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Chapter 10 : Industry Evolution and Strategic Change
Chapter 10 : Industry Evolution and Strategic Change

... adapt product design to large scale production access to distribution (see chapter 11) maturity stage cost efficiency through scale economies, low wages & low overheads decline stage potential destructive price competition maintain stable industry environment : orderly exist ...
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MARKETING 3.02 Position products/services to acquire desired

... a. Define the following terms: competitive advantage and positioning. 1. ___________________________ – the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. 2. ___________________________ – developing a specif ...
Designing Marketing Programmes to Build Brand Equity I: Product
Designing Marketing Programmes to Build Brand Equity I: Product

... of product values rather than on cost. The targeted value and price then drive decisions about product design and what costs can be incurred. Pricing begins with analysing consumers needs and value perceptions and a price is set to match consumers’ perceived value - Market research is required to as ...
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T2_ IMC_KEY - PESIT South Campus

... Percentage of sales It is one of the most commonly used method. The Advertising/promotion budget is based on sales of product. The determination of the budget is done either as: Taking a percentage of the sales dollars: The percentage is usually based on the industry standard. It varies from industr ...
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Fashion Advertising

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Stages of the Product Development Process

... new products available to eventual end users. There are a number of strategies that might be used, often in combination with one another. For example, the company could develop its own sales force; however, the cost of such a network may be prohibitive, especially if the company is relatively new. I ...
European Retail Forum - the European Environmental Bureau
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Kent Summer Showcase Program College of Business Administration

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Quiz Review 2 - Brand Luxury Index

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Marketing Principles

... buyers’ perception of value rather than their own costs. VB pricing hinges on creating a product which offers a combination of quality and price that is extremely attractive to consumers. ...
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Planned obsolescence

Planned obsolescence or built-in obsolescence in industrial design is a policy of planning or designing a product with an artificially limited useful life, so it will become obsolete, that is, unfashionable or no longer functional after a certain period of time. The rationale behind the strategy is to generate long-term sales volume by reducing the time between repeat purchases (referred to as ""shortening the replacement cycle"").Companies that pursue this strategy believe that the additional sales revenue it creates more than offsets the additional costs of research and development and opportunity costs of existing product line cannibalization. In a competitive industry, this is a risky strategy because when consumers catch on to this, they may decide to buy from competitors instead.Planned obsolescence tends to work best when a producer has at least an oligopoly. Before introducing a planned obsolescence, the producer has to know that the consumer is at least somewhat likely to buy a replacement from them. In these cases of planned obsolescence, there is an information asymmetry between the producer – who knows how long the product was designed to last – and the consumer, who does not. When a market becomes more competitive, product lifespans tend to increase. For example, when Japanese vehicles with longer lifespans entered the American market in the 1960s and 1970s, American carmakers were forced to respond by building more durable products.
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