Question

• Summarize key facts from this week's material. Using ideas from game theory and Monopolistic competition, create a list of ideas that managers could use to help gain the edge for differentiating products.
• The reflection should be roughly one page in length.

Answer 1

1. Specialize in a division. For most companies, this may be the simplest and most effective differentiator. Customers trust their industry's expert. But be careful. You will lose credibility if you seek to specialize in too many industries.

2. Specialize in fulfilling a particular role within the organization of your company.This role-based specialization, especially when combined with an industry emphasis, is also quite effective. If you are leading IT at a law firm, it is comforting to know that your service provider is dedicated to helping people like you.

3. Specialize in delivering a specific service. This is also very effective, especially if the product you are specialized in is rare and difficult to find. But look out, one-of - a-kind products could quickly become popular. Witness enforcement with Sarbanes-Oxley and advertising on social media as two recent examples.

4. Offer a truly unique system or software. We don't mean the system by truly unique, beginning with evaluation and finishing with performance tracking and adjustment. We mean an approach that is a completely different approach to the problem which provides the customer with a specific value.

Perhaps the most obvious brand distinction. This requires actual physical and conceptual variations from which ads can obtain the latter. Consumer differentiation may take the form of features, quality, effectiveness (or the product's ability to do what it is supposed to do), requirements, or a variety of other criteria. This is the general environment that most B2B marketers spend most of their time and resources and likely most retail marketers as well.

Service distinction involves not only distribution and customer service, but all other business supporting elements such as preparation, installation, and ordering ease. To many, these seem to be the simple components of the blocking and tackling sector, or the essential elements that do not require complexity. Yet think of a company such as that of McDonald. They know how to distinguish on product like their Big Mac or not. With very few exceptions, at a McDonald's in Texas you will receive the same product and service you will get in Georgia, Connecticut, or California. And the fries will be cooked the same way at each stage, have the same amount of salt and be fried

Distribution channels can also be an effective means of separating. Distribution can provide coverage or availability, timely access to resources, faster purchasing, and higher product or technical service rates.

It is not feasible to reach the end consumer without the distribution mechanism for many producers facing a competitive market. For example, building materials should pass somehow from factory to contractor. Usually, these products pass through two distribution levels, including master distributors, specialist dealers, and retailers.