1. What are your impressions of the General Electric brand and how the company’s products differ from those offered by competitors? General Electric (GE) is one of the oldest and largest manufacturers of major appliances in the world. The company offers four different brands; The GE brand which is a line of basic appliances, The Cafe brand which is a line of restaurant inspired appliances at reasonable prices, the Profile brand which offers contemporary designs along with the latest technologies, and the Monogram brand which offers custom built, professional quality appliances.
GE is at the forefront of innovation and offers products that make life easier and conserve energy. The company offers over 400 different appliances for its customers to choose from. GE’s focus on style, innovation, higher performing products, and matching appliances attracts customers in all different price ranges. GE’s products differ from those offered by competitors for several different reasons. Most of GE’s major competitors; Amana, Maytag, Frigidaire, and Whirlpool, offer only one brand of products with several selections in various price ranges.
GE offers four different brands of product that each offer various price ranges based on what is most important to the customer. GE has been in business since 1907 so the company has built a reputation of providing high quality products that many of its competitors have not established yet. GE’s focus on innovation has helped the company to develop more advanced energy efficient appliances and newer technology that has also helped to set its products apart from the competition. 2. What is emotional buying?
Emotional buying is the act of making buying decisions based on an emotional response to the product. If two products are similar a consumer may chose to purchase one item over the other due to their emotional attachment to it. There are many different emotional purchase triggers that companies can appeal to. Consumers want a product that looks good, stands out from the other products, and makes them look good. They want a product that saves them time, money, and stress. Consumers want products that make them feel successful, secure, accepted and comfortable.
People will actually pay more for a product or buy more of it if they have a strong emotional response to it. Companies can market their products in a way that creates an emotional response by appealing to the consumer’s emotional needs. Advertisements and marketing campaigns are created to communicate to the consumer what the product can do for them besides its obvious use. An example of emotional buying is that GE has found that consumers will come into the store for one appliance and end up making multiple unit buys because the matching line of appliances appeals to the consumer’s emotional triggers.
GE has every distribution store set up its product displays so that all matching appliances are together in an environment that looks like a real kitchen. The product displays are set up like this so when a customer sees exactly what one appliance looks like next to another it might create a strong enough emotional response to convince that customer to buy both appliances. By setting up its displays in this manner GE is appealing to its customer’s emotional need to look good and stand out. 3. Discuss the GE Monogram and Profile lines?
Who is the target market for such products? The GE Profile line offers appliances in contemporary designs with the latest technology. This line offers smart dispense dishwashers, front loading laundry systems, and energy efficient ovens all aimed at making a customer’s life easier and more attractive. The GE profile line is more advanced, therefore more expensive, than the normal GE line. The target market for this line is consumers in the upper 25 percent economically. This line appeals to upper middle class consumers who are either building new homes or remodeling.
These customers are willing to spend more for a product upfront if it is going to save them time or money in the long run. They also are willing to buy multiple products at once to create an environment in their homes that is comfortable and makes them look good to their peers. The GE Monogram line offers luxury appliances that are professional quality. These appliances can be fully integrated and customized to the customer’s specific needs. The Monogram line is made up of the highest quality appliances available with all of the newest technology.
The target market for this line is the upper two to five percent of customers economically. This line appeals to customers who are upper class and want the best product their money can buy regardless of the price. Many of these customers will have staff, like cooks and maids, using the appliances for them so the quality is more important than the ease of use. This line is for customers who will settle for nothing less than the best. 4. What strategies is GE using to maintain its place in the market?
There are several different strategies GE uses to maintain its place in the market. GE uses a new offering development strategy to stay at the forefront of technological advances. The company focuses on innovation by developing new appliances and enhancing the existing products. GE is consistently working on improving its products in order to give the company an advantage over the competition. The company offers over 400 appliances with many different features. GE has the potential to attract more customers than its competitors because the company can offer more options.
GE uses a uniform distribution strategy in order to make sure that its brands are being presented and displayed in an appropriate fashion. The way the appliances are displayed is important when it comes to creating an emotional buying response for customers so GE asks its distribution centers to follow very specific guidelines about how to display its appliances. GE is also very selective about where its products are sold. The higher end lines are only sold in elegant upscale settings and the normal line is only sold by distributers with good reputations. Another strategy GE uses is an environmentally friendly strategy.
GE offers energy efficient and energy star products in order to convince consumers its products are better for the environment than other appliances. GE was the first appliance manufacturer to partner with the government on the Responsible Appliance Disposal Program. GE also started the Ecomagination program in order to design appliances that save energy costs while easing the appliances impact on the environment. As the number of consumers concerned with environmental issues increases, it becomes more important for companies to focus on being safer for the environment.