Developing, Positioning, and Differentiating Products through the Life Cycle

1. Developing, Positioning, and Differentiating Products through the Life Cycle To accompany A Framework for Marketing Management, 2nd Edition

2. PengembanganProdukBaru • 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 To accompany A Framework for Marketing Management, 2nd Edition

3. PengembanganProdukBaru • 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 To accompany A Framework for Marketing Management, 2nd Edition

4. PengembanganProdukBaru • 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 To accompany A Framework for Marketing Management, 2nd Edition

5. Product development Market testing Commercialization PengembanganProdukBaru Proses Pengembangan Produk Baru: Development to Commercialization To accompany A Framework for Marketing Management, 2nd Edition

6. ProsesAdopsiKonsumen • Adopters of new products move through five stages: • Awareness • Interest • Evaluation • Trial • Adoption To accompany A Framework for Marketing Management, 2nd Edition

7. ProsesAdopsiKonsumen • 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) To accompany A Framework for Marketing Management, 2nd Edition

8. PLC Stages Introduction Growth Maturity Decline Low sales High costs per customer Negative profits Innovator customers Few competitors Stages of the Product Life Cycle To accompany A Framework for Marketing Management, 2nd Edition

9. To accompany A Framework for Marketing Management, 2nd Edition

10. PLC Stages Introduction Growth Maturity Decline Rising sales Average costs Rising profits Early adopters customers Growing competition Stages of the Product Life Cycle To accompany A Framework for Marketing Management, 2nd Edition

11. PLC Stages Introduction Growth Maturity Decline Peak sales Low costs High profits Middle majority customers Stable/declining competition Stages of the Product Life Cycle To accompany A Framework for Marketing Management, 2nd Edition

12. PLC Stages Introduction Growth Maturity Decline Declining sales Low costs Declining profits Laggard customers Declining competition Stages of the Product Life Cycle To accompany A Framework for Marketing Management, 2nd Edition

13. PLC Stages Introduction Growth Maturity Decline Objective: to create awareness and trial Offer a basic product Price at cost-plus Selective distribution Awareness – dealers and early adopters Induce trial via heavy sales promotion Objectives and Strategies for the Product Life Cycle To accompany A Framework for Marketing Management, 2nd Edition

14. PLC Stages Introduction Growth Maturity Decline Objective: maximize market share Offer service, product extensions, warranty Price to penetrate Intensive distribution Awareness and interest – mass market Objectives and Strategies for the Product Life Cycle To accompany A Framework for Marketing Management, 2nd Edition

15. PLC Stages Introduction Growth Maturity Decline Objective: maximize profit while defending market share Diversify brands/items Price to match or beat competition Intensive distribution Stress brand differences and benefits Increase promotions to encourage switching Objectives and Strategies for the Product Life Cycle To accompany A Framework for Marketing Management, 2nd Edition

16. PLC Stages Introduction Growth Maturity Decline Objective: reduce costs and milk the brand Phase out weak models Cut price Selective distribution Reduce advertising to levels needed to retain hard-core loyalists Reduce promotions to minimal levels Objectives and Strategies for the Product Life Cycle To accompany A Framework for Marketing Management, 2nd Edition

17. 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 To accompany A Framework for Marketing Management, 2nd Edition

18. 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. To accompany A Framework for Marketing Management, 2nd Edition

19. 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. To accompany A Framework for Marketing Management, 2nd Edition

20. Form Features Performance Conformance Durability Reliability Repairability Style Design Positioning and Differentiation Product Differentiation Tools To accompany A Framework for Marketing Management, 2nd Edition

21. Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair Miscellaneous Positioning and Differentiation Services Differentiation Tools To accompany A Framework for Marketing Management, 2nd Edition

22. Competence Courtesy Credibility Reliability Responsiveness Communication Positioning and Differentiation Personnel Differentiation Tools To accompany A Framework for Marketing Management, 2nd Edition