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179 Cards in this Set
- Front
- Back
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What is Marketing?
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“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
Creating- Product Communicating- Promotion Delivering- Place Exchanging- Price |
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General Marketing Model
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1) Marketing Research
2) Customer Needs 3) Offering- Product, Price, Promotion, Place 4) Retain/Attract Customers 5) Financial Outcomes 6) Sales, Market Share, ROI, Stock Price, Etc |
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Marketing Process
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- Understand the marketplace and customer needs and wants.
- Design a customer-driven marketing strategy. - Construct a marketing program that delivers superior value. - Build profitable relationships and create customer delight. - Capture value from customers to create profits and customer quality leading to firm success |
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Marketing Myopia
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paying more attention to the specific products they offer than to the benefits and experiences produced by these products
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Customer Relationship Management
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overall process of building and maintenance of profitable customer relationships by providing them with superior customer value and satisfaction
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Three Keys to CRM
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1) Gettin customers
2) Keepin customers 3) Growin customers |
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Customer Perceived Value
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The difference between all the customers perceived benefits and costs of all your market offerings relative to those of your competitors
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Customer Satisfaction
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Perceived value of offering, dependent upon there expectations
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Customer satisfaction often leads to
When you exceed expectations you... |
consumer loyalty
DELIGHT customers |
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Customer Managed Relationships
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Involving customers is now key, because people have so much access to brand information. Ex: Social Networks
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Consumer Generated Marketing
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blogs, web sites, having them create commercials, give input, etc
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Customer Lifetime Value (CLV)
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The entire stream of purchases that the customer would make over a lifetime of patronage
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Share of Customer
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The share a company gets of the customer’s purchasing in their product categories
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Customer Equity
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the total combined customer lifetime values of all the company's current and potential customers
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Four Ideas that help Firms Build Customer Value:
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1) there are NO COMMODITIES
2) products are problem solving tools. customers think of holes and thirst, not drill bits and cola 3) bias towards the measurable. measure things like fun, customer value, etc 4) Make the intangbile more tangible to customers. |
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Customer Relationship Groups (just name them)
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Butterfly
Barnicle True Friend Stranger |
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Butterfly
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High Profit, Short Term:
Good fit w/ firm offering, but doesn't stay loyal |
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True Friend
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High Profit, Long Term:
Good fit |
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Barnicle
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Low Profit, Long Term:
Bad fit, cost you lot of money |
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What to do with a BUTTERFLY
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The classic mistake is continuing to invest once their activity drops off. (Only 10% or lower turned butterflies into true friends)
o Enjoy them while they can o Remedy: Short term hard sell through promotions and mailing blitzes that include special offers on other products. Opposite of what you should do with True Friends |
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Strangers
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Low Profit, Short Term:
Bad fit |
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Types of Research (just list)
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Exploratory
Descriptive Causal (not casual) |
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What to do with a BARNICLE
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Determine small wallet or small share?
If small wallet, leave along If small share, chase |
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Exploratory - give example
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We are seeing a downtrend in the sales of pepperoni pizza? Why?
Tends to be more qualitative |
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What to do with a TRUE FRIEND
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Send loyal customers special deals via email, etc
o Increasing the level of contact whether it be via mail, email, etc turns off loyal customers than puts on them o Measure loyalty through actual and attitudinal measures not just transactions alone |
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Descriptive - give example
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How big is the market for non-meat topping pizza?
Tends to be more quantitative |
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Causal - give example
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If we offer more non-meat toppings does it increase revenue or simply require more skus?
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Information Sources (types and explain and examples)
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Primary- company generated, survey's, observational groups, focus groups
Secondary- from a source, wikipedia, government, less expensive |
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Methods of Primary Research (list and explain)
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Observational- counting cars to locate a retail store, counting customers in a mall
Survey- paper based, web, phone Experimental- experience this first hand |
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Match:
Blog CRM CGM |
Facebook- CRM, because the company controls the faceboook page where customers can talk about the company. I.e. remove negative comments and/or respond to the negative comments
Blog- CGM, because is by CGM because the company isn’t in control and the blog is created by customers and customers can create and write whatever they want. |
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CLV Conceptual Overview (5 steps)
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1)Data- Use databases to find information about customer
2)Segments- Create customer segments based on database info 3) Profitability- Determine profitability of segments 4) Review- Use other data with database data to figure out best customers (true friends, etc) 5) Acquisition & Retention: Manage the acquisition of these customers independently and retain them over time |
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Factors that effect consumer behavior (just list)
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Cultural
Social Personal Psychological |
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Cultural
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Culture- Most basic cause of a person’s wants and behavior.
