12-New Marketing Mix.ppt

Chapter 12 Competing through new marketing mix Content Market offer (Product strategies) Pricing strategies Communication strategies (Promotion) Distribution strategies The extended marketing mix- people, processes, physical evidence New businesses and business models Product strategy Product/service choice criteria Diffusion of innovation Managing product over its life cycle The impact of the internet on market offerings Product/service choice criteria The rational and overt Perceived benefits Physical justification Beliefs about VFM Availability Habit Emotional Covert Fits lifestyle Express identity Reassures Feels good Diffusion of innovation Factors affecting the rate of diffusion: Relative advantage of the innovation over previous solutions Compatibility of the innovation with existing values and norms A lack of complexity in using the innovation Divisibility of the innovation facilities low-risk trial Communicability of the advantages of the innovation Diffusion of innovation Five adopter groups: Innovators Early adopters Early majority Late majority Laggards Sloth Managing product over its life cycle Pre-launch: focus on RD; identify early adopters Launch: convince best prospect customers of the value by PR, Advertising Introduction: crunch time; “me too” products Growth: greater product differentiation and segmentation of market Maturity: late majority enter; fierce competition Decline Turning points Breaking the life cycle Three alternative positioning strategies Reverse positioning Stripping down augmented product to its core and then seek new ways to differentiate Breakaway positioning A product is deliberately moved from one product category to another Stealth positioning Shift to a different product category in a covert way where there is a prejudice about a product The impact of the internet on market offerings Atom-based product Physical offerings that have a separate presence, need to be physically shipped to the customer Logistics of delivery is