DEVELOPING AND MANAGING

OFFERINGS

DBA. Nguyễn Thiện Hùng

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 PRODUCT CONCEPT

BENEFIT: How does the product or service satisfy

a need?

PRODUCT: Group of interests and set of solutions

for needs and wants

COMPETITIVE Better customer satisfaction benefits

ADVANTAGE : Competitor's products

4-2
 Product features in B2B marketing

 Product features in B2B marketing

 Origin of demand (CO/CQ)
 Specifications, product design
 Product life cycle
 Support services
 Product packaging and aesthetic elements

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 Product features in B2B marketing

Product decisions
oSet product policies.

oSet specific goals for each product.

oSearch and add new products.

oDefine product specification

oIntroducing new products

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 Product features in B2B marketing

Product decisions
oModify existing products

oDeciding to dispose of unprofitable products

oPackaging decisions

oDecisions related to the product life cycle

oProvide support services

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CHARACTERISTICS OF THE PRODUCT
LIFETIME

4-6
 PRODUCT DECIDES RELATED TO PLC
Rapid expansion of distributors
Product line expansion
Niche marketing Strongly defend home-market Cut low-gross-margin products
Continued heavy promotion niches from the line
Sales force incentives and Prune product lines Withdraw from channels in order
management Emphasize gross contribution of their unprofitability
Search for new sources for rather than market share and Freeze R& D and product
supply sales volume modifications
Need to balance supply and Review logistics: prune costs
Sales Freeze advertising and
demand Reduce pioneering sale force promotions
Stock-out and back-order effort, more telemarketing Attempt to maintain price to the
damage control More trade than consumer end
promotion Buy back remaining stock and
Introduce flankers, private redistribute
Redirect focus & promotion labels, generics Maintain spare parts and service
Invest in expanding production Reinvest in market research Consider divesting while it is a
Build inventory & R&D going concern
Expand distributor network Use promotions to increase
Train expanded sales force heavy-user loyalty
Institute marketing controls Freeze investment in plant
Invest heavily in advertising Productivity review
Target on best prospects: Special trade promotions to
innovators and enthusiasts keep channels happy
Use most loyal distributors Focused attacks on vulnerable
Use free samples competitors
Use public demonstrations Long-term price reduction or
and trade shows at least a short-term price
Use publicity and endorsements promotion
Use specialist media & catalogs Keep plant at maximum
capacity and subcontract
excess

Development Introduction Growth Maturity Decline Time

4-7
 BCG Matrix: MEASUREMENT OF MARKET
DEVELOPMENT SPEED AND MARKET SHARE

BCG Matrix

Question
Stars Marks
MARKET DEVELOPMENT
RATE Cash
Dogs
Cows

RELATED MARKET SHARE

TO NEAREST COMPETITOR

4-8
 GE MATRIX MEASURES MARKET's
attractiveness and ECONOMIC STRENGTH
GE MATRIX Strong
Market attractiveness
Development speed
Diversity
Attractive Unattractive
Competition
Structural change
Technological change Weak
The social environment Economic power
Market size and market share
Company growth rate
Profit
Margin profit
Technology platform
Image
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Human
 PRODUCT MANAGEMENT ACTIVITIES

• UNDERSTAND THE PRODUCT LIFE CYCLE (PLC) AND

APPLY IT TO PRODUCT STRATEGY

• UNDERSTAND THE CONCEPT OF PRODUCTS LIST

• KNOW WHEN TO HARVEST PRODUCTS

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 TYPES OF RISKS WHEN
DEVELOPING PRODUCTS

• INVESTMENT RISKS

• RISK OF OPPORTUNITY

• RISKS BECAUSE OF NEWTH OF PRODUCTS

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 PRODUCT DEVELOPMENT PROCESS:
A NEW VIEW
EVALUATION

PRODUCTS LAUNCH

TESTING

PRODUCT DEVELOPMENT

DETERMINATION OF CHARACTERISTICS

SCREENING AND
PRELIMINARY INVESTIGATION

CREATE IDEAS

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PRODUCT DEVELOPMENT PROCESS:
A NEW VIEW

