Mark man group-d-ch.-111213

www. facebook.com/v65ASMPHMarkma

Competitive Dynamics, Setting Products Strategies,

Designing and Managing Services

MarkMan Group DASMPH

Prof. De Ungria(June 20, 2015)

Chapter 11, 12, and 13


• Chapter 11: Competitive Dynamics– Market Leader– Market Expansion– Protecting Market Share– Market Nicher– Product Life Cycle

Outline for Chapter 11


Definition: largest share and usually lead in price changes, new product, introductions, distribution coverage and promotional intensity

Examples: Kotler – XeroxLocal – JollibeeMedical - Unilab

MARKET LEADER (p. 299)


Definition: Strategy that utilizes differentiation and execution to gain new customers and give them additional opportunities for brand utilization.

Examples: Kotler – Bank of ScotlandLocal – PAL Budget EconomyMedical – The Medical City

MARKET EXPANSION (p. 301)


Definition: using different strategies to continue developing products and securing market share.Examples: Kotler – Philip Morris (Proactive), Pampers DiapersLocal – Western Union (Proactive), Rexona (Defensive)Medical – Patent Protection of Pharmaceuticals

PROTECTING MARKET SHARE (p. 302)


Definition: leader in a smaller market (microcosm)

Examples: Kotler – Zippo, UbuntuLocal – Vista Land, City DeliveryMedical – American Eye Center

MARKET NICHERS (p. 308)


Definition: brand strategy must change according to the product, market, and competitors.

Examples: Kotler – AppleLocal – Human NatureMedical – Belo

PRODUCT LIFE CYCLE (p. 317)


• Chapter 12: Setting Product Strategies– What is a Product?– Product characteristics and classification– Product and Services Differentiation– Product design– Building and managing product mix and product lines– Combining products– Packaging, Labeling, Warranty and Guarantees as

Marketing Tools



Concept 1

What is a product? (p. 325)

• Anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

• Examples:– Kotler example: Ford Motor Company– Local example: Jollibee Food Company– Medical application: Littmann Stethoscopes


Concept 2Product characteristics and classification(p. 326)

• Product Levels– Core benefit – the service or benefit

the customer is really buying– Basic product– Expected product – a set of attributes

and conditions buyers normally expect when they purchase the product

– Augmented product – exceeds customer expectations

– Potential product – encompasses all possible augmentations and transformations Figure 1. Product Levels


Concept 2Product characteristics and classification(p. 326)

• Product Levels– Examples:

• Kotler example: Hotels• Local example: Cellular

phones• Medical example:

Dermatologic products

Figure 1. Product Levels


Concept 4

Services Differentiation (p.330)

• When the physical product cannot easily be differentiated, the key to competitive success may lie in adding valued services and improving their quality

Examples:- Kotler example: Rolls-Royce PLC – aircraft engines

- Local example: LBC – easier accessibility

- RP medical application: Medical City – focused on patient partnership


• Design is the totality of features that affect how a product looks, feels, and functions to a consumer.

• Design offers a potent way to differentiate and position a company’s products and services

• Design offers functional and aesthetic benefits and appeals to both our rational and emotional sides

• Examples:– Kotler example: Hewlett-Packard PCs– Local Example: Magnum Cafe– Medical application: GE healthcare electronics

Concept 3

Product design(p. 332)


• Product mix - set of all products and items a particular seller offers for sale– Width - how many different product lines the company carries– Length - total number of items in the mix– Depth - how many variants are offered of each product in the line – Consistency - how closely related the various product lines are in

end use, production requirements, distribution channels, or some other way

• Examples– Kotler example: Proctor & Gamble Products, Michelin: tires, maps,

restaurant-rating– Local example: Johnson & Johnson, PLDT: wifi, phone line, DSL

famcam– Medical example: Hi-Precision Diagnostic Laboratory, Parañaque

Doctors: diagnostics, surgery, OPD

Concept 5

Building and managing product mixes and product lines (p. 342)


• Chapter 13: Designing and Managing Services

• Best Practices of Top Service Companies– Strategic Concept– Top Management Commitment– High Standards

• Differentiating Services– Primary and Secondary Service Options– Innovation with Services



Concept 1 (page 366)Best Practices of Top Service Companies: Strategic Concept

• Clear sense of target customers• Distinctive strategies• Kotler example: Four Seasons• Local example: Quicklean Labavendo,

Mang Inasal• Medical example: Belo Medical Group


Concept 2 (page 366)Best Practices of Top Service Companies: Top-Management Commitment

• Thorough commitment to service quality

• Kotler example: Marriott,Disney, USAA

• Local example: Jollibee, Puregold• Medical example: The Medical City

continually enforcing “Patient Partnership” at all operational levels


Concept 3 (page 366)Best Practices of Top Service Companies: High Standards

• Setting of high quality standards• Kotler example: Citibank, FedEx• Local example: Meralco• Medical example: hospitals monitoring

number of falls, accidents, morbidities, mortalities, etc.


Concept 4 (page 368)Differentiating Services: Primary and Secondary Service Options

• Primary service package: whatthe customer expects

• Secondary service features: innovative additional features

• Kotler example: Vanguard • Local example: free wifi and iced

tea or coffee in salons, Shangri-La Hotels (known for rooms AND food)

• Medical example: premium suites inThe Medical City and St. Luke’s


Concept 5 (page 370)Differentiating Services: Innovation with Services

• Innovation in services• Kotler example: Starwood,

online travel, private aviation• Local example: cellular phone

services (promos, etc. – especiallySun Cellular)

• Medical example: The Medical City satellite health clinics in malls


Competitive Dynamics, Setting Products Strategies,

Designing and Managing Services

MarkMan Group DASMPH

Prof. De Ungria(June 20, 2015)

Chapter 11, 12, and 13

Business

Mark man group-d-ch.-111213