产品生命周期的管理与新产品开发战略

选用教材营销管理[美]菲利普•科特勒著第十一版上海经济出版社第五章：产品生命周期的管理与新产品开发战略教学目的：本章的目的是通过对产品生命周期和新产品开发战略的学习，读完本章之后，你应该能够：解释在产品生命周期中市场营销战略如何变化；解释企业如何找到并开发新产品构思；描述产品生命周期阶段；解释在产品设概念命周期中市场营销战略如何变化。教学重点：本章的重点在于掌握在产品周期的不同阶段，企业因该采取的营销战略，以及在开发新产品的过程中，企业应该采取什么样的策略。教学难点：由于在实际中，产品的周期并不明显，难以区分产品处在哪个阶段，所以本章的难点在于如何通过实际的案例来具体分析企业在产品的不同周期所应采取的战略。教学时数：6（讲授、案例）教学内容与步骤：Chapter5ProductLife－cycleandDevelopingNewProductStrategyLectureOne:DifferentiationandProductLife－cycleStrategyWhatIstheDifferentiating?Intheclassictext“MarketingManagement”,Philip·KotlerpointsoutthatthecoreofthemodernmarketingisdescribedasSTP,whicharesegmenting(S),targeting(T)andpositioning(P).Dividingamarketintodistinctgroupsofbuyerswithdifferentneeds,characteristicsorbehaviormightrequireseparate.Themaintaskofmarketsegmentistodeterminethesegmentalvariablesandthesegmentalmarkets,whilethemarkettargetistoevaluateeachmarketsegment’sattractivenessandselectoneormoresegmentstoenter.Finally,accordingtomarketsegmentandmarkettarget,thecompanyshouldpositionitsproductinthemarket,anddeterminingthepossiblepositioningconcepts,selecting,developingandcommutatingoneofthem.Thetaskofpositioningistodeliveracentralideaaboutacompanyoranofferingtothetargetmarket.Positioningsimplifieswhatwethinkoftheentity.Differentiationgoesbeyondpositioningtospinacomplexwebofdifferencescharacterizingthatentity.ThefinalroleofSTPplaystheeffectontheproductdifferentiating.Wedefinedifferentiationastheprocessofaddingasetofmeaningfulandvalueddifferencestodistinguishthecompany'sofferingfromcompetitors'offerings.Allproductscanbedifferentiatedtosomeextent,butnotallbranddifferencesaremeaningfulorworthwhile.Adifferencewillbestrongertotheextentthatitsatisfiesthefollowingcriteria:●Important:Thedifferencedeliversahighlyvaluedbenefittoasufficientnumberofbuyers.●Distinctive:Thedifferenceisdeliveredinadistinctiveway.●Superior:Thedifferenceissuperiortootherwaysofobtainingthebenefit.●Preemptive:Thedifferencecannotbeeasilycopiedbycompetitors.●Affordable:Thebuyercanaffordtopayforthedifference.●Profitable:Thecompanywillfinditprofitabletointroducethedifference.Manycompanieshaveintroduceddifferentiationsthatfailedononeormoreofthesetests.TheWestinStamfordhotelinSingaporeadvertisesthatitistheworld'stallesthotel,butahotel'sheightisnotimportanttomanytourists.Polaroid'sPolarvision,althoughdistinctiveandpreemptive,wasinferiortoanotherwayofcapturingmotion——namely,videocameras.WhentheTurnerBroadcastingSysteminstalledTVmonitorstobeamCableNewsNetwork(CNN)toboredshoppersinstorecheckoutlines,itdidnotpassthe"superior"test.Customerswerenotlookingforanewsourceofentertainmentinsupermarkets,andTurnertooka$16milliontaxwrite-down.Sonyisagoodexampleofacompanythatconstantlycomesupwithnewfeatureandbenefits.AssoonasSonydevelopsanewproduct,itmightassembleuptothreeteamstoviewthenewproductasifitwereacompetitor'sThefirstteamthinksofminorimprovements,thesecondteamthinksofmajorimprovements,andthethirdteamthinksofwaystomaketheproductobsolete.CregoandSchiffrinhaveproposedthatcustomer-centeredorganizationsshouldstudywhatcustomers’valueandthenprepareanofferingthatexceedstheirexpectations.Theyseethisasathreestepprocess:1.Definingthecustomervaluemodel:Thecompanyfirstlistsalltheproductandservicefactorsthatmightinfluencethetargetcustomers'perceptionofvalue.2.Buildingthecustomervaluehierarchy:Thecompanynowassignseachfactortooneoffourgroups:basic,expected,desired,andunanticipated.Considerthesetoffactorsatafinerestaurant:●Basic:Thefoodisedibleanddeliveredinatimelyfashion.