MT631
LECTURE # 3
OUTLINE

Additional Samples of Strategic "Tools"

Product/Promotion Matrix (Don't change - Adapt - Develop vs. Don't change - Adapt)
  • Straight extension strategy
  • Product adaptation strategy
  • Communication adaptation strategy
  • Dual adaptation strategy
  • Production invention strategy

Product/Service Interaction Matrix (Degree of Differentiation vs. Customer Service Reputation)
  • Low price "knock-offs"
  • Regulated monopolies or naturally homogeneous goods
  • Unique products with patents or other protections
  • Very innovative products with exceptional service

Competitive Advantage Matrix (Differentiation vs. Cost Leadership)
  • Competitive advantage
  • Competitive parity
  • Competitive disadvantage

In-class Team Exercise and Discussion

Segment/Brand Assignments using Multiple Attributes/Benefits
  • Ordinal importance rankings
  • Positive-neutral-negative valences on beliefs
  • Varied composition heuristics

Remarkable Consistencies in Results Despite Substantial Differences in Analytic Procedure

Need for Conceptual Foundation
  • Consumer decision process
  • Extended model - assumed relatively high risk and involvement levels
  • Basic form of a multi-attribute model & examples of other weighted mutliplicative processes
    • Attitude models
    • G. E. portfolio model
    • Fast food perceptual map - recall for past MT630 students
  • Consumer decision rules
    • Compensatory
    • Lexicographic
    • Conjunctive
    • Disjunctive

Extending the Analysis Beyond the Status Quo to Guide Strategy
  • Attempts to alter evaluative beliefs via product repositioning
  • Efforts to encourage the adoption of new criteria
  • Potential long term influences on importance rankings

Homework Assignment

Given
  • Utility part-worth estimates
  • Ratio scale importance scores
Tasks to Perform
  • Invoke compensatory model to assign each segment to a brand
  • Project market shares
  • Determine existing brand/segment's vulnerability
  • Formulate attack strategy to assault an existing brands position

The listings above are to provide structural assistance to your study.
They are not attended to be inclusive of every item/topic that was presented
in the lecture period.