Distinguish between a generic market and a product market. Illustrate your answer.
A generic market is a market that offers a diverse product as a way of satisfying the consumer. An example is shown on page 62 of the text as the Flam and the Panini sandwich. The products are different but serve the same need to the customer.
A product market is a market that offers close substitutes to satisfy the customer need. I think of this as Coke and Pepsi.
Chapter 3 Internet Exercise # 2-1
For many years, Michelin's marketing mix emphasized the safety of Michelin tires. To highlight that positioning, scores of ads showed the "Michelin baby" surrounded by a tire with the tagline "because so much is riding on your tires." Ads still use this tagline, but the baby is no longer used. Now, most promotion highlights another icon, the "Michelin Man." Go to the Michelin website (www.michelin.com), select the country where you live, and review the site. What positioning is Michelin now using?
The Michelin man, the living tire, no uses the position of “a better way forward”. They are focusing on better mobility and as such they have adopted five strategic orientations:
1.Focus on passion to improve mobility
2.Offer each customer the best quality products and services at the best price 3.Provide growth and fulfillment for our people as they carry out their responsibilities, especially by making full use of the Company’s diversity and by developing our people’s talents 4.Durably grow the value of our Company by maximizing the profitability of our operations and our return on investment. 5.Recognize and fulfill our Company’s role as a responsible member of society, by practicing our values.
Since Michelin has a variety of products such as Tires, Tourism and Navigation equipment as well as Lifestyle products it is necessary for management to take the portfolio management approach when strategically planning for the company (text...