1. SMU COX
Winning in New Market Segments Marci Armstrong, Ph.D. November 27, 2007

2. Remember When . . .

3. Executive Education: A Mature Market
Executive Education: A Mature Market? Which characteristics do we observe now? Which are emerging?

4. Characteristics of Mature Markets
Overcapacity, excess inventory
Little to no market growth
Intensified competition
High volume / low cost competition
Eroding profit margins; greater price negotiation
Only incremental product improvements, little real product innovation
Proliferation of product varieties to serve narrower and narrower market segments
Increased advertising and promotion
Bottom-line: SPENDING MORE TO MAKE LESS

5. Executive Education: Renewing A Mature Market
Executive Education: Renewing A Mature Market? Are we at a point of renewal? If so, how can we hasten the renewal?

6. Renewing a Mature Market
Sales Volume
Time

7. Healthy Renewal of Mature Markets
Abandon weaker products
Shakeout -- weaker competitors withdraw
Market consolidation preceded by fragmentation
Products → Services → Experiences
Offer new value to customers
Identify and develop new markets
Lower volume, higher margins

8. Executive Education: Renewing A Mature Market How do we identify new markets worth serving?

9. Dimensions of Exec Ed Markets
Participants
Mgt level, function, gender, ethnicity, education level
Company
Industry, type (public, private, non-profit), size (# employees, revenue)
Program
Type, content, location, format
Faculty
Geographic Scope

10. Identifying New Market Segments
Industry
3-D Cell
Energy
Government
CPG
Program
Content
Leadership
Finance/Accounting
Mid-Mgrs
Participant
Level
General Management
Sr VPs
C-Level

11. Reflect: Do you think we’re at a point of renewal in a mature market
Reflect: Do you think we’re at a point of renewal in a mature market? Why? What signs of a mature market do you see? What signs of renewal?

12. Identify: Brainstorm several exec ed dimensions and levels for each dimension. Then identify new market opportunities (cells) as well as creative cells where you’re succeeding today.

13. Analyze: How attractive are the new market opportunities (cells) you’ve identified? Are they financially viable? What capabilities do you need to deliver on these opportunities?

14. Renewing a Mature Market: Winning in New Executive Education Market Segments