In this work, a summary of the fundamental elements of marketing and product portfolios is made, defining each one of the elements that this topic addresses.
CHAPTER I: STATE OF THE ART.
1.1 Service marketing and its characteristics.
The marketing concept given by the American Marketing Asosiation will be taken, as it is considered the most complete when including the term "exchange", it also takes into account the satisfaction of both individuals and the objectives of the company.
“Marketing is the process of planning and executing the conception, pricing, communication and distribution; to devise products and services to create exchanges that satisfy the individuals and objectives of the company ”
Due to the large generic differences that exist between products and services, services are very difficult to manage using exclusively a traditional approach to marketing, which makes service marketing to differ greatly from production, so its particularities and in a flexible context.
1.1.1 Marketing Mix
The term marketing mix created by Neil Borden over four decades ago has been refined from the long initial list of ingredients to the well-known four Ps of marketing, which are four broad categories: Product, Price, Promotion, and Place (KOTLER 1998). Similar terms of: product, price, communication and distribution will be used in this work. These variables for the service mix will be briefly analyzed below:
- Product
In recent years, an increasing number of service businesses have begun to talk about their "products", in terms previously associated with manufactured goods. A product implies a "service package" and also the ability to differentiate one package of products from others. Service companies can also differentiate their various products in a similar way to the models offered in the manufacturing context. Most service companies offer a product line, rather than a single product. Some of these products are different from each other. In responses to changing market opportunities, companies can review the mix of products they offer.
Products, like living things, undergo a process of birth, growth, maturity and death, which can be measured in terms of sales. The existence of basic needs in consumers that must be satisfied, but which are satisfied by products that evolve over time, replacing one another in succession, is what is called the product life cycle. In this the following phases can be distinguished: introduction, maturity, saturation and decline.
Due to this, the product portfolio of a company must be subject to a permanent review and adjustment process so that the stated objectives can be achieved. The importance of these decisions, given their strategic nature, means that the approaches to products must take into account a series of general factors that affect the company as a whole. A balance in the product portfolio is necessary as a way to guarantee the survival of the company. The financial importance of these actions, both from the point of view of production and marketing, establishes a restriction to the extent that it must be adjusted to financial availability.
The success of service marketing depends not only on a good performance in the provision of existing services, but also in the continuous improvement of these and the creation of new ones.
- Price
Price is the only element in the marketing mix that provides income, the others produce only costs. For this reason, pricing and competition between them was ranked as the most important problem in the opinion of marketing executives in the mid-1980s. According to (VELASCO 1994) service businesses use a wide variety of terms to describe the prices they set. But there are several costs that customers may incur when they use a service, these can be: time, physical effort, physical cost (mental effort, feeling of fear, etc.) and sensory costs (supporting noise, tastes, odors or unpleasant temperatures, among others).
- Communication
Communication plays a key role in positioning an organization and its products in the market. It is used to inform customers about the company and its products, to persuade customers from a specific product, offers a better solution for the needs of a particular customer and to remind customers of the availability of the product and motivate them for them to act.
The communications mix is a subset of the marketing mix that is made up of various forms of communication and also encompasses a variety of strategic elements, including personal selling, customer services, advertisements (which can be broadcast on radio, television, cinema, Internet, newspapers, magazines, outdoor billboards and advertisements, fax mail, e-mail, etc.), sales promotion, advertising, public relations and corporate designs.
The two best known components in the communication mix are: advertising and promotion.
Advertising is the intangible service, performed by human beings, it is very different from advertising physical goods. In order to design effective advertising of services, it must be taken into account that the service is a function, rather than an objective, that verbal advertising should be used as much as possible and that difficulties with understanding, the set evoked and the evaluation. Advertising must help the client during the pre-consumption stage, incorporating it into internal operations, as well as the entity's rules and policy. Advertising influences the cognitive plans that are the basis for determining the quality of service during consumption and after consumption (RUSEL and LANE 1994).
Promotion is a set of marketing activities that are almost always period-specific, customer groups, or priced, that encourage a direct response from consumers or marketing intermediaries by offering additional benefits. Promotions reduce the risk for first-time purchase customers and therefore encourages them to try. Price promotions are very useful for adjusting fluctuations in supply and demand. It is possible to effectively charge different prices to different market segments for the same service when one group receives a promotional discount and the other does not. (AGUILAR 1990).
- Distribution
When the nature of the service process requires customers to visit the service location, they can be asked to actively participate in the service creation, delivery and consumption process. The service delivery system consists of visible elements of the service operation system and may include facilities, service equipment and even other customers. The design of this physical environment (called servicescape by Bitner) is often an extremely important determinant of customer satisfaction, and can play an important role in distinguishing between different service providers. In the case of services provided remotely, the physical provision system can be replaced by an electronic one, thus radically changing the service experience.