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 PRODUCT DEVELOPMENT PROCESS:
CREATING IDEAS

• SUPPLIERS
• CLIENTS
• SALESMANS
• COMPETITORS
• MARKET RESEARCH

4-14
PRODUCT DEVELOPMENT PROCESS:
SCREENING AND PRELIMINARY
INVESTIGATION

• FITS COMPANY OBJECTIVES

• MEET CUSTOMERS' NEEDS
• MARKET POTENTIAL
• COMPETITIVE ADVANTAGE WHEN HAVING
PRODUCTS
• CAPABLE of PRODUCTION and SERVICE
DEVELOPMENT

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 PRODUCT DEVELOPMENT PROCESS:
DETERMINATION OF CHARACTERISTICS
• DETERMINATION OF THE CHARACTERISTICS AND
FEATURES OF PRODUCTS
• DETERMINATION OF TYPES OF COST
• PRODUCT DESIGN
• EXAMPLE - PRINTER CHARACTERISTICS BENEFITS

4-16
 PRODUCT DEVELOPMENT PROCESS:
BETA TESTING

• REVIEW PRODUCTS ON REAL MARKET

• CUSTOMERS ASSESS THE CHARACTERISTICS,

FEATURES, BENEFITS OF PRODUCTS

• DISCOVER THE CHARACTERISTICS THAT DON'T HAVE

CUSTOMERS SATISFACTION

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PRODUCT DEVELOPMENT PROCESS:
PRODUCT DEVELOPMENT

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 PRODUCT DEVELOPMENT PROCESS:
PRODUCT LAUNCH

• BUILDING A COMMUNICATION STRATEGY

• DEVELOPMENT OF SERVICES FOR PRODUCTS

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 PRODUCT DEVELOPMENT PROCESS:
AFTER PRODUCTS LAUNCH

• TIME TO MARKET

• DEVELOPMENT COSTS

• FINANCIAL RESULTS

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 QUALITY DEVELOPMENT

The benefits Connect with Dividing into Process Production

customers product part characteristics Control
want features characteristics

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 CREATE SUCCESSFUL PRODUCTS

1. CLOSE TO THE TARGET MARKET AND SATISFIED

CUSTOMERS NEEDS.

2. MARKET ORIENTED COMPANY

3. THE COMPANY HAS A COMPETITIVE

ADVANTAGE IN TECHNOLOGY AND
PRODUCTION CAPACITY.

4. COMPANY HAS STRONG MARKETING CAPACITY

5. STRONG FINANCIAL SUPPORT 4-22

 IMPORTANT ISSUES FOR CREATING
PRODUCTS
“CREATIVE” COMPANY MUST HAVE
COMPANY CULTURE SUPPORT CREATIVITY – desire to
develop, improve

Focus on OPPORTUNITY RISK instead of INVESTMENT

RISK

VISION OF NEW PRODUCTS ACHIEVEBLE

STRUCTURE DEVELOPMENT PROCESS

LONG-TERM OUTLOOK

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IMPORTANT DECISIONS OF PRODUCTS
MANAGEMENT

1. ABOUT WHAT PRODUCT?

2. WHAT PRODUCT KEEPING?
3. WHAT PRODUCTS NEED TO PROMOTE?
4. PROMOTION LEVEL (from LOW TO HIGH)
5. WHAT PRODUCTS NEED TO MAINTENANCE
OR REMOVAL?

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 THE SUCCESSFUL BATTLE OF
NEW PRODUCTS
• FOCUS ON CORE COMPETENCIES
+
• PROVIDE THE BEST VALUE TO CUSTOMERS

=
SUCCESSFUL PRODUCTS

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• Thank you for your attention!

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