1. XIME / PGDM-B2B –RS–1016-February-2010 B2B Marketing Managing The Product Line PGDM–B2B–RS–10 Amarnath Krishnaswamy

2. XIME / PGDM-B2B –RS–1016-February-2010 Plan for this Session (1) Core Competency –Identification –Exploitation Product Quality –Views –Total Quality

3. XIME / PGDM-B2B –RS–1016-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

4. XIME / PGDM-B2B –RS–1016-February-2010 Core Competency

5. XIME / PGDM-B2B –RS–1016-February-2010 Core Competence - Definition Unique set of skills or production techniques that deliver value to the customer. (Does the definition make it “inward” focusing?) Takes a product or production orientation rather than a market orientation.

6. XIME / PGDM-B2B –RS–1016-February-2010 Core Competence - Identification Three tests. Must satisfy all three! –Provides potential access to a wide variety of markets. –Should make a significant contribution to the perceived customer benefits of the end product. –Should be difficult for competitors to imitate. Complexity Spread – within the organization – across suppliers and customers

7. XIME / PGDM-B2B –RS–1016-February-2010 Core Competence – Identification Errors Errors in confusing “core competency” with” –Scarce or unique “resources” (Threshold Resources) –Do not comply with all 3 tests (Threshold competencies)

8. XIME / PGDM-B2B –RS–1016-February-2010 Competitive Advantage – Requirements To gain a competitive advantage, organisation needs: –Material resources (Most straightforward. Easiest to achieve) –Human resources (Skills) –Intangible resources (Core competencies)

9. XIME / PGDM-B2B –RS–1016-February-2010 Exercise Remember, there is no unique “formula” or “solution” for these exercise. It needs effort, and analysis on your part.

10. XIME / PGDM-B2B –RS–1016-February-2010 Exercise 1 Pick a company. What are its core competences, threshold competences, scarce resources, and threshold competences? Plot them onto a diagram.

11. XIME / PGDM-B2B –RS–1016-February-2010 Exercise 2 For the same company, what are its material resources, human resources, and intangible resources? Plot them onto a diagram

12. XIME / PGDM-B2B –RS–1016-February-2010 Answer 1 – ITC Tobacco Division Factories – located all over India Captive printing unit ? Marketing Finance Production Brand building capability Supply Chain Management Distribution reach Threshold ResourcesScarce Resources Threshold CompetenciesCore Competencies Ease to imitate

13. XIME / PGDM-B2B –RS–1016-February-2010 Answer 2 – ITC Tobacco Division Factories – located all over India Captive printing unit Material Resources Factories – located all over India Captive printing unit Factories – located all over India Captive printing unit Human Resources Intangible Resources Increasing Difficulty To Achieve

14. XIME / PGDM-B2B –RS–1016-February-2010 Core Competency - Exploitation Focus on a core competency that will be most attractive to the client. Examples: L&T – Cutting edge technology SAP – Customized ERPs Mittal Steel – Use of Direct Reduced Iron (DRI) in place of scrap in steel making

15. XIME / PGDM-B2B –RS–1016-February-2010 Product Quality

16. XIME / PGDM-B2B –RS–1016-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

17. XIME / PGDM-B2B –RS–1016-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

18. XIME / PGDM-B2B –RS–1016-February-2010 Finally … Daisy Chaining An illegal financial practice whereby traders create artificial transactions in order to make a particular security appear more active than it is in reality. Distrain To seize assets belonging to a person or organization in order to pay off a debt.

19. XIME / PGDM-B2B –RS–1016-February-2010 Moving Forward Next Session: PGDM-RS-11 Date:Thursday, Feb 18, 2010 Subject:Managing the Product Line - Product Policy - Product Strategy

20. XIME / PGDM-B2B –RS–1016-February-2010