Industrial Economics Final Notes

Types of Advertising

Informative: providing info how to use with new features Products and changes (launch of electric vehicles) range or charging time.

Persuasive: trying to persuade Customers to change their mind stimulating customers for buying process. (Nike Just do it)

Reminder: its used to reinforce(strengths) brand.

Presence and increasing customer's awarness. (holiday themed advertising) (solidarity)

Evolution of Advertising

conventional(traditional) marketing = newspapers, television, radio, magazines.

Digital Era: sm, sem, influencer's compaing anomaly addiction

Emerging trends: AI +big data (Personalised,customized)

Advertising Channel

•Traditional Media —> TV, Newspaper, Radio, magazine

•Digital Media —> Internet, SM, Stm inf. compaign

• Qutdoor Media → bill boards Posters

•Directing Marketing → emails, calls

•Sponsorship Product Placement → Nöronmarketing

→Branding (Brand Perception Reputation Status symbol)(History since...)

—>Additional Benefits →Private labels Products (increase loyalty),Events supporting,(Redbull) Sponsor for some events

-After sale service

-warranties (BMW) (otomobile company)

-Return Policies Strictors flexible

Types of Product Differentation

Horizontal:

—>Products differ in just some features, but they are still close each other in terms of quality.

—>Customer Choise is a function of Preferences.

—>flavours of ice cream —> serve as an example of horizontal differentiation, where consumers may prefer one flavor over another despite similar base ingredients and quality.(KAI suggestion)

—>car color

Vertical:

—>Products differ Substantially in terms of quality

Higher quality commands higher Prices

—>Budget vs Premium (Smart Phones)

PC(economy common) vs High and Professional luxury—> PC (economy common) typically offers basic functionality at a lower price point, while high-end and professional luxury products provide advanced features and superior performance, justifying their premium pricing. (KAI suggestion color)

—>The differentiation in quality not only influences consumer choices but also shapes market competition, as brands strive to establish their unique value propositions.

Benefits Product Differentation:

-Reduce Direct Price competition

-Create customer satisfaction and loyalty

-Provide competitive edge

-Enchances customer demand

increase perceived value—>firms can charge customers by Premium Prices

Sustainability in Product Pifferentation

(eco-labelling eco-friendly)+Sustainable features

Tesla

—>Electric vehicles reduce fossilefuel dependency

—>Energy Product (Promoting Reneivable energy uses)

—>Branding—>Positining itself high-Tech firms and environmentally responsible demand

Patagunia

—>Recyled materials

—>ecofriendly manufacturing

—>Programs for repair recycle to include USED CLOTHERS WASTE

—>Activist Support environmental Protection Compaions

Product Differentation and Advertising

—>conceptual framework

→identify distinguish

→ Explore to find out role of PD and AD

—>vertical vs horizontal

—>Real life applications case studies (in market structures firms, behaviours consumers prefences)

—>Evolute PD and A.D in building board loyalty and shaping consumer demand.

Product Differentation

—>Process that firms make Products distinct from Competitions they different from others.

Physical Differentation: color, size, design, texture,...

Quality improvement—>StandartsVS actual—>deviations

→ Supply chain management (scm)—>JIT

→ Reliability

→Durability

—>Performance

R&D (AR-GE)

—>innovation is triggired by RD Product innovation.

—>Higher RD spending correlates with increased Productivity and GDP grauth. (LONG RUN)

—>Teonotical foundations of RD

—>Solow's Growth model

Endogenous Growth Theory = investment in human capital, innovation and knowledge contributes directly to growth(ÇOK ÖNEMLİ)

>R&D and Productivity—

Global Trends in R&D:

→Global Statistics

→Top sectors

→visual

Advertising

→Can effect customer mind or preferences or influence of brand perspection.

Strong Strength→ Product demand→brand loyalty.

→Advertising can be used as tool for firms to apply premium charging for differentiated products.

→Premium Pricing has impact on market structure by enabling firms to Conduct higher pricing for different Product (shape benefits)

→Advertising can set Market barrier to entry for new competitions.

business internal → ← externals (rivals)

4P’s:

→Place (logistic)(delivering)

→Promotion

→Product

→Price

Aşşağıdaki sayfa sınavda sorulacak

Sınavda IT sorarım demişti swot analysis için

IT İÇİN SWOT ANALYSIS:

Overall IT Sector:

Strengths: High demand for technology solutions, continuous innovation, skilled workforce.

Weaknesses: Rapid technological changes leading to skill gaps, cybersecurity threats, dependency on global supply chains.

Opportunities: Emerging technologies like AI, IoT, and blockchain, increasing digitization across industries, expansion into new markets.

Threats: Intense competition, regulatory challenges, data privacy concerns, economic downturns affecting IT spending.

Market Structure

↳ how the market organized based on number of players (sellers) product's nature, some market dynamics.

1-Perfect Competration / Competitive Market

↳ many firms-Small

No, one is winners / No one can set the price/ Abnormal profilt cannot observes.

Identical Products

↳ There is significant mobility

↳ No barrier to entry

2-Monopoly

+ A single entity (firm) dominates market.

→Unique product

→High market barrier.

3-Oligopoly

↳ few large firm exist

↳ inter depency is strong = prices are stich (Mid) -> katı

→significant barrier

→capital Intensive

4-Monopolistic Competition

↳ There 're many firms.

↳ Product's are differentiated → unique product (restuarant/Mall)

=> Market Barrier = obstacle(engel) for new competitions, it discoverage prevent from entering market.

→Nautral

→Artifical (yapay)

Economic Barrier=

A)High Economics Scale

→Reducing UFC

→Cost leadership

→mass producting

→standards

B-) Capital Intensity

C-) Network Effects

Market Entry

1)Fixed Cost

2)Revolutionary Cost.

→Financial Cost + non- Financial Cost

→Licensing and compliance(uyumluluk) cost

↳ Medical ↳ in line with regulatory nuentory.

↳Law

↳ Qualitity

↳Banking

↳ Aviation (Havacılık)

A-) Establishment

B-) Operation

3) Marketing Distribution Cost

↳ build in your firm's awarness (Farkındalık)