1. Positioning and PLC

2. Product Differentiation
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.

3. Differentiation
It is the act of designing a set of meaningful differences to distinguish the company’s offering from competitors.

4. How can you differentiate?
Differentiation can be done in various ways depending on the industry and product category.
Differentiation can occur in one or more of these areas – product, services, personnel, channel, image.

5. Product Differentiation
Form
Features
Performance
Conformance
Quality
Durability
Reliability
Repairability
Style
Design

6. Services Differentiation
Ordering Ease
Delivery
Installation
Customer Training
Maintenance and repair
Miscellaneous services

7. Personnel Differentiation
Competence
Courtesy
Credibility
Reliability
Responsiveness
Communication
Channel Differentiation
Trade
Direct

8. Image Differentiation
Identity – what the company wants to project
Image – what the public perceive
Image can be enhanced by using, symbols, media, atmosphere, events and employee behaviour

9. Relevant Differentiation
Differentiation must be meaningful and relevant to the consumer. So it should satisfy the following criteria
Important
Distinctive
Superior
Preemptive
Affordable
profitable

10. USP
This should be exclusive to the product and make a significant relevant impact to the consumer

11. Positioning
The act of designing the company’s offering and image to occupy a distinctive place in the consumer’s mind.
Positioning normally takes one position in the mind. More than one, the company runs the risk of customer credibility and dilution of positioning

12. Positioning Strategies
Attribute
Benefit
Use or application
User
Competitor
Product category
Price/quality

13. PLC Products have a limited life
Product sales pass through distinct stages
Profits rise and fall at different stages of the PLC
Product require different strategies in each stage of the PLC

14. The Product Life Cycle
Maturity
Sales or
Profits
Decline
Growth
Sales curve
Introduction
Profit curve
Time

15. Strategies - Introduction
Skimming the market
Penetrating the market
Must have sufficient resources to withstand the initial losses and heavy promotion costs
Incremental selling efforts at this stage is highest

16. The competitive cycle Pioneer Introduction Growth of Industry Excess
capacities
New entrants
discouraged
Reduction
In margins
High
Inventories
Weaker
companies
withdraw
Existing
companies
consolidate
Pioneer increases share

17. Strategies - Growth Improves quality and adds features
Adds new models and variants
Enters new market segments
Increases distribution coverage and adds new channels
Shifts communication from awareness to preference building
Scale economies enable it to lower prices to attract the next level of price conscious buyers

18. Strategies - Maturity Most products are in this stage
Price wars are inevitable.
Scramble for market share
The fittest survive
Market modification, product modification, marketing mix modification can help extend the maturity stage

19. Strategies - Decline Withdrawal Rationalisation of products
Harvesting whatever is possible
Divesting the product

20. Market Evolution
Emergence
Growth
Maturity
Decline