Topic 6 B2B Product Positioning and Management

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B2B Product Positioningand Management


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andsca

peof

echnology

Landscape of Technology Adoption LifeCycle

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Technology Enthusiasts - Innovators

Innovators:

a. Explore latest innovationsb. Possess a significant influence

over product perception by

othersc. Usually lack resource

commitments

d. Try things out but move on to

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Visionaries early adopters

a. These customers desire toexploit innovation for acompetitive advantage.

a. These customers are truerevolutionaries inbusiness, but newtechnologies need to bemore customized for this

group (i.e., expensive).

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Pragmatists Early Majority

These customers:

a. Make the bulk of technologicalpurchases

b. Believe in technologicalevolution (not revolution)

c. Seek products that have proven

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Conservatives LateMajority

he

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Skeptics - Laggards

These are potentialcustomers

They are ever-present criticsof hype around new

technology

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Landscape of Technology Adoption Life Cycle0


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Strategy for High TechAdoption

1. Put innovative products in the hands oftechnology enthusiasts.

1. After a while visionaries will see thevalue of the new technology and willbegin to view it in business terms.

1. New technologies usually enjoy ahoneymoon reception from enthusiasts

and visionaries, however sales begin tofalter a chasm forms

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Chasm

A Chasm is a period of time where sales falter(and sometimes plummet) due to differencesbetween Visionaries and Pragmatists.

Visionaries want change (revolution) whereasPragmatists want change (evolution). ButPragmatists make most buying decisions inorganizations.

Pragmatists are the gateway to themainstream market. If that chasm gap cantbe bridged, often products become part ofancient history.

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Strategies to Cross theChasm

1111

One strategy to cross thechasm is for the marketer toprovide pragmatists with 100%solutions to their problemsusing the new technology.

Too many companies onlysupply a part of a solution.They are trying to besomething to all, not 100% tosome. That is unacceptable to

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Bowling Alley Strategy

Each market is like a bowlingpin. The momentum of movingone pin (with good technology

products) successfully carriesover into surroundingsegments.

The bowling alley is wheremainstream market segmentsbegins to accept the new

product, but it still has a way to

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This strategy assumes a producthas very wide appeal. Thesellers strategy is to:

1. Move as quickly as possible in gettingthe product out to the market.

2. Build distribution ASAP.

3. Drive price down to next lower pricebreak ASAP.

. This strategy demands product

leadership, operational

Tornado Strategy0


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Main Street

Once the mainstream has adoptedthe product, the aftermarketphenomenon occurs:

a. Mass marketers of the products begins tosubside.

b. Competitors force supply to exceeddemand.

c. Prices fall.d. High tech product becomes a commodity.

e. Profit growth can no longer come fromselling the commodity.

f.

Profit can only come from extending theplatform of the product to other niche-14

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B2B Product Offerings


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B2B Product Offerings

Physical Attributes

Size, shape, material composition and physicalproperties.

Service Elements Delivery, training, complaint resolution.

Advice Giving

Applications advice, Best Practice Sharing,Efficiency Enhancement.

Adaptive Space

Ability of the supplier to customize, improveproduct design or specifications to add value to


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Types of B2B ProductOfferings

Proprietary or Catalog Products

Products of pre-defined specifications, madeand stocked in anticipation of orders.

Custom-built Products A set of basic units with numerous accessories

and options. Supplied as per the selection ofoptions by customer.

Custom-Designed Products

Products designed and engineered to customerspecifications. OR designed based on ananticpated untapped need. (Airbus Super

Jumbo)


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B2B Product Positioning

Commodities

HighlyDifferentiatedProductsor

Monopoly

Products

Pricing

Buyers CoercivePower

Differentiated

Products

Supply-DemandBased

Minimal

Competitive

High

Premium

Relatively Low

Margin Market Driven Average to Low High

Role ofBranding

Corporate Branding(Service Driven)

Umbrella Branding Distinct ProductBranding

Topic 6 B2B Product Positioning and Management

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