1. Mature & declining markets

2. Mature market strategies
Objective -- “Maximize the flow of profits over the remaining life of the product-market” (p. 447)
“Maintain and protect the business’ market share” (p. 447)
Fortress defense
Flanker brands
Niche strategy

3. Mature market strategies
Customer retention & loyalty
Crucial in most mature markets
Related to satisfaction

4. Mature market strategies
To retain customers, measure:
Expectations
Perceptions
Satisfaction
Behavior
Retention rate
Frequency of purchases
% of total purchases in category

5. Mature market strategies
Market penetration
new users within current markets (increased penetration)
new uses for current customers (extended use)
more usage per consumer (extended use)
Market development (market expansion)
Product development (increased penetration?)

6. Mature market strategies
Sources of sustainable competitive advantage
Cost leadership
Differentiation

7. Ways to achieve cost leadership (from text)
No-frills product
Innovative product design
Cheaper raw materials
Innovative production processes
Low-cost distribution
Reductions in overhead

8. Bases for differentiation
Product differentiation
Features
Performance
Durability
Reliability
Repairability
Style
Design

9. Bases for differentiation (cont’d)
Personnel
competence
courtesy
credibility
reliability
responsiveness
communication
High service quality
delivery
installation
customer support

10. Service quality model (p. 444)
Word-of-mouth
communications
Personal
Needs
Past
Experience
Expected
Service

11. Service quality model (p. 444)
Expected Service
Gap 5
Perceived Service
Gap 4
External
communication
to consumers
Service Delivery
Gap 1
Gap 3
Translation of
perceptions into
service quality
specifications
Gap 2
Management
perceptions of
consumer expectations

12. Strategies for declining markets (p. 457)
Harvesting
Maintenance
Profitable survivor
Niche

13. Strategies for declining markets (p. 457)
Harvesting
Avoid additional investment
Reduce expenditures
Promotion
Marketing
Production?

14. Strategies for declining markets (p. 457)
Conditions for harvesting
Leading share position
Existing base of loyal customers
Few strong competitors
Future rivalry not intense
Low exit barriers

15. Strategies for declining markets (p. 457)
Maintenance
Maintain share in short term

16. Strategies for declining markets (p. 457)
Conditions for maintenance
Leading share position
Future direction uncertain
Few strong competitors

17. Strategies for declining markets (p. 457)
Profitable survivor
Increase share of market
Encourage weaker competitors to exit

18. Strategies for declining markets (p. 457)
Conditions for profitable survivor
Slow and steady market decline
Substantial pockets fo demand will continue to exist
Leading share position
Superior resources or competencies necessary to encourage competitors to exit
Few strong competitors
Low exit barriers

19. Strategies for declining markets (p. 457)
Niche
Strengthen position in a profitable niche

20. Strategies for declining markets (p. 457)
Conditions for niche
Niches will remain in the market
Strong competitors absent from the target market
Sustainable competitive advantage in niche