Mature

1
Mature declining markets
2
Mature market strategies

• Objective -- Maximize the flow of profits over
  the remaining life of the product-market
• Maintain and protect the business market share
• Fortress defense
• Flanker brands
• Niche strategy

3
Mature market strategies

• Customer retention loyalty
• Crucial in most mature markets
• Related to satisfaction

4
Mature market strategies

• To retain customers, measure
• Expectations
• Perceptions
• Satisfaction
• Behavior
• Retention rate
• Frequency of purchases
• of total purchases in category

5
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? line
  extensions?)

6
Mature market strategies

• Sources of sustainable competitive advantage
• Cost leadership
• Differentiation

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Ways to achieve cost leadership (from text)

• No-frills product
• Logistics/supply chain management
• Customer relationship management
• Innovative product design
• Cheaper raw materials
• Innovative production processes
• Low-cost distribution
• Reductions in overhead

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Bases for differentiation

• Product differentiation
• Features
• Performance
• Durability
• Reliability
• Repairability
• Style
• Design

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Bases for differentiation (contd)

• Personnel
• competence
• courtesy
• credibility
• reliability
• responsiveness
• communication

• High service quality
• delivery
• installation
• customer support

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Service quality model (p. 475)
Word-of-mouth communications
Personal Needs
Past Experience
Expected Service
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Service quality model (p. 475)
Expected Service
Gap 5
Perceived Service
External communication to consumers
Gap 4
Service Delivery
Gap 1
Gap 3
Translation of perceptions into service quality
specifications
Gap 2
Management perceptions of consumer expectations
12
Strategies for declining markets (p. 490-494)

• Harvesting
• Maintenance
• Profitable survivor
• Niche

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Strategies for declining markets

• Harvesting
• Avoid additional investment
• Reduce expenditures
• Promotion
• Marketing
• Production?

14
Strategies for declining markets

• Conditions for harvesting
• Leading share position
• Existing base of loyal customers
• Few strong competitors
• Future rivalry not intense
• Low exit barriers
• Decline likely to be slow steady

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Strategies for declining markets

• Maintenance
• Maintain share in short term

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Strategies for declining markets

• Conditions for maintenance
• Leading share position
• Future direction uncertain
• Few strong competitors

17
Strategies for declining markets

• Profitable survivor
• Increase share of market
• Encourage weaker competitors to exit

18
Strategies for declining markets

• Conditions for profitable survivor
• Slow and steady market decline
• Substantial pockets of demand will continue to
  exist
• Leading share position
• Superior resources or competencies necessary to
  encourage competitors to exit
• Few strong competitors
• Low exit barriers

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Strategies for declining markets

• Niche
• Strengthen position in a profitable niche

20
Strategies for declining markets

• Conditions for niche
• Niches will remain in the market
• Strong competitors absent from the target market
• Sustainable competitive advantage in niche