chapter 5 product and service strategy and brand management
DESCRIPTION
Chapter 5 Product and Service Strategy and Brand Management. The Offering Portfolio. The Offering Concept the benefits or satisfaction provided to a target market The Offering Mix the totality of an organization’s offerings - PowerPoint PPT PresentationTRANSCRIPT
Chapter 5
Product and Service Strategy
and Brand Management
2
The Offering Portfolio
The Offering Concept
the benefits or satisfaction provided to a target market
The Offering Mix
the totality of an organization’s offerings
consists of groups of offerings similar in terms of
usage, buyers marketed to, or technical characteristics
3
Modifying the Offering Mix
Additions to the Offering Mix
How consistent is the new offering with existing offerings ?
Does the organization have the resources to adequately
introduce and sustain the offering ?
Is there a viable market niche for the offering ?
4
New-Offering Development Process
Idea Generation / Screening
Business Analysis
Market Testing
Commercialization
5
New-Offering Development Process
Does the offering have a relative advantage ?
Is the offering compatible with buyers’ use or consumption
behavior ?
Is the offering simple enough for buyers to understand and use
?
Can the offering be tested before purchase ?
Are there immediate benefits from the offering, once it is used
or consumed ?
Idea Generation and Screening
6
New-Offering Development Process
Business Analysis
Sales Analysis
Profit Analysis
based on:
Investment requirements
Break-Even Point
Payback Period
7
Life-Cycle Concept
Introduction emphasis on stimulating trial
Growth repeat purchase and modification of marketing mix
Maturity-Saturation increase in proportion of repeat purchasers
standardization of operations and marketing mix more
aggressive competition
Decline modify or eliminate offering
8
Positioning Strategies
by attribute or benefit
by use or application
by product or service user
by product or service class
against competitors
by price and quality dimensions
9
Brand Offerings and Brand Equity
Brand Equity - the overall value of a brand
provides a competitive advantage
consumers are often willing to pay a higher price for a product
or service with brand equity
Branding Decisions
to assign a brand name to all offerings or to each line of
offering
to supply an intermediary with its own brand
10
Brand Growth Strategies
Product/Service Class
New Product Class Existing Product Class
New Brand
Existing
Brand
Brand
New BrandStrategy
Fighting/FlankerBrand Strategy
Brand ExtensionStrategy
Line ExtensionStrategy