2.2 The "Product" as a commercial variable.
Of all the marketing variables that the company can influence, the product is undoubtedly the most important. Because of their products they know it, value it or reject it in the market. Over the years, the product contributes to creating the image of the company. The more important is the image of the company and the more sophisticated market segments it satisfies, the visibility of the company will be present in all its products.
The product is configured as the core of management within the context of the marketing strategy, since its situation conditions the performance of the company with the other variables (price, communication and distribution channels), therefore these variables of the strategy Marketing are differentiating aspects that allow achieving a certain positioning of the product itself in the market.
1.2.1 Classification of products.
The discussions on the classification of products have led to a multitude of opinions, all of them valid, but which have only managed to create a climate of lack of coherence between the various forms.
According to (KOTLER 1988) , products can be very diverse in nature, being able to be classified according to different criteria:
According to its duration or tangibility:
- Non-durable consumer goods: they are those that, being tangible, are usually consumed quickly. Example: beer, soap or salt. Durable consumer goods: those that are tangible and can generally be used many times. Examples: refrigerators, washing machines or clothing. Services: are activities, benefits or satisfactions that are offered for sale. Examples: a haircut or home repairs.
According to consumer shopping habits:
- Coexistence goods: they are those that the consumer frequently acquires immediately with a minimum of effort when making comparisons and deciding. Example: cigarettes, newspapers, or soaps. They can be divided into routine assets, impulse purchases and emergency purchases. Routine goods: they are those that the consumer usually buys, examples: popular cigar, Cubita coffee and Olive oil. Impulsive purchase goods: they are purchased without any planning or search effort. They are available in many places, because consumers generally do not look for them, examples: the chocolates and newspapers that are located near the boxes in the points of sale, because the buyers have not thought about their purchase until they have seen them. Emergency assets:They are bought when an urgent need arises, examples: an umbrella during a storm or a few drops during the first snow of winter.
- Purchase Goods: these goods are those acquired by the consumer through a selection process from among others, based on convenience, quality, price and style, for example: furniture, clothing, second-hand cars or household appliances. entity. They can be divided into homogeneous or heterogeneous assets.
- Homogeneous goods: they are those that the buyer considers similar in quantity but sufficiently different in price to justify more comparisons. Heterogeneous goods: they are those that the seller of purchasing goods must possess in a wide variety to satisfy individual tastes and have a sales force well prepared to provide information and prepare customers Specialty goods: those products that have unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort, example: automobiles, photographic machines and suits. Unwanted goods: they are those whose existence is not known by the consumer or who, knowing it, does not want to buy, examples: life insurance,the graves and tombstones in the cemetery.
According to (BERTRÁN 1994) , products can be classified according to different criteria:
Due to the nature of the product:
- Consumer, Industrial, Services
For consumer purchase mobiles:
- Rational: price, quality, delivery and after-sales service. Emotional: social prestige, anxiety and pleasure.
For the returns obtained by the company, according to BCG:
- Star product: are those products that have a high market share in a growth market. Dairy cow product: are those products that have a high market share in a stabilized market. Dog product: are those products that have a low market share. in a stabilized or low growth market. Product dilemma: those products that have a low market share in a market with strong growth.
According to (CRUZ 1990) , products can be very varied in nature, where they can be classified according to different criteria:
For its tangibility:
- GoodsService: it is a set of activities that are offered for sale, whose main characteristic is to be intangible, perishable and not standardized.
For the use of the product:
- Durable: they are those that are used repeatedly over time, for example: homes, cars, household appliances. Non-durable: they are those that are used once or a few times, for example: food, newspapers, etc.
Depending on the buyers:
- Industrial: they are those sold to produce other goods or services, unlike those sold primarily to the final consumer, examples: supplies of raw materials and components, capital goods, supplies and services.
According to purchase effort:
- Convenience: are those products that are purchased with a minimum of effort, can be divided into products for use and consumption, impulse purchase or emergency. Products for use and consumption are purchased regularly and routinely, with little prior preparation and strong link to the brand, example: milk, drinks and soft drinks.
- Impulse purchase products: those that are bought without any planning prior to entering the commercial establishment, for example: chocolate, chewing gums and magazines. Emergency products: those that are necessary to deal with something unexpected, for example: band-aids, aspirin and umbrellas.
According to (RECALDE 2003) the products can be classified according to their nature and according to their use or destination.
