Question

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, research & define the stats - discuss at least one specific market segment that a well-known brand targets (cite at least one supporting reference)Identify and discuss - an example of consumer (B2C) or industrial (B2B) products/services that have become commoditized (cite at least one supporting reference)Other than becoming the lowest cost provider, how can a business offering a commoditized product differentiate their offering? (cite at least one supporting reference)

This week, you must cite the sources of your research so you need to

include a minimum of 2 cited references (in total) in your entries.

Answer 1

Commoditization

1. Target Market

Apple is the brand that targets particular young market. Target Market is a group of people who is required in addition to inclinations match the particular product range of a corporation and which individual’s items have sold. The target market of Apple includes teenagers, college and university students, young children and adults. Young people are considered one of Apple company Inc.’s target markets. Young people employ iPods for most reasons. A few of these factors is to socialize with associates, iTunes in addition to continue Facebook, MSN, Twitter, etc. College and university students can also be precise by way of Apple Company Inc. All these students employ Apple company Inc. products for instance iPad's, MacBook's, iPhone's etcetera to help speedily history notes (Lamb, Hair, & McDaniel, 2011).

Apple company items are also valuable to youngsters in addition to kids. The exact reason for this is that will equipment for instance iPods in addition to iPads are simple to employ because of the touchscreen technology good quality which will is safe for children. Parents might get a hold of learning online game apps on Apple company equipment to educate youngsters in addition to kids. Grownups can also be among Apple company Inc.’s target markets. iPhone's are useful to help adults with regard to their each day requires, for instance, telephone calls, chart directions, net connection, docs in addition to cameras. Carrying these types of small equipment tends to make grownups life significantly easier to get communicating each day (O'Grady, 2009).

1. Commoditization of B2C

Business to Customer (B2C) describes these activities of companies around offering goods as well as services. Commoditization occurs any time individuals can certainly choose the similar products from distinct large or small businesses. Prices are the only real distinguishing look at commoditized goods while there is virtually no factor around top quality or perhaps in the way individuals use these products. Corporations usually are unable to boost selling prices due to the fact people can indeed retail outlet during opposition offering a similar or maybe comparable goods during less expensive costs. AT&T is an example of the B2C that becomes a commodity later. Now there are various competitors for the AT&T that competes for the price such as Verizon Communication Inc., T Mobile Us, Inc. and also Sprint Communication. (Groene, Navalekar, & Coakley, 2016) Once a business turns into merely a commodity without having value-add, the corporation loses charge of it has the fortune with companies which put benefit as well as proactively control the task in a price increased basis. In case a shopper can't know a big difference as well as the additional value amongst comparable competing products/services, put simply, if your product/service is indistinguishable than other offerings, then cost turns into the only deciding on element as well as the techniques competing based on low cost/low cost (Holmes, 2016).

1. Strategy for Commoditization

Differentiation is one particular solution to keep away from a brand of as a commodity. A differentiation strategy is an when an item featuring differs from that from one or more rivals in a fashion that is appreciated by the customers. The quality extra ought to influence consumer preference and supreme satisfaction. Therefore some properties in addition to rewards which combine to help create the branding tactic in addition to item ranking a new success (DUMLUPINAR, 2012). When selling price needs to wise, the goods need to be recognized to help change from the mainstream. Some commodity is a product expecting to become differentiated. Corporations can easily maintain competing advantages by way of product differentiation based on individual capabilities in addition to rewards which have been appreciated by way of customers. In our business setting, the place the value combined with product or service may promptly become commoditized, it is important to corporations to get aimed at shoppers' objectives to be familiar with the goods capabilities which customers want (Holmes, 2016).

Bibliography

DUMLUPINAR, B. (2012). Market Commoditization of Products and Services . Review of Social, Economic & Business Studies.

Groene, D. F., Navalekar, A., & Coakley, M. K. (2016). An industry at risk Commoditization in the wireless telecom industry.

Holmes, A. (2016). Commoditization and the Strategic Response. CRC Press.

Lamb, C. W., Hair, J. F., & McDaniel, C. (2011). Essentials of Marketing. Cengage Learning.

O'Grady, J. D. (2009). Apple Inc. ABC-CLIO.