Differentiate between the followin1

Differentiate between the followin1 - Differentiate between...

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Differentiate between the following (Just in 5 sentences) 1. Product diversification and Product differentiation Product diversification means that a company is launching/venturing into a new product line/s. A company goes for product diversification to minimize risks of putting too many eggs in one basket and to tap profit opportunities in other sectors. Product differentiation means that a product enjoys further distinction from other similar products/brands in the market. The differentiation claimed may be ‘tangible’, with a distinction on ingredient, quality, utility, or service, or it may be ‘intangible’, which may be highlighted by subtle sales appeals. For example, Magi claims a tangible distinction over other brands of noodles. It is ready in two minutes, involves very little cooking and is available with different ‘taste makers’, for the vegetarian and non-vegetarian users. There is immense scope for product differentiation. To win over customers, firms seek higher levels of differentiation through customising and augmenting of the product. 2. Marketing and Selling Selling revolves around the needs and interest of the seller while marketing revolves around the needs and interest of the buyer. Selling starts with the existing products of the company and views business as a task of promoting those products, while marketing starts with customers and views business as a task of meeting the needs of the customers by producing and supplying them. Selling seeks profits by ‘pushing’ the products on the buyers, while marketing seeks profits by meeting the needs of the customers and by creating value satisfaction for them. In Short, a difference in orientation towards business is the real separating factor between selling and marketing. 3. Penetration Price and Skimming Price. Skimming price aims at high price and high profits in the early stage of marketing the product, while penetration pricing aims to penetrate a broad market through low prices. Skimming pricing is very useful in the pricing of new products that have luxury or specialty elements, while penetration is pricing useful in the pricing of new products that are highly sensitive to price, even in the early stages of introduction. Skimming pricing strategy can be a way to feel and figure out the demand for the product, while penetration is pricing strategy
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issued for products that are likely to encounter heavy competition immediately after introduction. 4.
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Differentiate between the followin1 - Differentiate between...

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