Chaps 10; 11; 12 Marketing

Front 1

Six Categories of New Products

Back 1

1) New to the world(penicillan)
2) New Product Lines(Iams Proctor and Gamble)
3) Product line additions(Huggies Pamper Ups)
4) Improvements/Revisions(Gillete Fusion)
5) Repositioned Products(Cadillacs)
6) Lower-priced products(HP Printer for Cheap)

Front 2

New-Product Development Process (8 steps)

Back 2

1) New product strategy
2) Idea generation
3) Idea screening
4) business analysis
5) development
6) Test marketing
7) Commercialization
8) New Product

Front 3

New Product Development Process: 1) New Product Strategy

Back 3

Plan that links the new product development process with the objective sof the marketing department the busines unit and the corporation

Front 4

New Product Strategies (4 of them)

Back 4

1) Market Pentration
2) Market Development
3) Product Development
4) Diversification

Front 5

Market Penetration

Present/New Product/Market?

Back 5

Increase market share among existing customers.

Present Market - Present Product

Front 6

Market Development

Present/New Product/Market?

Back 6

Attract new customers to existing products

New Market - Present Product

Front 7

Product Development

Present/New Product/Market?

Back 7

Create new products for present markets

Present Market - New Product

Front 8

Diversification

Present/New Product/Market?

Back 8

Introduce new products into new markets.

New market - New Product

Front 9

Idea Generation: 7 Ways

Back 9

1) Customers-wants and needs
2) Employees - post-its
3) Distributors -
4) Competitors
5) Vendors
6) R&D
7) Consultants

Front 10

Idea Screening

Back 10

first filter in the porduct development process, which eliminates ideas that are inconsistent with the organization's new product strategy or are obviously inappropriate for some other reason

Front 11

Business Analysis

Back 11

Second stage of screeening where preliminary figures for demand, cost, sales and profitability are calculated

Front 12

Development

Back 12

Stage in product development process in which a prototype is developed and a marketing strategy is outlined

Front 13

Test Marketing

Back 13

The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
-Test the brand, quantity, price, promotional effects
-Regional, real or contrived

Front 14

Choosing a Test Market

Back 14

-Similar to planned distribution
-Relative isolation and free of influences
-Advertising availability; multiple media
-Diversified cross section
-No atypical purchase habits
-Representative population/income
-Not overly used or easily “jammed”
-Year-round sales stability
-Available research/audit and retailers

Front 15

DEFINE: Adoption

Back 15

Adoption: When consumers try a new product and like it enough to purchase it again.

Front 16

DEFINE: Diffusion

Back 16

Diffusion: The process by which the adoption of an innovation spreads.

Front 17

5 Categories of Adopters

Back 17

1) Innovators
2) Early Adopters
3) Early Majority
4) Late Majority
5) Laggards

Front 18

DEFINE: Innovators

Back 18

First 2.5%

Eager to try new products
Generally have higher incomes
More worldly and more active outside of their comfort zone
Rely less on group norms, more self-confident
Info from scientific sources and experts

Front 19

DEFINE: Early Adopters

Back 19

Next 13.5%

Rely more on group norms and values
More oriented to their local community
Closer affiliation with groups, so more likely to be opinion leaders
Want the respect of others

Front 20

DEFINE: Early Majority

Back 20

Next 34%

Weigh the pros and cons before adopting
Collect more info and consider more brands
Rely on group for info but are not opinion leaders
Deliberate decision makers

Front 21

DEFINE: Late Majority

Back 21

Next 34%

Adopt because everyone else has adopted
Adoption stems from pressure to conform
Older, below average in income and education
Depend mainly on WOM, not media
Skeptical

Front 22

DEFINE: Laggards

Back 22

Last 16%


Do not rely on group norms
Rooted in tradition
Longest adoption time and lowest socio-economic status
Suspicious of new products
Ignored by marketers (not motivated by ads or personal selling)

Front 23

Five product characteristics can be used to predict and explain the rate of acceptance and diffusion of a new product...name them/define them

(ProductCharacteristics Predict Rate of Adoption)

Back 23

1) Complexity - degree of difficulty involved in understanding a new product

2) Compatibility - degree which a new product is consistent with existing values product knowledge, past experiences and current needs

3) Relative advantage - degree perceived as superior to esiting substitutes

4) Observability - degree to which benefits or other results of using the product can be observed by others and communicated to target customers

5) Trialability - Degree which a product can be tried on a limited basis (easier to try new cereal than new car)

Front 24

DEFINE Product Life Cycle (PLC)

