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Business purchase and marketing > L7, Managing market offerings > Flashcards

L7, Managing market offerings Flashcards

1
Q

what is a market offering?

A

Consist of a the core product, augmented product and potential product

such augmented products or services could be e.g.

  1. Delivery
  2. information
  3. brand
  4. packaging
  5. assortment
  6. services
  7. warranties
  8. education
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2
Q

how do you go from core product to offering?

A
  1. Adaption to individual customer needs
2- The time horizon is extended
- the business starts early
—> buying advice
—> finance
- the business ends later
—> after sales become increasingly important, sometimes even more important than new sales
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3
Q

How can differentiation be accomplished?

A

Through “value add-ons”, often in term of services.

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4
Q

Name some statements if Theodore Levitt!

A
  1. There is no such thing as commodity
  2. All goods and services are possible to differentiate
  3. Tough the usual presumption is that it is more true of consumer goods than of industrial goods and services, the opposite is actually the case
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5
Q

Two perspectives of differentiation?

A
  1. Differentiate own products from competitors

2. Differentiate to customers, having diverse needs

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6
Q

Give some examples of differentiation for fork lifts

A
  1. The fork lift
  2. The fork lift
    —> + service contract
  3. The fork lift
    —> + ICT-system for warehousing
  4. Warehouse system
    —> + The fork lift included
  5. Operating the warehouse
    —> including drivers and forklifts
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7
Q

Central issues within market offering?

A
  1. What and how much should be offered to individual customers or segments?
  2. How much services should be offered individual customers or segments?
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8
Q

What is flexible marketing offerings?

A
  1. Bundling of existing solutions to handle the fact that different costumers have different needs
  2. Combining standardization and adaptation
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9
Q

Name examples of standardization!

A
  1. Naked solution
  2. base product
  3. standardized
  4. uniform
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10
Q

Name some examples of adaptation!

A
  1. options
  2. add on:s
  3. Customized and tailor made
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11
Q

Make example of differentiated offerings

A

The offering can be differentiated both with regards to the product and the service, but also with regards to the customization level. A good idea is to offer a standard package and then also offer options both with regards to product and services.

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12
Q

How to handle green aspects of an offering?

A
  1. Ofter green arguments is not enough
  2. Risk for green markering myopia
  3. The green aspects need to come together with other arguments
  4. In some segments, green aspects are becoming part of the core
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13
Q

Give examples of industrial services?

A

CEO of Altas Copco sais
- “money is made in spare parts, maintenance and commodity items”

The strategy is that the USE of their products are to increase, and from the product use, Atlas Copco are to earn profits

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14
Q

Name some service offerings for atlas Copco!

A
  1. different levels of service deals - customer adapted
  2. machinery for rental
  3. service of both their own and other manufacturers tools
  4. “availabilty” sells system capacity not products
  5. monitoring
  6. preventive maintenance
  7. inspections of facilities
  8. system responsibility at customers
  9. sales of commodity items
  10. total solutions: planning, personal, project delivery
  11. particular brands for maintenance
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15
Q

Give examples of some support servies at atlas Copco?

A
  1. support to new sales
    —> installation
    —> develop customer relations
  2. Improve the customer production process
    —> analyses (environmental, efficiency etc.)
  3. Support customers in efficient resource use:
    —> automotive and control systems
    —> consultancy
  4. Maintain sold equipment
    —> spare parts
    —> reparations
  5. Customer support
    —> follow-up
    —> tests
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16
Q

Name 4 central service characteristics!

A
  1. Intangibility
    —> services can’t be touched but are rather experienced
  2. Inseparability of production and consumption
    —> services are consumed as they are produced
  3. Perishability
    —> services cannot be saved or stored for later use
  4. Heterogeneity
    —> greater dependence on the provider
17
Q

what is tangibility continuum?

A

Service marketers appear to try to tangibility their market offerings, and product markets appear to add services.

18
Q

Name some components influencing customer satisfaction!

A
  1. The basic elements, that all suppliers need to b e able to offer
  2. basic support services that make the product/service more effective and/or easy to use
  3. recovery process:
    —> for quick fixing problems
  4. extra services
    —> handling unique customer problems that results in experience of automized solutions
19
Q

How does the offering correspond to the business model?

A

Weather you offer solutions, products, services or product and services, this must correspond to the business model.

20
Q

What is a business model?

A
  1. describes how a firm operates and the business logic of the firm
  2. some companies are known for their business model (dell, Gillette, Spotify)
  3. New open business models emerging theme in the open innovation litterature
21
Q

Name the steps of business model development according to mason and spring?

A

Business model pyramyde
1. Technology (base)
—> make up the product/service offering, its delivery and management

  1. Network architecture (base)
    —> the configuration of buyers and suppliers that make the market offering possible
  2. Market offering (top)
    what is actually offered to the customer and how, the provision of value
22
Q

what about adapting market offerings across borders?

A
  1. initial foreign market entry
  2. local or national market expansion
  3. global rationalization
    —> transactional capabilities, “local flexibility & global integration”
    —> global branding
23
Q

What changes and trends can we see with regards to market offering?

A

Shift from four on the own product/offering to solving the right problem at the customer

IBM:
— Responsibilities are increasing. Services are increasing - today more than 50%

Atlas Copco:
— After sales services more important than the new sales

24
Q

What is meant by changeing from a product perspective to a solutions perspective?

A

A more holistic perspective

VALUE PROPOSITION
Win by creating and delivering superior customer solutions RATHER THAN creating innovative products and enriching dealers of existing products

VALUE CREATION:
Value is co-created by the customer and the firm RATHER THAN only with the firm

DESIGNING OFFERINGS
Starting with the problem and then Assemble required products and services to solve the problem RATHER THAN the other way around

Company-customer relationship:
Interaction-based and centered on the co-creations of solutions RATHER THAN transaction-based

QUALITY FOCUS:
Quality of customer-firm interactions RATHER THAN quality of internal processes and company offerings

25
Q

what is meant by technological development in relationships and networks

A
  1. collaboration with external actors, such as suppliers, customers, competitors, research institutes
  2. customer involvement in product development
    —> when, why, how, who
  3. there can be technical, economical and social aims
26
Q

conclusion about Theodore levitt expressions “there are no commodities”?

A

Lack of creativity sets the limits
—> companies need to find new ways of combining value add-ons into offerings to sell more existing customers and reaching new customers

27
Q

How can a firm be market oriented in development of new offerings?

A
  1. using positioning statements
  2. researching customer requirements
  3. translate requirements to technical specifications
  4. guiding realization efforts with value assessment
  5. tailor market introductions with new offerings

Business purchase and marketing (15 decks)

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