satisfaction. While the experience qualities may be pertinent to physical goods, they are more so related to services. For example, certain services including package holidays, restaurant meals, medical treatment are high in experience qualities. This is because their attributes cannot be known or assessed until they have been purchased and consumed. The third category of qualities of goods, i.e. credence qualities, portray characteristics which the consumer may find difficulties in evaluating even after purchase and consumption. These are services and include open heart operation, appendix operation etc. This is taken up by Davies (1996), who cites the search, experience and credence qualities

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framework to overcome the problems affecting the evaluation of services prior to, during and after purchase (see Table II). Taking the foregoing into account, it can be inferred that with regard to services positioning, marketers must take into account services' generic differences, which are capable of influencing consumers' perceptions and choice (for full appreciation of the search, experience and credence qualities model and their implication for services marketing and positioning strategies, see Zeithaml's (1981) and Davies' (1996) work). Interpretation of services

In support of the second school of thought, Zeithaml and Bitner (1996) write that interpretation of services poses difficulties to marketers who are embarking on positioning in services. The authors cite the examples of oversimplification, incompleteness and subjectivity as posing problems in the interpretation of services. The authors suggest that services can be positioned on a variety of dimensions including: (1) needs they satisfy, (2) benefits they deliver, Information quality Search

Experience

Credence

Joint consumption with production Heterogeneity

Intangibility and deferred benefits Heterogeneity Perishability

Problems

Intangibility Complexity Uncertainty of performance

Global objectives

Make evaluation easier, lower perceived risk, develop/restore trust

Objectives

Extend search qualities

Positioning Offer tangible cues: strategies positioning using relevant criteria through: performance, reliability, innovativeness, expertise. Present appropriate position Raise salience of criteria Offer ``reason why'' a criterion is best Match intensity of message to competitive standing

Encourage consumer independence from service provider Manage service encounter

Reduce credence qualities Manage service encounter

Offer user-friendly advice: Use cognitive scripts guiding expectations Simplify charges Offer support materials, e.g. videos Maintain consistent message Ensure service is easy to use Focus on key customers, demarket others

Reinforce claims through consistent positioning using: Physical environment and corporate livery Encourage serving same customers Develop relationships through: Responsiveness Offer integrated services Anticipate changes, offer flexibility in services

Boost morale to retain staff and improve performance using internal marketing and suitable remuneration schemes Ensure ready access to information: point of sale, personal advisers, hotlines. Training in interpersonal skills

Source: adapted from Davis (1996, p. 66)

Table II. Problems and possible positioning strategies for dealing with services 112

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(3) specific service features, (4) time of use, and (5) who uses it. Other supporters of the second school of thought are Parasuraman et al. (1994b), whose research on ``alternative scales for SERVQUAL'' led them to conclude that services are differently perceived by consumers, thus creating unclear, ambiguous and confusing meanings to different people. The implication for such a confused state of mind in consumers, the authors assert, should be the basis for adopting different positioning strategies for services as opposed to physical goods. Furthermore, with regard to the implication of quality and the issue of positioning, Parasuraman et al. (1988, p.13) claim that: ``Unlike goods quality, which can be measured objectively by such indicators as durability and number of defects (see, also, Crosby, 1979), service quality is an abstract and elusive construct because of services' unique characteristics (see, also, Parasuraman et al., 1985). Special challenges

It is important to note that this assertion has been noted in an earlier work by Berry (1980), who writes that: ``Services differ from goods in some very important ways, and these differences present special challenges to positioning''. The author further states that: Services are relatively intangible, produced and consumed simultaneously, and often less standardised than goods. These unique characteristics of services will therefore present special challenges for services positioning (see, also, George and Berry, 1981) .

Furthermore, in support of the second school of thought, Cutler and Javalgi's (1993) research reveals that service advertisements often contain more emotional appeals than do product advertisements. They also found out that service advertisements, more often, contain more emotional headlines than do product advertisements, although, according to the authors, their test did not show any significance where quality appeal, convenience appeal and portrayal of service employees in advertisements were concerned. The authors' research shows that in order to effect lasting positioning strategies, there was a high proportion of advertisements which use emotion to improve the tangibility of services. Other methods used to increase tangibility of services were personalised headlines and the symbolic representation of the service. A different approach

Cutler and Javalgi (1993) further cite the example of Delta Air Lines who found out that services' inherent differences, coupled with their ambiguity, demand a different approach in their positioning strategies. In support, Ellis and Mosher (1993) claim that: ``Professional service firms are faced with considerations that are unique compared to product marketers''. The authors' research involved some 109 certified public accountants firms (CPA) in the state of Kentucky, USA. To cope with the issue of positioning in services, the authors recommend the framework, ``complete positioning strategy for services'' (see Figure 1), which may be adapted by marketers involved in the positioning of services. The framework provides the means for manipulating each of the four key characteristics of services through the application of specific marketing tactics. Conclusion It can be concluded that the inherent characteristics of services, which have often been seen as largely theoretical, may be conscious signals for recognising the differences between service brands marketing and the

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Intangibility

Inseparability place price product promotion presentation

place

People

product presentation

price product promotion

Heterogeneity

Perishability

Source: Ellis and Mosher (1993, p. 133).

Figure 1. Positioning in the services environment

positioning concept (Ellis and Mosher, 1993). Notwithstanding, the extant literature has shown that even for the widely accepted tangible product, there is some form of service attached to it. In essence, the degree of service in any product, and vice versa, should be construed as raising challenges for marketers (Bitner, 1997; Tovey, 1997) trying to apply the positioning concept. Diversity of service industries

Taking the foregoing discussion into account, we suggest that in terms of positioning either a service (a product with a high degree of service attached to it), or product (one with a low degree of service attached to it), the diversity of service industries warrants special appreciation and concern (Dibb and Simkin, 1993). There is therefore the need for an ongoing dialogue between the two schools of thought. Moreover, we are not seeking to prove a case for particular studies, only that there is a general area of concern for marketers embarking on positioning of their service brands. This paper is therefore not a criticism of past work, for which more rigorous research would be needed, but an indication of where attention to details about positioning in services is needed (see Schwartz and Murphy, 1997). As was put by Fisher (1991), ``... service marketers must have a good understanding of their special competitive situation to achieve long-term competitive advantage ...''. References Aaker, D. and Shansby, J. (1982), ``Positioning your product'', Business Horizons, Vol. 25, May-June, pp. 56-62. American Marketing Association (1960), Definition of Service, American Marketing Association, Chicago, IL. Arnott, D.C. (1992), ``Bases of financial services positioning in the personal pension, life assurance and personal equity plan sectors'', PhD thesis, Manchester Business School, University of Manchester. Arnott, D.C. (1993), ``Positioning: redefining the concept'', Warwick Business School Research Papers, No. 8, p. 24. Arnott, D.C. (1994), ``Positioning: on defining the concept'', Proceedings Marketing Educators Group (MEG) Conference, University of Ulster, Coleraine, 4-6 July. Arnott, D.C. and Easingwood, C.J. (1994), ``Positioning in services: an hypothetical typology of competitive bases'', Proceedings, 23rd EMAC Conference, Vol. 1, 17-20 May, University of Limburg, Maastricht, pp. 1-3.

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