Back 24

A concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death).
Can be a brand, product form, product category
Time of life cycle varies dramatically (fad vs. durables)

Front 25

4 stages in PLC

Back 25

1) Introduction
2) Growth
3) Maturity
4) Decline

Front 26

Introductory Stage

Back 26

High failure rates
Little competition
Frequent product modification
Limited distribution
High marketing and production costs
Negative profits
Promotion focuses on awareness and information
Intensive personal selling to channels

Front 27

Growth Stage

Back 27

Increasing rate of sales
Entrance of competitors
Market consolidation
Initial healthy profits
Promotion emphasizes brand ads, differences between brands
Goal is wider distribution
Prices normally fall
Development costs are recovered

Front 28

Maturity Stage

Back 28

Declining sales growth
Increasing @ decr. rate
Saturated markets
Generally longest stage
Extending product line, stylistic changes
Heavy promotions to dealers and consumers, service focus increases
Marginal competitors drop out
Prices and profits fall
Niche marketers emerge (target underserved segments)

Many consumer products are in Maturity

Front 29

Decline Stage

Back 29

Long-run drop in sales
Large inventories of unsold items
Elimination of all nonessential marketing expenses
Eventually the product is withdrawn from the market

Rate of decline depends on
change in tastes or
adoption of substitute products

Front 30

Extend the PLC

Back 30

Change product 
Change product use
Change product image
Change product positioning

Front 31

CHAPTER 11 MARKETING CHANNELS AND SUPPLY CHAIN MANAGMENT

Back 31

chapter 11

Front 32

DEFINE: Marketing Channel

Back 32

A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.

Front 33

DEFINE: Logistics

Back 33

The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption

Front 34

DEFINE: Supply Chain

Back 34

The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function

Front 35

Channels Fulfill Three Important Functions

Back 35

1) Specialization and Division of Labor
2) Overcoming discrepancies: quantity, assortment, time and space
3) Providing Contact Efficiency

Front 36

DEFINE: Specialization and Division of Labor

Back 36

Breaking down a complex task into smaller, more manageable ones.
Provides economies of scale, more efficiency, lower costs
Aids producers who lack motivation, financing or expertise in certain areas
Channel members can work directly with customers, meet needs better

Front 37

DEFINE: Overcoming Discrepancies

Back 37

1) Quantity: amount produced and amount end user wants to buy

2) Assortment: may not have the variety of all products a consumer wishes to buy


3) Time: product is produced at a different time than the customer wants

4) Space: product is produced in a different place than the consumer wants to buy

Front 38

DEFINE: Contact Efficiency

Back 38

reduces amount of stores customers must ship in to complete their purchases

Front 39

3 Channel Intermediaries

Back 39

1) Retailer
2) Merchant Wholesaler
3) Agents and Brokers

Front 40

DEFINE: Retailer

Back 40

A channel intermediary that
sells mainly to customers.

Front 41

DEFINE: Merchant Wholesaler

Back 41

An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.

Front 42

DEFINE: Agents and Brokers

Back 42

Wholesaling intermediaries who facilitate the sale of a product by representing channel member.

Front 43

What Intermediaries do not take title to goods

Back 43

Agents and Brokers---just get deal done
commission

Front 44

DEFINE: Direct Channel

Back 44

A distribution channel in which producers sell directly to customers
(including telemarketing, mail order, catalog shopping, forms of electronic retailing)

Front 45

3 Factors Affecting Channel Choice

Back 45

1) Market Factors
2) Product Factors
3) Producer Factors

Front 46

Name 4 Market Factors

Back 46

1) Customer profiles
2) consumer or industrial customer
3) size of market
4) geographic location

Front 47

Name 5 Product Factors

Back 47

1) Product complexity
2) Product price
3) Product standardization
4) Product life cycle
5) Product Delicacy

Front 48

Name 3 Producer Factors

Back 48

1) Producer Resources
2) Number of Product lines
3) Desire for Channel Control

Front 49

3 Levels of Distribution Intensity

Back 49

1) Intensive
2) Selective
3) Exclusive

Front 50

DEFINE: Intensive (distribution intensity)

Back 50

A form of distribution aimed at having a product available in every outlet
ex) Wrigley gum

Front 51

DEFINE: Selective (distribution intensity)

Back 51

A form of distribution achieved
by screening dealers to eliminate all but a few in any single area
ex) DKNY clothin in select retail

Front 52

DEFINE: Exclusive (distribution intensity)

Back 52

A form of distribution that established one or a few dealers within a given area
ex) Rolls-Royce dealers

