The document discusses positioning and differentiating market offerings over the product life cycle. It identifies different types of product, service, and image differentiation attributes. It also discusses the concept of positioning and using perceptual maps. The document then covers the typical product life cycle phases of introduction, growth, maturity, and decline. It analyzes customer adoption categories and common introductory and later-stage marketing strategies used during the life cycle.

1. Positioning and Differentiating Market Offerings over the Life Cycle

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

3. Differentiation

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

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

6. Image Differentiation Media Atmosphere Symbols Events

7. Differences Worth Establishing Affordable Superior Profitable Preemptive Distinctive Important

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. 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. Product Life Cycle

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

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. 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

14. 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

15. 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

16. 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

17. 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

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

19. Maturity Stage Market Modification Product Modification Marketing-Mix Modification

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

21. Market Evolution Emergence Growth Maturity Decline

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