consumption chain

Yellowbird Marketing Solutions

The consumption chainFinding opportunities for business growth

Yellowbird Marketing Solutions

Your Consumption ChainWhere on the consumption chain can you provide value to your customers?

Copyright © 2011 Yellowbird Marketing Solutions

Awareness of needHow do customers become aware of their need for something you can provideor a problem you can solve?


The SearchHow do customers identify alternative solutions?

The key objective here is to increase product visibility.


SelectionWhy does the customer pick one solution over another?


Order & PurchaseWhat must a customer do to buy from you?

Is there something you can do at the point of sale to differentiate yourself?


DeliveryHow does your offering get from you to your customer?


PaymentHow does a customer pay?

Optimizing the payment link can improve business in multiple ways.

If the payment is more convenient, that helps to differentiate you.


ReceiptOnce the customer has the product, then what?


Installation and AssemblyHow does the customer put the product to work?


Storage and TransportWhat bothers or worries the customer about storing the product,or having access to it or watching what is happening with it?


ServiceWhat happens when the offering needs service?


Repairs and MaintenanceWhat happens when the offering needs to be repaired, or is returned or canceled?


DisposalWhat happens when the product is no longer of any use and needs to be disposed of?


Sustainable Competitive AdvantageA competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself.


Cost Leadership StrategyThis generic strategy calls for being the low cost producer in an industry for a given level of quality. The firm sells its products either at average industry prices to earn a profit higher than that of rivals, or below the average industry prices to gain market share.

Target ScopeAdvantageAdvantage

Target ScopeLow Cost Product Uniqueness

Broad(Industry Wide)

Cost LeadershipStrategy

DifferentiationStrategy

Narrow(Market Segment)

FocusStrategy(low cost)

FocusStrategy

(differentiation)


Differentiation StrategyA differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition.








FocusStrategy

(differentiation)


Focus StrategyThe focus strategy concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation. The premise is that the needs of the group can be better serviced by focusing entirely on it. A firm using a focus strategy often enjoys a high degree of customer loyalty, and this entrenched loyalty discourages other firms from competing directly.








FocusStrategy

(differentiation)


Your choiceTo be successful over the long-term, a firm must select only one of these three generic strategies. Otherwise, with more than one single generic strategy the firm will be "stuck in the middle" and will not achieve a competitive advantage.








FocusStrategy

(differentiation)

consumption chain

Business

alternative solutions

lower cost cost advantage

product visibility

low cost producer

customer pay

customer pick

average industry prices

offering needs service