Commoditization occurs when products become indistinguishable based on features and consumers purchase based solely on price. This document discusses strategies for companies facing commoditization threats. It recommends that companies pursue multiple response strategies, including innovation, value-added differentiation, and proactively managing commoditization as part of product roadmaps. Commoditization presents opportunities to use commoditized products as inputs for innovation and new platforms to move up the value chain. With careful strategic responses, companies can compete in commoditized markets and see commoditization as a growth opportunity rather than a threat.
Presentation about the pervasive Competition in businesses includes what is Competition all about existing in the gambit of Businesses, analysis of competitors, a short intro to the SWOT Analysis as well, Cooperation methods carried out in competitive industry along with analysis of PORTER's Five Forces Model.
Presentation about the pervasive Competition in businesses includes what is Competition all about existing in the gambit of Businesses, analysis of competitors, a short intro to the SWOT Analysis as well, Cooperation methods carried out in competitive industry along with analysis of PORTER's Five Forces Model.
Analysis of why brand valuation has failed to deliver the benefits that marketers had hoped for - the artificiality of its premise; and the inconsistency of the current valuations produced by Interbrand, Brand Finance, Millward Brown and the European Brand Institute.
Comparison of the valuation of brand by the accountants (for the purposes of post purchase goodwill accounting) and by the brand consultants.
Recommendation that marketers are better served by framing brands as having a multiplier/magnifier effect on the impact of business strategy, rather than being viewed as standalone assets whose value is independent from the value of the business.
Chapter 1 gabriel yudhistira h maria ulfaMariaUlfa157
Market driven strategi adalah suatu pelaksaan strategi untuk mendapatkan informasi tentang pasar sebagai bisnis informasi pemilihan, perumusan, dan penerapan strategi untuk mendapatkan keunggulan dalam pemasaran. Menurut Craven (2006 : 2) pengertian logika dari Market Driven Strategi adalah pasar dan konsumen yang membentuk pasar haruslah menjadi titik awal dari pembentukan strategi bisnis.
industry, Industry Analysis, Why is Industry Analysis Important? How Industry and Firm-Level Factors Affect Performance, Techniques Available to Assess Industry Attractiveness, Studying Industry Trends
* In an increasingly copy-cat economy, the new basis of competition is business model innovation.
* Unfortunately, the work of business model innovation is too often left undone, at great cost to the organization's longer term growth opportunities and its profitability. This gap is the outcome of marketing's role increasingly being defined around demand generation and brand communications in increasingly fragmented channels, roles that have required many new marketing subspecialties.
* The CMO is ideally suited to facilitate business model strategy decisions, decisions that must be made by the leadership team as a whole.
* Deploying the CMO to facilitate business model innovation will align brand and business strategy, benefiting the success of both.
Why value propositions matter? How to create a true value proposition for B2B businesses? Implementation ready toolkit to design a superior value propositions
Analysis of why brand valuation has failed to deliver the benefits that marketers had hoped for - the artificiality of its premise; and the inconsistency of the current valuations produced by Interbrand, Brand Finance, Millward Brown and the European Brand Institute.
Comparison of the valuation of brand by the accountants (for the purposes of post purchase goodwill accounting) and by the brand consultants.
Recommendation that marketers are better served by framing brands as having a multiplier/magnifier effect on the impact of business strategy, rather than being viewed as standalone assets whose value is independent from the value of the business.
Chapter 1 gabriel yudhistira h maria ulfaMariaUlfa157
Market driven strategi adalah suatu pelaksaan strategi untuk mendapatkan informasi tentang pasar sebagai bisnis informasi pemilihan, perumusan, dan penerapan strategi untuk mendapatkan keunggulan dalam pemasaran. Menurut Craven (2006 : 2) pengertian logika dari Market Driven Strategi adalah pasar dan konsumen yang membentuk pasar haruslah menjadi titik awal dari pembentukan strategi bisnis.
industry, Industry Analysis, Why is Industry Analysis Important? How Industry and Firm-Level Factors Affect Performance, Techniques Available to Assess Industry Attractiveness, Studying Industry Trends
* In an increasingly copy-cat economy, the new basis of competition is business model innovation.
* Unfortunately, the work of business model innovation is too often left undone, at great cost to the organization's longer term growth opportunities and its profitability. This gap is the outcome of marketing's role increasingly being defined around demand generation and brand communications in increasingly fragmented channels, roles that have required many new marketing subspecialties.
* The CMO is ideally suited to facilitate business model strategy decisions, decisions that must be made by the leadership team as a whole.
* Deploying the CMO to facilitate business model innovation will align brand and business strategy, benefiting the success of both.
Why value propositions matter? How to create a true value proposition for B2B businesses? Implementation ready toolkit to design a superior value propositions
APPLIED MANAGERIAL MARKETING
NEW PRODUCT LAUNCH
STUDENT’S NAME
PROFESSOR’S NAME
25TH NOVEMBER’ 2013
MOBILE MANUFACTURING, Inc.
