Marketing Case

1. The importance of learning-by-doing for developing innovative products and services. In chapter one, I think learning-by-doing is the most important point. This chapter explains what is learning-by-doing and why shall we learn things by get hands on it first. Actually I felt it important because some of my friends were stuck in this dilemma for a long time. They want to think it over and over and wait until they felt like being 100% ready to do something, then set off to do it. Actually there will never be a day that you fully prepared to do something because you can never know what is going to happen in your next second.

2. There are three approaches to price discrimination and product differentiation. Each pricing strategy is employed under various contexts in practice. First-degree price discrimination, also called personalized pricing, involves charging different prices to different customers for the same product. And it is difficult to implement first-degree price discrimination because of the difficulty in measuring each consumer's willingness-to-pay, because some consumers may be irritated when they find out they paid more for the same good, because of arbitrage issues and finally because of the potential legal issues.

3. Many large and small businesses, for reasons of simplicity, offer one product strategy or the products using a one-price strategy. In this way, they aim at lower the cost and gain more revenue. However, this chapter indicates that this perspective is incorrect. From the case raised in the book, by adding additional versions, products can increased their value and companies can benefit a lot from this simple measure. Took the cosmetic company as an example, when we are choosing a certain function product under different brands, we will find every brands has its certain group of products are concerning about a certain group of people. Such as cleanser for dry, oil and combination type of skins, or lotions for under 24, 24-40 and beyond 40 age groups. In the same way, we believe that the best strategy is to always offer at least three different versions of a product; that is, a high-end version, a middle range version, and a low-end version.

4. Even standardized products can be versioned. This chapter explains the reason why the standardized products can also be versioned and, more in detail, how to sell a standardized product to both high and low end customers. Examples are raised such as to have a distinct brand, offer extended warranties, deliver products and services faster or offering customer rewards programs, having customers use coupons, and delaying the shipment of a product. It is very important because it opens up a new market for the new businesses to explore. Corporations should update their business and improve the management capability all the time to catch up with the changeable social trend and meet the customers' needs, this idea actually is a