XIME / PGDM-B2B –RS–1118-February-2010 B2B Marketing Managing The Product Line PGDM–B2B–RS–11 Amarnath Krishnaswamy

XIME / PGDM-B2B –RS–1118-February-2010 Plan for this Session (1) Core Competency –Identification –Exploitation Not covered last session – Product Quality –Views –Total Quality

XIME / PGDM-B2B –RS–1118-February-2010 Plan for this Session (2) Product Policy –Types of Product Lines –Product Support –Defining the Product Market –Assessing Opportunity Planning Strategy –Positioning –Attributes –Strategy Matrix –Evaluation Matrix –Developing a Strategy

XIME / PGDM-B2B –RS–1118-February-2010 Product Quality

XIME / PGDM-B2B –RS–1118-February-2010 Product Quality – Views Meaning can differ when viewed by: –Within the organization Meeting the customers requirements –Outside the organization Giving value to the customer

XIME / PGDM-B2B –RS–1118-February-2010 Total Quality Strategy Buyers evaluate suppliers on the basis of total offering There are 3 dimensions to this: 1.Product Quality Specifications Performance – Reliability, Durability etc 2.Support Quality After-sales service 3.Delivery Quality Delivery schedule Response to changes in schedule

XIME / PGDM-B2B –RS–1118-February-2010 Product Policy

XIME / PGDM-B2B –RS–1118-February-2010 Some Definitions … Product All the values & satisfaction that a customer gets – at the organization & personal levels Product Policy Set of all decisions concerning the product lines (product & services) that the company offers.

XIME / PGDM-B2B –RS–1118-February-2010 Product Lines - Types Four types 1.Proprietary or Catalogue Products 2.Custom-built Products 3.Custom-designed Products 4.Industrial Services Standard products Vanilla products, with add-ons as desired Tailor-made

XIME / PGDM-B2B –RS–1118-February-2010 Product Support B2B marketing goes beyond supplying the customer with the product / service. It extends to: –Services that augment Technical services Maintenance Problems in coordination may arise when these services are handled by separate departments – not by those in direct contact with the customer

XIME / PGDM-B2B –RS–1118-February-2010 Product-Market Definition should cover the use of the product; not just the product Product-market should establish clearly the 2 dimensions: –Customer Function: Define functions that would satisfy the needs of the user –Technological: Define the various ways / methods by which the need is satisfied

XIME / PGDM-B2B –RS–1118-February-2010 Assessing Product-Market Opportunities Options for going international (Jagdish Sheth model) SameDifferent Product Configuration SameUniversal Product Market Segmentation Different Product Segmentation Specialty Segmentation Market needs Work from the global market backwards, rather than taking a national product global

XIME / PGDM-B2B –RS–1118-February-2010 Product Strategy

XIME / PGDM-B2B –RS–1118-February-2010 Product Strategy - Tools Product strategy – a follow-up from defining product lines and identifying product markets (product policy) Two tools: 1.Product Positioning 2.Product Evaluation Matrix

XIME / PGDM-B2B –RS–1118-February-2010 Product Positioning Its the place the product occupies in the perceptions and preferences of the buyers vis-à-vis competition. B2B buyers perceptions & preferences usually focused on (attributes): –Price –Specifications –Quality

XIME / PGDM-B2B –RS–1118-February-2010 Product Positioning - Attributes Attributes, fall into 2 categories –Determinants: Important & Differentiating –Non-determinants: Important 0r Not important, Not differentiating Rate on a table Note: A & B are competing brands DeterminantNon-determinant Attribute 1Attribute 2Attribute 3Attribute 4Attribute 5 Important Not Important Non differentiating A = B Differentiating A > B A < B

XIME / PGDM-B2B –RS–1118-February-2010 Product Positioning - Strategy Matrix Having identified attributes of importance to buyer, and relative standing of brands, work on the attributes Brand Difference IncreaseDecreaseMaintain Importance Increase Decrease Maintain

XIME / PGDM-B2B –RS–1118-February-2010 Product Positioning - Action If attribute is better than competition If attribute is inferior to competition –Move from ND to D –Increase the difference –Move from D to ND –Narrow the difference

XIME / PGDM-B2B –RS–1118-February-2010 Product Evaluation Matrix … (1) Developed by Yoram Wind & Henry Claycamp Integrates 3 measures: 1.Sales 2.Market Share 3.Profitability

XIME / PGDM-B2B –RS–1118-February-2010 Product Evaluation Matrix … (2) The first step … Company Sales DeclineStableGrowth Industry Sales Profit Share Below Target Target Above Target Below Target Target Above Target Below Target Target Above Target Growth Dominant Average Marginal Stable Dominant Average Marginal Decline Dominant Average Marginal Plot the product attribute

XIME / PGDM-B2B –RS–1118-February-2010 Developing A Strategy 5 options for product / product line Option Product Strategy Marketing Strategy 1Same 2 Change 3 4Drop 5Add

XIME / PGDM-B2B –RS–1118-February-2010 Finally … Go To Market Cross your fingers and hope for the best! Example: We need to up-date our strategy. The best bet is to go-to-market! Peel An Onion To conduct a layer-by-layer analysis of a complex problem and in the process, reduce yourself to tears!

XIME / PGDM-B2B –RS–1118-February-2010 Moving Forward Next Session: PGDM-RS-12 Date:Tuesday, Feb 23, 2010 Subject:Managing Innovation - Management of Innovation - Technology Portfolio - New Product Development Process

XIME / PGDM-B2B –RS–1118-February-2010