Académique Documents
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Strategy
Dr. Prashant Mishra
prashant@iimcal.ac.in
A Business Strategy
Basis
Basis of
of SCAs
SCAs
Assets/Competencies
Assets/Competencies
Synergies
Synergies
Product-Market
Product-Market
InvestmentDecision
Decision
Investment
Product-marketscope
scope
Product-market
Investmentintensity
intensity
Investment
Resourceallocation
allocation
Resource
overbusiness
businessunits
units
over
Functional Area
Area Strategies
Strategies
Functional
Product
Product
Price
Price
Distribution
Distribution
Etc.
Etc.
Figure 1.1
Product
Customer
Solution
Price
Customer
Cost
ConvenPromotion ience
Communication
Company
Consumer
Channel
S-T-P Marketing
Segmentation
Targeting
Positioning
4 Ps Marketing Plan
Product
Pricing
Promotion
Place
Understanding
Customer
Value
Creating
Customer
Value
Capturing
Customer
Value
Delivering
Customer
Value
Sustaining
Customer
Value
Functional
Economic
A successful differentiation
strategy should
Generate
Customer
Value
Provide
Perceived
Value
Be Difficult
to Copy
Growth Strategies
Present
Present
Products
Products
New
New
Products
Products
Present
Present
Markets
Markets
Market
Market
Penetration
Penetration
Product
Product
Expansion
Expansion
New
New
Markets
Markets
Market
Market
Expansion
Expansion
Diversification
Diversification
Vertical
VerticalIntegration
Integration
Figure 2.4
12
What is a Product?
A Product is anything that can be offered to a market for
attention, acquisition, use, or consumption and that might
satisfy a want or need.
Includes:
Physical Objects
Services
Events
Persons
Places
Organizations
Ideas
Combinations of the above
Components of the
Market Offering
Value-based prices
Attractiveness of
the market offering
Product features
and quality
Services mix
and quality
Product Classifications
Consumer Products
Convenience Products
Buy frequently & immediately
Low priced
Mass advertising
Many purchase locations
i.e Candy, newspapers
Shopping Products
Buy less frequently
Higher price
Fewer purchase locations
Comparison shop
i.e Clothing, cars,
appliances
Specialty Products
Unsought Products
New innovations
High price
Unique characteristics
Brand identification
Few purchase locations
Product Classifications
Industrial Products
Materials
Materials
and
and
Parts
Parts
Capital
Capital
Items
Items
Supplies
Supplies
and
and
Services
Services
Product Attributes
Developing a Product or Service Involves
Defining the Benefits that it Will Offer Such
as:
Product
Product Quality
Quality
Product
Product Features
Features
Product
Product Style
Style
&
& Design
Design
Ability
Ability of
of aa Product
Product to
to
Perform
Perform Its
Its Functions;
Functions;
Includes
Includes Level
Level &
& Consistency
Consistency
Help
Help to
to Differentiate
Differentiate the
the
Product
Product from
from Those
Those of
of the
the
Competition
Competition
Process
Process of
of Designing
Designing aa
Products
Products Style
Style &
& Function
Function
Product Classification
Product Lines and Mixes
Product Line
Product Mix
Consistency
Product Mix
Width
Width -- number
number of
of
different
different product
product
lines
lines
Length
Length -- total
total
number
number of
of items
items
within
within the
the lines
lines
Depth
Depth -- number
number of
of
versions
versions of
of each
each
product
product
Product
Product Mix
Mix -all
all the
the product
product
lines
lines offered
offered
Product-Line Length
Line Stretching
Downmarket
Upmarket
Two-way
Line Filling
Line Modernization
Line Featuring & Line Pruning
Exhibit 7.2
Development Stage
No sales revenue during this stage
Components of the product concept:
Introduction Stage
Begins when development is complete
Ends when customers widely accept the
product
Marketing strategy goals during this stage:
Attract customers by raising awareness and
interest
Induce customers to try and buy
Engage in customer education activities
Strengthen or expand channel and supply
relationships
Build on availability and visibility
Set pricing objectives
Growth Stage
(1 of 2)
Growth Stage
(2 of 2)
Maturity Stage
(1 of 2)
Maturity Stage
(2 of 2)
Decline Stage
Two options:
(1) Attempt to postpone the decline
(2) Accept its inevitability
Harvesting
Divesting
Consumer
creating
potential
New to
the world
New to the categories
company
New products category
in current
Restage categories
Continuous
innovation
Old business
Retaining consumers
Low risk
New business
Creating new consumers
High risk
Business
Analysis
Product
Development
Market
Testing
Commercialization
Over Championing
Overestimated Demand
Poor Design
Poor Marketing Execution
High Development Costs
Strong Competitive Reaction
Challenges in NPD
Idea Shortage
Fragmented Markets
Social & Governmental Constraints
Cost
Capital Shortage
Need for Speed
Shorter Product Life Cycles