Mgmt703 Marketing Management - Free Assessment Answers

How can companies manage the impact of negative reviews of their products/services?

Do you think companies that aim to build a sustainable brand are more competitive in today’s marketplace? Why or why not?

Compare and contrast price and non-price competition. Describe the conditions under which each form works best. 

How does a consumer’s level of involvement affect his or her choice of problem-solving process? Compare and contrast with high involvement and low involvement purchases.

Answer:

McDonalds reposition its brand in the past few years

McDonalds is considered as one of the biggest companies in the food sector. There are various changes done by the company in the products and services which is offered to the customers. The company stopped using margarine on its breakfast sandwiches and started using real butter. It has been examined that adding butter had given positive impact on the entire sale of the product. Also the company launched new buttermilk crispy chicken sandwich which is made up of real buttermilk. These changes are made so that demand of the customers enhances towards healthy products and also people prefer to consume more healthy products (Peterson, 2016).

 Yes, it is important for the company to reposition its brand as the demand and need of the customer’s changes and also to compete in the high competition level it is important for the company to make some changes. Now day’s people are health conscious so by using fresh butter the demand of the product enhances and also people satisfied at the time of purchasing the products. Repositioning the brand assisted the company to accomplish the overall goals and targets and also demand of the products enhances due to this.

To manage negative reviews of the products

It is important for the companies to manage the negative reviews of the products or services so that it can be easy for the company to make new customers. There are various steps that should be considered by the company so that negative reviews of the products and services can be reduced. The first step which should be taken into consideration is related with respond promptly. In the online business world the customers wants a quick response. If the customer given negative review then it should be reviewed promptly as there are more potential customers who are reading the same. So, proper response should be given so that negative impact can be reduced of the customers (Small business Development Corporation, 2018).

Also it is important for the companies to manage the issue off line. When negative comment is given by the customer it is important to offer contact details and email so that the matter can be resolved and once the matter is resolved then public should be done by stating the agreed outcome.

Also the best way to reduce the negative impact is to encourage the customers to write positive comments. If there are positive reviews then it can help to reduce the impact on the negative comments (Small business Development Corporation, 2018).

Sustainable brand

Yes, it can be stated that the companies who aim at building the sustainable brand are more competitive in the recent marketplace. It has been seen that it is important for the company to focus on the environment and social needs so that it can be simple to accomplish goals and objectives. To maintain good image in the market it is necessary for the company to emphasize on considering the methods that satisfy the social need and also give positive impact on the environment. By focusing on the social needs people get motivated and happy towards the activities of the company and also the demand for products can be enhanced.

The competition level is high in the market which can only be reduced if company focuses on considering the ideas that satisfy the needs of the society and also maintain the environment. If the brand which is made by considering the environment and also the customers wants then it can be easy to achieve success in the market (Ottman, 2017). 

Price and Non-Price competition

By focusing on the price competition, it has been examined that marketers focus on price as an issue and also bats the competition level. By competing on the basis of price level it has been seen that company should be the low cost seller of the product. If all the companies are using the same products then the companies who are selling the low cost product will achieve advantage. For example: it is important for the companies to consider price matching policies so that it can be easy to give tough competition to the online retailers.

Non price competition also takes place when seller focus on considering the price and focus on the product features like quality, service, packaging and promotion. These features help to make the product different from the competitors. So, it can be investigated that non price competition helps the company to enhance its brand unit’s sales through the other means not by changing the price of the brand (Hatfield, Plott & Tanaka, 2016). For example: Mars not only offer snickers bit also had the upscale candy line which is known as Ethel’s chocolate. The tagline is used “eat chocolate but not to preserve”.   The chocolate competes by emphasizing on the taste, appearance and also the packaging of the products which are offered in the market.

Consumer level of involvement

Consumer level of involvement affects the choice in problem solving process. It has been see that in the decision making process the process take place when the customer purchase the product. After that consumers see many negative aspects. So, in this the case hen next time customers purchase the product it can affect the choice which can create difficulty to solve the problem which is taking place.

Low involvement purchases are made by taking into consideration no planning or any other previous thought. These buying decisions are also called impulse buying. At the time of waiting on the grocery outlet the customer see magazines with Brad Pitt on the cover page then the product which is advertisement by them are brought by the customers just simply because they want it to use the product of that celebrity.

High involvement purchase relates to high risk to the buyers and it is complex and has high price tags.  The basic examples of these are related to car, house and also the insurance policy. These products are not purchased on the regular basis but it is necessary for the buyers. So in this case they think too much before purchasing the products (Marketing principles, 2018).

References

Hatfield, J. W., Plott, C. R., & Tanaka, T. (2016). Price controls, non-price quality competition, and the nonexistence of competitive equilibrium. Games and Economic Behavior, 99, 134-163.

Marketing principles. (2018). Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making Process. Retrieved from : https://2012books.lardbucket.org/books/marketing-principles-v2.0/s06-02-low-involvement-versus-high-in.html.

Ottman, J. (2017). The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding. Routledge.

Peterson, H. (2016). McDonald's turned business around by making these major changes. Retrieved from https://www.businessinsider.in/McDonalds-turned-business-around-by-making-these-major-changes/The-chain-launched-a-new-buttermilk-crispy-chicken-sandwich-made-with-real-buttermilk-/slideshow/50721388.cms.

Small business Development Corporation. (2018). Dealing with negative online reviews. Retrieved from:  https://www.smallbusiness.wa.gov.au/business-advice/avoiding-and-managing-disputes/dealing-with-negative-online-reviews.