BUSI 4220U Lecture Notes - Lecture 17: Niche Market, Sales Promotion
Document Summary
Failure to anticipate transition from growth to maturity. No clear competitive advantages as growth slows. Assumption that an early advantage will insulate firm from price or service competition. Sacrificing market share in favour of short run profit. Challenges in mature markets sustaining a meaning competitive advantage. Challenges in declining markets maximize cf and profit over the product"s remaining life. Strategies for mature market: development of a well-implemented business strategy to, sustain competitive advantage through differentiation or low cost, improve customer satisfaction and loyalty, flexible and creative marketing programs to, pursue growth or profit opportunities. Improve product quality: performance, durability, conformance with specifications, features, reliability, serviceability, fit and finish, brand name. Improve service quality: tangibles, reliability, responsiveness, assurance, empathy. For share leaders fortress defence to improve customer satisfaction and encourage repeat purchase: add flanker brands. Increased penetration convert current nonusers in target segment into users (for share leaders) Extended use increase frequency of use among current users.
