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56 Cards in this Set
- Front
- Back
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Product Line
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a group of closely related items
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product line width
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number of product lines
dish care |
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product line depth
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assortment within a product line
dish care: dawn, joy, cascade |
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product mix/ portfolio
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total group of products offered by the company
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total product concept
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More than just the tangibles
includes equity and services coca cola- bought youth and social harmony |
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what are 3 issues surrounding really new products?
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hard to forecast
take a long time to develop riskiness of new products increases as newness to the company and newness to the customer increase require management patience often yield profits for later entrants but not for pioneers investing heavily in R and D |
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model forecast off of analogous products
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use sales of pagers to predict sales of cell phones
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what are 4 sources of new product ideas
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customers
distributors competitors active search category assessment brainstorming inventory community internal - employees |
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what are the stages to new product development? 6
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1 idea generation
2 concept testing 3 product development 4 product testing 5 market testing 6 go to market or not |
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idea generation
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1
internal or external focus groups |
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concept testing
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2
role of story boards using focus groups and select most promising ones |
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product development
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3
expensive process actually manufacture the product |
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product testing
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4
uncover product drawbacks and evaluate alternatives and potential marketing segments |
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market testing
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5
advantages - predict sales expected from a major product launch disadvantages - time and money, signals competition, sabotaged |
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5 pricing strategies
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skimming
penetration value based pricing prestige competitive matching |
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skimming
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used for newly introduced products
product with patent protection few competitors recoup R&D expenses concern that demand will exceed supply |
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penetration
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used for newly introduced products
many competitors induce trial purchase increase store traffic low cost structure and scale economies |
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value based pricing
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maintain reputation for reasonable prices
highly efficient operations discipline against price changing temptations simplify for consumers P&G's products in wal mart |
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prestige
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firms price products/services at the highest end of the market
aire of exclusivity is desired hard to objectively evaluate the true value of a product service |
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competitive matching
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firms make undifferentiated products
highly competitive markets in which firm competes common for some classes of cars in the US |
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under what circumstances would a product/marketing manager "give away" value to customers?
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deflect or deter competition from entering
build strong brand loyalty - customer relationships encourage trial |
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deflect or deter competition from entering
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erects a barrier to entry
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encourage trial
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gain a foothold in a new market
hook customer PT cruiser XM radio |
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aside from cutting price what options exist for increasing perceived value?
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improve product benefits / quality
advertise to better communicate existing benefits - perception is reality add value added services - after sale service bundle |
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2 examples of price thresholds
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reservation price
lower boundary if you have this information you will better understand how consumers value your product |
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reservation price
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highest price a customer would pay for a product or service
what is the maximum price you would be willing to pay for a can of coke |
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lower boundary
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lowest price a customer would pay for a product or service before becoming suspicious of quality
low price quality association |
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what motivates a channel member to distribute a company's product?
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margins which are attractive
sales training promotions paying for cooperative advertising free product |
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intensity of distribution
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intensive
selective exclusive |
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intensive
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achieve mass marketing selling
popular with health and beauty aids and convenience goods that must be available everywhere many intermediaries in each market crayola crayons |
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selective
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work closely with selected intermediaries who meet certain criteria
typically used for shopping goods and some specialty goods several intermediaries in each market hewlett packard printers |
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exclusive
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work with a single intermediary for products that require special resources or positioning
typically used for specialty goods and major industrial equipment one intermediary in each market rolex |
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direct
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product manager sells product direct to consumer
catalog trade shows |
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indirect
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product manager sells product through an intermediary
distributor and or retailer |
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indirect channels
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representatives
wholesalers retailers |
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channel mix
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combination of channels
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channel
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mechanism for getting product to a customer
if no additional value is added there is no reason for channel to be used |
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3 trends in marketing channels
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growth of direct distribution
power shifts in the channel dual distribution order fulfillment and E commerce |
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growth of direct distribution
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nike town, apple store
channel conflict |
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power shifts in the channel
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retailers have more power
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dual distribution
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frito lay
grocery stores and vending |
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order fulfillment and E commerce
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radio frequency identification RFID
rise of click and mortar e-tailers |
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what strategies exist for manufactures to deal with more powerful retailers
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build brand equity of your product
customize products and promotions innovate court retailers invest in technology |
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channel conflict
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when one channel member impedes another from attaining its goal
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reasons for conflict
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channel member is bypassed
inequitable distribution of profits channel member not providing adequate support dual / multiple distribution |
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IMC
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strategic, coordinated use of promotion to create 1 consistent message across multiple channels
"customized approach" |
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product life cycle
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pre introduction
introduction growth maturity decline |
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pre introduction
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publicity
small amounts of advertising near introduction no sales |
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introduction
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heavy advertising and public relations to build brand awareness
sales promotions to induce trial personal selling to obtain distribution coverage and cooperation sales are minimal |
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growth
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heavy advertising and public relations to build brand loyalty
decreasing use of sales promotion personal selling to maintain distribution sales are increasing |
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maturity
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advertising slightly decreased more persuasive and reminder in nature
increased use of sales promotion to encourage brand switching personal selling to maintain distribution sales have peaked |
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decline
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advertising and public relations drastically decreased
sales promotion and personal selling maintained at low levels sales are declining |
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pull
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manufacture promotes to consumer
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sales promotions
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coupons
rebates premiums contests samples point of purchase displays |
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sales promotions aimed at the trade (retailers)
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trade allowance
cooperative advertising training free merchandise store demonstrations business meetings conventions trade shows |
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challenges for firms wishing to get their message out
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TIVO
XM - commercial free newspaper - dwindling spam blockers do not call lists |
