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Positioning The Market Offering Through The Product Life Cycle

This chapter discusses product differentiation and positioning strategies throughout a product's life cycle. It identifies key factors for differentiation including form, features, quality, durability, and services. Positioning strategies aim to create distinct perceptions in the customer's mind regarding quality, price, or other attributes. The chapter also outlines marketing strategies for different stages of the product life cycle, such as using high promotion and price strategies for new products, expanding markets and improving quality during growth, modifying products and marketing mix during maturity, and harvesting or divesting in decline.

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Azher Azeem
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57 views

Positioning The Market Offering Through The Product Life Cycle

This chapter discusses product differentiation and positioning strategies throughout a product's life cycle. It identifies key factors for differentiation including form, features, quality, durability, and services. Positioning strategies aim to create distinct perceptions in the customer's mind regarding quality, price, or other attributes. The chapter also outlines marketing strategies for different stages of the product life cycle, such as using high promotion and price strategies for new products, expanding markets and improving quality during growth, modifying products and marketing mix during maturity, and harvesting or divesting in decline.

Uploaded by

Azher Azeem
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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CHAPTER 10

POSITIONING THE MARKET OFFERING THROUGH THE PRODUCT LIFE CYCLE

IPORTANT TOPICS OF THIS CHAPTER


Identify Differentiating Strategies Identifying Positioning Strategies Marketing Strategies Along the Product Life Cycle

DIFFERENTIATION STRATEGY

Product Differentiation:
Form:

Size, shape or physical structures. Basic Vs advance models. Low, average, high and superior: To meet product specifications.

Features:

Performance quality:

Conformance quality:

Durability:

Expected life under normal conditions.

Reliability Style: Design Reparability

DIFFERENTIATION STRATEGY (CONT.)

Service Differentiation:
Ordering ease. Delivery. Installation. Customer training. Customer consulting. Maintenance and repair. Miscellaneous services-improved product warranty.

Personnel Differentiation:
Competence, credibility, reliability, responsiveness, and communication.

Channel Differentiation Image Differentiation:


Symbols, media, atmosphere and events.

POSITIONING STRATEGY

Product Differentiation:
Important. Distinctive. Superior. Preemptive. Affordable. Profitable.

Positioning:
Best quality, best service, best price, best value, lowest price, safest, fastest, and most customized in the target markets mind Double-benefits positioning:

Safe and durable. Safe, durable and stylish.

Triple-benefits positioning:

POSITIONING STRATEGY (CONT.)

Positioning errors:
Under-positioning Over-positioning Confused positioning Doubtful positioning.

Positioning decision:
Perceptual Maps:

Attribute positioning Benefit positioning Use/application positioning Use/application positioning User positioning Competitor positioning Product category positioning Quality/price positioning

Example of Perceptual Map


Live shows Easy to reach Good food Fantasy Exercise Fun rides Disneyland Knotts Berry Farm
1.0

Little waiting
0.8

Educational, animals Marineland 0.4 of the Japanese Pacific 0.2 Deer Park
0.6 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

-1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 -0.2

Magic Mountain

-0.4 -0.6 -0.8

Busch Gardens

Lion Country Safari

Economical

PRODUCT LIFE-CYCLE MARKETING STRATEGIES


Sales & profits ($)

Introduction

Growth

Maturity

Decline

Time

STRATEGIES FOR NEW PRODUCT INTRODUCTION


Promotion
High Low Slowskimming strategy Rapidskimming strategy

High

Price
Low Rapidpenetration strategy Slowpenetration strategy

MARKETING STRATEGIES FOR GROWTH STAGE


Improved product quality. Higher advertising budget. Entering new market segment. Improvement of distribution network. Lowering prices for competitive pressure.

MARKETING STRATEGIES FOR MATURITY STAGE

Market Modification:
Convert nonusers. Enter new market segment. Attract competitors customers.

Product Modification:
Improvements in product quality, style and futures.

Marketing-Mix Modification:
Prices Distribution Advertising Sales promotion Personal selling Services

MARKETING STRATEGIES FOR DECLINE STAGE


Increase investment. Resolve uncertainties:
stable investment.

Selective niches. Harvesting:


Quick cash generation.

Divesting:
Disposing the assets as advantageous as possible.

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