...MARKETING CONCEPTS Product Concept In this, the assumption is that a good product will sell by itself. It is believed that the quality of the product should be the primary concern of the firm. It is the concept wherein the marketing objectives are to improve the quality of the product and to add additional features. It proposes that consumers will prefer products that have better quality, performance and features as opposed to a normal product. In other words, consumers look for a product that provides most utility to them. Case 1: AUDI Cars Company Scenario: AUDI Cars Company uses this concept for this make a number of demands on their cars increase. She focuses on how she will improve, revise, and upgrade the features of the car, her accessories including the engines. She makes wide and attractive innovations on different models being produced from time to time, considering the idea that customers will be strongly persuaded for its feature. Customers who love the brand, who love cars, and even those people who never been their customer will deliberately purchase a new car from them. Before, AUDI was not as famous as what it is today. As she formed the business superbly with their creative, innovative, and class-apart designs, she has embraced this concept which has brought her on top. Another fact about AUDI, she always produces unique capability to display style, luxury and comfort all together. She comes with a new model or reviewed model from time to time to...
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...Although there are different definitions of brand positioning, probably the most common is: identifying and attempting to occupy a market niche for a brand, product or service utilizing traditional marketing placement strategies (i.e. price, promotion, distribution, packaging, and competition). Positioning is also defined as the way by which the marketers attempt to create a distinct impression in the customer's mind. Positioning is a concept in marketing which was first introduced by Jack Trout ( "Industrial Marketing" Magazine- June/1969) and then popularized by Al Ries and Jack Trout in their bestseller book "Positioning - The Battle for Your Mind." (McGraw-Hill 1981) This differs slightly from the context in which the term was first published in 1969 by Jack Trout in the paper "Positioning" is a game people play in today’s me-too market place" in the publication Industrial Marketing, in which the case is made that the typical consumer is overwhelmed with unwanted advertising, and has a natural tendency to discard all information that does not immediately find a comfortable (and empty) slot in the consumers mind. It was then expanded into their ground-breaking first book, "Positioning: The Battle for Your Mind," in which they define Positioning as "an organized system for finding a window in the mind. It is based on the concept that communication can only take place at the right time and under the right circumstances" (p. 19 of 2001 paperback edition). What most will agree on...
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...1. Give examples of needs, wants and demands that Build-A-Bear customers demonstrate, differentiating each of these three concepts. We understand a need as a basic part of the human design resulting in the state of felt deprivation. So from the article, it can be said that the Build-A-Bear consumers have a basic need of self-expression or creation. Each child that comes into a store has a distinct need to construct a bear, fueled by their own imagination. The article touches on the notion that each kid leaves, “[with] a product that they have created”. In addition, other needs that emerge are choice, playtime, free-will, individuality, stimulation, and bonding. I believe that bonding is more for the parents than the child. It fulfills a need to connect with their child by creating an experience which they can all share: “Parents love Build-A-Bear just as much as the kids do”. These needs lean into the wants, which is finding that specific place where their imaginations can run wild, i.e. make the end product. They choose what style of animal, stitch them, pick the clothes, name them, and when everything is finished, receive a birth certificate. These wants begin to take shape and ultimately form into the demands of the consumer. Build-A-Bear patrons now seek a very specific product that delivers value and satisfaction. And how Maxine Clark meets their expectations successfully is by introducing a trendy line of accessories, new store locations and popularized characters...
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...determined the Classic Airline could benefit from considering to use two different type of marketing concepts, this would increase the awareness of the services for their has been a 19 percent decrease with Classic Airlines patrons, decrease 31 percent of the remaining patrons. The activities of Classic Airlines has loyal patron. The activities of Classic Airlines has loyal patron flying less. Current economic conditions made it problematic for the other airlines and Classic Airlines to keep in line because of the less overhead and more peaks offered. There was a meeting held on the 9th of January conveying with light to their Customers Relation Management system CRM) on how the system failed to promote the organization and its customers. Classic Airlines utilize the Product Concept to tempt patrons to return to the Classic Airlines. The company believes the CRM system would be a great way of succeeding the interaction with their client and patrons. This would give the ability to the company to stay in good standings with Classis Reward members on an individual as well as group bases. The goal would be to track present and potential sales. The goal would be to inform members of the product concept in hopes of those products with the most quality, or advance features. The usage of the CRM system Classic Airline will be capable to re-join with their patrons, and the Marketing Concept patrons can be re-introduce why the improvement of Classic Airline is the most excellent choice to...
