Non-Price Competition Flashcards
What are 4 ways businesses can compete without using price methods?
Differentiation - USP
Advertising
Brand Development
Availability
Celebrity Endorsement
How can differentiation help businesses compete?
By offering a unique product, consumers may be more attracted to a personalised product.
How can advertising help businesses compete?
If a product/service is well known through advertisment, or a motto is well remembered, then consumers may be attracted to the recognisability of the product.
How can brand development help businesses compete?
It helps businesses apply their unique aspects into a brand which helps to form an identity which sets them apart from competitors.
How can availability help businesses compete?
People are more likely (in person) to shop in the stores which are closest to their place of home/work for efficiency.
How does celebrity endorsement help businesses compete?
People will feel inclined to buy a product/service if they trust a celebrities review on it. Or if a collabiration comes out which are most often limited edition, consumers may feel more attracted to buy whilst stocks last.
What are the negatives of using advertising to compete?
Different cultures may have different opinions on whatever is shown in an advertisement.
Minorities may not feel like a product/service is for them if the representation is not there in the advertisemtn. This can lose you customers.
It can also be expensive.
What are the negatives of using differentiation to compete?
Competitors, especially cheaper ones, may copy unique features and erode existing competitive advantage.
What are the negatives of using brand development to compete?
Development costs such as advertising, publicity stunts, public endorsements.
Changing branding is difficult.
What are the negatives of using availability to compete?
