-Characterized by low cost of production due to greater sales volume, economies of scale enabling fixed costs to be spread over a greater volume and the impact of the ‘experience curve’.
•Value advantage is in terms of product offering a differential ‘plus’ over competitive offerings.
-Based on marketing concept that customers that ‘customers don’t buy products, they buy benefits’.
-Benefits may be intangibles and may not relate to specific product features.
-It can be an image or reputation or even some functional aspects.
– Adding value through differentiation is extremely powerful means of achieving competitive edge in the market.
– One of the significant method of adding value is service.
– Service helps in developing relationship with the customers through provision of an augmented offer.
– Augmentation takes many forms such as delivery services, after-sales services, financial packages, technical support etc.
2 Comments