Subculture- groups of people with shared value systems based on common life experiences and situations o Ex: Hispanic, African American, Asian American, mature customers Social Class- society's relatively permanent and ordered divisions whose member share similar values, interests, and behaviors |
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Social
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Reference Groups- serve as direct (face-to-face) or indirect points of comparison or reference in forming a person's attitudes or behavior.
- Can cause conformity - Strongest pressure comes from sex roles Opinion Leader- knowledgeable (very key), first to buy usually, tells both positive and negative Family- Husband, Wife, etc Roles and Status- working mother plays the role of brand manager in her family, avid fan at sporting events etc, she will buy what reflects her roles and status's |
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Personal
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Age and Lifestyle Stage- lifestyles change over time with age so you have to watch consumers as their lifestyle changes
Occupation- marketers try to identify the occupational groups that have an above average interest in their products and services. Blue collar- white collar Economic Situation- whether we are in a recession, uprise, etc. Lifestyle- persons pattern of living as expressed in his or her psychographics. AIO dimensions- Activities, Interests, Opinions Personality and self-concept- self concept is the idea that people's possessions contribute to and reflect their identities- "we are what we have" |
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Psychological Factors
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Motivation- Maslow- hierarchy of needs, Froid- subconscious
Perception- Selective attention- tendency for people to sreen out most of the information which they are exposed. Subliminal Advertising- when advertisers worry that their marketing messages will pick up on their message without even knowing it Selective Distortion- tendency of people to interpret information in away that will support what they already believe Learning- occurs the drives, stimuli, cues, responses and reinforcement. Drive is directed at a stimulus object Beliefs and Attitudes |
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Maslow Heirachy of Needs (most important first)
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Physiological needs- hunger, thirst
Safety needs- security, protection Social needs- sense of belonging, love Esteem needs- self-esteem, recognition, status Self-actualization needs |
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Froid
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Subliminal, are conscious that you want something.
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Buyer-Decision-Process (just list)
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1) Need Recognition
2) Information Search 3) Evaluate alternatives 4) Purchase Decision 5) Post - Purchase |
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1) Need Recognition (give example, and def)
2) Information Search 3) Evaluate alternatives 4) Purchase Decision 5) Post- Purchase |
1) My car is old!
2) What can i afford? 3) What fits me the best? 4) Buy car 5) Was this right? |
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1) Need Recognition- triggered by...
2) Information Search- types of information sources 3) Evaluate alternatives- alternative definition 4) Purchase Decision- two factors of that come between intention and decision 5) Post- Purchase- type, and expectations, etc |
1) internal and external stimuli
2) peronal, commercial, public, experiential 3) how the consumer processes information to arrive at brand choices 4) Attitudes of others, Unexpected situational factors 5) Cognitive Dissonance, Meet expectation- satisfied Exceed- delighted Don't meet- dissapointed |
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Cognitive Dissonance-
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when you think of all the positives of the product you didn't buy
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Habitual/Repeat Purchase customers....
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does NOT go through all of the BDP
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Categories of Adopters
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Innovators (2.5%)- try new ideas at some risk
Early adopters (13.5%)- are guided by respect, usually opinion leaders, make decisions early but carefully Early majority (34%)- deliberate, rarely are leaders but before average person Late majority (34%)- skeptical, adopt only have majority have tried it Laggards (16%)- tradition bound, only adopt once product has become tradition |
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4 Perils of CRM (just list)
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Peril 1: Implementing CRM before Creating a Customer Strategy
Peril 2: Rolling Out CRM Before Changing Your Organization to Match Peril 3: Assuming that More CRM Technology is Better Peril 4: Stalking, Not Wooing, Customers |
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Peril 1: Implementing CRM before Creating a Customer Strategy
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o Example, segmentation analysis should be done before Technology/CRM
o Technology that affects customers must always be aligned with an overarching strategy if it is to work. |
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Peril 2: Rolling Out CRM Before Changing Your Organization to Match
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o Must align with overarching strategy
o Important to evaluate existing departmental, product, or geographic structures. |
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Peril 3: Assuming that More CRM Technology is Better
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o Alternatives: motivating employees to be more aware of customer needs
o Several companies have a health hybrid approach to CRM • Ex: Grand Expeditions started by indentifying the low-tech activities that were already working well and could be replicated across the company. |
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Peril 4: Stalking, Not Wooing, Customers
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o Companies often ignore the type of relationship they have with their customers
o Relationships are two-way streets. You may want to forge more relationships with affluent customers, but do they want them with you? o Depends on the customer strategy, NOT the CRM program |
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CLV analysis (definition)
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Determining the contribution margin (Revenue- COGS) of a customer net of the marketing costs to acquire and, the marketing costs to retain on a discounted cash-flow basis.
