Chapter 5 Product and Service Strategy and Brand Management
Post on 10-Feb-2016
DESCRIPTIONChapter 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 organizations offerings - PowerPoint PPT Presentation
Chapter 5Product and Service Strategyand Brand Management
The Offering PortfolioThe Offering Conceptthe benefits or satisfaction provided to a target market
The Offering Mixthe totality of an organizations offerings
consists of groups of offerings similar in terms of usage, buyers marketed to, or technical characteristics
Modifying the Offering MixAdditions 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 ?
New-Offering Development Process
New-Offering Development ProcessDoes 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
New-Offering Development ProcessBusiness AnalysisSales Analysis
based on:Investment requirementsBreak-Even PointPayback Period
Life-Cycle ConceptIntroductionemphasis on stimulating trial
Growthrepeat purchase and modification of marketing mix
Maturity-Saturationincrease in proportion of repeat purchasers
standardization of operations and marketing mix more aggressive competition
Declinemodify or eliminate offering
Positioning Strategiesby attribute or benefit
by use or application
by product or service user
by product or service class
by price and quality dimensions
Brand Offerings and Brand EquityBrand Equity - the overall value of a brandprovides a competitive advantage
consumers are often willing to pay a higher price for a product or service with brand equity
Branding Decisionsto assign a brand name to all offerings or to each line of offering
to supply an intermediary with its own brand
Brand Growth Strategies Product/Service Class New Product Class Existing Product Class
Existing BrandBrandNew BrandStrategyFighting/FlankerBrand StrategyBrand ExtensionStrategyLine ExtensionStrategy