(Ifthisisalltherestaurantdoesright,thecustomerwouldnormallynotbesatisfied.)●Expected:Thereisgoodchinaandtableware,alinentableclothandnapkin,flowers,discreetservice,andwellpreparedfood.(Thesefactorsmaketheofferingacceptable,butnotexceptional.)●Desired:Therestaurantispleasantandquiet,andthefoodisespeciallygoodandinteresting.●Unanticipated:Therestaurantservesacomplimentarysorbetbetweenthecoursesandplacescandyonthetableafterthelastcourseisserved.3.Decidingonthecustomervaluepackage:Nowthecompanychoosesthatcombinationoftangibleandintangibleitems,experiences,andoutcomesdesignedtooutperformcompetitorsandwinthecustomers'delightandloyalty.Today，Economiesareafflictedwithsurpluses,notshortage,whichisthereasonofthedifferentiatingstrategy.Forexample,inthesupermarket,therearenotonlyseveralbrandsoftoothpastebutonebrand,Colgate,offersadozenvarieties–withbakingsodaorperoxide,orloadedwith“sparkingwhite”ortartarcontrol.Nocompanycanwinifitsproductandofferingresembleseveryotherproductandoffering.Today,mostcompaniesareguiltyofstrategyconvergence-namely,undifferentiatedstrategies.Foracompany,onlyifitoffersthedifferentproductsinthemarketbasedontheSTPstrategy,itcansucceedatlast.DifferentiatingstrategyThenumberofdifferentiationopportunitiesvarieswiththetypeofindustry.TheBostonConsultingGroup(BCG)hasdistinguishedfourtypesofindustriesbasedonthenumberofavailablecompetitiveadvantagesandtheirsize△Volumeindustry:Oneinwhichcompaniescangainonlyafew,butratherlargecompetitiveadvantages.Intheconstruction-equipmentindustry,acompanycanstriveforthelow-costpositionorthehighlydifferentiatedpositionandwinbigoneitherbasis.Profitabilityiscorrelatedwithcompanysizeandmarketshare.△Stalematedindustry:Oneinwhichtherearefewpotentialcompetitiveadvantagesandeachissmall.Inthesteelindustry,itishardtodifferentiatetheproductordecreasemanufacturingcosts.Companiescantrytohirebettersalespeople,entertainmorelavishly,andthelike,butthesearesmalladvantages.Profitabilityisunrelatedtocompanymarketshare.△Fragmentedindustry:Oneinwhichcompaniesfacemanyopportunitiesfordifferentiation,buteachopportunityforcompetitiveadvantageissmall.Arestaurantcandifferentiateinmanywaysbutendupnotgainingalargemarketshare.Bothsmallandlargerestaurantscanbeprofitableorunprofitable.△Specializedindustry:Oneinwhichcompaniesfacemanydifferentiationopportunities,andeachdifferentiationcanhaveahighpayoff.Amongcompaniesmakingspecializedmachineryforselectedmarketsegments,somesmallcompaniescanbeasprofitableassomelargecompanies.MilandLeleobservedthatcompaniesdifferintheirpotentialmaneuverabilityalongfivedimensions:targetmarket,product,place(channels),promotion,andprice?Thecompany'sfreedomofmaneuverisaffectedbytheindustrystructureandthefirm'spositionintheindustry.Foreachpotentialmaneuver,thecompanyneedstoestimatethereturn.Thosemaneuversthatpromisethehighestreturndefinethecompany'sstrategicleverage.Companiesinastalematedindustryhaveverylittlemaneuverabilityandstrategicleverage,andthoseinspecializedindustriesenjoygreatmaneuverabilityandstrategicleverage.Herewewillexaminehowacompanycandifferentiateitsmarketofferingalongfivedimensions:product,services,personnel,channel,andimage(seeTable5-1).Table5-1DifferentiatingVariablesProductServicesPersonnelChannelImageFormOrderingeaseCompetenceCoverageSymbolsFeaturesDeliveryCourtesyExpertiseMediaPerformanceInstallationCredibilityPerformanceAtmosphereConformanceCustomerTrainingReliabilityEventsDurabilityCustomerconsultingResponsivenessReliabilityMaintenanceandrepaircommunicationReparabilityMiscellaneousStyleDesign■productdifferentiationPhysicalproductsvaryintheirpotentialfordifferentiation.Atoneextremewefindproductsthatallowlittlevariation:chicken,steel,aspirin.Yetevenhere,somedifferentiationispossible.Procter&Gamblemakesseveralbrandsoflaundrydetergent,eachwithaseparatebrandidentity.Attheotherextremeareproductscapableofhighdifferentiation,suchasautomobiles,commercialbuildings,andfurniture.Herethesellerfacesanabundanceofdesignparameters,includingform,features,performancequality,conformancequality,durability,reliability,reparabilitystyle,anddesign?△FormManyproductscanbedifferentiatedinform--thesize,shape,orphysicalstructureofaproduct.Considerthemanypossibleformstakenbyproductssuchasaspirin.Althoughaspirinisessentiallyacommodity,itcanbedifferentiatedbydosagesize,shape,color,coating,oractiontime.△FeaturesMostproductscartisofferedwithvaryingfeaturesthatsupplementtheproduct/sbasicfunction.Beingthefirsttointroducevaluednewfeaturesisoneofthemosteffectivewaystocompete.Oral-Bmanagedtodifferentiateitstoothbrushbyintroducingabluedyeinthecenterbristlesthatfadesandtellscustomerswhentheyneedanewtoothbrush.McDonald′shasaddedPlayLandsatanumberofitsU.SandMexicanrestaurantstocatertotheyoungcustomers.InParaguay,McDonald′shasinstalledanumberofcomputerstationstocatertoInternet-inclinedcustomers.△PerformancequalityMostproductsareestablishedatoneoffourperformancelevels:low,average,high,orsuperior.Performancequalityisthelevelatwhichtheproduct'sprimarycharacteristicsoperate.Theimportantquestionhereis:Doesofferinghigherproductperformanceproducehigherprofitability?TheStrategicPlanningInstitutestudiedtheimpactofhigherrelativeproductqualityandfoundasignificantlypositivecorrelationbetweenrelativeproductqualityandreturnoninvestment.High-qualitybusinessunitsearnedmorebecausepremiumqualityallowedthemtochargeapremiumprice;theybenefitedfrommorerepeatpurchasing,consumerloyalty,andpositivewordofmouth;andtheircostsofdeliveringmorequalitywerenotmuchhigherthanforbusinessunitsproducinglowquality.△ConformancequalityBuyersexpectproductstohaveahighconformancequality,whichisthedegreetowhichalltheproducedunitsareidenticalandmeetthepromisedspecifications.SupposeaPorsche944isdesignedtoaccelerateto60milesperhourwithin10seconds.IfeveryPorsche944comingofftheassemblylinedoesthis,themodelissaidtohavehighconformancequality.Theproblemwithlowconformancequalityisthattheproductwilldisappointsomebuyers.△DurabilityDurability,ameasureoftheproduct'sexpectedoperatinglifeundernaturalorstressfulconditions,isavaluedattributeforcertainproducts.Buyerswillgenerallypaymoreforvehiclesandkitchenappliancesthathaveareputationforbeinglonglasting.However,thisruleissubjecttosomequalifications.Theextrapricemustnotbeexcessive.Furthermore,theproductmustnotbesubjecttorapidtechnologicalobsolescence,asisthecasewithpersonalcomputersandvideocameras.