Depending on the nature of the products:
- Material products: they are products of a tangible nature. They can be durable or non-durable goods. Durable goods are those that can be consumed more than once such as a car or a refrigerator. Durable goods are those that once consumed are useless such as bread, fish, etc. Services: these are products of an intangible nature, such as insurance, university education, etc.
Depending on the use or destination of the products:
Based on this classification, we can divide products into two main groups: consumer goods and organizational goods. Consumer goods are those that are acquired to satisfy personal and family needs, and organizational goods are those that are acquired to produce other goods.
- Consumer products : Consumer products must be divided into four categories:
- Convenience products. They are usually cheap products, which are bought frequently, and the purchase of which is not an effort for the consumer. Within the convenience products, we can distinguish different categories, such as products in common use, which are those that are periodically purchased by consumers, such as bread, newspaper, etc. The impulse products that are those products that the consumer did not plan to buy and that are placed in the boxes of the supermarkets to provoke the immediate need to buy them, examples are chocolates, candies. Finally there are the emergency products that are products in which the need to buy them arises unexpectedly, such as aspirin when our head suddenly hurts.It is important to know that a product is of convenience because it needs the maximum coverage of the market possible, the most appropriate communication is advertising and special attention must be paid to the design of the product to its packaging and presentation because it is what really calls the customer. Sporadic purchase products: are those that consumers acquire after a long period of search and comparison between brands, establishments, qualities, etc. They are usually durable products, such as clothing, household appliances, cars, etc. The distribution of these products must be less intensive than convenience products because the purchase is less frequent, special attention must be paid to the sales force, and various related services such as a good guarantee, installation, must be incorporated into the product.financing, etc. Specialty products: these are products that, in view of customers, have a series of attributes that make them unique and consumers are willing to do anything to get them. They are usually jewelry, designer products, exotic fruits, etc. The distribution of these products is very selective because customers are willing to buy them anywhere and wherever, and promotional efforts must focus on the sales force, and prices are usually very high. Products not wanted. They are those products that the client has not thought about buying, either because they are unaware of them or because they do not need them. The clearest example is that of insurance, encyclopedias, etc. Promotions with advertising and the sales force are very important here.They are products that, in view of customers, have a series of attributes that make them unique and consumers are willing to do anything to get them. They are usually jewelry, designer products, exotic fruits, etc. The distribution of these products is very selective because customers are willing to buy them anywhere and wherever, and promotional efforts must focus on the sales force, and prices are usually very high. Products not wanted. They are those products that the client has not thought about buying, either because they are unaware of them or because they do not need them. The clearest example is that of insurance, encyclopedias, etc. Promotions with advertising and the sales force are very important here.They are products that, in view of customers, have a series of attributes that make them unique and consumers are willing to do anything to get them. They are usually jewelry, designer products, exotic fruits, etc. The distribution of these products is very selective because customers are willing to buy them anywhere and wherever, and promotional efforts must focus on the sales force, and prices are usually very high. Products not wanted. They are those products that the client has not thought about buying, either because they are unaware of them or because they do not need them. The clearest example is that of insurance, encyclopedias, etc. Promotions with advertising and the sales force are very important here.
After analyzing the criteria set forth above by different authors on product classifications, it is concluded that each company can make its classification based on the different individual and particular characteristics of its products.
1.2.2 Five dimensions of a product.
In planning the supply of a product, according to (KOTLER 1988), managers need to think in five dimensions (Annex # 1):
- Gross or Basic Benefit: it is the fundamental level. It is the service or benefit that the consumer actually buys (product - service). Generic Product: it is a basic version of the product. Expected Product: it is a set of attributes and conditions that buyers usually expect and agree with when they buy the product. Increased Product: includes additional services and benefits that distinguish the company's offer from the competition's offer. Potential Product: they are all the increases and transformations that this product will ultimately carry in the future. This is where companies aggressively research new ways to satisfy their customers and differentiate their offerings.
However (RECALDE 2003) states that there are four elements that make up the product: the basic function, the tangible characteristics, the related services, the intangible elements.
- The basic function: Refers to the basic need that a product must satisfy. The basic function allows you to differentiate the articles in certain kinds of products. Tangible characteristics: We can distinguish three broad categories of tangible attributes: technical characteristics, functional characteristics, and aesthetic characteristics.
- When we talk about technical characteristics, we are referring to everything related to the physical and chemical composition of the product, manufacturing techniques, even quality. Technical characteristics as long as they are perceived by the consumer are essential in differentiating our product from that of our competitors. Functional characteristics. They refer to the packaging, the way of presenting the product, the packaging, in short, the way of presenting the product. It is also essential when differentiating our product from the competition.Aesthetic characteristics: it refers to the entire external aspect of the product, those responsible for marketing know how important these characteristics are for consumers and for product differentiation,for this reason they try to give an aspect to the articles that combine functionality and beauty.