Front 53

Number of Interdiaries for each distribution intensity

Back 53

Intensive - Many
Selective - Several
Exclusive - One

Front 54

5 Social Dimensions of Channels

Back 54

1) Power
2) Control
3) Leadership
4) Conflict
5) Partnering

Front 55

Channel
Power

Back 55

A channel member’s capacity to control or influence the behavior of other channel members

Front 56

Channel
Control

Back 56

A situation that occurs when one marketing channel member intentionally affects another member’s behavior

Front 57

Channel Leader

Back 57

A member of a marketing channel that exercises
authority/power over the activities of other members

Front 58

Channel
Conflict

Back 58

A clash of goals and methods between distribution channel members

Front 59

Channel
Partnering

Back 59

The joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage

Front 60

CHAPTER 12: Retailing

Back 60

Retailing

Front 61

DEFINE: Retailing

Back 61

-All the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use.

-Retailers account for 11.6 percent of U.S. employment

-Retailing accounts for 13 percent of U.S. businesses

-Retailers ring up almost $4 trillion in sales--nearly 40 percent of the U.S. GDP

Front 62

First step....retailers marketing strategy plan development

Back 62

Segment the market/ determine target market based on
1) demographics
2) geographics
3) Pyschographics

Front 63

Retailing Mix (6 P's)

Back 63

Product(width and depth of product assortment)

Price

Place (location and hours)

Promotion (advertising, publicity, and public relations)

Presentation (layout and atmosphere)

Personnel (customer service and personal selling)

Front 64

DEFINE: Retail Positioning

Back 64

Identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment

Front 65

DEFINE: Product Offering

Back 65

mix of products offered to the consumer by the retailer (product assortment)

Front 66

DEFINE: Promotional Strategy

Back 66

-Advertising
-PR
-Sales Promotions
-Publicity

Front 67

DEFINE: Personnel

Back 67

Appearance, density, training

Front 68

Retailing Mix Decisions: Site Selection (place)

Back 68

-economic growth potential
-area competition
-geography

Front 69

Retailing Mix Decisions: Location Decisions (place)

Back 69

-Fresstanding store
-shopping center tenant
-mall tenant

Front 70

Retailing Mix Decisions: Price

Back 70

Low Price - Good value
High Price - quality image

Front 71

Retailing Mix Decision: Presentation of Store Image

Back 71

-Employee type and density
-merchandise type and density
-fixture type and density
-sound
-odors
-visual factors

Front 72

DEFINE: Atmospherics (Presentation of Store Image)

Back 72

The physical elements in a store’s design that appeal to consumers’ emotions and encourage buying
Interior layout, colors, furnishings, and lighting
Exterior storefront and entrance design, display windows, and traffic congestion

Front 73

4 Categories in Classification of Retail Operations

Back 73

1) Ownership
2) Level of Service
3) Product Assortment
4) Price

Front 74

3 Different types of Ownership

Back 74

1) Independent Retailers
2) Chain Stores
3) Franchises

Front 75

Major Types of Retail Operations: types of stores

Back 75

1) Dept. stores
2) speciality stores
3) supermarkets
4) drugstores
5) convenience stores
6) Discount stores
7) Restaurants

Front 76

8 Non traditional Retailing

Back 76

Direct Mail
Direct Retailing
Catalogs and Mail Order
Telemarketing
Vending
Shop-at-home networks
Online retailing (e-tailing)
M-commerce

Front 77

LEVEL OF SERVICE
Self Service/Full Service

Factory outlets, Discount stores, Exclusive stores

Back 77

self-factory
discount in center
full service - exclusive

Front 78

4 Categories of Discount Stores

Back 78

-Full Lin Discounters
-Discount Specialty Stores
-Warehouse Clubs
-Off-price discount retailers

Front 79

DEFINE: Direct Marketing

Back 79

techniques used to get consumers to make a pruchase from their home, office, or another nonretail setting

Front 80

4 techniques of Direct Marketing

Back 80

1) Direct Mail
2) Catalogs & Mail Order
3) Telemarketing
4) electronic retailing

Front 81

2 Types of Electronic Retailing

Back 81

-Shop at Home Networks
-On-Line Retailing

Front 82

2 Basic Froms of Franchising

Back 82

1) Product and trade name franchising

2) Business Format Franchising

Front 83

DEFINE: Product and Trade Name Franchising

Back 83

Dealer agrees to sell certain products provided by a manufacturer or wholesaler.

Front 84

DEFINE: Business Format Franchising

Back 84

An ongoing business relationship between a franchiser
and a franchisee.