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25 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What are the implications of Life Cycle theory?
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Products have a limited life
Product sales pass through distinct stages each with different challenges and opportunities Profits rise and fall at different stages Products require different strategies in each life cycle stage |
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Describe the Life Cycle Patterns?
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1. growth slump maturity pattern: sales grow rapidly upon intro and then fall to a petrfied level sustained by late adoptors buying the product for the first time and early adopters replacing it.(kitchen items)
2. Cycle-Recycle pattern:Pharma drugs. agressive promotion, producing the first cycle, then sales decline, then they do another push casuign a second cycle( smaller in length and profit) 3. Scalloped Pattern-sales pass through a succession of life cycles based on discovering of new products characteristics, uses or users. eg nylon.- used as hosiery., for shirts, for carpeting, boat sales, new uses discovered |
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What are the main strategies and typical characteristics at various stages of the life cycle?
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1. Introduction: Charac: low sales, high cost per customer, negative profits,innovator customers, few competitors
Strat- product- offer basic product, price- charge cost plus, dist-selective,comm- product awareness and trial among adopters and dealers 2. growth-charac- rapid rise in sales, average cost per cust, rising profits, cust- early adopters,comp- growing.Strat-product extensions, service warranty, price to penetrate market, dist-intensive distribution, comm-build awareness and mass market interest-max market share 3. Maturity-charac-peak sales, low cost per cust,high profits, cust-middle majority,compet-stable # begining to decline,strategies- diversify brands and item models,price tomatch our best competitors,build more intensive distribution, stress brand differnces and benefits, encourage brand switching-defend marketshare and make money Strategies Market Modification Product Modification Marketing Program Modification 4. Decline- declining sales, low cost customers, declining profits,laggards, competitors- declining, strategies- phase out weak products, cut price, distribution-selective pahse out unprofitable outlets, comm- reduce minimal level needed to reatian hard-core loyals-milk the brand, don;t spend $ Strategies: Increase firm’s investment. Maintain the firm’s investment level. Decrease the firm’s investment level. Harvesting (“milking”) the firm’s investment. Divesting the business quickly |
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What's the difference between Skimming and Penetration?
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Rapid skimming strategy
Slow skimming strategy Rapid penetration strategy Slow penetration strategy |
Improve product quality, add new features, and improve styling
Add new models and flanker products Enter new market segments Increase distribution coverage Shift from product-awareness advertising to product-preference advertising Lower prices to attract the next layer of price-sensitive buyers |
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What's the Concept of Competition?
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Number of sellers and degree of differentiation
Entry, mobility, and exit barriers Cost structure Degree of vertical integration Degree of globalization |
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Describe Market Share, Mind Share, Heart Share.
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Share of market- competitors share of target market
Share of mind-the % of customers who named the competitor in responding to: "Name the 1st company that comes to mindin this industry" Share of heart- the % of customers who named the competitor in this statement: Name the company you prefer to buy the product from |
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What are the main Market Structures?
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Market leader-Expand Market,Defend Market Share,Expand Market Share
Market challenger-Attack leader,Status quo Market follower-Imitate Market nicher-Specialize |
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What are the Approaches / strategies at for various market positions?
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Market Leader:Expanding the Total Market
New Users Market-penetration strategy New-market segment strategy Geographical-expansion strategy New Uses More Usage Defending Market Share 1)Position defense (2) Flank defense (3) Preemptive defense (4) Counteroffensive defense (5)Mobile defense (6) Contraction defense Market Challenger- Defining the Strategic Objective and Opponent(s) It can attack the market leader It can attack firms of its own size that are not doing the job and are underfinanced It can attack small local and regional firms Choose a General Attack Strategy Choose a Specific Attack Strategy Edit Define the Market Challenger Attack Strategies 1) Frontal attack (2) Flank attack (3) Encirclement attack (4) Bypass attack (5) Guerilla attack Market Follower- Counterfeiter Cloner Imitator Adapter Niche-End-User Specialist Vertical-Level Specialist Customer-Size Specialist Specific-Customer Specialist Geographic Specialist Product-Line Specialist Job-Shop Specialist Quality-Price Specialist Service-Specialist Channel Specialist |
other approaches:
Price discounts Lower-priced goods Value-priced goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing-cost reduction Intensive advertising promotion |
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Whats the Product development processes?
