CHAPTER 12 Addressing Competition and Driving Growth Copyright

COMPETITIVE STRATEGIES FOR MARKET LEADERS • Expanding total market demand • Protecting market share

EXPANDING TOTAL MARKET DEMAND • New customers • More usage Copyright © 2016 Pearson

PROTECTING MARKET SHARE • Proactive marketing – Responsive anticipation – Creative anticipation Copyright ©

PROTECTING MARKET SHARE • Defensive marketing Copyright © 2016 Pearson Education, Inc. 12 -5

PRODUCT LIFE-CYCLE MARKETING STRATEGIES • A company’s positioning and differentiation strategy must change as

FIGURE 12. 7 STYLE, FASHION, AND FAD LIFE CYCLES Copyright © 2016 Pearson Education,

MARKETING STRATEGIES: GROWTH STAGE • To sustain rapid market share growth now: – –

MARKETING STRATEGIES: MATURITY STAGE Market modification Product modification Marketing program modification Copyright © 2016

MARKETING STRATEGIES: DECLINE STAGE • Eliminating Weak Products • Harvesting and Divesting Copyright ©

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PRODUCT LIFE-CYCLE MARKETING STRATEGIES • A company’s positioning and differentiation strategy must change as its product, market, and competitors change over the PLC Copyright © 2016 Pearson Education, Inc. 12 -6

MARKETING STRATEGIES: INTRODUCTION STAGE • Pioneering advantages – Recall of brand name – Establishes product class attributes – Captures more uses in middle of market • Pioneering drawbacks – Imitators can surpass innovators – Once leadership is lost, it’s rarely regained Copyright © 2016 Pearson Education, Inc. 12 -8

MARKETING STRATEGIES: GROWTH STAGE • To sustain rapid market share growth now: – – Improve product quality and add new features Add new models and flanker products Enter new market segments Increase distribution coverage and enter new distribution channels – Shift from awareness and trial communications to preference and loyalty communications – Lower prices to attract the next layer of price-sensitive buyers Copyright © 2016 Pearson Education, Inc. 12 -9