Professional Documents
Culture Documents
Strategies for
Mature and
Declining
Markets
McGrawHill/Irwin
Copyright2010byTheMcGrawHillCompanies,Inc.Allrightsreserved.
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Exit barriers
The higher the exit barriers, the less
hospitable a product-market will be.
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Take-Aways
Strategic choices in mature, or even
declining, markets are by no means
always bleak. Many of the worlds most
profitable companies operate largely in
such markets.
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Take-Aways
A critical marketing objective for all
competitors in a mature market is to
maintain the loyalty of existing customers.
To accomplish that goal, firms must
pursue improvements in the perceived
value those customers receive from their
offeringseither by differentiating
themselves on the basis of superior quality
or service, by lowering costs and prices, or
both.
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Take-Aways
An important secondary objective for
some firms, particularly share leaders, in
mature markets is to stimulate further
volume growth by taking actions to convert
nonusers into users, to increase use
frequency among current users, or to
expand into untapped or under-developed
markets.
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Take-Aways
Declining markets can still offer attractive
opportunities for sales revenues and
profits.
Their attractivenessand the appropriate
marketing strategy to followdepends on,
among other things, the pace and certainty of
market decline, the presence of exit barriers,
the firms competitive strengths, and the likely
intensity of future competition.
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