importance of product portfolio -...
TRANSCRIPT
What’s product portfolio?
› A product portfolio is comprised of all the products which an
organization has. A product portfolio may comprise of different
categories of products, different product lines and finally the
individual product itself.
Importance of product portfolio
› 1. Provide information what level of investments a particular product
might need and what would be the returns from such a product;
cash flow management.
› 2. Define products you have today that determine the strength of
your organization tomorrow.
How do we classify the products in a product portfolio?
› Product classification is done on the basis of the BCG matrix.
Stars
Question Marks
Cash Cows
Dogs
Investment
heavy investment to sustain their growth
may require substantial investment in order to grow market share
mature, successful businesses with relatively little need for investment
may generate enough cash to break-even, but they
are rarely, if ever, worth investing in.
Action must be taken to strengthen competitive position (moving the business to the invest / grow quadrant) or the company
should cut its losses and withdraw.
These are potential growth businesses that typically merit investment support.
If the company has legacy products in this category, they should be harvested (i.e. cut costs and raise prices to maximize profit) or,
if unprofitable, divested.
companies should maintain their positions and protect the profits and cash flow generated by the businesses.
measure of the likelihood that a company can
win a substantial share of the industry profits.
A calibration of the size of the prospective profit
pool available in the market.
• Strategic products:
• Potential products:
• Cash generators:
• Problems:
Potential Product Strategic Product
Problems Cash Generators
what business could undertake with your assets
and capabilities based on buyers’ perspective
A subjective measure of how well a firm can use
assets from its primary mode of business and
generate revenues
The Volkswagen Group
comprises the brands:
Audi
SEAT
Skoda
Commercial Vehicles
Bugatti,
Bentley,
Lamborghini
Product Positioning has come to mean
the process by which marketers try to create an image or identity in the
minds of their target market for its product, brand, or organization.
Product positioning involves creating a unique, consistent, and
recognized customer perception about a firm's offering and image.
Product positioning is closely related to
› market segment focus.
A product or service may be positioned on the basis of
› an attitude or benefit, use or application, user, class, price, or level
of quality.
Sales process is
› a systematic approach to selling a product or service.
Importance of Sales Process
› seller and buyer risk management,
› standardized customer interaction in sales
› scalable revenue generation.
Create processes for each distribution channel
generate solid pipeline of marketing activities
and sales literature and tools.
Add your sales process to CRM
Then you can run reports and measure your
progress and improve your sales management
Stages in a Sales Process 1.Prospecting
Uncovering reasons why you should and should not pursue prospects
› determine your sales approach and plan your sales calls
› determine which products and services best suit particular prospects
2.Initial Contact
Determine your objective and the purpose of your call. Your purposes;
› to make an appointment, to inform, and to sell.
› Reference the information in the call, to provide additional
information
3.Sales Presentation
Focus on of your products and services.
4.Handling Objections
Acknowledge your customers' position and provide factual information
that can help them see where they may have a misunderstanding.
5.Closing the Sale
Lead the customer through a series of minor decisions about such factors
as their preferred color or model
6.Follow-Up and Service after the Sale
Building long-term relationships with customers
the benefits
Unique Selling Points (USP)
Unique Selling Proposition
› An aspect of a product or service that is stressed in
advertising or marketing.
› Characteristic of something that is up for sale that makes it
attractive to potential customers.
Imagine an urban environment where
within 45 minutes visitors can experience
beautiful beaches, hiking trails, and
water-based activities. Add all the
elements required for a great city
experience - outstanding food, wine and
shopping in a harbor setting.
Key Selling Points are;
*A harbor city: Auckland rests on two harbors and is known as
the "City of Sails" because of the huge number of sailing boats
located in its marinas.
*Islands of the Hauraki Gulf: within 30 minutes of downtown
Auckland, visitors can escape to an island experience.
*A modern evolving city: restaurants and bars, theatre, art and
fashion, a host of luxury accommodation and a vibrant
waterfront.
MRD – Market Requirements Document is a document written by the Product Marketing Manager or other
marketing/business group representative of customers to express
their wants and needs for the product or service.
outlines the requirements a new product or update to an existing
product must meet according to market drivers.
› What (new) product is being discussed?
› Who the target customers are ?
› What products are in competition with the proposed one ?
› Why customers are likely to want this product ?
MRD is written with the assistance of
Market Data:
› Research, marketing communication, Customer feedback
Competitor Analysis
Organization: Engineering, sales and finance.
1.0 Strategy and Overview
1.1 Goals and Objectives.
1.2 Strategic Road Map
1.3 Customer Categories (User Profiles)
1.4 Competitive Strengths and Weaknesses
2.0 Business Model
2.1 Value Proposition
2.2 Market Segment
2.3 Value Chain Structure
2.4 Cost Structure
2.6 Competitive Strategy
3.0 Affected Groups
3.1 Development
3.2 Marketing
3.3 Support
3.4 Operations
3.5 Sales
4.0 features considered for future versions of
the product or service.
4.1 Undo/Redo
MRD – Market Requirements Document The components of a written MRD are: