Answer to Question #184770 in Marketing for myra

Question

Consider two product categories: soft drinks (Cola) and Smartphone apps. While perhaps not true in all countries, Colas are normally considered to be in a mature category while Smartphone apps are in some growth phase with regard to the product life series.

QUESTIONS

1.     What are the differences between the markets in terms of consumers and competitors?

2.     Based on your answer to question one (1), how are the decisions on price, advertising, revenue and distribution channels different for the two brand managers? 

Answer 1

1. Soft drinks are the same and have the same price on the market while mobile phone apps are different and have different prices. The competition in Soft drinks is not that much compared to the Mobile apps because they are making changes and updates now and then compared to soft drinks which take a long time for changes to be enacted.

2. The decision on price, advertising, and distribution channels for soft drinks are based on the operators, distributors, fountain wholesalers, and retailers of the drinks, while for mobile phones, it is based on the company's technology to advance the market. Mobile phone companies use technology to advertise and distribute their products, while soft drinks use operators, wholesalers, and retailers to distribute their products. Soft drink companies give their distributors rights to manufacture and distribute their products. Mobile phone companies only allow distributors to market their products.