Local Marketing in Mature Markets

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Chapter Eight

• Local Marketing in Mature Markets

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Chapter 8 Mature MarketsMarketing Environments
and Tasks

• Emerging markets - build infrastructure
• New growth markets - market development
• Mature markets - build market share
• Analysis and strategy focus by market type

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Three Marketing Environments
Product/Market situation
Exhibit 9.1
4
Dominant Marketing Dimensions
Product/Market Situation
Exhibit 9.2
5
Dominant Marketing Dimensions
Product/Market Situation
Task Emerging
New Growth
Mature
Marketing strategy
Strategic focus
Market
Participation
Compete for share
development
in growth
Competitive Focus
Lead/follow
Domestic/foreign
Strengths/
weaknesses
Low end
Limited
Wide
Product line
Basic
Advanced
Adapted
Product design
Rare
Selective
Fast
New product
intro
Affordable
Status
Value
Pricing
Awareness
Image
Value-added
Advertising
Build-up
Penetrate
Convenience
Distribution
Awareness
Trial
Value
Promotion
Extra
Desired
Required
Service
Exhibit 9.2 cont.
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Local Marketing in Mature Markets

• Market analysis
• market segmentation, positioning, brand image,
  country of origin
  
• Product strategy
• wide line, differentiated, first mover (leaders)
  me-too (followers)
  
• Pricing
• range of options, relative to product position
• Promotion
• brand image, sales promotion for support,
  differentiated position
  
• Distribution
• solid infrastructure, full channels, slotting
  fees, piggybacking
  
• Customer satisfaction
• quality, technical vs emotional quality, surprise

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CS and Two Kinds of Quality
High
Level of satisfaction
Emotional quality
Functional quality
High
Low
Level of quality
Low
exhibit 9.3
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Pan-European Marketing

• Market segmentation
• Strategies
• Market retreat, pan-European competition, niche
  position
  
• Euro-brands, Euro currency

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Marketing in Japan

• Fragmentation of distribution
• Close relationships with channel members
• Demanding customers - lead market
• Customers show increasing price sensitivity
• Quality function without fault

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Marketing in Australia and New Zealand

• Mature economies with British heritage
• Asian trade agreements
• Traditional British roots, pioneer spirit, some
  preference for home products
  
• Coastal concentration of distribution

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Marketing in North America

• NAFTA agreement
• Ethnic diversity
• Regulatory complexity
• Power of distribution channel members

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Chapter Terms and Essay

• Terms
• Euro-brands, pan-European marketing, Euro
  currency, Japanese distribution, product/market
  situations, marketing tasks
  
• Essay
• How do mature markets differ from emerging and
  new growth markets. Using one of the four areas
  discussed in the text as an example, explain the
  challenges involved in competing in mature
  markets.

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Legacy of China Video

• Identify and describe the three major
  religious/philosophical traditions which form the
  foundation of Chinese civilization.
  
• Explain how traditional Chinese cuisine,
  medicine, calligraphy and artistic traditions
  reflect the values of these three traditions.
  
• What historical events in the last 150 years have
  caused the Chinese people to lose faith in these
  traditions? With what results for modern China?
  

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Chapter Eight

• Local Marketing in Mature Markets