3. ©2000 Prentice Hall ObjectivesObjectives ä Identify Differentiating Attributes ä Choosing & Communicating Effective Positioning ä Marketing Strategies Along the Product Life Cycle ä Marketing Strategy & Market Evolution

4. ©2000 Prentice Hall The BCG Competitive Advantage Matrix Volume FragmentedStalemated Specialized Size of the Advantage Advantage Small Large Number of Approaches to Achieve Advantage FewMany

5. ©2000 Prentice Hall Product Differentiation Form Fea- tures Perfor- mance Quality Conform- ance Quality Dura- bility Relia- bility Repair- ability StyleDesign

6. ©2000 Prentice Hall Delivery Services Differentiation Ordering Ease Ordering Ease Maintenance & Repair Maintenance & Repair Customer Training Customer Training Installation Customer Consulting Customer Consulting Miscellaneous Services

7. ©2000 Prentice Hall DifferentiationDifferentiation ä Personnel ä Channel

8. ©2000 Prentice Hall MediaAtmosphere Symbols Events Image Differentiation

9. ©2000 Prentice Hall Differences Worth Establishing Affordable Superior Profitable Preemptive Distinctive Important

10. ©2000 Prentice Hall Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s mind. P P 298

11. ©2000 Prentice Hall 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 1.00.80.60.40.2 -0.2-0.4-0.6-0.8 MagicMountain Japanese Deer Park BuschGardens Knott’sBerryFarm LionCountrySafariMarineland of the PacificDisneyland Economical Fun rides Exercise Fantasy Good food Easy to reach Educational,animals Little waiting Live shows

12. ©2000 Prentice Hall Sales & Profit Life Cycles IntroductionGrowthMaturityDecline Time Sales & profits ($)

13. ©2000 Prentice Hall Four Introductory Marketing Strategies Rapid-skimmingstrategy Rapid-penetrationstrategySlow-penetrationstrategy Slow-skimmingstrategy Price Low HighPromotionHighLow

14. ©2000 Prentice Hall Maturity Stage ä Market Modification ä Product Modification ä Marketing-Mix Modification

15. ©2000 Prentice Hall Decline Stage ä Decrease investment ä Resolve uncertainties - stable investment ä Selective niches ä Harvesting ä Divesting

16. ©2000 Prentice Hall Market Evolution ä Emergence ä Growth ä Maturity ä Decline

17. ©2000 Prentice Hall Market-Fragmentation and Market-Consolidation Strategies (a) Market-fragmentation stage stage M C J XYZ KFG L DE AB H (b) Market-consolidation stage stage X M C AB DE FG JK L YZ H

18. ©2000 Prentice Hall ReviewReview ä Identify Differentiating Attributes ä Choosing & Communicating Effective Positioning ä Marketing Strategies Along the Product Life Cycle ä Marketing Strategy & Market Evolution