△ReliabilityBuyersnormallywillpayapremiumformorereliableproducts.Reliabilityisameasureoftheprobabilitythataproductwillnotmalfunctionorfailwithinaspecifiedtimeperiod.Maytag,whichmanufacturesmajorhomeappliances,hasanoutstandingreputationforcreatingreliableappliances.△RepairabilityBuyerspreferproductsthatareeasytorepair.Repairabilityisameasureoftheeaseoffixingaproductwhenitmalfunctionsorfails.Anautomobilemadewithstandardpartsthatareeasilyreplacedhashighreparability.Idealrepairabilitywouldexistifuserscouldfixtheproductthemselveswithlittlecostinmoneyortime.Someproductsincludeadiagnosticfeaturethatallowsservicepeopletocorrectaproblemoverthetelephoneoradvisetheuserhowtocorrectit.△StyleStyledescribestheproduct'slookandfeeltothebuyer.CarbuyerspayapremiumforJaguarsbecauseoftheirextraordinarylook.AestheticsplayakeyroleinsuchbrandsasAbsolutevodka,Applecomputers,Montblancpens,Godivachocolate,andHarley-Davidsonmotorcycles△DesignAscompetitionintensifies,designoffersapotentwaytodifferentiateandpositionacompany'sproductsandservices.Inincreasinglyfast-pacedmarkets,priceandtechnologyarenotenough.Designisthefactorthatwilloftengiveacompany-itscompetitiveedge.Designisthetotalityoffeaturesthataffecthowaproductlooksandfunctionsintermsofcustomerrequirements.■ServicesDifferentiationWhenthephysicalproductcannoteasilybedifferentiated,thekeytocompetitivesuccessmaylieinaddingvaluedservicesandimprovingtheirquality.Themainservicedifferentiatorsareorderingease,delivery,installation,customertraining,customerconsulting,andmaintenanceandrepair.△OrderingeaseItreferstohoweasyitisforthecustomertoplaceanorderwiththecompany.BaxterHealthcarehaseasedtheorderingprocessbysupplyinghospitalswithcomputerterminalsthroughwhichtheysendordersdirectlytoBaxter.Manybanksnowprovidehomebankingsoftwaretohelpcustomersgetinformationanddotransactionsmoreefficiently.Consumersarenowevenabletoorderandreceivegrocerieswithoutgoingtothesupermarket.△DeliveryItreferstohowwelltheproductorserviceisdeliveredtothecustomer.Itincludesspeed,accuracy,andcareattendingthedeliveryprocess.Today'scustomershavegrowntoexpectdeliveryspeed:pizzadeliveredinone-halfhour,firstdevelopedinonehour,eyeglassesmadeinonehour,carslubricatedin15minutes.AcompanysuchasDeluxeCheckPrinters,Inc.,hasbuiltanimpressivereputationforshippingoutitschecksonedayafterreceivinganorderwithoutbeinglateoncein18years.LeviStrauss,Benetton,andTheLimitedhaveadoptedcomputerizedquickresponsesystems(QRS)thatlinktheinformationsystemsoftheirsuppliers,manufacturingplants,distributioncenters,andretailingoutlets.Buyerswilloftenchooseasupplierwithabetterreputationforspeedyoron-timedelivery.△InstallationItreferstotheworkdonetomakeaproductoperationalinitsplannedlocation.Buyersofheavyequipmentexpectgoodinstallationservice.Differentiatingatthispointintheconsumptionchainisparticularlyimportantforcompanieswithcomplexproducts.Easeofinstallationbecomesatruesellingpoint,especiallywhenthetargetmarketistechnologynoviceswhoarenotoriouslyintolerantofonscreenmessagessuchas"DiskError".△CustomertrainingItreferstotrainingthecustomer'semployeestousethevendor'sequipmentproperlyandefficiently.GeneralElectric（GE）netonlysellsandinstallsexpensiveX-rayequipmentinhospitals;Italsogivesextensivetrainingtousersofthisequipment.McDonald'srequiresitsnewfranchiseestoattendHamburgerUniversityinOakbrook,Illinois,fortwoweeks,tolearnhowtomanage△CustomerconsultingItreferstodata,informationsystems,andadviceservicesthatthesellerofferstobuyers.OneofthebestprovidersofvalueaddingconsultingserviceisMilliken&Company.