Chapter 5 Product and Service Strategy and Brand Management

2 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

3 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 ?

4 New-Offering Development Process Idea Generation / Screening Business AnalysisMarket TestingCommercialization

5 New-Offering Development Process  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 ? Idea Generation and Screening

6 New-Offering Development Process Business Analysis  Sales Analysis  Profit Analysis based on:  Investment requirements  Break-Even Point  Payback Period

7 Life-Cycle Concept  Introduction  emphasis on stimulating trial  Growth  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

8 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

9 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

10 Brand Growth Strategies Product/Service Class New Product Class Existing Product Class New Brand Existing Brand New Brand Strategy Fighting/Flanker Brand Strategy Brand Extension Strategy Line Extension Strategy