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CHAPTER 11

CHAPTER 11. Positioning and Differentiating the Product through the Product Life Cycle. Positioning. Objective of positioning is to occupy a given space in the consumer’s mind relative to competing products.

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CHAPTER 11

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  1. CHAPTER 11 Positioning and Differentiating the Product through the Product Life Cycle

  2. 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.

  3. 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!

  4. Differentiation • Differences are meaningful if they are: • Important • Distinctive • Superior • Preemptive • Affordable • Profitable

  5. 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

  6. 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

  7. Stages in the Product Life Cycle • PLC recognizes that sales vary over time. • Introduction • Growth • Maturity • Decline

  8. 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

  9. 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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