BU121 Lecture Notes - Lecture 6: Profit Margin, Financial Risk, Real Prices And Ideal Prices
Document Summary
Altering the speed of the cycle: slowing down new uses and users, speeding up obsolescence style, quality, functional. Intensity of distribution related to product classification. Staples: branding, max exposure, shelf position: bread, milk, butter, juice. Impulse goods: max exposure, shelf position, point of purchase/pop: gum, magazines, chocolate. Emergency goods: near pop, readily accessible: windshield washer fluid, umbrella. Homogeneous exposure for price comparison: what determines their purchase is the price, e. g. Best buy guarantees lowest price (price match) Heterogeneous exposure near similar products: phones, cars, audio equip. Goods we don"t want to buy so firms have to advertise a lot. Important to see your product as your customer does. Convince the customer that the product provides that unique benefit through your product, pricing, promotion, and distribution/place decisions : integrated/consistent system of activities. All parts of organization must have clear idea of unique benefit: core benefit proposition (cbp) Clear, concise statement of product"s unique benefits or value proposition.