- Related services: Many are the products that incorporate a series of services that enrich them and that intervene in the purchasing decision process of consumers. These services are, for example, transportation, financing, warranty, installation, etc. The intangible elements: They are a series of attributes that are perceived by the consumer as a symbolic content of it. For example, a Rolls Royce is perceived as more than just a car.
According to the different elements of a product, we can speak, according to (KOTLER 1998), of three different levels of products:
- The basic product: which is the idea or service that an article presents. The real product: a basic product becomes a real product when it is added what is the brand, the labeling, the packaging and other tangible characteristics. The increased product: it is a real product that incorporates a series of related services such as warranty, installation, good financing, etc.
1.2.4 Product analysis levels.
We can distinguish two levels of analysis: from the point of view of the market and from the perspective of the company.
- From the market point of view:
- Product / brand: It is an article offered by a company or a distributor under its brand.; for example, Carolina Herrera neighborhood 212, a company's or a brand's product line. It is a homogeneous family of products offered by a company to a brand. Example: Coca-Cola carbonated soft drinks. Generic product: Set of products of the same nature that compete in a market and offer the same benefits to their consumers; for example, the different automobile brands that compete in the same segment. Product class: Set of products offered to a market and serving the same basic function; for example, utility or sports cars. Product type. Set of products that satisfy a generic need; for example automobiles.
- From the point of view of the company.
- Product range: set of product lines of the company that corresponds to a certain category of need, a market or a certain technology, for example the range of soft drinks products: soft drinks with gas, without gas, with juice, without juice, etc. Product system: Combination of complementary products offered by the company to fulfill the same function; for example, Pantene products: shampoos, softeners, lacquers, all of them fulfill the function of attending to personal hygiene. Global Offer. It is given by all the products offered by the company. Also called product portfolio or product mix.
1.2.5 Product strategy
O'Shaughnessy proposes to classify the product strategies according to the objective pursued in terms of income, the strategy to follow and the necessary or possible actions, which is represented graphically in figure 1.1
In this case, the objectives are to increase income or obtain stable income by evaluating the different variables (cost reduction, product improvement and development of the product line), the most appropriate according to the available information and at the discretion of the experts consulted is work on the development of the product line.
1.3 The product portfolio.
Most companies do not market a single product and offer the market a variety of generally related products. All these products are called "The Product Portfolio" or "Product Portfolio" developed by a company. (MUNIZ sa)
The product portfolio is given by the totality of products offered by a company to the market, that is, its global offer. The product portfolio in turn, can be divided into several subgroups of products that will form the different ranges.
Ranges can be defined as groups of products that are part of the global offer and that have relatively homogeneous characteristics. In turn, the range can be divided into different product lines.
A product line is a group of products closely related because they perform similar functions, they are sold to the same group of consumers, through the same distribution channels, at a similar price range. (KOTLER 1988).
1.3.1 Dimensions of the product range.
The range can be analyzed from depth, breadth, coherence, and length.
The depth of the line is given by the totality of products that make up a line, that is, the total number of products that are within the same line.
The breadth of the range is made up of the total number of product lines that make up the range.
The coherence of the range is given by the degree of homogeneity of the products that make it up.
And length is the total number of products in a range.
I.3.2 Internal analysis of the range
The internal analysis of the range can be carried out by analyzing the following dimensions: the role assigned to the product, the sales figure and the contribution to profit.
- The role assigned to the product.
The analysis of the range can be done from the point of view of the role of each product in the range. Therefore there are the following types of products:
- Leading product: it is that product that has a high level of sales and is the first to generate benefits. Product of attraction: its main mission is to attract the consumer and directly or indirectly favor the sale of the leading product. Products of the future: these are products whose mission is to replace in the future the leading product or products that are in the declining phase of their life cycle. Tactical products: they have the mission to attack the competition or to give a quick answer to the needs of the consumers. Prestigious products: they are those that do not have a very high level of sales but that serve to revalue the image of the range. Regulatory products: are those that try to cushion fluctuations in sales,when there is a parking of it.
- Sales figure.
The sales figure is also an ideal variable to analyze the range. Normally the law 20/80 is given, that is to say that 20% of the products in the range generate 80% of the benefits of the same.
- Contribution to profit.
When conducting an analysis based on sales, it is ideal to complement it with analysis based on the contribution to the profit of the range.
