Marketing the Competing Concepts Under Term Paper
- Length: 7 pages
- Sources: 5
- Subject: Business - Advertising
- Type: Term Paper
- Paper: #66607518
Excerpt from Term Paper :
Illustrate the differences between a straight rebuy, modified rebuy, and a new task purchase. Why is it important to understand the differences?
A straight rebuy is the purchase of standard parts, maintenance, or repair, and operating supplies, or any recurring need purchased on a routine basis (Kotler, 2006). For example, the routine purchase of printing paper is a straight rebuy. A modified rebuy is a situation in which purchasers have experience to draw on, and consider alternatives to previous purchasing (Kotler, 2006). For example, if a company recently purchased a new printer from vendor A, but was not satisfied, they may decide to purchase from vendor B. In the same situation next time. A new task purchase is a situation in which purchasing does not have previous experience with a requirement, and thus, has no relevant knowledge of product solutions (Kotler, 2006). For example, if a company requires the purchase of cellular phones, and has not purchased a wireless plan in the past, the company will have no previous knowledge to use in decision making.
Understanding these differences is vital, in that a company should always rely on previous experience, when possible, to purchase products and services. If a company is pleased with existing purchases, and uses a process of straight rebuy, there is less cost and time associated with researching alternatives or new solutions.
A new trend in marketing is toward customerization. Describe what customerization is and how marketers are using it. Why is it important?
Customerization is marketing from a customer's perspective. The concept revolves around an effort by company's to customize products specifically for consumers, such as jeans, coffee, newspapers, vitamins, cars, greeting cards, and other products (Wind, 2000). While some companies offer goods, and allow the customer to price negotiate, such as priceline.com, other companies establish custom websites for consumers, such as Dell's premier pages. These companies alter their perspective to be buyer-centered, allowing the consumer to dictate the market, and marketing strategies. Customers, through customerization, are active participants in product development, purchasing, and consumption (Wind, 2000).
By combining customerization with customized marketing, companies are adapting to one-on-one strategies to sell products. This allows the customer to design what they need specifically, which means marketers require little information about their customer base, and the production process can be completed after the consumer makes decisions, ensuring satisfaction and profitability, both of which are important in today's market (Wind, 2000).
Explain the concept of brand equity. Why is the concept important to consumers?
Brand equity can be thought of as the associations consumers make with a particular name or symbol associated with a brand. Brand equity is generally categorized in one of three categories. Financial brand equity is the price premium a brand can generate over generic products. Brand extensions are new products associated with previous products consumers are familiar with from a particular brand. Consumer-based brand equity can be thought of as the strength of customer attitude toward products associated with a brand (Kerin, 2003).
Brand equity is vital to consumers, in that it is built through experience with a particular product brand. These experiences lead to awareness about the quality, value, and reliability of a brand. Together, these associations, when positive can lead to brand loyalty, or the tendency for a consumer to purchase products consistently based on brand name alone.
With respect to positioning, explain points-of-parity and points-of-difference and why they are important.
In general, points-of-parity and points-of-difference can be used to further the marketing, or competitive advantage, or a product or brand. Points-of-difference (POD's) are the attributes or benefits consumers associate with a brand. These attributes are positively viewed, and consumers believe these different aspects cannot be found in competitive brands. POD's reveal the relevance, distinctiveness, and believability of a brand. On the other hand, points-of-parity are associates not unique to a brand, but shared by other brands. These concepts refer to the level at which one product can at least math the benefits of similar products (Keller & Tybout, 2002).
Together, both points are important since the two together can help position a brand within the market. If a product is associated with numerous points-of-difference, consumers tend to find those products more reliable and more valuable. Conversely, products with low points-of-difference are seen as more average, and thus, less valuable. When combined with low points-of-parity, this can mean a loss of sales and revenue (Keller & Tybout, 2002).
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Entrepreneur.com. (2006.) Researching your market. Retrieved Dec. 13, 2006 from Marketing Basics. Web site: http://www.entrepreneur.com/article/printthis/43024.html.
Keller, K. And Tybout, A. (2002.) The principle of positioning. Market Leader, 19, 65.
Kerin, R. (2003.) Marketing, 7th ed. New York: McGraw-Hill.
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