Marketing Strategy and Competitive Positioning pdf ebook

Figure 11.7 
Smartphones overtake cameras as the device of choice
Source : InfoTrends via Bitkom: StatisticaCharts.
660bn
2013
2014
2015
2016
2017
Number of digital photos taken worldwide*
Devices used in 2017
810bn
1,000bn
1,100bn
1,200bn
4.7%
Tablets
10.3%
Digital cameras
85.0%
Smartphones

---

297
THE MARKET OFFER
● 
Stealth positioning involves shifting to a different product category in a covert way, 
rather than overtly as practised through breakaway positioning. This may be appropri-
ate where there is prejudice about a product or the company that needs to be overcome. 
Moon stresses this is not the same as deceit, and can backfire if customers believe they 
are being cheated or exploited. Sony has been highly successful in the games console 
market with its PlayStation product, but its market penetration has been limited to a 
narrow customer base – primarily males in their late teens and early twenties. The com-
pany wished to broaden its platform for home entertainment and communications but 
found that the PlayStation format did not appeal beyond the narrow customer focus. In 
response, in July 2003 it launched a PlayStation product in Europe called EyeToy: Play. 
This included a video camera (EyeToy) and game software (Play) that plugged into the 
PlayStation 2 console but allowed the user to become part of the game, appearing inside 
the television where they interact with objects on the screen by moving their bodies, 
rather than using hand-held controllers. The product sold 2.5 million units in the first 
seven months, crucially engaging a much wider target market, including parents and even 
grandparents (Moon, 2005). It is worth noting that in the rapidly changing industry that 
is gaming, product life cycles are short. Indeed, since 2017 smartphones have taken over 
consoles as the gaming platform of choice (see Table 11.1).
11.1.6 The impact of the Internet on market offerings
With the advent of marketing over the Internet, two types of market offering became appar-
ent: the so-called ‘atom-based’ and ‘bit-based’ products.
Atom-based products are physical offerings that have a separate presence and form for 
the customer. While they may be promoted over the Internet, they need to be physically 
shipped to the customer, are subject to returns where they are not satisfactory and can be 
resold by customers. Typical examples include books and videos (Amazon.com), clothes 
and appliances. For the customer, the product at the end of the day is the same as that pur-
chased through a bricks-and-mortar retailer, but the experience may be enhanced through 
the additional services, convenience and low price available through Internet purchase. For 
the retailer, the logistics of delivery represent significant challenges.
2018