We know that: V * = CF / MV where;
V *: is the level of sales that nullifies the profit.
CF: are the fixed costs.
MV: margin on the sale price.
When sales are greater than V *, it is known that costs, fixed and variable, are exceeded, and profits are being generated.
1.4 Analysis of the product portfolio.
The company must determine the mix of products that it can offer abroad, in order to optimize its results. For this, it is necessary to analyze your product portfolio.
To do this, starting in the 1960s, the Boston Consulting Group (BCG) imagined a graphic representation of the company's product portfolio or set of strategic sectors in which the company operates.
1.4.1 Emergence and evolution of the BCG matrix.
In the 1960s, the concept of the experience curve introduced by the BCG had a significant impact on the way of thinking of business people. If rapid growth in market share was as important as the curve suggested, then the usually used allocation of resources - in which each business unit financed its own growth - seemed to become a formula for failure.
Businesses with a low market share but great growth potential would never generate enough money to win the race to the experience curve. Those with a large market share but little chance of growth would generate more money than they could use productively.
The BCG developed a simple conceptual structure called the Demand Growth-Market Share Matrix to help managers determine when they should consider using the earnings of one product in its maturity stage to finance the growth of other products.
So great was the initial success of the BCG Matrix that most of the following two decades became the most widely used method of capital allocation in multi-product companies. "Stars," "Dogs," "Dairy Cows," and "Dilemmas" had become part of the usual language of business people.
Despite the fact that the more sophisticated capital market and competitive scenario present in the late 1980s and 1990s made the use of the BCG Matrix less frequent, it was still reference material and basic text within the management of product portfolios.
I.4.2 Strategies proposed by the BCG approach
The BCG approach allows assessing whether the product portfolio is balanced and proposes four types of basic strategies. Determining which is the most appropriate depends, among other reasons, on the current relative position of the product in the market, its life cycle, the resources available to the company, and the possible reactions of the competition. These basic strategies are:
- Create: A strategy oriented towards an improved market position with the possibility of depriving yourself of short-term income to achieve this objective. This strategy is particularly suitable for dilemmas, whose participation must be increased if they are to become stars. Maintain: a strategy designed to preserve the market position of a business sector. This strategy is particularly suitable for strong dairy cows if they want to continue to yield a positive and broad cash flow. Reduce:a strategy that aims to obtain a short-term increase and a flow of funds without considering the long-term effect. This strategy is particularly suitable for a weak cow whose future is weak and for which greater financial resources are needed. Also, it can be used with dilemmas and dogs. Stripping: A strategy that aims at selling or liquidating the business because the resources can be better used elsewhere. This strategy is particularly suitable for dogs and for dilemmas that the company decides it cannot finance in its growth.
The analysis of the product portfolio is in a way a strategic x-ray of the company. It reveals, when applicable, certain fundamental imbalances between sectors that contribute to survival, growth (dilemmas, stars) and profits (dairy cows). By balancing the portfolio, the manager-strategist seeks the growth balance that allows him to take full advantage of the company's sustainable growth capacity.
1.4.3 Models for the analysis of product portfolios.
The analysis of the portfolio of products-markets with which a company operates is fundamental for the design of a strategy, both with the present situation of the products already existing markets and their possible evolution, as well as to detect the possible commercial opportunities that arise and threats from the competition. To do this, different models have been developed since the 1960s, including:
- Matrix "Growth- Relative market share" (BCG).
The simplest, most quantitative and best-known method of analyzing products or strategy centers is the one developed by the Boston Consulting Group in the late 1960s and is embodied in the growth-market share matrix. This method is also known as BCG Analysis or Portfolio Analysis.
It is a tool that serves to make accurate and non-intuitive decisions regarding the business portfolio or portfolios and the position it occupies taking into account the definition of these products or markets in terms of the market, that is, having as a starting point the customer satisfaction process.
The BCG matrix is built around two criteria: the growth rate of the reference market, which serves as an indicator of attractiveness, and the market share relative to the leader, which is used as an indicator of competitiveness. With these criteria a double entry table is formed where in the dimension "Market Growth" the reference point is the growth rate of the Gross National Product or the weighted average of the growth rate of each activity. In the “Relative Market Share” dimension, the reference point in the rate is usually located at 0.5, being weak below this point and strong above (LAMBIN 1995). Thus, four quadrants are obtained that obtain financial situations for each product, which must be administered in different ways. (Appendix 2).
The main merit of this method is the solidity of the theoretical development that leads to establishing a rigorous relationship between strategic positioning and financial result. In addition, the method is supported by objective indicators of attractiveness and competitiveness, thus reducing the risk of subjectivity, and the matrix provides a visual and expressive synthesis of the set of activities of the company, which facilitates communication.
