There are a number of limitations of customer satisfaction in terms of relying too heavily on this marketing metric. It is, therefore, important to understand the various limitations in order to utilize the results of CSat research/scores appropriately.Expected versus delivered value is being measuredThe basic premise of customer satisfaction is that it is the customer’s […]
Understanding the Limitations of CSat Find Out More...
A key aspect of a successful marketing strategy is the clear definition and communication of a sought-after value proposition. A good way to think about the firm’s value proposition is consider what is different and beneficial about the firm’s (or brand’s) offering/s in the marketplace.Difference between Positioning and a Value PropositionIn business life, it is
Difference between Positioning and a Value Proposition Find Out More...
New-to-the-world products are one of several classifications of new products (please see separate article). Other classifications of new products include: new categories, product line extensions, product improvements and product repositioning.Risks of new-to-the-world productsAlthough there are many potential advantages, as outlined above, for introducing a new-to-the-world product, this type of product carries significant risk and responsibility
Risks of new-to-the-world products Find Out More...
A new category product is one of several classifications of new products (please see separate article). Other classifications of new products include: new-to-the-world products, product line extensions, product improvements and product repositioning.When a firm introduces a new type of product to the firm, which is an established product in the marketplace, this is known as
Challenges of a New Category Entry Find Out More...
The challenges of a product line extension include:Potential product cannibalizationMinor increases in sales volumeCluttering or confusing the marketLess efficiency of production and marketingUnresponsive retail channelsPotential product cannibalizationProbably the main concern with a product line extension, particularly for a simple variation of an existing brand/product – such as a flavor or size variation – is cannibalization
Challenges of a product line extension Find Out More...
In the United States, over $3B worth of coupons and rebates are redeemed each year – indicating that it is an effective form of sales promotion.According to various academic studies, around 20% to 30% of consumers will be actively involved in the collection and redemption of coupons. These consumers tend to be more price sensitive
Effectiveness of coupons and rebates Find Out More...
Sales promotions are short-term incentives designed to drive sales. They are part of the promotional mix within the marketing 4P’s. Because they often carry pricing incentives, such as discounts, they also have a crossover with the pricing mix in the 4P’s as well.Two common promotional vehicles used in a sales promotion program are coupons and
Goals of Coupons and Rebates Find Out More...
Sales promotions are short-term incentives designed to drive sales. They are part of the promotional mix within the marketing 4P’s. Because they often carry pricing incentives, such as discounts, they also have a crossover with the pricing mix in the 4P’s as well.Sales promotions are usually executed through retailers, but service firms and other direct
Difference between coupons and rebates Find Out More...
What is a product improvement?When a firm improves one of their existing products, which they are already market and sell to consumers, in some manner, then this is known as a product improvement.Product improvements can be quite substantial or quite minor. For example, for a food product one of the ingredients may be changed to
Challenges of a product improvement Find Out More...
In the classification of new products, product repositioning is considered to be a new product task. There are a numerous challenges and benefits associated with product repositioning as discussed in the following article. Please refer to a separate article for the benefits of repositioning, as well as an example of repositioning.What is product repositioning?Product repositioning
Challenges of product repositioning Find Out More...
