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Competitive
Dynamics
Chapter Questions
Figure 8.1
Hypothetical
Market Structure
More Usage
Additional opportunities to use the brand
New ways to use a brand
Creative anticipation
Frontal attack
Flank attack
Encirclement attack
Bypass attack
Guerilla warfare
Attack from regional champions
Price discounts
Lower-priced goods
Value-priced goods
Prestige goods
Product
proliferation
Product innovation
Improved services
Distribution
innovation
Manufacturing-cost
reduction
Intensive
advertising
promotion
Creating niches
Expanding niches
Protecting niches
End-User Specialist
Vertical-Level
Specialist
Customer-Size
Specialist
Specific-Customer
Specialist
Geographic
Specialist
Product-Line
Specialist
Job-Shop
Specialist
Quality-Price
Specialist
Service-Specialist
Channel Specialist
Figure 8.5a
Common PLC Patterns:
Growth-Slump-Maturity
Figure 8.5b
Common PLC Patterns:
Cycle-Recycle
Figure 8.5c
Common PLC Patterns:
Scalloped
Growth-Stage Strategies
Maturity-Stage Strategies
Growth stage: sales growth starts to slow; no new
distribution channels to fill; new competitive forces
emerge
Stable stage: sales per capita flatten because of
market saturation; future sales depend on population
growth and replacement demand
Decaying maturity: the absolute level of sales starts
to decline; customers begin switching to other
products
Market Modification
Product Modification
Marketing Program
Modification
Decline
Declining sales
Low cost per customer
Declining profits
Laggards
Marketing in an
Economic Downturn
Invest
Get close to
customers
Review budgets
Use a compelling
value proposition
Fine-tune offerings
For Review