Marketing Strategy: A Decision-Focused Approach Chapter 10

Front 1

The majority of product-markets in developed nations are in the ________ or _________ stages of their life cycles.

Back 1

mature or decline

Front 2

When does the mature stage begins?

Back 2

After approximately half the potential customers have adopted the product and the rate of sales growth starts to decline.

Front 3

Period during which weaker businesses fail, withdraw from the industry, or are acquired by other firms.

Back 3

Shakeout

Front 4

1. Failure to recognize the events signaling the beginning of the shakeout period
2. Get caught in the middle during the transitioning period without a clear strategic advantage
3. Failure to recognize the declining importance of product differentiation and the increasing importance of price or service.
4. Giving up market share too easily in favor of short-run profit

Back 4

Strategic Traps during the Transition (Shakeout Period)

Front 5

1. Analyzer
2. Defender

Back 5

Strategies for maintaining competitive advantage in mature markets

Front 6

1. Dimensions of product quality
2. Dimensions of service quality
3. Improving customer perceptions of service quality

Back 6

Methods of differentiation in mature markets (3)

Front 7

1. Performance
2. Durability
3. Conformance with specifications
4. Features
5. Reliability
6. Serviceability
7. Fit and finish
8. Brand name

Back 7

Dimensions of Product Quality (8)

Front 8

1. Tangibles
2. Reliability
3. Responsiveness
4. Assurance
5. Empathy

Back 8

Dimensions of Service Quality (5)

Front 9

1. Gap between customer's expectations and the marketer's perceptions
2. Gap between management perceptions and service quality specifications
3. Gap between service quality specifications and service delivery
4. Gap between service delivery and external communications
5. Gap between perceived service and expected service

Back 9

Gaps to dissatisfaction (opportunities to improve customer perceptions of service quality) (5)

Front 10

1. A No-Frills Product
2. Innovative product design
3. Cheaper raw materials
4. Innovative product process
5. Low-cost distribution
6. Reductions in overhead

Back 10

Methods for maintaining a low-cost position (6)

Front 11

1. Avoids costs of acquiring replacement customers
2. Loyal customers concentrate their purchases (larger volumes means lower selling and distribution costs)
3. Loyal customers provide positive word-of-mouth and customer referrals
4. Loyal customers may be willing to pay premium prices for the value they receive

Back 11

Benefits of improving customer retention and loyalty (4)

Front 12

1. Strategies for maintaining current market share
2. Strategies for extending product growth
3. Strategies for declining markets

Back 12

Marketing strategies for mature markets (3)

Front 13

1. Increased Penetration Strategy
2. Extended Use Strategy
3. Market Expansion Strategy
4. Global Market Expansion - Sequential Strategies

Back 13

Strategies for extending volume growth (4)

Front 14

1. Relative attractiveness of declining markets (conditions of demands, exit barriers, rivalry determinants)
2. Divestment or liquidation
3. Marketing strategies for remaining competitors (harvesting strategy, maintenance strategy, profitable survivor strategy, niche strategy)

Back 14

Strategies for Declining Markets (3)