Chapter 6: Offering-Based SCA

Question 1

What is an offering?

Answer 1

Tangible products and intangible services provided by firms. Barrier to competitive attacks and key to building SCA.

Question 2

What is innovation?

Answer 2

The creation of substantial new value for customers.

Question 3

What are the key aspects of innovation?

Answer 3

1. Generate new value for customer and seller
2. Change leading to differentiation and SCA

Question 4

Innovation Radar

Answer 4

Captures many different ways a firm can innovate:
What: New product?
Who: New segment?
How: New channel?
Where: New location?

Question 5

Best beats first

Answer 5

First-mover advantage is trumped by early followers who are not just quick but also better.

Question 6

Offering Equity

Answer 6

Core value that the performance of the product or service offers to the customer

Example: Patented innovations

Question 7

What is critical for a successful product launch?

Answer 7

Understanding consumers and what they want

Example: Conjoint analysis

Question 8

Stage-Gate Development Process

Answer 8

The process that most firms rely on to increase the speed of their offering development and enhance their likelihood of success.

Question 9

Repositioning Strategies

Answer 9

Dramatically repositioning an existing offering, such as removing new features or adding others, so the offer appeals to a different customer segment with a new value proposition

Question 10

Red Ocean Markets

Answer 10

Very competitive markets fighting over the same customers

Example: Coca-Cola vs. Pepsi

Question 11

Blue Ocean Markets

Answer 11

Unexplored market without any competition

Example: Tesla in its early journey producing EV’s in a luxury market, Cirque du Soleil

Question 12

Red Ocean Strategies

Answer 12

1. Uses STP process, brand and line extensions
2. High sales but lower profit levels
3. Capture a portion of existing market demand

Question 13

Blue Ocean Strategies

Answer 13

1. Creating new markets
2. Success generates higher profit levels
3. Demand is created rather than fought over
4. Transforms the image of competitors’ brand features, they become a negative attribute in the new market
5. Intuition and high risk

Question 14

Sustaining Technologies

Answer 14

Continuous, incremental improvements over time. Lower risk.

Example: Laptops (Processor and speed enhancements)

Question 15

Disruptive Technologies

Answer 15

Innovations that alter established markets and industries, creating new value propositions. Improves quickly.

Example: Online learning platforms

Question 16

What helps make new offerings more successful?

Answer 16

Conjoint analysis

Question 17

What is conjoint analysis?

Answer 17

Determining tradeoffs among attributes and set of attributes that maximizes appeal (sales, share)

Question 18

Conjoint analysis process

Answer 18

1. Design study
2. Collect data
3. Evaluate product design options

Question 19

Adoption Lifecycle User Groups

Answer 19

1. Innovators: First to adopt
2. Early Adopters: Endorsements
   needed
3. Early Majority: Evidence needed
4. Late Majority & Laggards: Peer
   adoption + evidence needed

Question 20

Product-Based Factors that Influence Diffusion

Answer 20

1. Relative advantage
2. Compatibility
3. Complexity
4. Trialability
5. Observability

TORCC

Question 21

Building Offering Equity requires 3 key steps:

Answer 21

1. Develop a competitive offering
2. Segment, Target, and Position effectively
3. Manage Customer Migrations
   (visionaries to pragmatists)

Question 22

Chasm

Answer 22

Gap between early adopters and early majority

Question 23

Bass Model

Answer 23

Uses social contagion theories to predict adoption rates of new products