Explain how the marketing emphasis of a low-cost provider differs from the marketing emphasis of a best-cost provider.
What will be an ideal response?
The marketing emphasis of a low-cost provider is on low prices and good value while trying to make a virtue out of product features that lead to low cost. The marketing emphasis of a best-cost provider is on delivery of best value for the money.
Being a best-cost provider is different from being a low-cost provider because the additional attractive attributes entail additional costs (which a low-cost provider can avoid by offering buyers a basic product with few frills). Moreover, the two strategies aim at a distinguishably different market target. The target market for a best-cost provider is value-conscious buyers-buyers who are looking for appealing extras and functionality at a comparatively low price. Value-hunting buyers (as distinct from price-conscious buyers looking for a basic product at a bargain-basement price) often constitute a very sizable part of the overall market for a product or service.
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