Before Market Theory.
View PDF | Print View
by: Guest
Total views: 45
Word Count: 1402
Old question of business scholars from around the world again and again the same question and came to the conclusion that it is not the first time on the market preferred.
Preferable to what? They say every product has a life cycle? What about milk? If that is true and many academia will classify products and services in order to make a point and simply lump them all together.
Is that correct? Yes and No.
From a theoretical standpoint you could argue either side and have ample data in business history to prove the conclusion you desired.
But basically, I should say that the products and services are very different from each other in many ways, have.
For instance the reason for the purchase, the valuation, of that service or product for the purchaser, even the delivery and so on.
Now we can say that there are some products that come with the service and product is not appreciated by the consumer without end service equation.
Maintenance contracts, almost a form of insurance are one type.
To say that a copy machine or something.
Let us take a mobile service-based business model for this discussion.
The reason that I have in the service business for 27 years and.
http://www.
com and http://www.
com.
E important first to market? Yes or No? We were the successful competitors, both in different regional markets.
If I had to chose, many times depending on the market I would say, I would rather be second or third in a market, evaluate the competition, interview the customers, redesign and define my service, use bundling techniques, price point targets, use their basis for my differentiations, and of course capture their customers.
I enter a lot cheaper and more economical way, a market and skip the high cost of deploying a new service, creating a demand or need, where no was or was, before the users of such services thought or education and entire segment of the market and try , to convince them, because we are something they needed and could not live without.
So for those reasons I often prefer to take other companies clients by offering the consumer what they really want at a price they are more willing to pay or offering services so far superior that the customer felt impelled to switch.
Sprint test marketing, for example, \"let's examine the current expenditure on long-distance and see how much money you can save? \" Or even better our business legend Richard Branson d Europe.
He was not really first at anything, just giving the consumer another choice and addressing their true desires.
Does it work? Yes 50 brand name later, Virgin is a force with much or elimination of market share.
This does not mean it works every time, but he can market to the consumers who have already chosen a certain service and simply offer them better.
I spoke to the Marketing Officer of Dominos Pizza in an International Franchising Association Conference, and discussed this with our team.
Think of going into a country that never had pizza before and trying to convince them that they should all buy dough with melted cheese on top covered with other food items.
Just look and say, I prefer a Fajita Pita or worse than would be what it is and why should I eat? The first company to try to meet any advertising budget and spend in cooperation bu.
The second company in only has to offer the pizza once the countries citizens have decided, Hey this Pizza Thing with the cheese and stuff on it, is not all that bad after all.
Much easier to sell.
See the point? And it has been played out over and over again and guess what, the aggressive agile company can easily move quicker and with better profits once the service or in this case the Pizza is accepted by the masses.
Pizza is now a cycle trend? It comes to food, el Last time I checked, people ate more and no less, judging by the sponsorship of the girl who gave his head to the President Jenny Craig.
Oh yah, Monica what is her name?
I have been watching this trend in markets and found more than ample opportunity to come in behind the spenders and simply take what we want as far as market share and leave the first in competitor to fight for the scraps we leave them.
The chances are good that they have an exit strategy and when they hear their curve is to jump in decline, what they feel is a mature market and take their profit or loss, in some cases.
Yet they fail to realize its full potential or maybe do not care and will look for another easy market or product line to enter, always trying to ride the up curve.
Even if a company is already on the market is a strong competitor, no matter, let the Service Master.
We would have nothing to lose as an entry into one of their markets and everything to gain.
D On the other hand they have nothing to gain market share only to lose.
If they decide to fight and refuse to relinquish market share they must turn on the direct sales, advertising, and marketing efforts, thus expanding the market for us.
So if you had a market penetration of 15% and we had to be 2%, leaving them with thirteen percent.
To keep quarterly numbers they need to increase the total market available to both of us to 17%.
Also, remember that 2% by two percent charge for us.
That is truly free simply for seeking their unsatisfied customers and switching them.
Now we need to distinguish yourself from them, so more money for advertising, advertising that fact that we exist and their customers do not really have a choice is a no win situation for them? Difficult to attribute to the first on the market in my opinion? Hardly an advantage of a new competitor, a second strong competitor in the market.
If a second to market competitor slips in a price war because we have a nearly zero advertising budget using theirs to generate our expansion, then we can charge less.
Let's say they cost $ 1000 for a particular service and 15% in sales and advertising.
That means we can automatically charge 15% less than they do for the same profits.
ROI even faster.
Also we did not have to pay the original marketing to get the ball rolling either.
Very good business.
Why market when they already have simply ask their customers for the order and charge the less price.
If you do not manage to leave the market, or they can spend more money to keep before us, until its energy is working against them.
Similar to the Art of Judo.
Diplomacy is the art let someone else have your way.
So why attack the competition? It is not really an attack.
E urgently required that franchisors remain, so make the most efficient use of available resources to franchisees who have invested in the company to help get back on their own to feed their families.
So then, we have found that is far less expensive to take the competitions customers through superior service and lower or more fair pricing or bundling (what the customer many times feels is more important) than to ferret out new customers through blanket marketing of junk mail or telemarketing.
So why not simply forgotten the high dollar marketing unless you happen to be the first in the market anyway.
This is also a strategy preferred by scholars as the best possible scenario.
Take the initiative and keep as long as possible.
We have been successful at this approach too.
It requires a different approach.
Since generally we are in the lead I cannot discuss our strategies for this scenario on the Internet, but trust me, we play to win, whether we are in the lead or are ready to overtake the leaders.
E important for those who can understand offering goods or services in an open market, that the \"First to Market Strategy \" can not be the best strategy for the whole time.
.
About the Author
One of the secrets to a successful campaign for you e-businessis keyword research. Find out how to automate your emarketer skills once and for all. Check this out now!
Rating: Not yet rated
Comments
No comments posted.Add Comment
You do not have permission to comment. If you log in, you may be able to comment.