The main difficulty of the method is that it does not take into account the external competitive advantage and measurement problems may arise as to, for example, what competitors to compare with or how to determine the market rate. Furthermore, the resulting recommendations are very general, insufficient to effectively guide the policies of the marketing mix.
Conformation of the BCG matrix
A period will be selected to carry out the study, requesting the following data from the company:
- Number of units sold, total sale. Number of presentations per product. Sale price. Unit cost.
The portfolio will be formed with the products to be analyzed using the indicators shown in table I.1
| Product name | TO |
| Quantity of units sold | B |
| Total sale | C |
| Sales index | D |
| No. of presentations | AND |
| Total number of presentations | F |
| Presentation index | G |
| Popularity Index | H |
| Sale price | I |
| Unit cost | J |
| MGB | K |
| Total cost | L |
| MBGT | M |
Table I.1 Indicators for the Product Portfolio
Sales Index: IV = Total plate sales / General sales total.
IV = B / C
Presentation Index: Ipr = Total plate presentations / General total presentations
Ipr = E / F
Popularity Index. Ip = Sales Index / Presentation Index.
Ip = D / G
Gross profit margin (unit): MBG = Sale-Cost Price per unit.
MBG = I - J
Total Cost = Unit Cost * Units Sold.
CT = J * B
Gross Profit Margin Total = Total Sale - Total Cost
MBGT = C - L
Below are the expressions for calculating the average gross profit margin and popularity index necessary for the final preparation of the matrix as well as the location of the products in it. See table I.2 and I.3.
| MBGTP | Weighted gross profit margin | MBGP = Sum MBGT
Qty of products That are offered |
| IPM | Average Popularity Index | Ipm = ((Ip1) (Ip2) (Ip3) …… (IpN)) 1 / N |
Table I.1 MBG calculation expressions and Popularity Index.
Cow |
Star | ||||
Dog |
Unknown |
Table I.3 Location of the products in the BCG Matrix.
- Positioning Maps.
Developing a positioning map is a useful way to graphically represent consumer perceptions of the product. Maps are generally limited to two attributes, even though three-dimensional models can be used to describe three of those attributes. When more than three dimensions are required to describe the performance of a product in a given framework, it is necessary to draw a series of separate graphs. Of course, a computer model can handle as many attributes as relevant (LOVELOCK and PRENTICE 1997).
Information about the position of a product in relation to any attribute can be derived from market data and / or derived from representative consumer classifications. If consumer perceptions of service characteristics differ markedly from reality (management point of view), some marketing efforts will be necessary to change those perceptions.
Maps make the job easier by being easier to understand than data tables or prose paragraphs. They allow an understanding of the nature of threats and competitive opportunities; and confirms or dispels beliefs that a service occupies a unique niche in the market. When combined with information on preferences from different segments, including the level of demand that might be anticipated from these segments, positioning maps may suggest opportunities for the creation of new services or for the positioning of existing ones in order to take advantage of the need advantage of markets that are not satisfied.
In addition to the limitations of each of the selected methods, data such as the growth rate of the reference market, the market share relative to the leader, how well the company is positioned to take advantage of market opportunities are required for its calculation., the preferences of different segments including the level of demand, etc. As this research does not have these data, these methods are not useful to us, which is why the Pareto and Kendall methods have been chosen, where only the sales figures, knowledge, experience and collaboration of the experts are needed. These methods will be expanded in the third chapter, where they will be applied in order to assess the internal positioning of the Matanzas University Consulting products.
Based on the classification made by the BCG, companies must keep their portfolio well balanced, that is, products with future prospects must be introduced to the market in categories of questioning products and star products, in addition to dairy cow products, which provide income through which investments and research and marketing actions will be carried out in the above. They can also have dog products, provided they are well differentiated and have a specific market cycle. The graphical representation of the portfolio is made using a cloud of points, placing them in the place that corresponds to them due to their market share and growth rate.
Products with great growth require capital investment to grow. Low growth products should generate excess capital. Both types are needed simultaneously.
Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on its growth opportunities. A balanced portfolio has:
- Stars whose great participation and growth ensure the future; Dairy cows that provide the resources for that future growth; eIncognitas that can be turned into stars using the resources acquired.Dogs are generally unnecessary. They are evidence of failures in trying to obtain a leadership position during the growth phase, or lack of decision to eliminate them and thus avoid further losses.
Survival, growth and profit are three organizational objectives that can be met with a balanced portfolio.
