Milestone 2

Non-Price Barriers Recommendations

However, it is important for organizations to determine product features and the use of advertising, if using price to compete is not an option. Competition is critical to marketing. To be better than competitors businesses must provide a product or service through perception better than similar ones offered by competitors (McConnell, Brue, and Flynn). To make a product or service distinctive from others, several strategies are available including: lowering prices, better quality, faster service, or raising prices. It is important to note that promoting the product requires marketing and advertising.

There is an only some items that Big Drive Auto can do for non-pricing strategies such as control of resources, customer network effect, and advertising.

• If Big Drive Auto has power of a resource important for the automobiles, then other firms are not capable to contribute in the industry.

• Obtain limited agreements with suppliers and key distributor can also make it complicated for competitors to go through the industry.

• Big Drive Auto can make it difficult for new challenger by improved advertising so that new firms find it hard to participate. However, brand loyalty will be able formed throughout marketing strategy and advertising.

•Furthermore, it is undecided what the circumstances of the market will be in the next four years, Big Auto will also want to build in some flexibility to its’ manufacturing capacity as labor contracts (Thaeler, 2008). If the economy grows and demand is up, big auto will want to rapidly too ramp up on production. If the economy turns disagreeable, they will want to cut jobs and scale back production without paying large severance packages to lay off workers.

According to Thaeler (2008), “the reality is that people may get branding from TV and print ads, but the long-term approach and focus is online. People go online first to research big purchases”. “Automakers and many of...