Developing, Positioning,

and Differentiating
Products through
the Life Cycle

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 10
 Pengembangan Produk Baru

 Apa Itu Produk Baru?

– produk baru pertama kali dan benar-benar baru
– Produk baru yang mendukung lini produk
perusahaan – rasa, ukuran, dlsb)
– Produk baru dengan performa yang
ditingkatkan
– Produk existing dengan pasar dan target baru
– Produk dengan performa sama namun lebih
murah

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 10
 Pengembangan Produk Baru

 New Product Failure is Rampant:

– 95% of new U.S. consumer products
– 90% of new European consumer products
 Kegagalan produk disebabkan kurang
diperhatikannya hal-hal berikut; riset
pasar, ukuran pasar yang over
estimate, kesalahan bauran produk,
and pesaing yang lebih kompetitif

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 10
 Pengembangan Produk Baru

 Produk baru yang sukses:

– Mampu menawarkan keunggulan kompetitif
yang kuat
– Dapat memahami kebutuhan pelanggan
dengan baik dan bersaing di pasar
– Rasio performa dan cost lebih besar
– Diluncurkan denganbudget lebih besar
– Mempunyai dukungan top manajemen yang
lebih kuat
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 10
 Pengembangan Produk Baru

Proses Pengembangan Produk Baru:

Development to Commercialization
 Product development
 Market testing
 Commercialization

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 10
 Proses Adopsi Konsumen

 Adopters of new products move

through five stages:
– Awareness
– Interest
– Evaluation
– Trial
– Adoption

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 10
 Proses Adopsi Konsumen

 Five product characteristics influence the rate

of adoption:
– Degree of relative advantage
– Degree of compatibility (inovasi produk
sesuai dengan nilai konsumen)
– Degree of complexity (tingkat inovasi yang
mudah dipahami konsumen)
– Degree of divisibility (trialability)
– Degree of communicability (manfaat
penggunaan bisa dijelaskan pada orang lain)
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 10
Stages of the Product Life Cycle

PLC Stages  Low sales

 High costs per
 Introduction customer
 Negative profits
 Growth
 Innovator
 Maturity customers
 Decline  Few competitors
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 10
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 10
Stages of the Product Life Cycle

PLC Stages  Rising sales

 Average costs
 Introduction  Rising profits
 Growth  Early adopters
customers
 Maturity
 Growing
 Decline competition
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 10
Stages of the Product Life Cycle

PLC Stages  Peak sales

 Low costs
 Introduction  High profits
 Growth  Middle majority
customers
 Maturity
 Stable/declining
 Decline competition
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 10
Stages of the Product Life Cycle

PLC Stages  Declining sales

 Low costs
 Introduction  Declining profits
 Growth  Laggard
customers
 Maturity
 Declining
 Decline competition
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 10
Objectives and Strategies for the
Product Life Cycle
 Objective: to create
PLC Stages awareness and trial
 Offer a basic product
 Introduction  Price at cost-plus
 Growth  Selective distribution
 Awareness – dealers
 Maturity and early adopters
 Decline  Induce trial via heavy
sales promotion
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 10
Objectives and Strategies for the
Product Life Cycle
 Objective: maximize
PLC Stages market share
 Offer service, product
extensions, warranty
 Introduction
 Price to penetrate
 Growth  Intensive distribution
 Maturity  Awareness and interest
– mass market
 Decline

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 10
Objectives and Strategies for the
Product Life Cycle
 Objective: maximize profit
PLC Stages while defending market
share
 Diversify brands/items
 Introduction  Price to match or beat
competition
 Growth  Intensive distribution
 Maturity  Stress brand differences
and benefits
 Decline  Increase promotions to
encourage switching
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 10
Objectives and Strategies for the
Product Life Cycle
 Objective: reduce costs
PLC Stages and milk the brand
 Phase out weak models
 Introduction  Cut price
 Selective distribution
 Growth
 Reduce advertising to
 Maturity levels needed to retain
hard-core loyalists
 Decline  Reduce promotions to
minimal levels
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 10
Positioning and Differentiation

 Two views of positioning:

– Ries and Trout: products are
positioned in the mind of prospect
 Product leader firm
 Operationally excellent firm
 Customer intimate firm

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 10
Positioning and Differentiation

 Positioning statements:
– To (target group and need) our (brand) is
(concept) that (point-of-difference)
 Example: To young, active soft-drink
consumers who have little time for sleep,
Mountain Dew is the soft drink that gives
you more energy than any other brand
because it has the highest level of
caffeine.

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 10
Positioning and Differentiation

 Differentiated products feature

meaningful and valuable differences
that distinguish the company’s
offering from the competition.
 Differences are stronger when they
are important, distinctive, superior,
affordable, and profitable.

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 10
Positioning and Differentiation

Product Differentiation Tools

 Form  Reliability
 Features  Repairability
 Performance  Style
 Conformance  Design
 Durability
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 10
Positioning and Differentiation

Services Differentiation Tools

 Ordering  Customer
ease consulting
 Delivery  Maintenance
 Installation and repair
 Customer  Miscellaneous
training
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 10
Positioning and Differentiation

Personnel Differentiation Tools

 Competence  Reliability
 Courtesy  Responsiveness
 Credibility  Communication

©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 22 in Chapter 10