Product Positioning and Product Life Cylce

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Presenations gives a fair idea on Product Positioning, Differentiation, Product Life Cylce and its interrelationship with each other

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Product Positioning and Product Life Cylce

  1. 1. Product Positioning & Product Life Cycle Dr. Prashant Mehta Assistant Professor, National Law University, Jodhpur Email: prashantmehta1@rediffmail.com
  2. 2. Product Differentiation <ul><li>Most competitive advantages lasts only a short time. Companies therefore constantly need to think up new value adding features and benefits to win the attention and interest of choice rich, price prone consumers. </li></ul>
  3. 3. Differentiation <ul><li>It is the act of designing a set of meaningful differences to distinguish the company’s offering in terms of products and services from competitors. </li></ul>
  4. 4. How can you differentiate? <ul><li>Differentiation can be done in variety of ways depending on the industry, sector, product, and service category. </li></ul><ul><li>Differentiation can occur in one or more of these areas – product, product features, services, personnel, channel, image and so on………………………………………... </li></ul>
  5. 5. Product Differentiation <ul><li>Form </li></ul><ul><li>Features </li></ul><ul><li>Performance </li></ul><ul><li>Conformance </li></ul><ul><li>Quality </li></ul><ul><li>Durability </li></ul><ul><li>Reliability </li></ul><ul><li>Reparability </li></ul><ul><li>Style </li></ul><ul><li>Design </li></ul><ul><li>Brand Image </li></ul>
  6. 6. Services Differentiation <ul><li>Ordering Ease </li></ul><ul><li>Delivery </li></ul><ul><li>Installation </li></ul><ul><li>Customer Training </li></ul><ul><li>Maintenance and Repair </li></ul><ul><li>Service Contract </li></ul><ul><li>Miscellaneous Services like upgrade of Product or Feature </li></ul><ul><li>Information of New launches etc. </li></ul>
  7. 7. Personnel Differentiation <ul><li>Competence of Personnel </li></ul><ul><li>Courtesy </li></ul><ul><li>Credibility </li></ul><ul><li>Reliability </li></ul><ul><li>Responsiveness </li></ul><ul><li>Communication Skills </li></ul>
  8. 8. Channel Differentiation <ul><li>Trade Shows </li></ul><ul><li>Direct Channel </li></ul><ul><li>Online Channel </li></ul><ul><li>Indirect Channel </li></ul>
  9. 9. Image Differentiation <ul><li>Identity – what the company wants to project </li></ul><ul><li>Image – what the public perceive </li></ul><ul><li>Image can be enhanced by using, symbols, media, atmosphere, events and employee behaviour </li></ul>
  10. 10. Relevant Differentiation <ul><li>Differentiation must be meaningful and relevant to the consumer. So it should satisfy the following criteria: </li></ul><ul><li>Important Use </li></ul><ul><li>Distinctive Brand </li></ul><ul><li>Superior Quality </li></ul><ul><li>Affordable Price </li></ul><ul><li>Profitable to Company </li></ul><ul><li>Value to Customer </li></ul><ul><li>High Brand Value and Recognition </li></ul>
  11. 11. USP <ul><li>This product should be exclusive to the brand and make a significant relevant impact in the minds of consumer. </li></ul><ul><li>It should ignite a passion of owing one. </li></ul><ul><li>Eg: I Phone </li></ul>
  12. 12. Positioning <ul><li>The act of designing the company’s offering and image to occupy a distinctive place in the consumer’s mind. </li></ul><ul><li>Positioning normally takes one position in the mind. More than one, the company runs the risk of customer credibility and dilution of positioning. </li></ul>
  13. 13. Positioning Strategies <ul><li>Attribute </li></ul><ul><li>Benefit </li></ul><ul><li>Competitor </li></ul><ul><li>Use or application </li></ul><ul><li>User </li></ul><ul><li>Product category </li></ul><ul><li>Price /Quality </li></ul>
  14. 14. PLC <ul><li>Products have a limited life </li></ul><ul><li>Product sales pass through distinct stages </li></ul><ul><li>Profits rise and fall at different stages of the PLC </li></ul><ul><li>Product require different strategies in each stage of the PLC </li></ul>
  15. 15. The Product Life Cycle Time Sales or Profits Growth Maturity Decline Introduction Profit curve Sales curve
  16. 16. Strategies - Introduction <ul><li>Skimming the market </li></ul><ul><li>Penetrating the market </li></ul><ul><li>Must have sufficient resources to withstand the initial losses and heavy promotion costs </li></ul><ul><li>Incremental selling efforts at this stage is highest </li></ul>
  17. 17. The Competitive Cycle New Introduction Growth of Industry Excess capacities High Inventories Reduction In margins New entrants discouraged Existing companies consolidate Weaker companies withdraw Market Share Increases
  18. 18. Strategies - Growth <ul><li>Improves quality and adds features </li></ul><ul><li>Adds new models and variants </li></ul><ul><li>Enters new market segments </li></ul><ul><li>Increases distribution coverage and adds new channels </li></ul><ul><li>Shifts communication from awareness to preference building </li></ul><ul><li>Scale economies enable it to lower prices to attract the next level of price conscious buyers </li></ul>
  19. 19. Strategies - Maturity <ul><li>Most products are in this stage </li></ul><ul><li>Price wars are inevitable. </li></ul><ul><li>Scramble for market share </li></ul><ul><li>The fittest survive </li></ul><ul><li>Market modification, product modification, marketing mix modification can help extend the maturity stage </li></ul>
  20. 20. Strategies - Decline <ul><li>Withdrawal </li></ul><ul><li>Rationalization of Products </li></ul><ul><li>Harvesting whatever is possible </li></ul><ul><li>Divesting the Product </li></ul><ul><li>Removing it From Market </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>

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