Upload
veronica-hodges
View
213
Download
0
Embed Size (px)
Citation preview
Mature & declining markets
Mature market strategies
• Objective -- “Maximize the flow of profits over the remaining life of the product-market” (p. 447)
• “Maintain and protect the business’ market share” (p. 447)– Fortress defense
– Flanker brands
– Niche strategy
Mature market strategies
Customer retention & loyalty• Crucial in most mature markets
• Related to satisfaction
Mature market strategies
• To retain customers, measure:– Expectations– Perceptions– Satisfaction– Behavior
• Retention rate
• Frequency of purchases
• % of total purchases in category
Mature market strategies
• Market penetration – new users within current markets (increased
penetration)
– new uses for current customers (extended use)
– more usage per consumer (extended use)
• Market development (market expansion)• Product development (increased penetration?)
Mature market strategies
• Sources of sustainable competitive advantage
– Cost leadership
– Differentiation
Ways to achieve cost leadership (from text)
• No-frills product
• Innovative product design
• Cheaper raw materials
• Innovative production processes
• Low-cost distribution
• Reductions in overhead
Bases for differentiation
• Product differentiation– Features– Performance– Durability– Reliability– Repairability– Style– Design
Bases for differentiation (cont’d)
• Personnel– competence
– courtesy
– credibility
– reliability
– responsiveness
– communication
• High service quality– delivery
– installation
– customer support
Service quality model (p. 444)
Word-of-mouthcommunications
PersonalNeeds
PastExperience
ExpectedService
Service quality model (p. 444)Expected Service
Perceived Service
Service Delivery
Translation of perceptions into service quality specifications
Management perceptions of
consumer expectations
Externalcommunicationto consumersGap 1
Gap 2
Gap 3
Gap 5
Gap 4
Strategies for declining markets (p. 457)
• Harvesting
• Maintenance
• Profitable survivor
• Niche
Strategies for declining markets (p. 457)
• Harvesting– Avoid additional investment– Reduce expenditures
• Promotion
• Marketing
• Production?
Strategies for declining markets (p. 457)
• Conditions for harvesting– Leading share position– Existing base of loyal customers– Few strong competitors – Future rivalry not intense– Low exit barriers
Strategies for declining markets (p. 457)
• Maintenance– Maintain share in short term
Strategies for declining markets (p. 457)
• Conditions for maintenance– Leading share position– Future direction uncertain– Few strong competitors
Strategies for declining markets (p. 457)
• Profitable survivor– Increase share of market– Encourage weaker competitors to exit
Strategies for declining markets (p. 457)
• Conditions for profitable survivor– Slow and steady market decline– Substantial pockets fo demand will continue to
exist– Leading share position– Superior resources or competencies necessary
to encourage competitors to exit– Few strong competitors– Low exit barriers
Strategies for declining markets (p. 457)
• Niche– Strengthen position in a profitable niche
Strategies for declining markets (p. 457)
• Conditions for niche– Niches will remain in the market– Strong competitors absent from the target
market– Sustainable competitive advantage in niche