2. azi
Differentiation Strategies
Q1. Explain how brands are differentiated.
É· Product Differentation É· Personnel Differentiation
Product form
Features
Performance
Conformance
Durability
Reliability
Repairability
Style & design
Different
product
Service
Dimensions
ordering ease
Delivery
Installation
Customer
training
Customer
consulting
Maintenance &
repair
1 2
Compentence
Courtesy
Credibility
Reliability
Responsiveness
Communication
Better-
trained
people
SIA flight attendant -
Worldwide reputation for
excellent service
3. azi
•
É· Channel Differentiation
Cont..Differentiation Strategies
Coverage
Distribution
channel Identity &
Image
expertise
performance
Order
Online
Establish
product
character
Value
proposition
Delivers
emotional
power
3 4
Giordano means
‘Service’,expressed in
colors,slogans,atmosphere
É· Image Differentiation
Marlboro branding on Ferrari
Formula One Car and team
4. azi
Marketing Strategies
Q2.Discuss the marketing strategies that are appropriate at
each stage of the product life cycle.
Stage 1 -
Introduction
Decide to offer
a basic product
and enter
market
Product that came out
on time but 50% over
budget cut their profits
by 4% only compared to
product that came out
late,losing 33% profit.
Stage 2 –
Growth
Offer product
extensions,
Service,
Warranty
Rapid climb in sales, new
competitors enter the
market. Sustain market
growth with new
strategies, eg enter new
market segment,improve
or add new product.
Stage 3 - Maturity
Diversify
Brands
Rate of sales growth
slow.
Abandon weak product
and concetrate on more
profitable or new
product.
5. azi
Stage 4 –
Decline
Phase out
weak items
Cont…..Marketing Strategies
Sales declined due to;
technological advances;shift
in consumer tastes and
increased competitors
LEADING to ;-
Overcapacity,increased to
price-cutting & profit erosion