Product Positioning and Lifecycle


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Product Positioning and Lifecycle

  1. 1. Positioning and Differentiating Market Offerings over the Life Cycle
  2. 2. Objectives <ul><li>Identify Differentiating Attributes </li></ul><ul><li>Choosing & Communicating Effective Positioning </li></ul><ul><li>Marketing Strategies Along the Product Life Cycle </li></ul><ul><li>Marketing Strategy & Market Evolution </li></ul>
  3. 3. Differentiation
  4. 4. Product Differentiation Form Fea- tures Perfor- mance Quality Conform- ance Quality Dura- bility Relia- bility Repair- ability Style Design
  5. 5. Services Differentiation Delivery Ordering Ease Maintenance & Repair Customer Training Installation Customer Consulting Miscellaneous Services
  6. 6. Image Differentiation Media Atmosphere Symbols Events
  7. 7. Differences Worth Establishing Affordable Superior Profitable Preemptive Distinctive Important
  8. 8. Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s mind.
  9. 9. 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
  10. 10. Product Life Cycle
  11. 11. Sales & Profit Life Cycles Introduction Growth Maturity Decline Time Sales & profits ($)
  12. 12. 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
  13. 13. Innovators: Description <ul><li>2.5% of population </li></ul><ul><li>Venturesome </li></ul><ul><li>Very eager to try new ideas </li></ul><ul><li>Acceptable if risk is daring </li></ul><ul><li>More cosmopolite social relationships </li></ul><ul><li>Communicates with other innovators </li></ul>
  14. 14. Early Adopters: Description <ul><li>13.5% of population </li></ul><ul><li>Respected </li></ul><ul><li>More integrated into the local social system </li></ul><ul><li>The persons to check with before adopting a new idea </li></ul><ul><li>Category contains greatest number of opinion leaders </li></ul><ul><li>Are role models </li></ul>
  15. 15. Early Majority: Description <ul><li>34.0% of population </li></ul><ul><li>Deliberate </li></ul><ul><li>Adopt new ideas just prior to the average time </li></ul><ul><li>Seldom hold leadership positions </li></ul><ul><li>Deliberate for some time before adopting </li></ul>
  16. 16. Late Majority: Description <ul><li>34% of population </li></ul><ul><li>Skeptical </li></ul><ul><li>Adopt new ideas just after the average time </li></ul><ul><li>Adopting may be both an economic necessity and a reaction to peer pressures </li></ul><ul><li>Innovations approached cautiously </li></ul>
  17. 17. Laggards: Description <ul><li>16% of population </li></ul><ul><li>Traditional </li></ul><ul><li>The last people to adopt an innovation </li></ul><ul><li>Most “localite” in outlook </li></ul><ul><li>Oriented to the past </li></ul><ul><li>Suspicious of the new </li></ul>
  18. 18. Four Introductory Marketing Strategies Rapid- skimming strategy Rapid- penetration strategy Slow- penetration strategy Slow- skimming strategy Price Low High Promotion High Low
  19. 19. Maturity Stage <ul><li>Market Modification </li></ul><ul><li>Product Modification </li></ul><ul><li>Marketing-Mix Modification </li></ul>
  20. 20. Decline Stage <ul><li>Increase investment </li></ul><ul><li>Resolve uncertainties - stable investment </li></ul><ul><li>Selective niches </li></ul><ul><li>Harvesting </li></ul><ul><li>Divesting </li></ul>
  21. 21. Market Evolution <ul><li>Emergence </li></ul><ul><li>Growth </li></ul><ul><li>Maturity </li></ul><ul><li>Decline </li></ul>
  22. 22. Review <ul><li>Identify Differentiating Attributes </li></ul><ul><li>Choosing & Communicating Effective Positioning </li></ul><ul><li>Marketing Strategies Along the Product Life Cycle </li></ul><ul><li>Marketing Strategy & Market Evolution </li></ul>