2000 Prentice Hall

Objectives
Identify Differentiating Attributes
Choosing & Communicating Effective
Positioning
Marketing Strategies Along the Product
Life Cycle
Marketing Strategy & Market Evolution
2000 Prentice Hall
The BCG Competitive
Advantage Matrix
Volume
Fragmented Stalemated
Specialized
S
i
z
e

o
f

t
h
e


A
d
v
a
n
t
a
g
e

Small
Large
Number of Approaches
to Achieve Advantage
Few Many
2000 Prentice Hall
Product Differentiation
Form
Fea-
tures
Perfor-
mance
Quality
Conform-
ance
Quality
Dura-
bility
Relia-
bility
Repair-
ability
Style Design
2000 Prentice Hall
Delivery
Services Differentiation
Ordering
Ease
Maintenance
& Repair
Customer
Training
Installation
Customer
Consulting
M
i
s
c
e
l
l
a
n
e
o
u
s

S
e
r
v
i
c
e
s

2000 Prentice Hall
Differentiation
Personnel
Channel
2000 Prentice Hall
Media Atmosphere
Symbols
Events
Image Differentiation
2000 Prentice Hall
Differences Worth
Establishing
Affordable Superior
Profitable
Preemptive
Distinctive
Important
2000 Prentice Hall
P 298
2000 Prentice Hall
Perceptual Map
0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2
1.0

0.8

0.6

0.4

0.2
-0.2

-0.4

-0.6

-0.8
Magic
Mountain
Japanese
Deer Park
Busch
Gardens
Knotts
Berry
Farm
Lion
Country
Safari
Marineland
of the
Pacific
Disneyland
Economical
Fun rides
Exercise
Fantasy
Good food
Easy to reach
Educational,
animals
Little waiting
Live shows
2000 Prentice Hall
Sales & Profit Life Cycles
Introduction Growth Maturity Decline
Time
S
a
l
e
s

&

p
r
o
f
i
t
s

(
$
)

2000 Prentice Hall
Four Introductory
Marketing Strategies
Rapid-
skimming
strategy
Rapid-
penetration
strategy
Slow-
penetration
strategy
Slow-
skimming
strategy
Price
Low
High
Promotion
High Low
2000 Prentice Hall
Maturity Stage
Market Modification
Product Modification
Marketing-Mix Modification

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Decline Stage
Increase investment
Resolve uncertainties - stable
investment
Selective niches
Harvesting
Divesting
2000 Prentice Hall
Market Evolution
Emergence
Growth
Maturity
Decline
2000 Prentice Hall
Market-Fragmentation and
Market-Consolidation Strategies
(a) Market-fragmentation
stage
M
C
J
XYZ
K FG
L
DE
AB
H
(b) Market-consolidation
stage
X
M
C
AB
DE
FG
JK
L
YZ
H
2000 Prentice Hall
Review
Identify Differentiating Attributes
Choosing & Communicating Effective
Positioning
Marketing Strategies Along the Product
Life Cycle
Marketing Strategy & Market Evolution