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Strategy
Basis of SCAs
Product-Market
• Assets/Competencies
Investment Decision
• Synergies
• Product-market scope
• Investment intensity
• Resource allocation Functional Area Strategies
over business units • Product
• Price
• Distribution
• Etc.
Figure 1.1
The Four Ps: The Tools
The Four Cs: The Ends
Marketing
Mix
Place
Product
Customer Conven-
Solution Price Promotion ience
Customer Communication
Cost
The Other 4Cs: The Participants
The
Participants
Competitors
Company
Consumer Channel
Views on the Marketing Processes
Psychological
Functional Economic
Plea From an Anonymous
Customer
• Don’t Sell me Clothes, Sell me a sharp appearance,
style and attractiveness.
• Don’t Sell me a House, Sell me comfort, contentment,
a good investment and a pride of ownership.
• Don’t Sell me Toys, Sell my children happy moments.
• Don’t Sell me Insurance, Sell me peace of mind, and a
great future for my family and me.
• Don’t Sell me Books, Sell me pleasant hours and the
profits of knowledge.
• Don’t Sell me Computers, Sell me the pleasure and
profits of the miracles of modern technology.
The Moral is…..
Generate
Be Difficult
Customer
Provide to Copy
Value
Perceived
Value
Growth Strategies
Present New
Products Products
New Market
Diversification
Markets Expansion
Vertical Integration
12
Source: H. Igor Ansoff, “Strategic Diversification” , Harvard
Figure 2.4 Business Review, September-October 1957, pp.113-24
What is a Product?
• A Product is anything that can be offered to a market for
attention, acquisition, use, or consumption and that might
satisfy a want or need.
• Includes:
– Physical Objects
– Services
– Events
– Persons
– Places
– Organizations
– Ideas
– Combinations of the above
Components of the
Market Offering
Value-based prices
Attractiveness of
the market offering
Potential product
Augmented product
Expected product
Basic product
Core benefit
Product Classifications
Consumer Products
Convenience Products Shopping Products
Buy frequently & immediately Buy less frequently
Low priced Higher price
Mass advertising Fewer purchase locations
Many purchase locations Comparison shop
i.e Candy, newspapers i.e Clothing, cars,
appliances
Specialty Products Unsought Products
Materials
and
Parts
Capital
Items
Supplies
and
Services
Product Attributes
Width - number of
different product
lines
Consistency
Depth - number of
versions of each
product
Product Lines and
Product Mixes at Gillette
Product-Line Length
• Line Stretching
– Downmarket
– Upmarket
– Two-way
• Line Filling
• Line Modernization
• Line Featuring & Line Pruning
Product Life Cycle
Exhibit 7.2
Marketing Strategy During
the Product Life Cycle
Development Stage
Marketing Business
Strategy Analysis
Development
Concept Product
Development Development
and Testing
Idea Market
Screening Testing
Idea
Generation Commercialization
New-Product Development Process
Idea Generation & Screening