△MaintenanceandrepairItdescribestheserviceprogramforhelpingcustomerskeeppurchasedproductsingoodworkingorder.ConsiderHewlett-Packard'se-supportsystem.△MiscellaneousservicesCompaniescanfindotherwaystodifferentiatecustomerservices.Theycanofferanimprovedproductwarrantyormaintenancecontract.Theycanofferrewards.MacMillanandMcGrathsaycompanieshaveopportunitiestodifferentiateateverystageoftheconsumptionchain.Theypointoutthatcompaniescanevendifferentiateatthepointwhentheirproductisnolongerinuse.CaseCanonhasdevelopedasystemthatallowscustomerstoreturnspentprintercartridgesatCanonsexpense.Thecartridgesarethenrehabilitatedandsoldassuch.Canonmakesiteasyforcustomerstoreturnusedcartridges:AlltheyneedtodoisdroptheprepaidpackageoffataUnitedParcelServicecollectionstation.Canonreportedcollectionof12,175tonsoftonercartridgesworldwidein1999,whichrepresenteda100percentrecyclingratio.TheprogramhashelpedbuildCanon'sreputationasanenvironmentallyfriendlycompany.■PersonnelDifferentiationCompaniescangainastrongcompetitiveadvantagethroughhavingbetter-trainedpeople.SingaporeAirlinesenjoysanexcellentreputationinlargepartbecauseofitsflightattendants.TheMcDonald'speoplearecourteous,theIBMpeopleareprofessional,andtheDisneypeopleareupbeat.ThesalesforcesofsuchcompaniesasGeneralElectric,Cisco,Frito-Lay,NorthwesternMutualLife,andPfizerenjoyanexcellentreputation?Better-trainedpersonnelexhibitsixcharacteristics:Competence:Theypossesstherequiredskillandknowledge;Courtesy:Theyarefriendly,respectful,andconsiderate;Credibility:Theyaretrustworthy;Reliability:Theyperformtheserviceconsistentlyandaccurately;Responsiveness:Theyrespondquicklytocustomers'requestsandproblems;andcommunication:Theymakeanefforttounderstandthecustomerandcommunicateclearly.■ChannelDifferentiationCompaniescanachievecompetitiveadvantagethroughthewaytheydesigntheirdistributionchannels'coverage,expertise,andperformance.Caterpillar'ssuccessintheconstruction-equipmentindustryisbasedpartlyonsuperiorchanneldevelopment.Itsdealersarefoundinmorelocationsthancompetitors'dealers,andtheyaretypicallybettertrainedandperformmorereliably.DellincomputersandAvonincosmeticsdistinguishthemselvesbydevelopingandmanaginghigh-qualitydirect-marketingchannel.Iamspetfoodprovidesaninstructivecaseonhowdevelopingadifferentchannelcanpayoff.■ImageDifferentiationBuyersresponddifferentlytocompanyandbrandimages.TheprimarywaytoaccountforMarlboro'sextraordinaryworldwidemarketshare(around30percent)isthatMarlboro's"machocowboy"imagehasstruckaresponsivechordwithmuchofthecigarette-smokingpublic.Wineandliquorcompaniesalsoworkhardtodevelopdistinctiveimagesfortheirbrands.Identityandimageneedtobedistinguished.Identitycomprisesthewaysthatacompanyaimstoidentifyorpositionitselforitsproduct.Imageisthewaythepublicperceivesthecompanyoritsproducts.Imageisaffectedbymanyfactorsbeyondthecompany'scontrol,asthecaseofVans'counterculturemarketingversusNike,ReebokAdidasshows.Productlife-cyclemarketingstrategiesAcompany'spositioninganddifferentiationstrategymustchangeastheproduct,market,andcompetitorschangeovertime.Herewewilldescribetheconceptoftheproductlifecycle(PLC)andthenormalchangesastheproductpassesthrougheachlife-cyclestageTosaythataproducthasalifecycleistoassertfourthings:1.Productshavealimitedlife.2.Productsalespassthroughdistinctstages,eachposingdifferentchallenges,opportunities,andproblemstotileseller3.Profitsriseandfallatdifferentstagesoftheproductlifecycle.4.Productsrequitedifferentmarketing,financial,manufacturing,purchasing,andhumanresourcestrategiesineachlife-cyclestage.