Product Life Cycle

Maturity

Decline
Growth

Introduction

Pentium 133

Units/Sales

Profits

Time

Behavioral Segmentation Breakdown

CHP: 8&10-2

Kategori Produk Baru:

1. Produk baru dalam kategori produk yang baru di pasar (menciptakan pasar baru). Misalnya dengan munculnya produk telpon (fixed phone) untuk pertama kali 2. Produk baru dalam kategori lini produk yang sudah ada di pasar. Misalnya muncul produk HP dalam kategori produk telekomunikasi/ telpon. 3. Penambahan jenis produk yang telah ada. Misalnya keluarnya jenis HP Nokia yang baru dengan fasilitas kamera. 4. Perbaikan dari produk yang telah ada sebelumnya. Misalnya produk HP dengan kapasitas yang lebih besar. 5. Reposisi produk yang telah ada. Misalnya HP dengan penambahan fasilitas telah merubah posisinya dari alat telekomunikasi menjadi produk yang sekaligus menjadi personal komputer (atau telah berkembang menjadi asisten pribadi). 6. Produk yang lebih efisien. Misalnya produk HP yang sudah ditambah fasilitasnya menjadi HP + komputer + internet menjadi mobilitas pengguna lebih merasa efisien

Some Strategic Positions

Strategic Position Examples
Ritz-Carlton Hotels Honda, 7-Eleven HP, Sony, Apple Tilley Hats Target Stores, REI Volvo, DoCoMo iMode Hallmark Cards, MTV Harley Davidson

Quality performance

Value provider Innovator A narrow product focus A target market focus Product attributes Emotional benefits Brand personality

Examples of Value Propositions

BMW:
The Ultimate Driving Machine
Value Proposition: More for More

United Parcel Service:

Tightest Ship in the Shipping Business

Value Proposition: More for Same

Wal-mart:

Always Low Prices, Always!

2006 Jeffrey E. Newcomb / Red Widget Strategies for Hosei University

Value Proposition: Same for Less

Southwest Airlines
(Case Story)

Value Proposition: Less for Much Less

Southwest Airlines:

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

Potential for international expansion?

Market Targeting
Market Coverage Strategies
Company Marketing Mix Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3
A. Undifferentiated Marketing

Market

Segment 1 Segment 2 Segment 3

B. Differentiated Marketing

Company Marketing Mix

C. Concentrated Marketing

Segment 1 Segment 2 Segment 3

Patterns of Target Market Selection

Patterns of Target Market Selection

CHP: 8&10-10

Patterns of Target Market Selection

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

Choosing a Positioning Strategy

Step 1. Identifying Possible Competitive Advantages Step 2. Selecting the Right Competitive Advantage
Step 3. Communicating and Delivering the Chosen Position
CHP: 8&10-13

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