Lecture 5 LG

Question 1

what are consumer benefits of brand awareness and innovation

Answer 1

promise of quality
risk management
reduced search costs
knowing identity
showing identity

Question 2

what are organizational benefits of brand awareness and innovation

Answer 2

higher margins
inelastic demand
customer retention
brand extension potential
HR

Question 3

what is the nexus between supply and demand for economists

Answer 3

price

Question 4

what is the nexus between supply and demand for marketeers

Answer 4

marketing

Question 5

what is open source marketing

Answer 5

harvesting the power of the competitor

Question 6

what is an example of open source marketing

Answer 6

amazon

Question 7

what are characteristics of pipeline

Answer 7

buy materials, make product, sell it
controlling resources
optimizing internal processes
increasing customer value

Question 8

what are characteristics of platform

Answer 8

coordinating resources
facilitating external interactions
maximizing ecosystem value

Question 9

what are 2 sided markets

Answer 9

people who buy from the platform
people who supply to the platform

Question 10

what are 2 problems with 2 sided markets

Answer 10

who comes first: buyer/supplyer
how to extract value

Question 11

what is a market driven innovation

Answer 11

responding to existing consumer needs

Question 12

what are potential dangers of a market driven innovation

Answer 12

tyranny of customers
danger of creeping incrementalism

Question 13

what is the danger of creeping incrementalism

Answer 13

the reference point of todays customer is todays product

Question 14

what are market driving innovations

Answer 14

changing market structure

Question 15

what are 3 different types of market driving innovations

Answer 15

functional modification
deconstruction
construction

Question 16

what is functional modification

Answer 16

changing the function or behaviour of players in the market

Question 17

what is deconstruction

Answer 17

eliminating players from the market

Question 18

what is construction

Answer 18

adding players to the market

Question 19

what are characteristics of a red ocean

Answer 19

compete in existing marketse
beat the competition
exploit existing demand

Question 20

what are characteristics of a blue ocean

Answer 20

create uncontested market space
make the competition irrelevant
create and capture new demand

Question 21

what is the 4 actions framework

Answer 21

eliminate, reduce, raise and create

Question 22

what was LG like before 2002

Answer 22

tech focussed
product development for korean market, exported to US
low price positioning
no clear product development process

Question 23

what were LG’s 2 goals

Answer 23

premium brand
top 3 seller

Question 24

what was LG’s mindset shift after 2002

Answer 24

creating local team for US market
multifunctional development team
use LG brand and articulating brand identity

Question 25

what was LG's focus between 2003-2005

Answer 25

product and distribution

Question 26

what were characteristics of the LG washing machine product

Answer 26

front loaders european 3 price levels innovation: drive system (not belting machine) higher income, tech savvy, younger segment

Question 27

what was the distribution roadmap

Answer 27

regionals best buy home depot SEARS

Question 28

why start with regional

Answer 28

they were most open to foreign brands

Question 29

what kind of strategy did LG use in 2003-2005

Answer 29

push

Question 30

what did LG launch in 2005

Answer 30

steamer instead of washer dryer combo

Question 31

was the LG steamer market driving and blue ocean strategy

Answer 31

market driving yes not blue ocean, because it didn't eliminate elements

Question 32

what kind of strategy was used from 2005 onwards

Answer 32

switch from push to pull start advertisement