1.5 Techniques for collecting information.
There are various methods that are frequently used in the social sciences to collect information, which is the basis of any study or research that is carried out. These methods are mainly the following: questionnaires, interviews and scales.
For all of them to be useful as a basis for scientific research and studies, they must be valid and reliable, their content must be interesting, since if it is monotonous and tedious, there is a risk that the fatigue and / or boredom of the informant influence the information you offer. Preferably they should be short, since their application should last a maximum of half an hour and thus there is no risk that people will refuse to answer due to the fact that the instrument used is very long and cumbersome.
Due to the particularities of the study that was carried out, it was concluded that the most convenient method to use is the interview.
1.5.1 Interview
The interview is a technique that obtains information in a broad and open way, depending on the relationship between the interviewer and the interviewee. This makes it necessary for the interviewer to have, first and foremost, what the objectives of the survey are and what are the important problems or aspects on which he is interested in obtaining information from the interviewed subject, and secondly, to carry out with accurately and dynamically conducting the interview.
The interview is one of the two forms that the survey takes (the other is the questionnaire) and has the particularity of being carried out through a verbal process that is generally given through a "face-to-face" relationship between at least two individuals.
Types of Interviews
There are three criteria to classify the interviews:
- - According to the relationship established between the interviewee and the interviewer.
__ Telephone
__Face to face
- Depending on the form the interview takes.
- Standardized (or interview-questionnaire, also called structured)
It is one in which the questions and their sequence is uniform. In other words, the questions are asked with the same words and in the same order to each of the interviewees.
- Non-standardized (also known as unstructured)
It is one in which, unlike the previous one, the interviewee is given a theme or set of themes for them to develop.
- Semi-standardized.
It is a combination of the previous forms.
- According to the research objectives
- Exploratory: It is the type of interview that, due to the level of basic ignorance that the researcher has, aims to achieve a solution to this difficulty by obtaining certain information that allows the problem and the hypothesis to be elaborated, processed or modified. hypothesis: It is the one that is executed when the research problem and the hypothesis are completely elaborated and in accordance with the research purposes. It is aimed at obtaining information through it that allows us to verify or not the research hypotheses.
Interview Conditions
The first condition of the interview refers to the presentation, by logic between two unknown individuals who meet for the first time. Therefore the interviewer:
- Explain the purposes and objectives of the research. Explain the method of selecting the person interviewed (of course, in the simplest and most understandable way possible) Reveal the name of the entity, body, institution that is supported and that gives rise to the study in question. Will guarantee the interviewee, anonymity or confidentiality of the information. The interviewer must not express any dominant attitude towards the interviewee, nor express his own opinion. The interviewer must listen patiently and friendly; but at the same time, reasoning and critically, maintaining throughout the course of the interview a comfortable psychological environment. The interviewer, in no way should give rise to any discussion between herself and her interviewee. To return to the interview, to elements of information forgotten or abandoned,.A procedure called "inquiry technique" is used. The interviewee, in case of having to postpone the interview, will arrange the day and time of the interview and will be punctual, so as not to create an unfavorable mood. It is recommended that the The interviewer collects the information in the most faithful way possible, that is, that it is collected in a literal sense. You can use a tape recorder, shorthand or literally copy what the interviewee expressed.You must take into account that the interviewer's age and sex influences the interview.that is, that it be collected in a literal sense. You can use a tape recorder, shorthand or literally copy what the interviewee expressed.You must take into account that the interviewer's age and sex influences the interview.that is, that it be collected in a literal sense. You can use a tape recorder, shorthand or literally copy what the interviewee expressed.You must take into account that the interviewer's age and sex influences the interview.
1.6 Information analysis techniques.
1.6.1 Brainstorm.
Brainstorming is a technique for generating ideas. A group of people will present their ideas as they arise, so that each one has the opportunity to refine the ideas of others.
Discipline in the brainstorm is maintained thanks to four basic rules. However, the informality of the process generates an atmosphere of freedom. The rules are as follows:
- No evaluation.Encourage daring ideas.Take the ideas of others and contribute to them.Fight for the quantity.
HOW TO ACHIEVE THE STORM OF IDEAS?
The group leader presents the problem, for which ideas are requested. Specific and tangible ideas should be encouraged, not abstract ideas or opinions. The leader ensures that all participants understand the problem, the purpose of the session, and the process to be followed.
There are three methods for brainstorming, the most popular is the free wheel where:
- Group members spontaneously expose their ideas, and the recorder records the ideas as they are presented.
STORM OF IDEAS THROUGH ROUND-ROBIN
- The leader or recorder asks each member in turn for an idea. Participants can give their opinion on any round. The session continues until all the participants have given their opinion.
