1. Differentiating Market Offerings
Chapter 10
Positioning and
Differentiating Market Offerings
over the Life Cycle
Marketing Management
Tenth Edition
Philip Kotler

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

3. The BCG Competitive Advantage Matrix
Number of Approaches
to Achieve Advantage
Few
Many
Volume
Specialized
Size of the
Advantage
Small
Large
Stalemated
Fragmented

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

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

6. Differentiation
Personnel
Channel

7. Image Differentiation
Media
Symbols
Atmosphere
Events

8. Differences Worth Establishing
Important
Profitable
Distinctive
Differences Worth
Establishing
Affordable
Superior
Preemptive

9. 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 298

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

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

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

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

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

15. Market Evolution
Emergence
Growth
Maturity
Decline

16. Market-Fragmentation and Market-Consolidation Strategies
(a) Market-fragmentation
stage M C J
XYZ K FG L DE AB H
(b) Market-consolidation
stage X M C AB DE FG JK L YZ H

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