By Robert G. I. Maxwell (auth.)
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Let us suppose that we have just won £2000 on the pools and are wondering how to spend it. The choice in front of us is between a good holiday for two or the down-payment on a new car. 2. This simple description highlights the fact that consumers are faced with choices. These may be, as illustrated, between products of the same type or between products of a different kind one from another. In the second instance it is not always easy for the producers who specialize in a given area fully to comprehend and take into account that they are competing with many other demands upon consumers' money beyond their direct sphere of competition with other suppliers of their kind of goods.
Putting yourself in the position of management in either of these organizations your decision may well have turned out differently. 2, Heinz was used as an example of mass production, mass marketing and mass consumption: differentiation of market segments is minimal. The logic of this condition is almost universal acceptance of a product from a single source. There are not many products with such an outstanding performance of market domination, and you can imagine how hard Heinz work behind the scenes to keep this position.
May I therefore ask you to make a mental note of them right now? Risk Do you remember the story I told you on page 10 about my orthopaedic chair? Then you will also remember my discussion of 'expectations' on page 11 first, for a buyer, they are in anticipation of meeting a need, and second they provide a standard of measurement for value. In this personal example there is always a 'risk' that expectation of value and delivery of value will not match. Exactly the same principle applies in business, but risk is magnified enormously by the amounts of money that can be involved and the repercussions caused by a mistake!