1. POSITIONING THE MARKET OFFERING THROUGH THE PRODUCT LIFE CYCLE
CHAPTER 10
POSITIONING THE MARKET OFFERING THROUGH THE PRODUCT LIFE CYCLE

2. IPORTANT TOPICS OF THIS CHAPTER
Identify Differentiating Strategies
Identifying Positioning Strategies
Marketing Strategies Along the Product Life Cycle

3. DIFFERENTIATION STRATEGY
Product Differentiation:
Form:
Size, shape or physical structures.
Features:
Basic Vs advance models.
Performance quality:
Low, average, high and superior:
Conformance quality:
To meet product specifications.
Durability:
Expected life under normal conditions.
Reliability
Style:
Design
Reparability

4. DIFFERENTIATION STRATEGY (CONT.)
Service Differentiation:
Ordering ease.
Delivery.
Installation.
Customer training.
Customer consulting.
Maintenance and repair.
Miscellaneous services-improved product warranty.
Personnel Differentiation:
Competence, credibility, reliability, responsiveness, and communication.
Channel Differentiation
Image Differentiation:
Symbols, media, atmosphere and events.

5. POSITIONING STRATEGY Product Differentiation: Positioning: Important.
Distinctive.
Superior.
Preemptive.
Affordable.
Profitable.
Positioning:
Best quality, best service, best price, best value, lowest price, safest, fastest, and most customized in the target market’s mind
Double-benefits positioning:
Safe and durable.
Triple-benefits positioning:
Safe, durable and stylish.

6. POSITIONING STRATEGY (CONT.)
Positioning errors:
Under-positioning
Over-positioning
Confused positioning
Doubtful positioning.
Positioning decision:
Perceptual Maps:
Attribute positioning
Benefit positioning
Use/application positioning
User positioning
Competitor positioning
Product category positioning
Quality/price positioning

7. Example of Perceptual Map
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

8. PRODUCT LIFE-CYCLE MARKETING STRATEGIES
Time
Sales & profits ($)
Introduction
Growth
Maturity
Decline

9. STRATEGIES FOR NEW PRODUCT INTRODUCTION
Price
Low
High
Promotion
Rapid-
skimming
strategy
Slow-
skimming
strategy
Rapid-
penetration
strategy
Slow-
penetration
strategy

10. MARKETING STRATEGIES FOR GROWTH STAGE
Improved product quality.
Higher advertising budget.
Entering new market segment.
Improvement of distribution network.
Lowering prices for competitive pressure.

11. MARKETING STRATEGIES FOR MATURITY STAGE
Market Modification:
Convert nonusers.
Enter new market segment.
Attract competitors’ customers.
Product Modification:
Improvements in product quality, style and futures.
Marketing-Mix Modification:
Prices
Distribution
Advertising
Sales promotion
Personal selling
Services

12. MARKETING STRATEGIES FOR DECLINE STAGE
Increase investment.
Resolve uncertainties:
stable investment.
Selective niches.
Harvesting:
Quick cash generation.
Divesting:
Disposing the assets as advantageous as possible.