Chapter 10 - Managing product offering Flashcards
What does it mean to manage product offering in B2B?
is about managing solutions for the clients.
What is a solution?
Is an integrated combination of products and services customized for a specific customer/segment.
Why to bring solution instead of just products?
If the company is able to sell customized solutions rather than just products it will gain competitive advantage over the competitors
Which are the characteristics of a solution?
- Core benefit
- Physical attributes
- Service elements
- Advice giving
- Adaptation space
What is the product/service system?
Is a model that expects, for each product, a service connected to it.
The idea is that, with a product, the company must provide a series of services to complete the product offering and vice versa
What is Servitization?
Is the process that transforms a simple product into a complete solution, where product and services are perfectly integrated and tailored on customer’s needs.
What is Life-cycle of an offering?
Every product has its life-cycle:
- Pre-launch
- Introduction
- Growth
- Maturity
- Decline
Explain introduction phase
The product is still costly and it’s not generating a lot of revenues.
For this reasons, it is important to leverage on “partner client” with which there is a special relationship.
The price should be set on perceived innovation and differentiation
Explain growth phase
Revenues increases as well as competition. Is important to push and differentiation and on customization, in order to revise the price
Explain maturity phase
The sales growth slows, it’s important to reduce investments in the product
Explain Portfolio analysis
The managing of product portfolios is important to obtain the best value from the set of company’s offering
Explain BCG product offering’s variables
- Market growth rate
- Market share compared to the nearest competitor
What is innovation and why is it important?
Innovation is that process of idea generation, technology development, manufacturing a new or improved product.
Is a must in order to maintain competitive advantage
Which are the characteristics of a right innovation environment?
- Commitment to long-term growth rate
- General acceptance of the value of innovation
- Be aware of its threats and risk
- Willingness on investing in long-term technology development
…
What is new product offering development process?
Is a typical procedure when developing a new product
