Chapter 5 Product and Service Strategy and Brand Management

Download Chapter 5 Product and Service Strategy and Brand Management

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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 organizations offerings - PowerPoint PPT Presentation

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  • 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

    Profit 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

    against competitors

    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

    New Brand

    Existing BrandBrandNew BrandStrategyFighting/FlankerBrand StrategyBrand ExtensionStrategyLine ExtensionStrategy