Non Price Competition


In spite of the emphasis placed on price in microeconomic theory, marketers often compete on product attributes other than price. You may have noted that price differences between products such as gasoline, men’s haircuts, candy bars, and even major products such as compact cars and private colleges are often small, if there is any price difference at all. Very rarely will you see price used as a major promotional appeal on television. Instead, marketers tend to stress product images and consumer benefits such as comfort, style, convenience, and durability.

Many organizations promote the services that accompany basic products rather than price. The idea is to make a relatively homogeneous product better by offering more service. Quite often the reason marketers emphasize non-price is because prices are so easy to match. Few competitors can match the image of a friendly, responsive, consumer-oriented company.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Impulse Products


Impulse products are products that are bought quickly—as unplanned purchase—because of a strongly felt need. True impulse products are items that the customer hadn’t planned to buy, decides to buy on sight, may have bought the same way many times before, and wants right now.

This buying behavior is important because it affects place—and the whole marketing mix—for impulse products. If the buyer doesn’t see an impulse product at the right time, the sale may be lost. That’s why retailers put impulse products where they’ll be seen and bought—near checkout counters or in other heavy traffic areas of store. Grocery stores sell gum, candy bars, and magazines this way. And life insurance is sold at airports at convenience booths or vending machines.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Smart People Add, Foolish People Take Away


The most important way we learn is by thoughtful observation. Lessons that teach us success fundamentals are available in every encounter with other people.

Consider this example. You visit a candy store and order a pound of unboxed candy. The person behind the counter puts a big scoop of candy on the scales, maybe 20 ounces, and then begins to take away your candy, piece by piece, until the weight is exactly 16 ounces.

How do you feel? Cheated. Subconsciously, you perceived the big 20-ounce pile of candy as your candy. Now, as the person behind the counter takes some of it away, you feel your candy is being stolen.

Intelligent people behind the counter use the add-to approach. They put a relatively small amount of candy on the scales, maybe 10 or 12 ounces. Then, they add a few pieces until the scale shows 16 ounces. Subconsciously, this makes you feel good because you perceive you are getting extra candy.

Sixteen ounces are still 16 ounces. But the way a pound is counted makes a mighty big difference. To be sure, computer personnel must be careful in weighing merchandise. The point is that never make the customer feel cheated.

Successful business search for creative ways to use the generous add-on tactic to increase sales. The magazine subscription that includes a free pocket calculator, a remote-control device that comes free with the purchase of a television set, and the two-for-the-price-of-one sale by a drug chain are examples. People like you and buy from you when you give more than they expect in exchange for their money.

Evidence that generosity, the add-on approach, works wonders is overwhelming. Nevertheless there are still many businesses that believe success is spelled CHEAT. Store that advertise non-existent appliances at a ridiculously low price and then try to browbeat and intimidate the customer into buying a much higher priced product are common examples. Observe such scoundrels only to learn how to succeed.

You can use the “add-to” principle in every facet of life:

  • Give unexpected, extra service to your employer and you become a candidate for more pay, for more fringe benefits, and for promotion.
  • Put something extra into your assignment at school and get a better grade.
  • Give more time to your kids and get more love and cooperation in return.
  • Show respect to the parking lot attendent and your car gets better treatment.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight