Customers and Value Proposition

Customers and Value Proposition

One specific market segment that major brands target is upper-class users. Notably, this is a class of individuals willing to pay high for products as long as they receive a good customer experience (Lukac et al., 2019). One notable brand that targets this market segment is Apple Inc. The company produces and sells products that offer this class an incredible product use experience. The driving force behind such marketing is the discovery that upper-class users are willing to pay more for products from their high disposable incomes for higher-priced products such as those produced by Apple Inc. (Tien, 2019). The company utilizes brand marketing to attain this market segment because they are interested in purchasing products from brands that price goods high.

The sale of computers and related products is an example of a business-to-consumer product that has been commoditized. When the importance of computers was growing, few computer companies were involved in selling computers and related products (Ginting et al., 2022). Competitors entered the market over time and filled the market with the same products that could only be distinguished in price. Products in this sector are hard to distinguish by features, and a good example is the introduction of a touchscreen iPhone that could support multitasking. When this was launched, every other phone company moved their phones to touchscreens with the ability to multitask, commoditizing the products.

Besides becoming the lowest-cost provider, a business can differentiate its offerings in various ways. First, the business can differentiate the product in terms of warranty, reliability, durability, efficacy conformance, performance, and features. Essentially, all these dimensions are associated with the actual offering upon which differentiation can be made (Tookanlou & Wong, 2020). Second, the business can differentiate its offerings through the nature of the service offered. Notably, this can take place through the ease of ordering, customer training, delivery, and consumer consultation.

References

Ginting, Y. M., Sinaga, A. M. R., & Nainggolan, R. D. (2022). Analysis of the Influence of Digital Marketing, Product Differentiation, Customer Value, and Service Quality to Purchase Decisions and Repurchase Intention of Millenial Generation at Shopee Online Shop. SEIKO: Journal of Management & Business, 4(3), 134-153.

Lukac, M., Doerflinger, N., & Polignano, V. (2019). Developing a cross-national comparative framework for studying labor market segmentation: Measurement equivalence with latent class analysis. Social Indicators Research, 145(1), 233-255.

Tien, N. H. (2019). International distribution policy comparative analysis between Samsung and apple. International journal of research in marketing management and sales, 2020(1), 2.

Tookanlou, P. B., & Wong, H. (2020). Determining the optimal customization levels, lead times, and inventory positioning in vertical product differentiation. International Journal of Production Economics, 221, 107479.

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Customers and Value Proposition

Every business competes for additional revenue and increased market share. With few exceptions, most of the products and services they offer are undifferentiated and are easily replaced with other substitutes from rival competitors. This commoditization puts businesses at a disadvantage, and many resort to competing on price rather than quality or other distinguishing features/benefits.
Identify and discuss at least one specific market segment that a well-known brand targets.
Identify and discuss an example of consumer (B2C) or industrial (B2B) products/services that have become commoditized.
How can a business differentiate its offerings besides becoming the lowest-cost provider?