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|Subject: mgt301 assignment solution Sat Jul 10, 2010 2:57 pm|| |
Brand names are armed with “reputation,” aesthetic appearance and sought
after trends. Generic brands are at bargain prices, and
mimic the look of the brands without ruining your budget. The true quality of
each is often debated, and many of these possessions serve the exact same
purpose, regardless if it’s the real thing or concealed in a generic cloak.
Niche products such as soft drinks, health drinks and New Age drinks
will be the fastest-growing subsector of the global soft drinks market as
more time pressured and active consumers look for products to stimulate and
benefit their health,
Results of studies indicate
that the sound of a brand name can communicate information about the product,
e.g. its size, speed, strength, weight, etc. Brand name sounds can convey
product-related information either in the presence or absence of supporting
The market segmentation
concept is crucial to market assessment and market strategy. Divide the
market into workable market segments -- age, income, product type, geography,
buying patterns, customer needs, or other classifications. Define your terms,
and define your market.
| After the organisation has selected its target market, the next |
stage is to decide how it wants to position itself within that chosen
segment. Positioning refers to ‘how
organisations want their consumers to see their product’. What message about the product or
service is the company trying to put across?
| Developing a positioning strategy depends much on how |
competitors position themselves. Do organisations want to develop ‘a me too’ strategy and position
themselves close to their competitors so consumers can make a direct
comparison when they purchase? Or does the organisation want to develop a
strategy which positions themselves away from their competitors?
Offering a benefit which is superior depends much on the marketing mix
strategy the organisation adopts. The pricing strategy must reflect the
benefit offered and the promotion strategy must communicate this benefit.
A successful pricing strategy is your means of making a profit
today, not of recovering costs spent a year ago. Don't use the cost of
developing your current product as the basis for its price. Instead, use the
current costs of developing your new products as the basis of the price of
your current product.
Intensive distribution ). Intensive distribution is
usually required where customers have a range of acceptable brands to chose
from. In other words, if one brand is not available, a customer will simply
Selective distribution involves a producer using a limited number of outlets in a
geographical area to sell products. An advantage of this approach is that the
producer can choose the most appropriate or best-performing outlets and focus
effort (e.g. training) on them. Selective distribution works best when
consumers are prepared to "shop around" - in other words - they
have a preference for a particular brand or price and will search out the
outlets that supply.
Exclusive distribution is an extreme form of selective distribution in which only one
wholesaler, retailer or distributor is used in a specific geographical area.
- Costs. Focus on your current and future, not
historical, costs to determine the cost basis for your pricing strategy
- Price Sensitivity. The price sensitivities of buyers shift
based on a number of factors and your pricing strategy must shift with
- Competition. Pay attention to them, but don't copy them
. . . when it comes to pricing strategy they may have no idea what
- Product Lifecycle. How you price, and what value you provide
for that price, will change as you move through the product lifecycle.
is the extent to which producers want to maintain control over how, to whom
and at what price a product is sold. If a manufacturer sells via a retailer,
they effective lose control over the final consumer price, since the retailer
sets the price and any relevant discounts or promotional offers. Similarly,
there is no guarantee for a producer that their product/(s) are actually been
stocked by the retailer. Direct distribution gives a producer much more
control over these issues.
"buyer behaviour"; how do buyer's want to
purchase the product? Do they prefer to buy from retailers, locally, via mail
order or perhaps over the Internet? Another important factor is buyer
needs for product information,
installation and servicing. Which channels are best served to provide the
customer with the information they need before buying? Does the product need
specific technical assistance either to install or service a product?
Intermediaries are often best placed to provide servicing rather than the