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A firm can develop new products in two ways:
Acquisition
New-Product Development
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Steps to IDEA Generation
(S-CD-CT-MSD-BA-PD-TM-C)
- Screening
- Concept Development
- Concept Testing
- Market Strategy Development
- Business Analaysis
- Product Development
- Test Marketing
- Commercialization
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Customer Centered New-Product Development
- Must be customer centered
- Focuses on finding new ways to solve customer problems
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Product Life Cycle (PLC) Stages:
(DIGMD)
- Development
- Introdution
- Growth
- Maturity
- Decline
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Style definition and graph type
a basic and distinctive mode of expression
Squiggly - rise and fall over time
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Fashion definition and Graph Type
a currently accepted of popular style in a given field
Arc - Increase, plateau, decrease
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Fad definition and graph type
Temporary periouds of unusally high sales drive enthusiams and popularity
Sharp increase and sharpe decline
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In modify the market, the compant tries to:
A. ) increase the consumption of the current products
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In modifying the product, the company tries:
B. ) changing charactersitics such as quality, features, style or packagin
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In modifying the marketing mix, the company tries:
A. ) changing one or more marketing mix elements
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During the decline stage, companies must choose to:
- Maintain - continure product and hope competititors leave market
- Harvest - reduce various costs and hope sales hold up
- Drop - abandon
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Narrowly defined price
amount of money charged for a product or service
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Broadly defined price
sum of all values that consumers give up in order to gain benefits of having product or service
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Value-based pricing
uses buyers perceptions of value, not the seller's cost, as the key to pricing
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Types of value based pricing
- Good value pricing
- Value-added pricing
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General pricing objectives:
- Survival
- Current profit maximization
- market share leadership
- product quality leadership
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Target Costing
pricing starts with an ideal selling price, then targets costs that will ensure price is met
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Different pricing markets
- Pure Competition
- Monopolistic Competition
- Oligopolistic Competition
- Pure Monopoly
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Price elasticity of demand
refers to how responsive demand will be to a change in price.
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Market skimming
Setting a high price for a new product to skim revenues from those willing to pay high price
Company makes fewer, but more profitiable sales
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When to use Market Skimming
- Quality and Image must support higher price
- Competiton can't enter market easily and undercut price
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Market Penetration
- Setting a low initial price in order to penetrate the market quickly and deepy
- Can attract a large number of buyers quickly and win a large market share
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Stages of Product Life Cycle
Introduction, Growth, Maturity, Decline
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Price is:
Only element in ____ _____ that provides ______
ever-present _____ _______ element
major factor affecting _______ ______
- Marketing Mix, Revenue
- Marketing Mix
- Buyer Choice
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Factors affecting Price:
Company:
strategy, consistency, costs
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Factors affecting Price:
Competitors:
Reaction, Signaling
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Factors affecting Price:
Customers:
perceievd values, Psychological, Price Sensitivity
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Factors affecting Price:
Context:
Currency, Flux in Global Demand
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Place:
___ you buy, not just _____, matters
Need to understand ____ & ______ to design channels
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Service Outputs:
_____ Time
_____ Breaking
_____ Variety
_____ Convenience
_____ Service
- Delivery
- Bulk
- Product
- Spatial
- Customer
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Channel Flow:
POPNFROP
Possesion, Ownership, Promotion, Negotitation, Financing, Risking, Ordering, Payment
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Intergrated Marketing Message:
______, ______, & _______ Message
Clear, Consistent, Compelling
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5 steps to effective communication:
1. _______ Target Audience
2. Set ________ ________
3. Design the ________
4. Choose the _______
5. ______ Message _______
- Idenifty
- Communication Objectives
- Message
- Medium
- Select, Source
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Four options for setting promotional budget
- ________________________________
| ------% of Sales------ | ---Affrodable---- | | _________________ | ______________ | | --Competitive Parity-- | -Objctve & Task- | | _________________ | ______________ |
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Promtional Tools
- Advertising
- Public Relations
- Personal Selling
- Sales Promotion
- Direct Marketing
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Competitive Advantage
- ________________________________
- |-Cost Leadership-----|---Differentiation--|
- |_________________|______________|
- |------Focus-----------|--Middle Road---|
- |_________________|______________|
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New Competive Advantage Strategies
______ Excellance
Customer _______
_______ Supremacy
- Operational
- Intimacy
- Product
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Competitive Positioning:
- ________________________________
- |----------Leader-----|---Challenager----|
- |_________________|______________|
- |------Follower-------|---Nicher----------|
- |_________________|______________|
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A set of interdependent organizations involved in the process of making a product or service available for use or consumption is a _________
Marketing Channel
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68% of your target market had been exposed to your ad campaign during a given period of time. This is an example of ________.
Reach
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Manufacturers may offer a(n) ________ in return for the retailer’s agreement to feature the manufacturer’s products in some way
allowance
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Advertising, sales promotion, personal selling, public relations, and direct marketing are all ________.
communications channels that should be integrated under the concept of integrated marketing communications.
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Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________.
Advertising
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What is an advantage of direct marketing for sellers?
It can give sellers access to buyers outside their local markets
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