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08:24 Apr 3, 2005
English to Polish translations [PRO] Tech/Engineering - IT (Information Technology)
English term or phrase:commoditisation
Market maturity characterised by risk-averse customers and an increasing level of commoditisation.
starania o sprzedaż za wszelką cenę, głównie przy użyciu argumentu niskiej ceny
Explanation: starania o sprzedaż za wszelką cenę (standardowych produktów), głównie przy użyciu argumentu niskiej ceny
tu jest dłuższy opis w czym rzecz - wydaje mi się, że trzeba opisowo...
COMMODITISATION is something all marketers dread. When it gathers momentum, the scope to differentiate reduces. Price wars begin and quickly drive away the profit margins. Customers capture all the value leaving little behind for the marketers. Clearly, this is not a desirable situation for marketers.
Marketers must learn to deal with the phenomenon of commoditisation decisively and proactively. Unfortunately, more often than not, they resign themselves to the fact that they are in a commodity business. This effectively becomes a self-fulfilling prophecy. The best marketers are those who turn what is generally perceived to be a commodity into a highly differentiated offering. To understand how differentiation can be achieved, it is useful to understand the process of commoditisation.
In a service economy, people consume less of goods and more of services. Goods get standardised, the scope for differentiation reduces and commoditisation sets in. To escape this trap, manufacturers often wrap services around their core goods. Initially, these services may be given away free to boost sales; later, manufacturers realise that customers value the services highly and charge separately for them. Eventually, clever manufacturers shift the focus away from making goods to providing services. Oil refining companies such as Indian Oil, Hindustan Petroleum and Bharat Petroleum, for instance, are transforming themselves into retailers. Titan is more of a retailer than a manufacturer. Similarly, IBM is more of a service provider than a computer manufacturer. General Electric's resurgence in the past two decades has been driven by a tremendous emphasis on services.
The commoditisation trap that attacked manufactured goods is now attacking services. For example, many telephone companies and airlines compete primarily on price. Fast-food restaurants stress `value' pricing.
Maciej Andrzejczak Poland Local time: 06:01 Works in field Native speaker of: Polish PRO pts in category: 24