BA 3340 Lecture Notes - Lecture 3: Origins Game Fair, Price Discrimination, Experience Curve Effects
Document Summary
The choices the firm offers to its targeted market. Comprised of: product attributes, distribution strategy, communication strategy, pricing strategy. Though the world is moving towards global markets, global standardization is not possible because: Identifying distinct groups of consumers whose purchasing behavior differs from others in important ways. A product is like a bundle of attributes. Products sell well when their attributes match consumer needs: if consumer needs were the same everywhere, a firm could sell the same product worldwide. The means the firm chooses for delivering the product to the consumer. How difficult it is for outsiders to access (japan"s system is very exclusive: channel quality. When price is important, a shorter channel is better: each intermediary in a channel adds its own markup to the product. When the retail sector is very fragmented, a long channel can be beneficial: economizes on selling costs, can offer access to exclusive channels.