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...Question 1. - What has allowed IKEA to be successful with a relatively standardised product and product line in a business with strong cultural influence? Did adaptations to this strategy in the North American market constitute a defeat to their approach? Background and the "Ikea concept" World's largest home furnishings retail chain. Achieved international expansion in 3 major phases. Summarised its mission as to offer a wide variety, good design, good value, for "young people of all ages". Determination to maintain a standardised product strategy. Does not own manufacturing facilities. Ikea owns distribution and designs furniture. Manufacturers are subcontracted. Cost leadership strategy through high volume production and standardised items. Ikea consumers expected to supply their time for assembling work after purchase, thus becoming "prosumers". What has allowed IKEA to be successful? They were customer focused. As they were not selling through dealers - could obtain feedback directly from customers. Also, Ikea sees itself not so much as a retailer but as a central star of services. What are these universally appealing values and why were these, together with the standardised assortment, successful in so many countries worldwide? It appears that the countries Ikea entered through international expansion had already had a growing number of potential customers who were not tied to a traditional furniture image. They preferred practicality, good value, simplicity, and...
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...We have carefully studied the qualitative research output and brand positioning strategies that the Project Score team has worked on and developed. Based on further research and analysis, we strongly recommend that Saxonville launch its Italian sausage product under the new name “Italy’s Best by Saxonville”. We also recommend positioning the brand using the “Family Connection” concept. Assessment of Research Methodology Project Score team has done very well in understanding the target consumer behavior, values, and unmet needs using the four-step research methodology. Step one of the process was a round of qualitative research consisting of preparing and conducting pilot group sessions. The groups consisted of 25-50 year old housewives or heads-of-households, identified as the target consumer using Attitude and Usage (A&U) data, and helped gain the insights, behaviors and needs of this demographic. Step two of the process was a sequential round of consumer sessions where researchers used the knowledge from step one to develop themes for strategic positioning. This phase allowed researchers to get the rational and emotional benefits that the Italian-sausage-consumers are looking for: making a quick and wholesome meal that the family could enjoy together, despite their hectic schedules. By analyzing the themes of Family Connection, Clever Cooking, Confidence, Appreciation, Quick and Easy, and Tradition, the team was in a better position to decide where their company had...
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...REIMAGINING THE BEAUTY BUSINESS JANE PARK LEFT HER HIGH-POWERED JOB AT STARBUCKS TO LAUNCH JULEP, WHERE SHE'S USING HER BEST CUSTOMERS TO HELP IMPROVE THE BEAUTY-PRODUCT BUSINESS. BY TAFFY BRODESSER- AKNER She is reimagining the entire enterprise of selling beauty merchandise to women, from product design to the transaction experience. During her four years at Starbucks, Jane Park developed a keen understanding of just how crucial the happiness of the customer is at every turn. "It's about thinking through every step of the customer journey," she says. When she launched Julep, Park's first move was to open a small chain of beauty parlors. These brick-and-mortar outposts-- carefully designed to encourage social interaction via communal spaces with movable furniture--function as mini labs in which to test products on actual customers. Park trained facialists and vernisseurs (a term that is to manicurist as barista is to coffee pourer) to listen closely to reactions and report back. Julep uses that info to tweak details such as colors, packaging, and scents. "FEEDBACK CAN BE BRUTALLY HONEST; ONLY ABOUT A THIRD OF THE CONCEPTS JULEP INITIATES MAKE IT TO MARKET. "THE IDEA OF FAILING FAST HAS BEEN PART OF OUR DNA," SAYS PARK. After Julep launched its own e-commerce site in December 2011, it expanded the test- lab concept into the digital sphere. The company now has a core group of about 5,000 customers, known as the Idea Lab, who've been culled from interactions over social media...
