How do companies in this industry differentiate themselves from one another?
Companies in the energy industry can use product differentiation in order to appear different in the overall market. Through differentiating their product there is room for a greater gain and increase in the growth of their product because they might be able to appeal to different audiences, or bring out qualities in their company people appreciate, thus gaining more investment sales.
Advertisement campaigns are one way in which energy companies can differentiate themselves. Exxon Mobil launched an advertisement campaign that emphasized the fact that Exxon is trying to use America’s oil and energy resources instead of importing energy resources from other nations such as the Middle East. This advertisement could appeal to Americans more than other companies because it dramatizes the use of American made resources to fuel America.
Chevron used a "We Agree" advertisement campaign that tried to set itself apart from other countries in the industry by accentuating the green aspect of their company.
Some people might not know the exact extent to which Chevron is participating in green energy from the advertisement, but the assumption is there. People who care about the environment and oil’s affect on the environment might choose Chevron when buying oil because if this particular differentiation. Also this ad emphasizes the sympathy towards the “real” people in the world because of the woman suppose to be depicting a usual person from another country.
Consumers have to be careful when reading in to this form of company differentiation because what the company depicts in its advertisement might be a dramatization of what the country is actually doing. This form of differentiation is a way for the company to differentiate itself in the consumer’s eyes and can try to manipulate the consumer into their product because of its differentiation strategy.
References:
Elephantjournal.com
http://www.sacbee.com/2011/07/17/3773241/these-giant-organizations-were.html
Interesting view! Ads can always reflect the mission statement of a company, because it's the commonest way for people to get familiar with the company. From the ads, we can easily see the differences among companies.
ReplyDelete