1. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations

2. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Core competencies are embodied in the superior skills of employees--the technologies they have mastered, the unique ways in which these technologies are combined, and the market knowledge that has been accumulated. They focus on the basics of what crates value from the customer’s perspective and include both technical and organizational skills. Core Competencies and Selected Products at Canon Developed by Cool Pictures and MultiMedia Presentations

3. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations First, a core competence provides potential access to an array or markets. Second, a core competence should make an important contribution to the perceived customer benefits of the firm’s end products. Third, “a core competence should be difficult for competitors to imitate.” Three Tests to Identify the Core Competencies

4. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations How rare is our competence? How long will it take your competitors to develop the competence? Can the source of your advantage be easily understood by your competitors? Sustaining the Lead... Three Questions

5. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Questions In Planning Product Strategy 1.What are the important benefits that our core competencies allow us to deliver to customers? 2.How could we combine our competencies in exciting new ways to deliver more value to existing customers or to serve new customer segments in other industries?

6. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Quality Movement Stages Stage one centered on conformance to standards or success in meeting specifications. Stage two emphasized that quality was more than a technical specialty and that the pursuit of quality should drive the core processes of the entire business. Stage three examines a firm’s quality performance relative to competitors and examines customer perceptions of the value of competing products.

7. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations What Value Means to Customers 1.In essence, value equals quality relative to price. 2.Value has two components: quality and price. 3.In turn, quality includes a customer service component. Developed by Cool Pictures and MultiMedia Presentations

8. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations 1.Proprietary or catalog products 2.Custom-built products 3.Custom-designed products 4.Industrial services Four Types of Industrial product Lines

9. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Four Dimensions of a Market Definition 1. Customer function dimension. 2. Technological dimension. 3. Customer segment dimension. 1. Customer function dimension. 4. Value-added system dimension.

10. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations The horizontal dimension represents the similarity in or the difference between market needs across countries. The vertical dimension represents the nature of the product configuration. Assessment of Global Product-Market Opportunities Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations

11. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Designing Successful Global Products 1.Business marketers should search for similarities as well as differences in customer needs. 2.Maximize the size of the common global core of the product while also providing for local tailoring around the core. 3.The best global products are designed with the global market in mind from the start.

12. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Steps in the Product Positioning Process 1.Identify the relevant set of competitive products. 2.Identify the set of determinant attributes that customers use to differentiate among options and determine the preferred choice. 3.Collect information from a sample of existing and potential customers concerning their ratings of each product on the determinant attributes. 4.Determine the product’s current position versus competing offerings for each market segment. 5.Examine the fit between preferences of market segments and current position of product. 6.Select Positioning or Repositioning Strategy.

13. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Two Elements of High-Tech Marketing Building a strong brand. Designing marketing strategy during the turbulent life of a high-technology product.

14. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Successful brand management involves developing a promise of value for customers and then ensuring that the promise is kept through the way in which the product is developed, produced, sold, services, and promoted. How High-Tech Brands Build Equity

15. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Drivers of Brand Attitude Change Dramatic and visible new products that were aggressively supported by advertising. Increases in brand attitude were associated with the appointment of a well-recognized executive officer who introduced a new strategy. Brand attitude depends on competitive actions. Product problems were associated with several declines in brand attitude. Legal actions were associated with decreases in brand attitude.

16. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations The Technology Adoption Life Cycle: Classes of Customers The Landscape of the Technology Adoption Life Cycle