Maturity
Decline
Growth
Introduction
Pentium 133
Units/Sales
Profits
Time
CHP: 8&10-2
Quality performance
Value provider Innovator A narrow product focus A target market focus Product attributes Emotional benefits Brand personality
Wal-mart:
Southwest Airlines
(Case Story)
Began in Dallas, Texas Reported recent annual profits: $313 million, more than all other US airlines combined Offers no-frills air travel, on-time, at discount prices: cheap, dependable and fun Champions low-cost strategy Lowers cost through economic point-to-point routes, flying only one type of aircraft Buys discounted futures in jet fuel to save on fuel costs Maintains competitive advantages over major carriers United Airlines, American Airlines, Delta Airlines Continues to be successful in competing against smaller carriers like Jet Blue and Alaska Airlines Source: Armstrong, Kotler
2006 Jeffrey E. Newcomb / Red Widget Strategies for Hosei University
Southwest Airlines
Value Proposition: Less for Much Less Do customers like the no-frills environment?
makes 3,000 flights each day serves 61 cities, 31 states 13 of last 14 years: fewest complaints ranked #1 in airline industry for
customer satisfaction
Source: Armstrong, Kotler 2006 Jeffrey E. Newcomb / Red Widget Strategies for Hosei University
Market Targeting
Market Coverage Strategies
Company Marketing Mix Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3
A. Undifferentiated Marketing
Market
B. Differentiated Marketing
CHP: 8&10-10
Positioning
Act of designing the companys offering and image to occupy a distinctive place in the mind of the target market.
CHP: 8&10-12
Defining Associations
Points-of-parity Points-of-difference (PODs) (POPs) Attributes or benefits Associations that are consumers strongly not necessarily unique associate with a brand, to the brand but may positively evaluate, and be shared with other believe they could not brands find to the same extent with a competitive brand
CHP: 8&10-14