Examples of Negatively Correlated

Attributes and Benefits

Low-price vs. Powerful vs. Safe

High quality Strong vs.
Taste vs. Low Refined
calories Ubiquitous vs.
Nutritious vs. Exclusive
Good tasting Varied vs. Simple
Efficacious vs.
Mild
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-1
 Addressing negatively correlated
PODs and POPs
Present separately
Leverage equity of another entity
Redefine the relationship

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-2

 Differentiation Strategies

Product Personnel

Channel Image

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-3

 Product Differentiation

Product form Style

Features Design
Performance Ordering ease
Conformance Delivery
Durability Installation
Reliability Customer training
Reparability Customer consulting
Maintenance

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-4

 Personnel Differentiation:
Singapore Airlines

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-5

 Channel Differentiation

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-6

 Image Differentiation

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-7

 Claims of Product Life Cycles

Products have a limited life

Product sales pass through distinct
stages each with different challenges
and opportunities
Profits rise and fall at different stages
Products require different strategies in
each life cycle stage

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-8

 Figure 10.1 Sales and
Product Life Cycle

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-9

 Strategies for Sustaining
Rapid Market Growth
Improve product quality, add new features,
and improve styling
Add new models and flanker products
Enter new market segments
Increase distribution coverage
Shift from product-awareness advertising to
product-preference advertising
Lower prices to attract the next layer of price-
sensitive buyers

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-10

 Stages in the Maturity Stage

Decaying
Growth Stable
maturity

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-11

 Marketing Product Modifications

Quality
improvements
Feature
improvements
Style improvements

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-12

 Marketing Program Modifications

Prices

Distribution

Advertising

Sales promotion

Services

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-13

 Ways to Increase Sales Volume

Convert nonusers
Enter new market segments
Attract competitors customers
Have consumers use the product on
more occasions
Have consumers use more of the
product on each occasion
Have consumers use the product in
new ways
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-14
 A Product in Decline

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10-15