The PAPER PULL method differs markedly from the previous two:
- The leader asks the participants to write their ideas on a small piece of paper or on a card. The ideas are collected and organized.
Regardless of the method used, the results of the brainstorming session should be reviewed and evaluated.
1.6.2 Expert Method.
The expert method is a group work technique, which can be developed according to various variants, among others are:
- Brain Storming. Brain Writing. Delphi Method (Kendall's Coefficient).
In the present work, use is made, within the method of the experts, of the variant of the method of Kendall's coefficient, but for this the validation of the experts is necessary
1.6.3 Validation of Experts.
In this phase, it is necessary to gather a group of experts who are knowledgeable about the subject of research for its development.
For (Porra Ferie, 2005; Negrin Sosa, 2003 among others) the need to assess the degree of knowledge and reliability of experts is recognized, based on the application of the expert competence questionnaire, which is a very useful instrument, particularly when it is required to collect information on the experience and knowledge of a group of people related to the object of the investigation, it is an extremely useful instrument.
The questionnaire applied to the set of professionals designated to participate in the research, allows the collection of information in which the coefficient of expert competence is determined.
In the first phase of the questionnaire, it proposes to evaluate the characteristics that identify the experts.
To carry out this process it was necessary to determine:
Group of experts: They will be previously evaluated to certify that they are truly experts; through the competition coefficient.
This method is based on the systematic and interactive use of opinions of opinion of a group of experts until reaching an agreement. In this process they try to avoid influences from dominant individuals or groups and at the same time that there is feedback in order to facilitate the final agreement.
It is determined with the expression K = (Kc + Ka) / 2, where:
Kc: is the coefficient of knowledge or information that the expert has about the problem, based on the expert's own assessment on a scale of 0 to 10 and multiplied by 0.1 calculated on the expert's own assessment and Ka is the coefficient of argumentation or justification of the expert's criteria.
In its solution, experience, the capacity of the decision-maker, as well as qualified specialists and the entire group that participates in the process, acquire great importance.
Brainstorm: Gathering the information necessary to diagnose the entity. The Brainstorm is a group work tool that facilitates the emergence of new ideas on a certain topic or problem. It is a method that is used when the source of information is people and can be applied in person, blended or not. It is a method of creating group ideas widely used to identify problems, offer alternative solutions to problems or facilitate opportunities for improvement.
Expert selection process. We proceed to form a work team with experts and specialists who know the operation of the processes of the Company in question, and the policies of responsible action for the exchange of information and experiences. At this stage, a technical sheet is prepared for each of the experts. Subsequently, the proficiency coefficient (k) is calculated through the questionnaire designed for this purpose, Annex 3, which allows gathering information on the experience and knowledge of the team of people involved with the object of the investigation, as well as assessing the routes or sources that have allowed them to obtain their professional and investigative preparation.
1.6.4 Formation of the work team with qualified experts and specialists.
In this phase, the professional who underwent the evaluation as an expert is requested and one of the experts evaluates his partner, his assessment in relation to the sources that tax his knowledge and that assess the condition of specialist in the subject matter of the research object.
In this stage it is necessary to use the competence coefficient that is determined with the expression (K = Kc + Ka) / 2 where:
Kc: Knowledge or information coefficient that the expert has about a problem, calculating on the expert's own assessment.
Ka: Argumentation coefficient.
The calculation of the number of experts that were needed to carry out the validation and weighing of the instruments is made through the following expression:
N = α n where:
α: default value between 0.7 and 1 chosen by the author.
n: number of criteria.
1.6.5 Calculation of the Kendall Coefficient.
This method has a mathematical and statistical procedure that enables the reliability of the experts' criteria to be validated using the kendall coefficient (W).
This is the most versatile technique of quality control, it can be applied to determine the quality characteristics, to evaluate the quality of a product, to evaluate characteristics that cannot be measured by means of measurement. It is also used to perform the first major expansion on the Cause-Effect diagram and to estimate the loss factor.
Below are the steps to follow to carry out the method:
- Bring to the table the result of the voting of each expert Sum of all the values per row Calculation of the coefficient (T) Control of the characteristics whose value is less than the coefficient (T). Calculation of D, It is done by row and one by one. Calculation of D2, is the sum at the end of the column. Later is the Kendall coefficient (W).
® If it is met there is agreement and the study is valid
K ® Number of characteristics.
m ® Number of experts.
If W <0.5 repeats the study, if there are a number of experts greater than 7, the ones who introduce the most variation in the study should be eliminated, always respecting.
