Chapter 10: Developing, Positioning, and Differentiating Products Through the Lifecycle - PowerPoint PPT Presentation

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Chapter 10: Developing, Positioning, and Differentiating Products Through the Lifecycle

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Challenge in Developing New Products Need to shorten ... act of designing the company s offering and ... Failure to Meet Criteria Westin Stamford Hotel in ... – PowerPoint PPT presentation

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Title: Chapter 10: Developing, Positioning, and Differentiating Products Through the Lifecycle


1
Chapter 10 Developing, Positioning, and
Differentiating Products Through the Lifecycle
  • New Product Strategy Why do new products fail?
  • Inability of the company to up
    its offerings to the needs of the customers

2
Challenge in Developing New Products
  • Need to shorten products time to market
  • Reduce time between idea generation and product
    availability
  • Research need for timely and accurate
    information tracking competitors and customers
    tracking marketing environment
  • 3. Will customers benefit?

3
Challenge in Developing New Products
  • Are there manufacturing, marketing, or
    distribution cost efficiencies with the new
    product?
  • Does the firm have the needed
    and _______________ in RD, manufacturing,
    and marketing to successfully develop product?
  • Adding wood stains to a line of paint totally
    new manufacturing effort, raw materials,
    technology, etc.

4
Chapter 10 Developing, Positioning, and
Differentiating Products Through the Lifecycle
  • Positioning act of designing the companys
    offering and image to occupy a distinctive place
    in the target markets __________

5
Positioning according to Ries and Trout
  • Positioning is what you do to the of
    the prospect. That is, you position the product
    in the mind of the prospect (Ries and Trout,
    1982)
  • Hertz worlds largest auto-rental agency
  • Coca-Cola worlds largest soft-drink company
  • Implications __________________________________

6
Competitor strategiesRies and Trout
  • Strengthen its own position in the consumers
    mind
  • 2. Grab an unoccupied position
  • Re-position the competition in the customers
    mind

7
Competitor strategiesRies and Trout
  • 4. In an over-advertised society, the mind often
    knows brands in the form of ___________, such as
    Coke-Pepsi-RC Cola, or Hertz-Avis-National
  • The top firm is remembered best.
  • Implications Fight for
    position become number one in a new category
  • Exclusive club strategy - promote the idea that
    it is one of the Big Three, Top 10, etc. It is
    in the club with the best.

8
Positioning according to Treacy and Wiersema
  • Value Disciplines within its industry, a firm
    could aspire to be the product leader, the
    operationally excellent firm, or the customer
    intimate firm.
  • Product leader firm advances on the
    technological frontier
  • Operationally excellent firm highly reliable
    performance
  • Customer intimate firm high responsiveness in
    meeting individual needs

9
Positioning how many ideas to promote?
  • Promote central
    benefit
  • Easier communication to target market
  • If company hammers away
    at one positioning, and delivers on it, it will
    probably be best known and recalled for this
    benefit

10
Positioning how many ideas to promote?
  • Promote more than one benefit
  • What if the market tires of the benefit and
    believes that most competitors deliver it?
  • Today most people believe that most cars are safe
    and that most have pretty good quality.
    Therefore, car manufacturers should position
    their product on ________________________

11
Positioning how many ideas to promote?
  • Challenge as companies increase the number of
    claimed benefits for their brand, they risk
    belief and a loss of clear positioning
  • 1. ______________ buyers have vague idea of the
    brand brand is another entry in a crowded
    marketplace when Pepsi introduced Crystal Pepsi
    in 1993, consumers were unimpressed. They failed
    to see the benefit of clarity in a soft drink

12
Positioning how many ideas to promote?
  • 2. buyers have
    too narrow an image of a brand
  • 3. brands
    positioning is changed too frequently
  • NeXT desktop computer was positioned for
    students, then for engineers, and then for
    business people

13
Positioning how many ideas to promote?
  • 4. hard to
    believe brand claims in view of the products
    features, price, or manufacturer
  • When GMs Cadillac division introduced the
    Cimarron, it positioned the car as a luxury
    competitor with BMW, Mercedes, and Audi.
    Although it had all the features of a luxury
    vehicle, customers saw it as a dolled up version
    of Chevys Cavelier

14
Communicating the Companys Positioning
  • Positioning statement state the products
    membership in category, and then show its
    point-of-difference from other members of the
    group
  • Frozen pizza positioned as delivered pizza
    Its not delivery, _________________

15
Communicating the Companys Positioning
  • Communicate positioning through all elements of
    the _________________________
  • Physical signs and cues a lawnmower manufacturer
    claims its lawn mower is powerful and has a
    noisy motor because buyers think noisy lawnmowers
    are more powerful
  • Price, packaging, promotion, etc. a premium
    beers image was hurt when it switched from
    bottles to cans a well-known frozen-food brand
    lost its prestige image by being on sale too
    often.

16
Adding Further Differentiation
  • Differentiation adding a set of meaningful and
    differences to distinguish the
    companys offering from the competitors offerings

17
Adding Further Differentiation
  • Meaningful or worthwhile differentiation
  • Criteria
  • Important highly valued
  • Distinctive delivered in a distinctive way
  • Superior superior to other ways of obtaining
    the benefit
  • Preemptive cannot easily be copied by
    competitors
  • Affordable buyer can afford to pay the
    difference
  • Profitable company will find it profitable to
    introduce the difference

18
Differentiation that Failed Failure to Meet
Criteria
  • Westin Stamford Hotel in Singapore worlds
    tallest hotel
  • Turner Broadcasting System installed TV monitors
    to beam Cable News Network (CNN) to shoppers in
    checkout lines

19
Successful Differentiation on Irrelevant
Attributes
  • Proctor Gamble differentiates its Folgers
    instant coffee by its flaked coffee crystals
    created through a unique patented process
  • Claiming that a brand of coffee is mountain
    grown.
  • Alberto Natural Silk shampoo We put silk in a
    bottle.

20
Product Differentiation Tools (p. 204 206)
  • Examples
  • Features characteristics that
    the products basic function
  • Need to determine which feature is profitable to
    add, given the potential market, cast, and price

21
Product Differentiation Tools (p. 204 206)
  • Examples
  • Repairability measures the ease of
    a product when it malfunctions or fails
  • Style describes the products look and feel to
    the buyer can create
    that is difficult to copy does not always mean
    high performance

22
Product Differentiation Tools (p. 204 206)
  • Examples
  • Design the of features that
    affect how a product looks and functions in terms
    of customer requirements

23
Services Differentiation
  • Examples
  • Ordering ease ease with which customer can place
    an order with a company
  • Delivery how well the product or service is
    delivered to the customer, covering speed
    accuracy, and customer care.

24
Personnel Differentiation
  • Differentiation through better-trained people.
    Well-trained personnel exhibit competence,
    courtesy, credibility, reliability,
    responsiveness, and communication.
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