BUSM 2001 Lecture Notes - Lecture 5: Cd Player, Brand Loyalty, Toothpaste

• School: CU-Boulder
• Department: Business Minor
• Course: BUSM 2001
• Professor: Tracy Jennings/ John Lynch

Document Summary

Strategic segmentation involves deciding which business you want to choose and which to ignore. Ta(cid:272)ti(cid:272)al seg(cid:373)e(cid:374)tatio(cid:374) is usi(cid:374)g the 4 p"s to i(cid:374)for(cid:373) your de(cid:272)isio(cid:374). Efficiency innovation is when you produce a product but for cheaper. Sustaining innovation is improving a product, like developing a hybrid car. Destructive innovation is a product that if life-changing, like a personal computer. Shopping product is when you buy a product after you compare it with other items and do lots of research, such as buying a car. Convenience products are products that are bought frequently, are cheap, and take little effort to buy, such as toothpaste. Unsought products are produ(cid:272)ts you do(cid:374)"t (cid:449)a(cid:374)t (cid:271)ut you ha(cid:448)e to ha(cid:448)e, like (cid:271)uyi(cid:374)g i(cid:374)sura(cid:374)(cid:272)e. Specialty products are products that are highly specialized, expensive, and take lots of effort to purchase, such as a wedding ring. Brand loyalty often influences our purchases but we often accept substitutes.