Marketing Strategy Chapter 3: Quality Leadership

quality

is not objective as we are talking about how customers perceive the quality to be

marketing textbook defines it as: the degree to which individual customer needs are met

multidimensional concept while price is unidimensional

common quality leadership dimensions

1. functionality

2. durability

3. design

4. individualism

5. health

how do we determine which quality dimensions to use?

it is based on the relevant market and target group(s)

is quality leadership based on huge leaps forward?

no, it is mostly about incremental innovation.

think of the iPhone vs. Samsung example

establishing quality leadership

1. do I want/can to be quality leader?

2. on which dimension(s) do I want to compete

3. how do I implement the quality leadership?

do I want/can to be a quality leader?

1. internal analysis: competencies, business model, financial strength, etc.

2. external analysis: existing quality leaders, potential gaps, niches, etc.

on which quality dimension(s) do I want to compete on?

1. analyze customer needs and competitor’s fulfilment

2. choose sustainable quality dimension(s)

we can derive the evaluation criteria that is important to the consumers when choosing a product. We then evaluate potential customers and evaluate the competencies. We rate how important it is to customers

how do I implement quality leadership?

1. assure consistent quality

2. build around the quality leadership position

does quality leadership need to be perceived?

yes, just like all CA positions

other than in price leadership, it is hard to build premium image without premium delivery

implementation of premium or high quality product

other than in price leadership, it is hard to build a premium image without premium delivery.

customers expect “wow” moments. They pay a premium price, so they want premium treatment

Think of the Mercedes and the Aldi vs Albert Heijn examples

You want to sell the feeling of a big moment to the consumer

quality signals/ surrogates

communication, brand, price, design, packaging, service, etc.

when are quality signals important?

they become increasingly important as you move from left to right

search goods → experience goods → credence goods

search goods

goods whose characteristics you can research without a problem before the purchase

experience goods

existing customers can use reviews and ratings to tell others about the goods quality

credence goods

goods where the quality of the product cannot be discerned even after purchasing and using the product