Shaping The Market Offerings

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Market Offering

Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy consumer needs or wants.

Market offerings are not just limited to physical products; they can also include services such as intangible like activities or benefits offered for sale, but have no ownership. Examples of service market offerings may include:

Banking
Airline services
Medical
Hotel stays
Taxi or bus services
Home repair

Shaping the Market Offering explores three important themes:

• Managing products and services;
• Creating new products; and
• Developing pricing strategies.

Essentially there are two key components in a product offer – a package which is offered for sale at a stated price.

Pricing is a sensitive concern that in the customer’s eyes reflects perceived value in the offering and that must deliver a long-term sustainable competitive advantage to the supplier. In highly competitive markets, customers exert considerable influence on the packages that companies bring to market. The modern concept of customer-perceived value dictates that customers expect their purchases to contain both product (tangible) and service (intangible) attributes and benefits. Well-perceived value packages result in pleasant buying experiences in both consumer and business markets.

Developing new products or customer-perceived value packages is an ongoing process in modern markets. Each company acknowledges in its own way that due attention should be paid to current and anticipated changes in the market and the activities of the competition.

Understand Customer Needs
To develop an offering, you need to understand the factors that are most important to your customers. Market research enables your development team to incorporate the product features and benefits that reflect customer needs. However, it can be more difficult to identify the non-product needs that make up the total offering. If customers need components or raw materials quickly to keep production lines running, for example, including express delivery in your offering gives you an advantage over competitors that only provide standard delivery. Offering the convenience of ordering your products online, rather than visiting a store, may represent value to some of your customers.

Offer Support
Support is an important element in a customer offering if you market products that are complex, difficult to install or require regular maintenance. If you market consumer electrical products, such as home entertainment systems for example, your customers will appreciate the convenience of having a specialist install and set up the system to get the best performance. A company buying a machine tool puts value on a proactive support package that uses remote diagnostics to keep their equipment running efficiently with minimal downtime

Offering Convenience
Customer convenience is an intangible factor that can provide a strong differentiator to your offering. Auto repair shops that operate extended hours or provide a collection and delivery service offer busy customers a level of convenience that goes beyond the quality of their workmanship. A computer software company that provides customers with automated upgrades when it releases new versions reduces the time customers have to spend on upgrading. Offering business customers tailored finance deals helps them improve their cash flow and may secure you the contract.

Strong Customer Service
Quality of customer service is another intangible factor. By making courtesy calls after a customer buys a product, you can demonstrate that you offer high levels of customer care. Responding quickly to service requests gives customers confidence and peace of mind that they are dealing with a reliable supplier.