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Market Positioning & Managing Product Life Cycle -
Transcript of Market Positioning & Managing Product Life Cycle -
Managing Product Life Cycle
Market positioning is the act of designing the company's offerings and image to occupy a distinctive place in the mind of the target market
BASES OF POSITIONING
(a) The product itself
(b) Services offered
(c) Company staff or personnel
(d) Distribution channel used
(e) Company image
Based on Products Itself
Based on Services Differentiation
The business of one company can be differentiated from another based on the services offered or the services that are attached to the products sold.
Services that can be used as market positioning are
delivery services, fixing, maintenance, staff training and repair work.
Based on Channel Differentiation
Distribution channels used to distribute the products of a company can be used as a differentiation factor as well.
Based on Staff or Personnel Differentiation
Trained, dedicated, friendly, self-confident, capable and honest personnel
Reesha Abdul Munnim
DO YOU THINK OF THESE COMMERCIALS?
LG Smart TV
Differentiated based on product's design like size, shape or physical structure.
Most products can be offered with varying features or accessories that supplement the product's basic function.
Quality Most products can be differentiated based on the quality of the product itself.
Quality is categorized into three levels: high, average and low or inferior.
Well-known brands also mean that the products are of good quality.
Fit and Finish
This aspect makes sure that the product is strong, efficient and is of good quality.
HOW CAN A PRODUCT BE DIFFERENTIATED FROM YOUR COMPETITORS
Performance, Durability and Defect Free
Design and Style
Design and style offers a good way to differentiate and position a company's products.
A company sells its products in as many shops as possible to enable consumers to reach their products anywhere
Incorporate ID and ED
The manufacturer will select a few stores to carry its products to build good relationships with a few stores in order to provide excellent service to consumers.
The company distributes its products in exclusive stores only.
The company gives special rights to certain stores to distribute its products.
Based on Image Differentiation
Today there are many types of images that are used to differentiate products and companies in the market.
PRODUCT LIFE CYCLES
(a) Introduction stage
(b) Growth stage
(c) Maturity stage
(d) Decline stage
Newly introduced in the market.
Consumers are not aware of the product & Profits that are very low or negative at the moment due to heavy expenses and low sales volume
Marketing Strategy for this stage
(a) Increase the volume of advertisements to create consumer awareness
(b) Increase the number of distributors
(c) Pricing the product high or low depending on the suitability of the market
(d) Pricing the product high if the product is new and has not existed in the market before.
Product Life Cycle Patterns
Sales increase tremendously.
Consumers are aware of the existence of the product and they have purchased the product for the first time.
Profit increases and is at a profit-making level.
Competitors start entering the market with similar products.
(a) Continue the advertisement campaigns to build awareness, interest
and confidence among the consumers.
(b) Appointing more distributors
(c) Slashing product price if it was priced too high during the product introduction stage. Slashing the price will increase the number of purchasers and it will scare off competitors who are beginning to enter the market.
(d) Expand factory and company operations to fulfil increasing demands from the consumers.
Market Positioning strategy
Profits and sales start to reach the maximum level.
Competitors start to offer similar or identical products hence consumers have more options
Competition is tough and there are many competitors in the market.
Market Positioning Strategy
(a) Offer products with improvised design, enhanced quality and features.
(b) Offer new models to the existing product lines. The advertising campaigns have to be continued to build consumer trust and loyalty.
(c) The price offered is lower or at-par with the competitor's price.
(d) Own wide and excellent distribution networks and Able to obtain economies of scale to enable the company to price their products lower and control a bigger market share.
Sales and profits decline until there aren't any sales or profits anymore.
This happens because there is a better product replacement, new technology exists, or the consumers are bored of the old product.
Market Positioning Strategy
(a) When the technology changes rapidly and consumer demand declines sharply, it is better for the company to cease the products production.
(b) When there is continuous demand for the output, the company can continue to produce the product at a smaller quantity from time to time until there isn't any new production.
Fads are fashions that come quickly into public view, are adopted with great zeal but decline very fast
Style Product Life Cycle
A style is a basic and distinctive mode of expression. When style is created, it will exist for a few generations. Then, it will disappear and reappear again
Seasonal Product Life Cycle