Local Marketing in Mature Markets Chapter Eight Local Marketing in Mature Markets 1 1 1 1

Chapter 8: Mature Markets Marketing Environments and Tasks Emerging markets - build infrastructure New growth markets - market development Mature markets - build market share Analysis and strategy focus by market type

Three Marketing Environments Product/Market situation Exhibit 9.1 2 2 2 2

Dominant Marketing Dimensions Product/Market Situation Exhibit 9.2 3 3 3 3

Dominant Marketing Dimensions Product/Market Situation Task Emerging New Growth Mature Marketing strategy: Strategic focus Market Participation Compete for share development in growth Competitive Focus Lead/follow Domestic/foreign Strengths/ weaknesses Product line Low end Limited Wide Product design Basic Advanced Adapted New product intro Rare Selective Fast Pricing Affordable Status Value Advertising Awareness Image Value-added Distribution Build-up Penetrate Convenience Promotion Awareness Trial Value Exhibit 9.2 cont. Service Extra Desired Required 4 4 4 4

Local Marketing in Mature Markets Market analysis market segmentation, positioning, brand image, country of origin Product strategy wide line, differentiated, first mover (leaders); me-too (followers) Pricing range of options, relative to product position Promotion brand image, sales promotion for support, differentiated position Distribution solid infrastructure, full channels, slotting fees, piggybacking Customer satisfaction quality, technical vs emotional quality, surprise

CS and Two Kinds of Quality High Level of satisfaction Emotional quality Functional quality Low High Level of quality Low exhibit 9.3 5 5 5 5

Pan-European Marketing Market segmentation Strategies Market retreat, pan-European competition, niche position Euro-brands, Euro currency

Marketing in Japan Fragmentation of distribution Close relationships with channel members Demanding customers - lead market Customers show increasing price sensitivity Quality = “function without fault”

Marketing in Australia and New Zealand Mature economies with British heritage Asian trade agreements Traditional British roots, pioneer spirit, some preference for home products Coastal concentration of distribution

Marketing in North America NAFTA agreement Ethnic diversity Regulatory complexity Power of distribution channel members

Chapter Terms and Essay Euro-brands, pan-European marketing, Euro currency, Japanese distribution, product/market situations, marketing tasks Essay How do mature markets differ from emerging and new growth markets. Using one of the four areas discussed in the text as an example, explain the challenges involved in competing in mature markets.

Legacy of China Video Identify and describe the three major religious/philosophical traditions which form the foundation of Chinese civilization. Explain how traditional Chinese cuisine, medicine, calligraphy and artistic traditions reflect the values of these three traditions. What historical events in the last 150 years have caused the Chinese people to lose faith in these traditions? With what results for modern China?

Local Marketing in Mature Markets Chapter Eight Local Marketing in Mature Markets 1 1 1 1