Examples of point of difference in the following topics:
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- This process can result in price discrimination, where a firm charges customers consuming otherwise identical goods or services a different price for doing so.
- The models attempt to forecast the total demand for all products or services they provide, by market segment and price point.
- This can be done at different levels of detail:
- In this way, yield management's overall aim is to provide an optimal mix of goods at a variety of price points at different points in time or for different baskets of features.
- By doing this, they have actually increased quantity demanded by selectively introducing many more price points, as they learn about and react to the diversity of interests and purchase drivers of their customers
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- Positioning is facilitated by perceptual mapping to determine the ideal points of consumers.This helps to determine if positioning should be functional, symbolic, or experiential.
- Strong positioning will enable a single product to appeal to different customers for different reasons.
- A positioning statement explains the target market for the product, the benefit of the product, and how the product is different than the competitors.
- When creating a positioning statement, it is important to determine a pain point of the customer.
- By talking to a customer's pain point, it is often possible to address the need impulse and the want impulse at the same time.
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- Changes in either supply or demand will move the market clearing point and change the market price for a good.
- The point where the supply line and the demand line meet is called the equilibrium point.
- In general, for any good, it is at this point that quantity supplied equals quantity demanded at a set price.
- This process normally continues until there are sufficiently few buyers and sufficiently many sellers that the numbers balance out, which should happen at the equilibrium point.
- Apply the basic laws of supply and demand to different economic scenarios
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- Some perceptual maps use different size circles to indicate the sales volume or market share of the various competing products.
- These points reflect ideal combinations of the two product characteristics as seen by a consumer.
- This diagram shows a study of consumers' ideal points in the alcohol product space.
- Areas where there is a cluster of ideal points (such as A) indicates a market segment.
- Ideal points maps reflect ideal combinations of two product characteristics as seen by a consumer.
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- The price of an item is also called the price point, especially where it refers to stores that set a limited number of price points.
- Other stores will have a policy of setting most of their prices ending in 99 cents or pence.
- Other stores (such as dollar stores, pound stores, euro stores, 100-yen stores, and so forth) only have a single price point ($1, £1, 1€, ¥100), though in some cases this price may purchase more than one of some very small items.
- From a customer's point of view, value is the sole justification for price.
- Many times customers lack an understanding of the cost of materials and other costs that go into the making of a product.
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- Line pricing is the use of a limited number of price points for all the product offerings of a vendor.
- Its underlying rationale is that these amounts are seen as suitable price points for a whole range of products by prospective customers.
- Many small price differences for a given item can be confusing.
- The customer would not be able to judge quality differences as reflected by such small increments in price.
- From the seller's point of view, line pricing holds several benefits:
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- Point-of-sale displays are sales promotions that are placed where they can easily draw customer attention and trigger impulse buying.
- Point-of-purchase displays can include shelf edging, dummy packs, display packs, display stands, mobiles, posters, and banners.
- Point of purchase promotions offer marketers one of the most effective sales promotion tools included in the "promotional mix."
- Point-of-sale displays (POS) are a specialized form of sales promotion found near, on, or next to a checkout counter (the "point of sale").
- Placing the display in the wrong location -- Different areas in a store prompt different shopper responses.
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- Often the product will have little or no competitors at this point.
- At this point, there are still relatively few competitors.
- In the decline stage of the product life cycle, sales will begin to decline as the product reaches its saturation point.
- Most products are phased out of the market at this point due to the decrease in sales and because of competitive pressure.
- Differences will occur depending on the type of product, how well it is received by the market, the promotional mix of the company, and the aggressiveness of the competition.
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- It is intended to reflect the costs of shipping to different locations.
- Ownership of the goods is transferred to the buyer as soon as it leaves the point of origin.
- Basing point pricing: Certain cities are designated as basing points.
- All goods shipped from a given basis point are charged the same amount.
- Describe the different types of geographic pricing from a pricing tactic perspective
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- Heterogeneity, also known as variability, describes the uniqueness of service offerings.
- While products can be homogeneous and mass produced, the same is not true of services.
- The service can never be exactly repeated as the same point in time, location, or circumstances, or with the same configurations or resources, even if the same consumer requests the same service.
- For example, the taxi service that transports the consumer from his home to the opera is different from the taxi service that transports the same consumer from the opera to his home.
- Each trip involved a different point in time, another direction, and maybe another route, taxi driver, or car.