Final answer:
To compete with Lyft, Uber should enhance its product offerings, maintain competitive pricing with loyalty rewards, invest in targeted advertising highlighting its unique value proposition, and improve its distribution by expanding service coverage and operational efficiency.
Step-by-step explanation:
Recommended Changes in Marketing Mix for Uber
To remain competitive with Lyft in the US, Uber can consider the following adjustments in its marketing mix, taking into account the significance of monopolistic competition, the importance of differentiated products, and the impact of advertising:
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- Product: Enhance user experience through improved app functionality, offering additional features like accurate ETA, safety protocols, and superior service levels. Prioritize customer satisfaction and innovate to include diversified services such as luxury options or eco-friendly rides.
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- Pricing: Maintain competitive pricing while offering loyalty programs or dynamic pricing options that reward frequent users. Introduce price variations for off-peak and peak hours to manage demand efficiently.
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- Promotion: Invest in targeted advertising campaigns that highlight Uber's unique value proposition, focusing on convenience, reliability, and safety. Run promotional discounts and referral programs to incentivize brand loyalty and attract new customers.
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- Place/Distribution: Expand service coverage and operational efficiency by optimizing route mapping and driver distribution, ensuring prompt availability across diverse geographic locations.
By addressing each element of the marketing mix thoughtfully, Uber can differentiate itself from Lyft and foster greater demand for its services.