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.
Download ReportTranscript 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.
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 consists of groups of offerings similar in terms of usage, buyers marketed to, or technical characteristics 2 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 ? 3 New-Offering Development Process Idea Generation / Screening Business Analysis Market Testing Commercialization 4 New-Offering Development Process Idea Generation and Screening 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 ? 5 New-Offering Development Process Business Analysis Sales Analysis Profit Analysis based on: Investment requirements Break-Even Point Payback Period 6 Life-Cycle Concept Introduction Growth emphasis on stimulating trial 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 7 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 8 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 9 Brand Growth Strategies Product/Service Class New Product Class New Brand Brand Existing Brand Existing Product Class New Brand Strategy Fighting/Flanker Brand Strategy Brand Extension Strategy Line Extension Strategy 10