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Acquisition Costs (AC)- give def. and formula
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The cost to acquire a new customer from a particular segment.
= Cost to get new segment (catalog or in general)/ Response Rate or Total Customers of new Segment |
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Ongoing Marketing Expenses (C)-
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The cost of retaining a customer once acquired.
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Breakeven Period-
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The time period required to fully recover all acquisition costs for a given customer segment on an NPV basis.
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Common Actions from the CLV calculations (list and definition):
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“Firing” Customers- attempt to indentify customers who create substantial costs, such as those making regular product returns or demanding increased levels of service
Rewarding Customers- Using discount vouchers or preferential services. Leads to higher loyalty and retention rates Identifying Cross-Selling Opportunities- Using information about customer interests and shopping patterns, firms identify opportunities to offer additional or similar products, sometimes in package deals to leverage their products and complimentary products of their own |
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Seps in Strategic Planning (just list)
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1) Defining the company mission
2) Setting company objectives and goals 3) Designing the business portfolio Corporate Level ^^^^^^^^^^^ 4) Planning marketing and other functional strategies Business unit, product, and market level ^^^^^^^^^^^ |
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1) Defining the company mission
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Mission Statement- A statement of the organization’s purpose – what it wants to accomplish in the larger environment.
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2) Setting company objectives and goals
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more specific, ways to accomplish company mission statement, etc
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3) Designing the business portfolio
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Business Portfolio- the collection of businesses and products that make up the company.
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The Best Portfolio is the one that....
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best fits the company’s strengths and weaknesses to opportunities In the environment.
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Portfolio Analysis
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management evaluates the products and businesses that make up the company
o Put strong resources into its more profitable businesses and phase down or drop weaker ones o Purpose is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment. |
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The Boston Consulting Group Approach Growth-Share Matrix (just simple definition)-
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approach to classifying all a company’s SBU (strategic business units)
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The Boston Consulting Group Approach Growth-Share Matrix (list with basic properties)-
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Star- High Growth Rate/ High Relative Market Share
Question Mark- High Growth Rate/ Low Relative Market Share Cash Cow- Low Growth Rate/ High Relative Market Share Dog- Low Growth Rate/ Low Relative Market Share |
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Stars
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Produces high profits; invest to keep as a star and to eventually turn into cash cow
10%- 20% Growth, 50%- 100% Market Share Need heavy investments to finance their rapid growth. Turns into cash cow |
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Question Mark
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Low profits but potential star or cash cow; invest for growth or discontinue
10%- 20% Market Growth, 0%-50% Share Require a lot of cash to hold their share, let alone increase it. |
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Cash Cows
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Produces good cash flow; use to support question mark or star
0%-10% Growth, 50%-100% Share Need less investment to hold their market share. Produces cash that companies use to pay bills |
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Dogs
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Produces poor profits; make the most of profits or discontinue
0%-10% Growth, 0%-50% Share May grow enough cash to sustain themselves but do not promise large amounts of cash |
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Problems with Matrix Approaches-
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difficult
time consuming costly to implement. Hard to define SBU’s and measure market share and growth. Provide little advice for future planning. |
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Unit Market Share
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Unit sales (#) / Total Market Unit Sales (#)
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Revenue Market Share (%)
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= Sales Revenue ($) / Total Market Sales Revenue ($)
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Relative Market Share Index (%)
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= Brand’s Market Share ($ or #) / Largest Competitor’s Market Share ($ or #)
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Product/market expansion grid (basic definition) -
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useful device for identifying growth opportunities
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Four Grid Parts (with basic attributes)-
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Market Penetration (top left)- Existing Products, existing markets.
Market Development (bottom left)- Existing products, new markets Product Development (top right)- New products, existing markets Diversification (bottom right)- New products, new markets |
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Market Penetration (definition)-
How? |
making more sales witihout changing its orginal product
marketing mix improvements, adjustments to product design, advertising, pricing, and distr. |
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Market Development (definition)-
How? |
identifying and developing new markets for its current markets
Could review new demographic markets |
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Product Development (definition)-
How? |
offering modified or new products to current markets
Ex: Underarmor flooded footwear market with a line of cross-trainer shoes. |
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Diversification (definition)-
How? |
starting up or buying businesses outside of its current products and markets
Ex: Under Armor could move into nonperformance leisurewear |
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Downsizing - why it happens
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- firm may have over extended
- entered areas where it lacks experince |
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Marketing Strategy (definition)
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the marketing logic by which the company hopes to create the customer value and achieve these profitable relationships.
