fileassignment2 - 1) Why would it be considered commercial...

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1) Why would it be considered commercial “blasphemy” if companies like LS did not offer new products/services on a regular basis? (10) It would be considered commercial “blasphemy” if companies like LS did not offer new products/services on a regular basis because it could set them behind their competitors. This would not be good because according to value based marketing it’s important for a company to provide a greater value to consumers than competitors offer. By adding new products and services on a regular basis it allows for a company to be that next step ahead of their competition, especially when it comes to a company in the fashion industry. If LS were not to offer new products on a regular basis, they would eventually fall out of the fashion industry, mainly because the “in-styles” change so rapidly. One month everyone may be running into stores to buy a boot-cut style jean and the next they may want a low-rise flare jean. If LS were to only sell boot-cut style jeans, they would lose their customers or potential customers to their competitors who offer both boot-cut and low-rise flare jeans. It’s not only companies in the fashion business that should keep up on their products and services. Take for instance, Pepsi who was doing well in the manufacturing, distribution, and promotion of their carbonated beverages when they made a strategic move to become part of the bottled water industry. They launched their Aquafina brand once they recognized that the marketplace trend and the consumers desire was for bottled water. The Pepsi Company made a good choice to keep ahead or alongside their competition in order to remain successful. Unless a company produces a one of a kind item that will never lose popularity or have any competition, it is completely necessary to offer new products and services on a regular basis.
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2) With regards to LS suit…do they seem to be more like a sales or marketing company…and why? (10) In regards to the LS suit, it seems that LS is more of a sales company because when it came to marketing the new suit they crashed and burned. First of all rather than using pull advertising, getting the consumer to go in and ask for the product, they didn’t go to market the suit to consumers until it was already in department stores. Also, instead of running a focus group before the suit was out in stores, they ran it after it was already out in stores and they didn’t offer a sample to those involved in the discussion. Although they did do very good quantitative research when it came to their market segmentation study, they failed to follow through and work at targeting the classic independent group like they wanted to. If they were a more of a marketing company I don’t see how these major details could have slipped through the cracks. I believe they are more like a sales company because in order to get department store buyers to buy their product besides changing the fit of the suit, they really only changed the price and relied heavily on their
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This note was uploaded on 12/22/2010 for the course BUS 8854 taught by Professor Purdy during the Fall '09 term at University of Southern Maine.

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fileassignment2 - 1) Why would it be considered commercial...

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