ABSTRACT
A marketing strategy illuminates the key marketing fundamentals of a business and maps out guidelines, principles and proceedings for the business and its employees. The marketing plan depicts on the extensive perceptions summarized in a firm's business plan. The business strategy illustrates the ways a company will seize a product thought and refurbish that into a commercially viable plan.
REFERENCES
Managing Product Management: Empowering Your Organization to Produce Competitive Products and Brands by Steven Haines (Sep 19, 2011)
The Market Planning Guide: Creating a Plan to Successfully Market Your Business, Products, or Service by David H. Bangs (Jan 1998)
The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses... by Eric Ries (Sep 13, 2011)
Approved Marketing Plans for New Products and Services by Ken K. Wong (Nov 23, 2010)
BRANDING STRATEGY
Branding is one of the major crucial attributes of any business, hefty or miniature, retail or B2B. Mobile Manufacturing Inc. fits in to the service industry; consequently the eminence of the merchandise and service they proffer must be of better-quality in order to achieve cutthroat benefit in the market. Therefore an effective brand stratagem for MM’s new product furnishes a prime periphery in increasingly more insistent markets. It elucidates them what they can foresee from MM’s goods and services, and it discriminates their proffering from their contenders. The brand subterfuge is by means of, what, anywhere, at what time and to whom the organization strategize on consequent and assigning on the brand communications. Wherever MM promotes is constituent of the brand stratagem. The distribution feeds are in addition component of the brand stratagem. And what the company commune visually and vocally are constituent of the brand subterfuge, as well. Unswerving, considered branding escorts to a strapping brand equity, which means the additional value conveyed to the company's products or services that permits to charge more for the brand than what indistinguishable, unbranded products grasp.
NEW PRODUCT LAUNCH GOALS OF MOBILE MANUFACTURING
Prospect goals: Mobile Manufacturing, Inc. has an elongated lead time for selling new products. A suitable goal may perhaps be to delineate how many prospects MM would be fond of to categorize as a consequence of the product launch.
Product consciousness goals: The sales progression generally commences with the market being conscious of the organization and its product. MM’s marketing endeavors can facilitate to put together that awareness. Even though the tactics may perhaps differ, one goal ought to incorporate being competent to determine the consciousness MM has built.
Customer goals: Since it is not the foremost product launch, MM may perhaps have goals to i.
In this exploration of competitive advantage, we delve into its various dimensions, the strategies employed by successful organizations, and the evolving nature of competition in today's dynamic business landscape.
Steven geffen digital marketing strategy quirk textbook 5Steven Geffen
Steven Geffen: The essential Guide to Marketing in a Digital world. We look at the questions to ask when compiling a digital marketing strategy, and a digital marketing strategy in action
Stepping Up to the Challenges of Digital MarketingCognizant
"The advent of digital has dramatically impacted how CMOs run their marketing operations. By identifying and employing the processes, business models and technologies required in today's digitally intensive business environment, companies can strengthen their brand, enrich their relationships with customers, and manage an increasingly complex mix of partners, processes, and technologies.
Similar to March 2015 Infinity Gaming Magazine - Is Commoditization a Threat (20)
Stepping Up to the Challenges of Digital Marketing
March 2015 Infinity Gaming Magazine - Is Commoditization a Threat
1. InfinityGaming•ISSUEMARCH2015
10
Is Commoditization A Threat
To Your Business?
C
ommododitzation can be a virulent and inevi-
table form of hyper-competition, disrupting
industries, damaging firms and destroying suc-
cessful products. It can also be a perceived phenomenon
and the danger is that customers and business leaders
buy into the commodity designation too readily so that
it becomes a self-fulfilling prophecy.
At its extreme, commoditization leaves business leaders
with a very simple and stark choice: to become com-
moditized and fight for survival or avoid it through some
form of strategic response. For some businesses the
former may seem the only option, but even fighting for
survival requires a strategy. For many it is a combina-
tion of both. As the zone of commoditization continues
to expand, it is increasingly seen as a critical factor by
industries around the world, and so organisations must
do everything they can to compete without destroying
the value they offer their customers.
So how should we respond to commoditization? What
can we learn from the responses made by other busi-
nesses and how does this relate to their existing and
future strategic intent?
Based on the review of academic thinking, management
theory and interviews with business leaders from some
of the largest, well known and influential high-tech busi-
nesses in the world including Cisco, Dell, HP, IBM, Micro-
soft, Verizon and Vodafone, a set of business principles
and recommendations follow which all business leaders
and companies facing the threat of commoditization
should consider.
All companies interviewed had adopted multiple
strategic responses to commoditization based on their
product and marketing strategy and overall business
strategy. Innovation was most commonly seen as the
antidote to commoditization, either through acquisition
or development of discontinuous technology having the
effect of resetting the market requirements. Value-add-
ed differentiation was a close second to innovation with
most companies building a broader value proposition
and a deeper relationship with the customer, bundling
commoditized products with value-added services and
innovative features.
FEATURE ARTICLE
With over 16 years’industry experience building high-performance teams and successful businesses around the
world, John Edmunds is passionate about enabling people and technology deliver superiorbusiness results. As Chief
Marketing Officer at FutureLogic, John was at the heart of FutureLogic’s digital transformationfrom hardwaresup-
plier to software solutions providerand subsequent acquisition by JCM Global. As an experienced thought-leader,
strategist and writer, John is a regular contributor to numerous gaming publications and has been guest speaker on
technologydiscussion panels and industry forumsin Buenos Aires, Las Vegas, London and Toronto.
Infinity Gaming Magazine is delighted to announce
industry veteran John Edmunds as our latest contrib-
uting writer and we all look forward to reading some
superb insights within the sector.
John Edmunds
2. InfinityGaming•ISSUEMARCH2015
11
‘When experiencing Commoditiza-
tion companies should not restrict
their response to a single strategy,
rather pursue multiple response
strategies’.
The good news is that commod-
itization, by itself, does not mean
the end of innovation or the end of
business opportunities. In fact, it
can be the exact opposite. Com-
moditized products can be ‘inputs
into innovation’. The fact that
products get commoditized actually
means it’s easier and cheaper to use
them innovatively to gain a com-
petitive advantage. It’s about taking
advantage of the fact that they are
commoditized and realizing that
they are now a resource and part of
a much larger total solution and not
end products themselves.
‘Commoditization does not mean
the end of innovation or the end of
business opportunities rather com-
moditized products become new
platforms from which to move up
the value chain.’
Commoditization is also a process
rather than an event and companies
should know where they and their
competitors are in the commod-
itization cycle. Commoditization
therefore should never by a surprise
and can be managed proactively
with a clear understanding of the
future growth opportunities within
and outside the core market with
continued investment in both
continuous and discontinuous in-
novation. Understanding the key
capabilities within the company
and within the product portfolio
is central to building a technology
roadmap and future growth plat-
forms for sustainable profitability.
‘Commoditization is a process and
should be managed proactively
through the life of every product as
part of a technology roadmap.’
Through carefully managed stra-
tegic responses, it is possible to
compete in a commoditized market
where commoditization can be seen
as an opportunity for growth rather
than the threat of decline. Even in
industries with high commoditiza-
tion levels, firms can respond to
environmental challenges with
several strategy levers that can have
a positive affect on the company’s
performance. An assessment of
commoditization is a vital part of
a firm’s efforts to address evolv-
ing marketing competition and a
strategy that is balanced across
operational excellence, product
leadership, and customer intimacy
was shown to be critical to driving
performance. Where companies aim
to build a broader and deeper rela-
tionship with customers by moving
up the value chain replacing prod-
ucts and services with total client
solutions. As markets become more
commoditized however, a stronger
competitive focus on customer
intimacy seems to have the greatest
impact on performance.
“Commoditization: The process by which a product reaches a point in its development where one brand
has no features that differentiate it from other brands, and consumers buy on price alone.”
3. InfinityGaming•ISSUEMARCH2015
12
In addition below are a set of practi-
cal recommendations which busi-
ness leaders can use to respond to
the threat of commoditization:
1. Monitor core markets for the fol-
lowing signs:
a. Prevalence of me-too products
and services
b. Lack of connecting unique value
to customer’s business drivers
c. A belief that all suppliers are
fundamentally the same
d. Decreasing customer desire to
review new options or features
e. Increasing customer preference
to select on price only
f. Increasing pressure on margins
g. Pressure on buyers to make
quality buying decisions
2. From the above signs identify
the actual or perceived type of
commoditization affecting the
company; it’s products, and market
segments:
a. Deterioration
b. Proliferation
c. Escalation
d. Evaporation
e. Quasi-Commoditization
f. Perceived Commoditization
3. Build a greater understanding
within the company of what cus-
tomers really want and what perfor-
mance metrics drive their business
over the short, medium and long
term. This should involve represen-
tatives from all departments.
4. Analyse the cost structure of
the business and decide how the
company can make money on the
individual commoditized products
now and in the future and how it
will compete with low cost alterna-
tive products and services. This may
involve outsourcing or offshoring
low value products and services to
third parties to reduce total cost of
sales.
5. Where the market allows, intro-
duce a low cost product or service
to compete in the commoditized
segment, creating degrees of sepa-
ration between low cost, mid range
and premium products.
6. Differentiate the value proposi-
tion from competitor offerings by
bundling or customizing the com-
moditized products with additional
value added products and services.
7. Move up the value chain by
addressing more customer value-
drivers and building broader and
deeper customer relationships.
Particularly in product orientated
markets this may involve adding
professional services to the product
offering.
8. Build the value of the brand in
specific market segments through
reputation, scale, credibility and
global relationships to differentiate
the brand from the competition and
build a unique proposition for the
customer.
9. Invest in continuous and dis-
continuous innovation strategies
focused on solving bigger and more
complex customer problems and
addressing more customer value-
drivers.
10. Leverage more of the customer’s
business concerns and increase per-
centage of customer’s total spend.