Lecture 5 LG Flashcards
what are consumer benefits of brand awareness and innovation
promise of quality
risk management
reduced search costs
knowing identity
showing identity
what are organizational benefits of brand awareness and innovation
higher margins
inelastic demand
customer retention
brand extension potential
HR
what is the nexus between supply and demand for economists
price
what is the nexus between supply and demand for marketeers
marketing
what is open source marketing
harvesting the power of the competitor
what is an example of open source marketing
amazon
what are characteristics of pipeline
buy materials, make product, sell it
controlling resources
optimizing internal processes
increasing customer value
what are characteristics of platform
coordinating resources
facilitating external interactions
maximizing ecosystem value
what are 2 sided markets
people who buy from the platform
people who supply to the platform
what are 2 problems with 2 sided markets
who comes first: buyer/supplyer
how to extract value
what is a market driven innovation
responding to existing consumer needs
what are potential dangers of a market driven innovation
tyranny of customers
danger of creeping incrementalism
what is the danger of creeping incrementalism
the reference point of todays customer is todays product
what are market driving innovations
changing market structure
what are 3 different types of market driving innovations
functional modification
deconstruction
construction
what is functional modification
changing the function or behaviour of players in the market
what is deconstruction
eliminating players from the market
what is construction
adding players to the market
what are characteristics of a red ocean
compete in existing marketse
beat the competition
exploit existing demand
what are characteristics of a blue ocean
create uncontested market space
make the competition irrelevant
create and capture new demand
what is the 4 actions framework
eliminate, reduce, raise and create
what was LG like before 2002
tech focussed
product development for korean market, exported to US
low price positioning
no clear product development process
what were LG’s 2 goals
premium brand
top 3 seller
what was LG’s mindset shift after 2002
creating local team for US market
multifunctional development team
use LG brand and articulating brand identity