MKTG3306 Lecture Notes - Lecture 3: Cirque Du Soleil, Cost Leadership, Aldi
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Agenda: product positioning and extension decisions, the three product levels, value propositions. Toothbrush, a physical product, helps consumers have better teeth: without a produ(cid:272)t, (cid:455)ou do(cid:374)"t ha(cid:448)e a(cid:374)(cid:455)thi(cid:374)g to (cid:373)arket, examples of products, uwa webpage, facebook. Product positioning: two main ways of creating sustainable competitive advantage through product positioning: cost leadership, differentiator, can only focus on one cannot do both! Passing products that the supermarket makes lots of money on: low volume/high margin: gourmet cheese, rolex watches, can decide whether you want to be a narrow or broad cost leader. Differentiator: charge a high price, refers to a (cid:272)usto(cid:373)er"s per(cid:272)eptio(cid:374) of differe(cid:374)(cid:272)e (cid:894)u p(cid:895) o(cid:374) at least o(cid:374)e produ(cid:272)t characteristic (physical or non), relies on standing apart from the crowd, more focus on core and augmented product, e. g. Differentiate by performance: examples of differentiators, far(cid:373)er"s (cid:373)arket perth, cheaper than supermarket as no supply chain, just taken from the farm to store.
