kotler_mm_14e_11_ippt.ppt
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This document discusses competitive dynamics and strategies for different stages of a product life cycle. It describes hypothetical market structures and ways companies can expand their total market or protect existing market share through strategies like lowering prices, advertising, and product innovation. The stages of the product life cycle are growth, maturity, and decline, and the document provides example marketing strategies for each stage, such as improving products in growth and targeting new customer segments in maturity. Finally, it discusses how companies may need to modify their brand, products, or marketing programs over time to maintain relevance.
kotler_mm_14e_11_ippt.ppt
- 2. Figure 11.1 Hypothetical Market Structure Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-2
- 3. Expanding the Total Market Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-3
- 4. New Ways to Use a Brand Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-4
- 5. Protecting Market Share Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-5 Responsive anticipation Creative anticipation
- 6. Specific Attack Strategies Price discounts Lower-priced goods Value-priced goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing-cost reduction Intensive advertising promotion Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-6
- 7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-7 Claims of Product Life Cycles Products have a limited life Product sales pass through distinct stages each with different challenges and opportunities Profits rise and fall at different stages Products require different strategies in each life cycle stage
- 8. Figure 11.4 Sales and Profit Life Cycles Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-8
- 9. Figure 11.6 Style, Fashion, and Fad Life Cycles Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-9
- 10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-10 Marketing Strategies: Growth Stage Improve product quality and add new product features and improved styling Add new models and flanker products Enter new market segments Increase distribution coverage and enter new distribution channels Shift from product-awareness advertising to product-preference advertising Lower prices to attract next layer of price-sensitive buyers Product Life-Cycle Marketing Strategies
- 11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-11 Marketing Strategies: Maturity Stage Market Modification Expand number of brand users by: 1. Converting nonusers 2. Entering new market segments 3. Winning competitors’ customers Convince current users to increase usage by: 1. Using the product on more occasions 2. Using more of the product on each occasion 3. Using the product in new ways Product Life-Cycle Marketing Strategies
- 12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-12 Marketing Strategies: Decline Stage 1. Increase firm’s investment (to dominate the market and strengthen its competitive position) 2. Maintain the firm’s investment level until the uncertainties about the industry are resolved. 3. Decrease the firm’s investment level selectively by dropping unprofitable customer groups, while simultaneously strengthening the firm’s investment in lucrative niches 4. Harvesting (“milking”) the firm’s investment to recover cash quickly 5. Divesting the business quickly by disposing of its assets as advantageously as possible. Product Life-Cycle Marketing Strategies
- 13. Changing Brand Course Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-13 Market Modification Product Modification Marketing Program Modification
- 14. A Compelling Value Proposition Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-14