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.Bonoma and Benson P.Shapiro, Segmenting the Industrial Market (Lexington,Mass.: Lexington Books, 1983).16DO NOT COPYMarketing Strategy Formulation 590-001Exhibit 4 Alternative Strategies for Differentiation/PositioningMarket share leader = The biggestQuality leader = The best/most reliable products and servicesService leader = The most responsive when customers have problemsTechnology leader = The first to develop new technologyInnovation leader = The most creative in applying itVariety leader = The largest assortment of products and servicesFlexibility leader = The most adaptableRelationship leader = The most committed to the customer s successPrestige leader = The most exclusiveKnowledge leader = The most experience or greatest expertiseGlobal leader = The best positioned to serve world marketsBargain leader = The lowest priceValue leader = The best price performanceIntegrity leader = The most ethical/trustworthySocial responsibility leader = The most positive force in communities it serves17DO NOT COPY590-001 Marketing Strategy FormulationExhibit 5 A Cross-Industry Comparison of Leadership PositionsMicrocomputerCredit Cards Management Consulting Hardware SuppliersMarket share leader VISA Arthur Andersen (AA) IBMQuality leader ** ** CompaqService leader American Express (AMEX) ** IBMTechnology leader Citicorp/AMEX AA/Booz Allen Sun MicrosystemsInnovation leader ** BCG AppleVariety leader ?? ** IBMFlexibility leader ?? ?? **Relationship leader ** Bain & Co.Hewlett-PackardPrestige leader American Express McKinsey Grid/NextKnowledge leader ?? Varies by segment ??Global leader American Express ** IBM/ToshibaBargain leader Sears Discover ?? TandyValue leader Sears Discover SPA/Bain & Co.Zenith/DellIntegrity leader ?? ** ??Social responsibility leader ?? McKinsey Xerox/IBMNote: ** = many firms are vying for leadership, none dominates.?? = no firm seems to be seeking leadership on the variable.18DO NOT COPYMarketing Strategy Formulation 590-001Exhibit 6 The Product Life CycleMarket Rapid Competitive Saturated Maturity DeclineDevelopment Sales TurbulenceGrowthDEATHAdapted from: Chester R.Wasson, Dynamic Competitive Strategy & Product Life Cycles (Austin, Tex.: Austin Press, 1978), p.4.19and initial productionLaboratory developmentPilot plant developmentCommercial start-upCONCEPTIONSemicommercial plant trialsDO NOT COPY590-001 Marketing Strategy FormulationExhibit 7 A Model for Analyzing Market Entry and Exit DecisionsHIGHRISKLOWHIGHCOMPANYADVANTAGEMEDIUMLOWHIGH MEDIUM LOWMARKET ATTRACTIVENESSSource: Adapted from Philip Kotler, Marketing Management: Analysis, Planning, and Control, sixth edition (Englewood Cliffs, N.J.:Prentice-Hall, Inc., 1988), p.390.20DO NOT COPYMarketing Strategy Formulation 590-001Exhibit 8 Flexibility and Focus: The Essence of Effective StrategyHighPerennialLockstep.RenaissanceFocusChaosParalysisLowLow HighFlexibilitySource: Adapted from Thomas J.Kosnik, The Marketing Process, in Thomas V.Bonoma and Thomas J.Kosnik, MarketingManagement: Text and Cases (Homewood, Ill.: Irwin, 1990).21DO NOT COPY
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