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61 Cards in this Set
- Front
- Back
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product life cycle- definition
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describes the stages a really new product idea goes through from beginning to end
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product life cycle- four stages
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market introduction, market growth, market maturity, sales decline
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market introduction
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sales are low as a new idea is first introduced to a market
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market growth
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industry sales grow fast, but industry profits rise and then start falling
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market maturity
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occurs when industry sales level off and competition gets tougher, spend lots of money on advertisements, price competition, brands are more similar
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sales decline
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new products replace the old
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product life cycle length variance
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starting to become shorter; newer product profits are better than long-term; fashions make this happen
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How can you use planning at various stages of the product life cycle?
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allocate sufficient funds; consider the 4 Ps; anticipate speed of movement; competitors may help adoption; be flexible
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How do you manage maturing products?
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It is important to hold the competitive advantage.
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ROI
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Return on Investment
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new product
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a product that is new in ANY WAY for the company concerned
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What is the amount of time a company can promote a product as new?
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6 months
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What is a new-product development process?
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a five step process that uses effective strategies to go with each step; this is often the key to a firm's success
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What are the five steps of the new-product development process?
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idea generation, screening, idea evaluation, development, commercialization
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Idea generation
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get ideas from customers, uses, marketing research, competitors, other markets, company employees, middlemen, etc.
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screening
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SWOT, strengths and weaknesses, "does it fit with objectives?", market trends, rough ROI estimate
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idea evaluation
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concept testing reactions from customers, rough estimate of costs, sales and profits
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development
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R and D, develop model or service prototype, test marketing mix, revise plans as needed, ROI estimate
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commercialization
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finalize products and marketing plan, start production and marketing, "roll out" in select markets, final ROI estimate
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product/brand manager
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manage specific products
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TQM (Total Quality Management)
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the philosophy that everyone in an organization is concerned about quality, throughout all of the firm's activities to better serve customer needs
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fishbone diagram
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a diagram resembling a fish skeleton used to solve problems within a company
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empowerment
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making people important enough to feel like they can make a decision without contacting a higher authority
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benchmarking
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picking a basis of comparison for evalutation how well a job is being done
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retailing
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covers all of the activities involved in the sale of products to final customers
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retail strategy
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consciously make decisions that set policies on convenience, product selection, special services, fairness in dealings, helpful information, prices, social image and shopping atmosphere
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specialty shop
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a type of limited-line store that is usually small and has a "distinct personality"
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department stores
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larger stores that are organized into many separate departmentsand offer many product lines
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mass-merchandising concept
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says retailers should offer loew prices to get faster turnover and greater sales volumes
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supermarkets
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large stores specializing in groceries with self-service and wide assortments
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discount houses
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offers hard good (cameras, TVs and appliances) at substantial price cuts to customers
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mass-merchandisers
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large, self-service stores with many departments that emphasize soft goods (housewares, clothing and fabrics) and staples (health and beauty aids) but still follow the discount house emphasis on lower margins to get faster turnover
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How has internet shopping impacted the retailing environment?
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internet usage continues to rise and consumer e-commerce purchases have grown at a faster rate
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wheel of retailing
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says that new types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more servies with higher operationg costs and higher prices
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wholesaler/wholesaling
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concerned with the activities of these persons or establishments that sell to retailers and other merchants
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manufacturer sales branches
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warehouses that producers set up at separate loactions away from their factories
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merchant wholesalers
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own the products they sell; often specialize by certain types of products or customers
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service wholesaler
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merchant wholesalers that provide all the wholesaling functions
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general merchandise wholesaler
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service wholesalers that carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics and automobile equipment
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single-line wholesaler
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servie wholesalers that carry a narrower line of merchandise than general merchandise wholesalers
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specialty wholesaler
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service wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers
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limited-function wholesaler
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provide only some wholesaling functions
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cash-and-carry wholesalers
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operate like service wholesalers- except that the customer must pay with cash
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drop-shippers
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own the products they sell, but do not actually handle, stock or deliver them
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truck wholesalers
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specialize in delivering products that they stock in their own trucks
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rack jobber
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specialize in hard-to-handle assortments of products that a retailer doesn't want to manage
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agent middleman
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wholesalers who do not own the products they sell, main purpose is to help in buying and selling
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promotion
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communicating information between the seller and potential buyer or others in the channel to influence attitudes and behaviors
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personal selling
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involves direct spoken communications between sellers and potential customers
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mass selling
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cocmmunicating with large numbers of potential customers at the same time
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advertising
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any paid form of nonpersonal presentation of ideas, goods and services by an identified sponsor
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publicity
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any unpaid form of nonpersonal presentation of ideas, good and services
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sales managers
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concerned with managing personal selling
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advertising managers
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manage their company's mass-selling effort
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sales promotion managers
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manage their company's sales promotion effort
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IMC (integrated marketing communications)
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the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message
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AIDA Model
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attention, interest, desire, action
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Six steps of the traditional communication process
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source-encoding-message channel- decoding-receiver-feedback
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pushing
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using normal promotional effort
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pulling
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getting customers to ask middlemen for the product
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Five steps of the adoption process
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innovators, early adopters, early majority, late majority and laggards or nonadopters
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