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...Household Products Limited Q1. No, the company should launch nationally. The data to support this is as follows: The actions we suggest for this product are: i) Change the fragrance – jasmine is so been there done that ii) Maybe target those segments where Jaimala is not a leader iii) Use the non-animal fat appeal in a different way; appeal to the animal conservationists, the self-styled Maneka Gandhis and those who have an issue with rubbing animal products all over themselves. Q2. Process followed to introduce the new product 1) Idea generation a. High price sector b. More profitable, faster growth 2) Concept development a. Perfume section selected out of soaps with medical benefits, perfumed soaps and soaps with cosmetic appeal b. Jasmine has connotations of luxury c. New added benefit- Purity- made from pure vegetable oil 3) Business Analysis a. Feasibility report b. Pricing- Rs. 7.50 per cake 4) Product & Advertising development a. 2 different jasmine perfumes developed b. Product test- Comparison with each other and with Jaimala, 3 panels of consumers consisting of women in the age group of 18-35 years chosen. One of the perfumes was found to be superior to the other and marginally more preferable than Jaimala’s. This perfume was chosen. c. Advertising campaign- focus on purity and luxury 5) Test marketing a. Indore and Hyderabad...
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...what way or ways to make money. In short, the beverage company to make money by selling drinks; Express company to make money by delivery; Internet companies through the click rate to make money; Communications companies by receiving spending money; The supermarket through the platform and storage to make money, and so on. As long as there is place of making money, there is a business model. Along with the market demand is becoming more and more clear and increasing resources accurate definition, an opportunity to beyond its basic form, gradually evolved into the creative concept (commercial), including how to meet the market demand or core resource allocation plan. With their own ascension of the concept of business, it is more complex, including the product/service concept, the market concept, supply chain/marketing/operations concept (cardozo (1996), and the accurate and differentiation of creative concept (commercial) gradually mature eventually evolved into the perfect business model, to form a combined market demand and resource system. Business model is a kind of contains a series of elements and their relations of conceptual tools, to clarify the business logic of a particular...
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...Guillermo’s Furniture Store Concepts and Principles of Guillermo’s Store Kendall Norman II University of Phoenix Corporate Finance/571 The goal of this paper is to briefly discuss the Guillermo Furniture Store scenario while pointing out and tying key financial concepts and principles discussed in the textbook. The Guillermo Furniture store scenario is about a local furniture manufacturer whose business is located in Sonora, Mexico. He has enjoyed several years of success without any threat of competition. Most recently competition has come about from two different directions. Guillermo has competition via a new international furniture manufacturer who makes the same furniture with better precision, in less time, and at a much cheaper price. The next type of competition comes through the way of development of a new international airport. This is a problem because this airport development will need labor workers. This need will surely drive up the cost of wages, and thus force Guillermo’s hand in the way of increasing his wages for his employees. This is one concept from the text that will be discussed in correlation to Guillermo’s furniture store. Some of the other concepts and/or principles that will be branched into are the concepts of risk aversion, diversification, specification, and time value of money, as well as, the behavior principle, the self interested behavior, and finally the Comparative Advantage Principle. The combination of two forces of...
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...Guillermo Furniture Store Concepts Paper Guillermo Furniture Store in Sonora, Mexico is the largest manufacturing company in the area ("GFS Scenario," n.d.). Guillermo Navallez, the owner, is now facing the challenges of competition. With competitors on the rise, Guillermo Navallez needs to evaluate current processes and determine where “change or improvements” are required to remain competitive and financially stable. This paper will explain at least four finance concepts and how they relate to the scenario for the Guillermo Furniture Store. Finance Concepts The first concept noticed in this scenario is the Principle of Self-Interest Behavior. This principle states that people tend to act or do what is best for them. The concept relates to the Guillermo Furniture Store scenario because Mr. Navallez is not considering expanding by acquiring or merging with another company for various reasons. Mr. Navallez fears expanding or merging would drain overhead costs, increase management responsibilities, and negatively affect family time (Emery, Finnerty, & Stowe, 2007). By not considering expansion or merger Mr. Navallez could put his business future in jeopardy which is an example of opportunity cost. Another concept noticed is the Principle of Two Sided Transaction. This principle states that there are two sides to every transaction (Emery et al., 2007). The concept relates to the scenario by Mr. Navallez becoming a distributor for his second competitor, who operates...
