1 Sustainable Competitive Advantage Product Differentiation Market Segmentation

  • View

  • Download

Embed Size (px)


  • Slide 1

Slide 2 1 Sustainable Competitive Advantage Product Differentiation Market Segmentation Slide 3 2 Objectives INTRODUCE AND APPLY STRATEGIC CONCEPTS OF Sustainable Competitive Advantage Product Differentiation Market Segmentation Slide 4 3 "This is the market group we'll be targeting" Dave Carpenter Copyright 2002, Harvard Business Review Slide 5 4 Sustainable Competitive Advantage OBJECTIVE Deliver Benefits at Lower Price - Single Dimension Competition or Deliver Superior Benefits - Requires Capability to Add Value Slide 6 5 Sustainable Competitive Advantage FORMULATION Expand Consumer Perceptions of Product to include Attributes that will have Enduring Value Acquisition Price (Amount paid to Get Something) + Value Attributes (Amount paid to Have Something) TOTAL PRICE Slide 7 6 Distinctive Competencies Competencies Necessary to Create Value-Adding Attributes Innovativeness Efficiency Quality Customer Responsiveness Slide 8 7 Tactical Elements of Sustainable Competitive Advantage Four Ps of Marketing Mix Price : Quality/Price Relationship Place : Distribution Methodology Promotion : Customer Communication Product: Features and Benefits Slide 9 8 Product Differentiation Set of Meaningful Differences Designed to Distinguish a Firms Product or Service From its Competitors Note: Meaningful equates with Long-Term Financial Value, Not an Unsustainable Short-term Windfall Slide 10 9 Product Differentiation DIFFERENTIATION VARIABLES Form: Size, Shape or Physical Structure Features: Supplement Products Basic Function Quality: Level where Products Primary Characteristics Operate Slide 11 10 Market Segmentation IDENTIFY RELEVANT SEGMENT Mass Marketing: Mass Production, Distribution and Promotion of Single Product for All Buyers Segment Marketing: Large, Identifiable Group with Similar Buying Attitude and Habits, Purchasing Power and Preferences Niche Marketing: Small Market with Un-served (not under-served) Needs Slide 12 11 Market Segmentation IDENTIFY COMMERCIALLY VIABLE GROUP WITHIN MARKET SEGMENT WITH SIMILAR Tastes and Preferences Purchasing Power (Economics) Geographical Location, Age, Gender (Demographics) Purchasing Patterns and Habits (Sociological) Slide 13 12 TOOLS: Perceptual Mapping VISUAL REPRESENTATION OF MARKET SEGMENT AND CUSTOMER PERCEPTIONS Identify Meaningful Product Attributes Compare on X- and Y-Axis Analyze Key Competitive Characteristics Slide 14 13 Perceptual Map Chocolate Crunch Hersheys w/ Almonds Hersheys Milk Chocolate Nestl Crunch KitKat Opportunity? Slide 15 14 TOOLS: SWOT Analysis STRATEGIC DEVICE FOR IDENTIFYING AND ANALYZING: Strengths: Internal Capabilities to Expand Product Market Share Weaknesses: Vulnerabilities in Product Mix or Line Opportunities: External Market or Competitor Conditions Threats: External Macroeconomic or Industry Factors Slide 16 15 TOOLS: SWOT Analysis StrengthsWeaknesses Opportunities Strategic Implications of Strengths and Weaknesses versus Opportunities and Threats Threats


View more >