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Macroenvironment (definition)
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consists of the larger societal forces that affect the microenvironment-
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Factors in Macroenvironment that effect Marketing Strategy: (just list factors)
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1) Demographic
2) Economic 3) Natural 4) Technological 5) Political 6) Cultural |
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Demographic Environment-
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study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
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Economic Environment-
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consists of factors that affect consumer purchasing power and spending patterns.
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Natural Environment-
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involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
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Technological Environment-
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Most dramatic force. Changes rapidly. Creates new markets and opportunities. Replaces some markets.
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Political environment-
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consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
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Cultural Environment-
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made up of institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors.
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Engel’s Law:
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difference in how people shift their spending across food, housing, transportation, health care, and other goods and services categories as family income rises
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Microenvironment (definition)
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consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
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Microenvironment (just list actors)
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1) Suppliers
2) Competitors 3) Channel Partners 4) Investors 5) Publics 6) Consumers |
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Suppliers
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provide resources needed by the company to produce its goods and services.
• Rising supply costs may force prices increases that can harm the company’s sales volumes |
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Competitors
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to be successful, a company must provide greater customer value and satisfaction than its competitors do.
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Publics
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any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives
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Seven Types of Publics (list and explain)
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1) Financial publics- influence the company’s ability to obtain funds.
o Banks, investment houses, and stockholders 2) Media publics- carries news, features, and editorial opinion o Newspapers, magazines ,and radio/televisions 3) Government publics- marketers must often consult the company’s lawers on issues of product safety, truth in adverstising, and other matters 4) Citizen-action publics- company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. o PR dept. helps stay in touch with consumer and citizen groups 5) Local publics- includes neighborhood residents and community organizations. o Companies usually appoint a community relations office to deal with the community, attend meetings, answer questions, and contribute to worthwhile causes. 6) General public- need to be concerned about public attitude toward product and activities. o Public image affects buying patterns. 7) Internal publics- group includes workers, managers, volunteers, and the board of directors. o Use newsletters and other means to inform and motive their internal publics o Internal positive attitude spill over to external publics |
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Customers
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Most important actors. Aim of entire value delivery is to serve target customers and create strong relationships with them.
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Channel Partners
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help the company to promote, sell , and distribute its products to final buyers.
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Types of Channel Partners
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Physical distributions firms- help the company to stock and move goods from their points of origin to their destinations.
Marketing services agencies- are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets Financial Intermediaries- include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods |
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STDP (just define and list acronyms)
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STDP- is a customer-driven marketing strategy to create value for targeted customers
S- Segmentation T- Targeting D- Differentiation P- Positioning |
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Segmentation (just list bases)
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Geographic
Demographic Pyschogrpahic Behavioral |
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Keys to Effective Segmentation (list)
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Measurable
Accessible Substantial Differentiable Actionable Benefits |
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Geographic Base
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dividing the overall market into groups based on geography. Most products derive the majority of their sales from a very small number of regions.
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Demographic Base
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dividing consumers into groups based on sex, income, age, occupation, race, religion, education, etc
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Psychographic Base
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variables - dividing the population into homogeneous groups based on behavioral and lifestyle profiles developed by analyzing consumer activities, interests, and opinions (AIO) and values, attitudes, and lifestyles (VALS) through surveys.
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Behavioral Base
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dividing a population into groups based on purchase frequency and usage level.
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Benefits Base
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dividing a population into groups based on the benefits they seek in the product or service.
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Harvard Business Article Segmentation Part:
1) Requirement (just list) 2) Types of segmentation 3) Required Steps from marketer: |
1) Must be different from one another & relevant towards marketing effort
2) i. Based on benefits sought by customers ii. Based on observable characteristics of customers 3) i. Understand the benefits that customers seek ii. Segment the market and develop prototypical customer profiles based on the customer benefits iii. Find the observable variables most likely to discriminate among the benefit segments to identify membership in specific segments |
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Targeting (just definition)
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Pick segmentation based on potential and company strengths.
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Targeting Strategies (just list)
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1) Mass marketing- Undifferentiated
2) Differentiated (segmented) 3) Concentrated (niche) 4) Custom |
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Mass marketing- Undifferentiated
Benefits- Downfalls- |
produce one product or product line and markets in same manner to all consumers. Offers one product to entire market irrespective of differences. