Question 1. 1. How can a company gain competitive advantage through differentiation? Describe an example of a company that illustrates each type of differentiation discussed in the chapter.
Companies that use differentiation gain a competitive advantage by focusing on product innovation, customer service, and quality (Al-alak & Tarabieh, 2011). Innovation means that the companies are able to meet the same customer needs using new ways. A good example is Apple. There was innovation witnessed through iPod since it allowed its users to play their favorite music in any order. Quality means that the company provides the best service or product. For example, Tiffany gets most customers since it is considered the best. Good customer service means that the companies go out of their ways to satisfy their customers. These companies invest in essential resources in conducting research, developing, as well as introducing new products and improving the products which already exist.
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Question 2. What is a product line? Discuss the various product line decisions marketers make and how a company can expand its product line.
A product line refers to a collection of related products falling under a single brand and sold by the same company. Different companies sell many product lines under different brands. Often, companies chose to expand their offers by adding to the product lines that already exist since consumers prefer purchasing products from already familiar brands (Kekre & Srinivasan, 1990). Companies make up product lines as a marketing tool to reach out to the consumers already buying the brand. For example, a company dealing in cosmetics and which is already selling make up such as blush, powder, foundation concealer and lipstick may launch another product line under the same brand but with a lower price tag.
Question 3. The “Internet of Things” – a term that refers to everyday objects being connected to the internet – is growing. Thermostats, ovens, cars, toothbrushes, and even baby clothes are connecting to the internet. Research this phenomenon and suggest five innovative product ideas connected to the Internet of Things.
The Internet of Things keeps on evolving and expanding with regards to the number of products, companies, and applications which explains why it is becoming beneficial in almost all areas of business. Some business experts argue that IoT may become the next big technological revolution (Ashton, 2009). Some of the innovations connected to the Internet of Things include SkyBell, Deako, June, Particle, and MyMDBand (Ashton, 2009). SkyBell is a smart video doorbell which enables one to speak, hear and speak to visitors whether one is home or away. Deako provides a smart light switch which enables the users to control home switches from their voices, smartphone or switch. June is an intelligent convection oven which is able to identify what one is cooking and provides suggestions or information on preparation methods (Ashton, 2009). Particle creates a platform used to connect IoT devices to connect to the Web and develop a network which leverages the strengths of this technology. MyMDBand is a digital device which is worn as a bracelet and provides medical information about the wearer in case of emergency.
References
Al-alak, B. A., & Tarabieh, S. A. (2011). Gaining competitive advantage and organizational performance through customer orientation, innovation differentiation and market differentiation. International Journal of Economics and Management Sciences , 1 (5), 80-91.
Ashton, K. (2009). That ‘internet of things’ thing. RFID journal , 22 (7), 97-114.
Kekre, S., & Srinivasan, K. (1990). Broader product line: a necessity to achieve success?. Management science , 36 (10), 1216-1232.