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. Idea generation- is the idea worth considering? if no drop
2. idea screening- is the idea compatible with company objectives, strategies ans resources? if no drop 3. Concept devlopement and testing- would consumers try it?if no drop 4. marketing strategy developement- can we find a cost-effective strategy?if no drop 5.Business analysis- will it meet the profit goal? if no drop 6. Product development- have we got a technically and commercially sound product? if no drop 7. Market testing- have they met sales expectations? if no send to product development or drop 8. Commercialization- are sales mtg expectations? if no-modify mktg program-if yes- lay future plans |
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What are the main issues in product development?
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Shortage of ideas
Fragmented markets Social and governmental constraints Cost of development Capital shortages Faster required development time Shorter product life cycles |
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Product line management
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Line Stretching
Downmarket Upmarket Two-way Line Filling Line Modernization Line Featuring & Line Pruning Edit Describe line stretching? Down-Market Stretch Up-Market Stretch Two-Way Stretch |
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What are Market testing approaches?
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Product Idea Rating Device
Concept Testing: Communicability and believability Need level Gap level Perceived value Purchase intention User targets, purchase occasions, purchasing frequently Lateral Mapping |
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Break even
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See formula
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Costs- fixed vs variable
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Fixed Costs
(Overhead) Costs that don’t vary with sales or production levels. Executive Salaries Rent Variable Costs Costs that do vary directly with the level of production. Raw materials |
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What are some pricing strategies and approaches?
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PremiumValue
Medium Value Economy HighValue SuperValue Good-Value Overcharging Rip-Off False Economy Price-Adaptation Strategies Geographical Pricing Discounts/Allowances Differentiated Pricing Promo Pricing Differentiated Pricing: Product-form Customer Segment Location Time approaches: Markup pricing Target-return pricing Perceived-value pricing Value pricing Going-rate pricing Sealed bid pricing Auction-type pricing |
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What are someRetailer types?
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Reatailor decsions
Target market Product assortment Service/store atmosphere Price Communication Location |
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Product positions and distribution strategeis
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see print-outs
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Functions of organizations and distribution channels
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Selecting
Gather information Develop and disseminate persuasive communications Reach agreements on price and terms Acquire funds to finance inventories Assume risks Provide for storage Provide for buyers’ payment of their bills Oversee actual transfer of ownership Channels MFG, wholesale, jobber retail, consumer |
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Whats the Communication Process?
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SENDER
Encoding Decoding RECEIVER Media Message Feedback Response |
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What are some message problems?
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Noise
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What are Roles of various media?
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Advertising Public, Pervasive, Expressive, Impersonal
Sales Promotion Communication, Incentive, Invitation Public Relations & Publicity Credibility, Surprise, Dramatization Personal Selling Personal Confrontation, Cultivation, Response Direct and Interactive Marketing Nonpublic, Customized, Up-to-Date, Interactive |
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what's the Budget development process
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Stage in the product life cycle
Market share and consumer base Competition and clutter Advertising frequency Product substitutability Establish the budget: Affordable Percentage-of-sales Competitive parity Objective-and-task |
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What to consider when choosing the right promotional mix
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Type of Product Market
Consumer Readiness to Make a Purchase Stage in the Product Life Cycle Market Rank Deciding on Reach, Frequency, and Impact –Media selection –How many exposures will produce audience awareness depends on the exposures’: •Reach (R) •Frequency (F) |
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Public Relations functions?
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Press relations
Product publicity Corporate communications Lobbying Counseling Marketing Public Relations Functions Tasks Aided by Public Relations Launching new products Repositioning a mature product Building interest in a product category Influencing specific target groups Defending products that have encountered public problems Building the corporate image in a way that reflects favorable on products Assist in product launches Assist in repositioning mature products Build interest in a product category Influence specific target groups Defend products Build corporate image |
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Promotions – types, benefits
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Collection of incentive tools, mostly
short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade Consumer Promotion: Consumer-Promotion Tools Point-of-Purchase Displays Premiums Price Packs Cash Refunds Coupons Samples Patronage Rewards Games Sweepstakes Contests Consumer-Promotion Objectives: Entice Consumers to Try a New Product Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’ on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Trade Promotions: Advertising Items Contests Free Goods Buy-Back Guarantees Allowances Patronage Rewards Push Money Discounts Trade-Promotion Objectives Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers |
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