structure
Market leader- 40%
Market challenger- 30%
Market follower-20 %
Market nichers 10%
the market
Buyers- no. of customers
Substitutes- no. of similar products available
for consumers.
differentiation
Entry, mobility, and exit barriers
Cost structure
Degree of vertical integration- the degree
to which a firm owns its upstream suppliers
and its downstream buyers
Degree of globalization
offensive actions
3. It shd increase mkt share even if mkt size remains constant
Expanding the total market- when the total market expands, the
Improved services
Distribution
innovation
Manufacturing-cost
reduction
Intensive
advertising
promotion
Specialist
Customer-Size
Specialist
Specific-Customer
Specialist
Geographic
Specialist
Product-Line
Specialist
Job-Shop Specialist
Quality-Price
Specialist
Service-Specialist
Channel Specialist
Sales and
Profits
Sales
Profits
Product
Development
Introduction
Growth
Maturity
Time
Decline
PLC characteristics
A product has a life cycle is to assert four things
1. Product have a ltd life
2. Product sales pass through distinct stages, each posing
High
High cost
cost per
per customer
customer
Profits
Profits
Negative
Negative
Marketing
Marketing Objectives
Objectives
Create
Create product
product awareness
awareness and
and trial
trial
Product
Product
Offer
Offer aa basic
basic product
product
Price
Price
Use
Use cost-plus
cost-plus formula
formula
Distribution
Distribution
Build
Build selective
selective distribution
distribution
Promotion
Promotion
Heavy
Heavy to
to entice
entice product
product trial
trial
Average
Average cost
cost per
per customer
customer
Profits
Profits
Rising
Rising
Marketing
Marketing Objectives
Objectives
Maximize
Maximize market
market share
share
Product
Product
Offer
Offer extension,
extension, service,
service, warranty
warranty
Price
Price
Penetration
Penetration strategy
strategy
Distribution
Distribution
Build
Build intensive
intensive distribution
distribution
Promotion
Promotion
Reduce
Reduce to
to take
take advantage
advantage of
of demand
demand
Peak
Costs
Costs
Low
Low cost
cost per
per customer
customer
Profits
Profits
Marketing
Marketing Objectives
Objectives
High
High
Maximize
Maximize profits
profits while
while defending
defending market
market share
share
Product
Product
Diversify
Diversify brand
brand and
and models
models
Price
Price
Match
Match or
or best
best competitors
competitors
Distribution
Distribution
Build
Build more
more intensive
intensive distribution
distribution
Promotion
Promotion
Increase
Increase to
to encourage
encourage brand
brand switching
switching
Declining
Costs
Costs
Low
Low cost
cost per
per customer
customer
Profits
Profits
Declining
Declining
Marketing
Marketing Objectives
Objectives
Reduce
Reduce expenditures
expenditures and
and milk
milk the
the brand
brand
Product
Product
Phase
Phase out
out weak
weak items
items
Price
Price
Cut
Cut price
price
Distribution
Distribution
Selective:
Selective: phase
phase out
out unprofitable
unprofitable outlets
outlets
Promotion
Promotion
Reduce
Reduce to
to minimum
minimum level
level
and expensive
To enter little late is profitable if the firm brings in superior technology ,
quality, brand strength.
The pioneer has the advantage of brand recall if they satisfies he
customers.
Pioneers can enjoy higher rates of repeat purchase
Decline Stage
Increase investment
Resolve uncertainties - stable investment
Selective niches
Divesting
To establish a system for identifying weak
products.
Some firms abandon declining markets earlier
than others.