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...include: stability and change, individual and team, long and short term, autocratic and participatory and my topic, cost and quality. Any of these pairs are known to counter the other. In my case, it is important to note that when quality improves, cost generally increases and vice versa. Throughout this paper I will discuss managerial approaches to utilize these two concepts to your advantage without ever overlooking either of them. It is important to embrace the fact that there are polarities everywhere we turn and instead of trying to fight against them, we should develop their concepts to make us more complete. Larry Hirschhorn has argued that in order for managers to become proficient in managing polarities, they must develop a set of “rules of thumb” for when they encounter different circumstances. They establish these rules with the hopes of somewhat standardizing their way of thinking as well as how to allocate resources for each instance. The guidelines are generally developed to recognize patterns and opportunities. Hirschhorn recommends managers create a 2 x 2 table to help illustrate this concept and to categorize its different states. Each axis would include a “hi” and “lo” status with the top right box representing the “Hi-Hi” state. The “Hi-Hi” state would represent the situation which required the expert’s immediate attention (Hirschhorn, 2001, p. 12) Below is an example of a polarity map for my argument. Competitive Advantage Goods are manufactured...
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...space, not longer than 15 pages. • Submit digitally via Moodle. Assignment Description Part I Create a report which reviews the business of the selected startup and the context in which it operates. This report should be based on available public information. The report should include at least the following elements: • • • The Business Concept Summary The Competitive Landscape & Context A Description of the company and its Business Model, utilizing the 9 building blocks discussed in class. • SWOT style analysis . The Business Concept Summary should be concise, not longer than one page, may be shorter. Make sure it covers a synopsis of the company’s business. Summary should cover the following elements (as applicable to your company): Market / Problem / Need, Customer, Solution / Product, Uniqueness / Value, Revenue source / How the company expects to make money. In the Competition and Landscape section, make sure you describe major competitors and specific market attribute. In the business model and competition sections you should make sure you relate to customer pain, customer identification & segments, solution fit, product /services pricing, sales channels, differentiation etc. Where applicable, when describing the company use the terminology we used in class, identify the relevant forces and...
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...A Report - Microfridge: The Concept by Group 3A Background and concept of the product In 1987, Mr. Robert Bennett wanted to explore and exploit his idea to combine a refrigerator, freezer, and 500-watt microwave oven into a single unit called “Microfridge”. He is 31 years old and has a Master’s degree in engineering. He had devised electronic circuitry that shut off power to the refrigerator/freezer whenever the microwave was switched on. A hot plate and a refrigerator would draw 20 amps whereas the unit he designed would never pull more than 10 amps of current. Financials To this end, he approached a number of major electronic goods’ manufacturers and Samsung and Sanyo agreed to consider its production. Sanyo offered to provide the product at the rate of $263 per unit. According to them, the estimation of upfront tooling payment was $170,000. Following that, Bennett added $300,000 for the first year of selling and administration hoping he would earn a return of 15% of the selling price (Selling price of $309 on Sanyo’s Landed price). He also is planning to leave his job and use the proceeds of $50000 in funding. Surveys To go ahead with his idea, Bennett approached Boston’s Atlantic Research to conduct interviews with 200 Massachusetts. This gave him an idea about the demand of the product in the market and his end customers’ expectations. His research found that students were interested in the concept of micro-fridge because 90% of the students were using hazardous appliance...
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...Question 1. - What has allowed IKEA to be successful with a relatively standardised product and product line in a business with strong cultural influence? Did adaptations to this strategy in the North American market constitute a defeat to their approach? Background and the "Ikea concept" World's largest home furnishings retail chain. Achieved international expansion in 3 major phases. Summarised its mission as to offer a wide variety, good design, good value, for "young people of all ages". Determination to maintain a standardised product strategy. Does not own manufacturing facilities. Ikea owns distribution and designs furniture. Manufacturers are subcontracted. Cost leadership strategy through high volume production and standardised items. Ikea consumers expected to supply their time for assembling work after purchase, thus becoming "prosumers". What has allowed IKEA to be successful? They were customer focused. As they were not selling through dealers - could obtain feedback directly from customers. Also, Ikea sees itself not so much as a retailer but as a central star of services. What are these universally appealing values and why were these, together with the standardised assortment, successful in so many countries worldwide? It appears that the countries Ikea entered through international expansion had already had a growing number of potential customers who were not tied to a traditional furniture image. They preferred practicality, good value, simplicity...
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