■ProductlifecyclesMostproductlife-cyclecurvesareportrayedasbell-shaped(seeFigure5-1).Thiscurvestypicallydividedintofourstages:introduction,growth,maturity,anddecline.1.Introduction:Aperiodofslowsalesgrowthastheproductisintroducedinthemarket.Profitsarenonexistentbecauseoftheheavyexpensesincurredwithproductintroduction.2.Growth:Aperiodofrapidmarketacceptanceandsubstantialprofitimprovement.3.Maturity:Aperiodofaslowdowninsalesgrowthbecausetheproducthasachievedacceptancebymostpotentialbuyers.Profitsstabilizeordeclinebecauseofincreasedcompetition.4.Decline:Theperiodwhensalesshowadownwarddriftandprofitserode.Figure5-1:SalesandProfitlifecyclesSalesSalesProfitsSalesandprofits($)DevelopmentIntroductionGrowthMaturityDeclineThePLCconceptcanbeusedtoanalyzeaproductcategory(liquor),aproductform(whiteliquor),aproduct(vodka),orabrand(Smirnoff).NotallproductsexhibitabellshapedPLC.ThreecommonalternatepatternsareshowninFigure5-2.Figure5-2(a)showsagrowth-slump-maturitypattern,oftencharacteristicofsmallkitchenappliances.Someyearsago,salesofelectricknivesgrewrapidlywhentheproductwasfirstintroducedandthenfelltoa"petrified"level.Thepetrifiedlevelissustainedbylateadoptersbuyingtheproductforthefirsttimeandearlyadoptersreplacingtheproduct.Figure5-2Thecycle-recyclepatterninFigure5-2(b)oftendescribesthesalesofnewdrugs.Thepharmaceuticalcompanyaggressivelypromotesitsnewdrug,andthisproducesthefirstcycle.Later,salesstartdecliningandthecompanygivethedruganotherpromotionpush,whichproducesasecondcycle(usuallyofsmallermagnitudeandduration)AnothercommonpatternisthescallopedPLCinFigure5-2(c).Heresalespassthroughasuccessionoflifecyclesbasedonthediscoveryofnew-productcharacteristics,uses,orusers.Nylon'ssales,forexample,showascallopedpatternbecauseofthemanynewuses--parachutes,hosiery,shirts,carpeting,boatsails,automobiletiresthatcontinuetobediscoveredovertime.Style,Fashion,andFadlifecyclesThreespecialcategoriesofproductlifecyclesshouldbedistinguished—styles,fashions,andfads(Figure5-3).AStyleisabasicanddistinctivemodeofexpressionappearinginafieldofhumanendeavor.Stylesappearinhomes(colonial,ranch,CapeCod);clothing(formal,casual,funky);andart(realistic,surrealistic,abstract).Astylecanlastforgenerations,andgoinandoutofvogue.Figure5-3Style,Fashion,andFadLifeCyclesAfashionisacurrentlyacceptedorpopularstyleinagivenfield.Fashionspassthroughfourstages:distinctiveness,emulation,mass-fashion,anddecline.Thelengthofafashioncycleishardtopredict.ChesterWassonbelievesthatfashionsendbecausetheyrepresentapurchasecompromise,andconsumersstartlookingformissingattributes?Forexample,asautomobilesbecomesmaller,theybecomelesscom6rtable,andthenagrowingnumberofbuyersstartwantinglargercars.Furthermore,toomanyconsumersadoptthefashion,thusturningothersaway.WilliamReynoldssuggeststhatthelengthofaparticularfashioncycledependsontheextenttowhichthefashionmeetsagenuineneed,isconsistentwithothertrendsinthesociety,satisfiessocietalnormsandvalues,anddoesnotexceedtechnologicallimitsasitdevelops.Fadsarefashionsthatcomequicklyintopublicview,areadoptedwithgreatzeal,peakearly,anddeclineveryfast.Theiracceptancecycleisshort,andtheytendtoattractonlyalimitedfollowingofthosewhoaresearchingforexcitementorwanttodistinguishthemselvesfromothers.Theyoftenhaveanovelorcapriciousaspect,suchasbodypiercingandtattooing.Fadsdonotsurvivebecausetheydonotnormallysatisfyastrongneed.Themarketingwinnersarethosewhorecognizefadsearlyandleveragethemintoproductswithstayingpower.Hereisasuccessstoryofacompanythatmanagedtoextendafad'slifespan.◆Marketingstrategies:IntroductionstageBecauseittakestimetorolloutanewproductandfilldealerpipelines,salesgrowthtobeslowatthisstage.RobertBuzzellidentifiedseveralcausesfortheslowgrowth:delaysintheexpansionofproductioncapacity;technicalproblems("workingbugs");delaysinobtainingadequatedistributionthroughretailoutlets;andcustomerreluctance.Salesofexpensivenewproductssuchashigh-definitionTVareretardedbyadditionalfactorssuchasproductcomplexityandfewerbuyers.Profitsarenegativeorlowintheintroductionstage.Promotionalexpenditureshighestratiotosalesbecauseoftheneedto:(1)informpotentialconsumers:(2)induceproducttrial,and(3)securedistributioninretailoutlets.Firmsfocusonthosewhoarethereadiesttobuy,usuallyhigher-incomegroups.Pricestendtobehighbecausecostsarehigh.ThePioneerAdvantageCompaniesthatplantointroduceanewproductmustwhentoenterthemarket.Tobefirstcanbehighlyrewarding,butriskyandexpensive.Tocomeinlatermakessenseifthefirmcanbringsuperiortechnology,quality,orbrandstrength.Speedingupinnovationtimeisessentialinanageofshorteningproductlifecycles.Companiesthatfirstreachpracticalsolutionswillenjoy"first-mover"advantagesinthemarket.Beingearlypaysoff.Onestudyfoundthoseproductsthatcameoutsixmonthslatebutonbudgetearnedanaverageof33percentlessprofitintheirfirstfiveyears;productsthatcameoutontimebut50percentoverbudgetcuttheirprofitsbyonly4percent.Moststudiesindicatethatthemarketpioneergainsthemostadvantage.CompanieslikeA,Campbell,Coca-Cola,EastmanKodak,Hallmark,P,andXeroxdevelopedsustainedmarketdominance.RobinsonandFornellstudiedabroadrangeofmatureconsumer-andindustrial-goodsbusinesses,andfoundthatmarketpioneersgenerallyenjoyasubstantiallyhighermarketsharethandoearlyfollowersandlateentrants.GlenUrban'sstudyalsofoundapioneeradvantage:Itappearsthatthesecondentrantobtainedonly71percentofthepioneer'smarketshare,andthethirdentrantobtainedonly58percent.△ThesourcesofthepioneeradvantagesEarlyuserswillrecallthepioneer'sbrandnameiftheproductsatisfiesthem.Thepioneer'sbrandalsoestablishestheattributestheproductclassshouldpossess.Thepioneer'sbrandnormallyaimsatthemiddleofthemarketandsocapturesmoreusers.Customerinertiaalsoplaysarole;andthereareproduceradvantages:economiesofscale,technologicalleadership,patents,ownershipofscarceassets,andotherbarrierstoentry.Analertpioneer,accordingtoRobertsonandGatignon,canmaintainitsleadershipindefinitelybypursuingvariousstrategies◆TheCompetitiveCycleThepioneerknowsthatcompetitionwilleventuallyenterandcausepricesanditsmarketsharetofall.Whenwillthishappen?Whatshouldthepioneerdoateachstage?Freydescribesfivestagesofthecompetitivecyclethatthepioneerhastoanticipate:1.Initiallythepioneeristhesolesupplier,with100percentofproductioncapacityandsales.2.Competitivepenetrationstartswhen