Positioning and Differentiating Market Offerings over the Life Cycle

Objectives Identify Differentiating Attributes Choosing & Communicating Effective Positioning Marketing Strategies Along the Product Life Cycle Marketing Strategy & Market Evolution

Identify Differentiating Attributes

Choosing & Communicating Effective Positioning

Marketing Strategies Along the Product Life Cycle

Marketing Strategy & Market Evolution

Differentiation

Product Differentiation Form Fea- tures Perfor- mance Quality Conform- ance Quality Dura- bility Relia- bility Repair- ability Style Design

Services Differentiation Delivery Ordering Ease Maintenance & Repair Customer Training Installation Customer Consulting Miscellaneous Services

Image Differentiation Media Atmosphere Symbols Events

Differences Worth Establishing Affordable Superior Profitable Preemptive Distinctive Important

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s mind.

Perceptual Map 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 1.0 0.8 0.6 0.4 0.2 -0.2 -0.4 -0.6 -0.8 Magic Mountain Japanese Deer Park Busch Gardens Knott’s Berry Farm Lion Country Safari Marineland of the Pacific Disneyland Economical Fun rides Exercise Fantasy Good food Easy to reach Educational, animals Little waiting Live shows

Product Life Cycle

Sales & Profit Life Cycles Introduction Growth Maturity Decline Time Sales & profits ($)

Time of adoption innovations Adopter Categorization of the Basis of Relative Time of Adoption of Innovations 2 1 /2% Innovators 13 1 /2% Early adopters 34% Early majority 34% Late majority 16% Laggards

Innovators: Description 2.5% of population Venturesome Very eager to try new ideas Acceptable if risk is daring More cosmopolite social relationships Communicates with other innovators

2.5% of population

Venturesome

Very eager to try new ideas

Acceptable if risk is daring

More cosmopolite social relationships

Communicates with other innovators

Early Adopters: Description 13.5% of population Respected More integrated into the local social system The persons to check with before adopting a new idea Category contains greatest number of opinion leaders Are role models

13.5% of population

Respected

More integrated into the local social system

The persons to check with before adopting a new idea

Category contains greatest number of opinion leaders

Are role models

Early Majority: Description 34.0% of population Deliberate Adopt new ideas just prior to the average time Seldom hold leadership positions Deliberate for some time before adopting

34.0% of population

Deliberate

Adopt new ideas just prior to the average time

Seldom hold leadership positions

Deliberate for some time before adopting

Late Majority: Description 34% of population Skeptical Adopt new ideas just after the average time Adopting may be both an economic necessity and a reaction to peer pressures Innovations approached cautiously

34% of population

Skeptical

Adopt new ideas just after the average time

Adopting may be both an economic necessity and a reaction to peer pressures

Innovations approached cautiously

Laggards: Description 16% of population Traditional The last people to adopt an innovation Most “localite” in outlook Oriented to the past Suspicious of the new

16% of population

Traditional

The last people to adopt an innovation

Most “localite” in outlook

Oriented to the past

Suspicious of the new

Four Introductory Marketing Strategies Rapid- skimming strategy Rapid- penetration strategy Slow- penetration strategy Slow- skimming strategy Price Low High Promotion High Low

Maturity Stage Market Modification Product Modification Marketing-Mix Modification

Market Modification

Product Modification

Marketing-Mix Modification

Decline Stage Increase investment Resolve uncertainties - stable investment Selective niches Harvesting Divesting

Increase investment

Resolve uncertainties - stable investment

Selective niches

Harvesting

Divesting

Market Evolution Emergence Growth Maturity Decline

Emergence

Growth

Maturity

Decline

Review Identify Differentiating Attributes Choosing & Communicating Effective Positioning Marketing Strategies Along the Product Life Cycle Marketing Strategy & Market Evolution

Identify Differentiating Attributes

Choosing & Communicating Effective Positioning

Marketing Strategies Along the Product Life Cycle

Marketing Strategy & Market Evolution