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Published byHugo Kelley Modified over 9 years ago
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CHAPTER 11 Positioning and Differentiating the Product through the Product Life Cycle
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Positioning Objective of positioning is to occupy a given space in the consumer’s mind relative to competing products. This location in the mind relative to competing products creates a VALUE PROPOSITION – reason to buy. Firm should select the position that gives it a SCA.
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Communication & Positioning The firm must communicate its position to the target market. Since positioning is done relative to competing products then Differentiation is tied into the process. Differentiation is a promotion strategy. Hence it goes beyond merely adding attributes to include addressing meaningful and customer values differences that sets ones products apart from the others. Not all differences are meaningful!
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Differentiation Differences are meaningful if they are: Important Distinctive Superior Preemptive Affordable Profitable
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Differentiation Differentiation variables vary according to goods (form, features, performance, durability, style, design, reliability) versus services (ease of ordering, delivery, installation, maintenance, consulting). Other factors include Personnel, Channel, Image
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Product Life Cycle The PLC is the stages through which a product passes. The PLC has FOUR stages each with a different challenge, opportunities and marketing strategies Each stage of the PLC have different profit implications and different resource requirements
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Stages in the Product Life Cycle PLC recognizes that sales vary over time. Introduction Growth Maturity Decline
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PLC Patterns Fad – quick adoption and fast decline Style – distinctive mode of expression in a field. Style can go in and out of acceptance. Fashion – Currently accepted style. View 4 stages: distinctive, emulation, mass acceptance, decline
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Benefit of the PLC PLC used to suggest marketing strategy at the various stages. Short coming is that it is very difficulty to determine the stage of the PLC that a product is in.
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