A S L 3 Lecture Notes - Lecture 9: Competitive Advantage, Umbrella Brand, Human Capital
Document Summary
Chapter 5 product & service strategy & brand management. Bundling = the marketing of >2 products/services in a single package to create a new offering (e. g. mcdonalds value meal). Consumers usually value a package more than individual items (don"t have to make separate purchases & enhanced satisfaction from 1 item given the presence of another). Lower total costs to both buyer & organization. 3 basic offering related decisions: modifying the offering mix, positioning the offering, branding offerings. How consistent is the new offering with existing ones: consider demand interrelationships (i. e. could the new product potentially be substitute for existing products?) > necessary to consider to avoid cannibalization: consider the degree to which the new offering fits with the firms selling & distribution strategies. If yes, the sales & distribution issue is settled, but the cannibalization questions still remain. Does it have the human capital necessary to make the new product? etc.
