Bài giảng Business Marketing - Chapter 8: Developing and Managing Offerings: What do Customers Want?

McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.Business MarketingProgrammingPart ThreePart ThreeBusiness Marketing ProgrammingChapter 8 Developing and Managing ProductsChapter 9 Business Marketing ChannelsChapter 10 Creating Customer DialogueChapter 11 Communicating via Advertising, Trade Shows, and PR Chapter 12 The One-to-One MediaChapter 13 Sales and Sales ManagementChapter 14 Pricing and Negotiating for ValueChapter 8Developing and Managing Offerings:What do Customers Want?THE OFFERING CONCEPTCOMPETITIVEADVANTAGE:PRODUCT:A Bundle of Benefits and a Collectionof Solutions to Needs and WantsHow the Product or Service Satisfiesa NeedBENEFIT:A Benefit That Satisfies a CustomerBetter than a Competitor’s ProductBenefits8-*ACTIVITIES IN MANAGING PRODUCTSUNDERSTAND THE PRODUCT LIFE CYCLE (PLC) AND APPLY IT TO PRODUCT STRATEGYUNDERSTAND THE CONCEPT OF PRODUCT PORTFOLIOSKNOW WHEN TO HARVEST A PRODUCT8-*In planning its market offering, the marketer needs to address five product levels. Each level adds more customer value, and the five constitute a customer value hierarchy. Product Levels: The Customer Value Hierarchy12-*Figure 12.2 Five Product LevelsProduct Levels: The Customer Value HierarchyCore benefit: Service customer buysTurned into basic productExpected product - attributes expectedAugmented product - exceeds expectationsPotential product- all possible future augmentations & transformations of productCopyright © 2009 Pearson Education South Asia Pte Ltd12-*PRODUCT LIFE CYCLE DECISION POINTSRapid expansion of distributorsProduct line expansionNiche marketingContinued heavy promotionSales force incentives and managementSearch for new sources for supplyNeed to balance supply and demandStock-out and back-order damage controlDevelopmentIntroductionGrowthMaturityDeclineTimeStrongly defend home-market nichesPrune product linesEmphasize gross contribution rather than market share and sales volumeReview logistics: prune costsReduce pioneering sale force effort, more telemarketingMore trade than consumer promotionIntroduce flankers, private labels, genericsReinvest in market research & R&DUse promotions to increase heavy-user loyaltyFreeze investment in plantProductivity reviewSpecial trade promotions to keep channels happyFocused attacks on vulnerable competitorsLong-term price reduction or at least a short-term price promotionKeep plant at maximum capacity and subcontractexcessCut low-gross-margin products from the lineWithdraw from channels in order of their unprofitabilityFreeze R& D and product modificationsFreeze advertising and promotionsAttempt to maintain price to the endBuy back remaining stock and redistributeMaintain spare parts and serviceConsider divesting while it is a going concernRedirect focus & promotionInvest in expanding productionBuild inventoryExpand distributor networkTrain expanded sales forceInstitute marketing controlsInvest heavily in advertisingTarget on best prospects:  innovators and enthusiastsUse most loyal distributorsUse free samplesUse public demonstrations and trade showsUse publicity and endorsementsUse specialist media & catalogsSalesExhibit 8-28-*THE BCG MATRIX: MEASURING MARKET GROWTHAND MARKET SHAREMarket GrowthRateStarsCashCowsDogsQuestionMarksMarket Share Relative to Nearest CompetitorBCG MatrixExhibit 8-38-*GE MATRIX MEASURING MARKET ATTRACTIVENESS AND BUSINESS STRENGTHMarket AttractivenessGrowthDiversityCompetitive Structure ChangeTechnology ChangeSocial EnvironmentBusiness StrengthSize of Market & ShareCompany Growth RateProfitMarginsTechnology PlatformImagePeopleGE MatrixExhibit 8-3UnattractiveWeakStrongAttractive8-*Exhibit 8-4PRODUCT DEVELOPMENT PROCESS:A NEW LOOK EVALUATION LAUNCH BETA TESTING PRODUCT DEVELOPMENT SPECIFYING FEATURES SCREENING AND PRELIMINARY INVESTIGATIONIDEA GENERATION8-*QUALITY FUNCTION DEPLOYMENTExhibit 8-5Customers’ desired benefitsLinked to product characteristicsBroken down into component part characteristicsProcess CharacteristicsProduction Controls8-*MAKING A PRODUCT SUCCESSFULHAVE CLOSE TIES WITH A WELL DEFINED MARKET TO ANTICIPATE CUSTOMER NEEDS.COMPANY IS HIGHLY INTEGRATED AND MARKET-ORIENTEDCOMPANY HAS A COMPETITIVE ADVANTAGE IN TECHNOLOGY AND PRODUCTION CAPABILITYCOMPANY HAS A STRONG MARKETING PROFICIENCYSTRONG FINANCIAL SUPPORTExhibit 8-88-*KEYS TO PRODUCT INNOVATIONAN INNOVATIVE COMPANY MUST HAVEA CORPORATE CULTURE THAT SUPPORTS INNOVATION – a desire for growth, improvementA FOCUS ON OPPORTUNITY RISK INSTEAD OF INVESTMENT RISKA VISION OF WHAT THE NEW PRODUCT IS TO ACCOMPLISHA STRUCTURED DEVELOPMENT PROCESSA LONG-TERM PERSPECTIVE8-*KEY PRODUCTMANAGEMENT DECISIONSWHICH PRODUCT TO INTRODUCEWHICH PRODUCTS TO KEEPWHICH PRODUCTS TO PROMOTEWHAT LEVEL OF PROMOTION TO PROVIDE (LOW TO HIGH)WHAT PRODUCTS TO CONTINUE OR DELETE8-*WINNING THE NEW PRODUCT CONTESTFOCUS ON CORE COMPETENCY(WHAT YOU DO BEST FOR A COMPETITIVE ADVANTAGE)PLUSPROVIDE GREATEST VALUE TO CUSTOMEREQUALSSUCCESSFUL PRODUCT8-*