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MARKETS
C. K. Prahalads view :
Core competencies
embodied in superior
employee skills-technologies they
have mastered,
unique ways that
employees combine
these technologies,
and market
knowledge that the
firm has
accumulated.
Canon focuses on
basics of what
creates value for
customerwhich
includes both
technical and
organizational skills.
Core
Benefits
Customer Value
Add-on
Price
Sacrifices
Acquisition
Costs
Operations
Costs
Source: Adapted from Ajay Menon, Christian Homburg, and Nikolas Beutin, Understanding Customer Value,
Journal of Business-to-Business Marketing, 12, no. 2 (2005), pp. 47.
PRODUCT POLICY
Through product policy, a firm attempts to satisfy
customer needs and build sustainable competitive
advantage by capitalizing on its core competencies.
Type of Product Lines:
1. Proprietary or catalog products : Items offered only in
certain configurations and produced in anticipation of
orders.
2. Custom-built products: Items offered as a set of basic
units, with numerous accessories and options.
Decisions center on offering the proper mix of options.
3. Custom-designed products : items created to meet the
needs of one or a small group of customers. Product
Line is described in terms of the companys capability
and the customer buys that capability.
4. Industrial Service : Purchase of capability in an area
such as maintenance, technical service or
management consulting.
Non- determinant
D1
D2
ND1
ND2
ND3
ND4
Important
Not Important
Non-differentiating
( SB = COMP)
Differentiating
(SB > COMP)
Differentiating
(SB<COMP)
SB:SponsorBrand
COMP:
CompetingBrand
D1:Attributeisimportantaswellasdifferentiating.SB>COMP
D2:Attributeisimportantaswellasdifferentiating.SB<COMP
ND1:Attributeisimportantbutnotdifferentiating.SB=COMP
ND2:Attributeisneitherimportantnordifferentiating.
ND3:Attributeisdifferentiating(SB>COMP)butnotimportant.
ND4:Attributeisdifferentiating(SB<COMP)butnotimportant.
Decrease
Maintain
Increase
ND2D1
ND3D1
Decrease
D2ND4
Maintain
ND1D1
D2ND1
ND4ND4
D1D1
Importance
1.
Maximize the size of the common global core of the product while
also providing for local tailoring around the core.
17
Elements Of Brand
Trust
Probity
Competence
Continuity
Brand Trust
Value
Resonance
Caring
19
Elements Of Brand
Trust
Competence: technical capability
to completely make the product,
or effectively deliver the service,
they are offering.
Probity: belief that the company
will conduct its transactions with
a customer in an honest and fair
way.
20
Elements Of Brand
Trust
Continuity: belief that the company has
the
resources
and
commitment
necessary to remain in the business
area relevant to the customer.
This is particularly important in relation
to products which have a long lifetime.
Caring: the companys employees are
sufficiently motivated to care about the
quality of service or performance they
deliver.
21
Brand
imagery
deals
with
the
manufacturers reputation
in
the
market.
Brand judgments focus on customers
own personal opinions and evaluations.
Brand
feelings
are
customers
emotional responses and reactions
with respect to the brand (and the
company).
24
25
t
pu
n
io
at
Jud
gm
ent
s
Positive,
accessible
reactions
Re
1.Identity =
Who are you?
f
r
e
a
m
r
e
c
n
rce
Fo ips
les sh
Sa tion
la
Re
3.Response =
What about
you?
2. Meaning =
What are you?
Intense,
active
loyalty
Partnership
Solutions
Salience of the
Manufacturers Brand
Strong, favorable
unique brand
associations
Deep, broad
brand
awareness
26
Difficulties In B2B
Branding
Difficulties In B2B
Branding
Every time customers interact
with a supplier, with its products,
or interact with customer service
person, impressions are formed
about the company, the products,
and its employees.
Strong B2B brands are, therefore,
built one customer at a time.
28
Tornado (contd.)
HP demonstrated the three critical priorities in its printer
business :
1. Just ship.
2. Extend distribution channels.
3. Drive to the next lower price point.
Main Street :
Aftermarket development. Frantic waves of mass-market
adoption begin to subside. Supply exceeds demand.
Develop value based strategies targeted in particular
segments of end-users. Operational excellence in
production and distribution as well as finely tuned market
segmentation strategies.
Brand Equity
Customer Equity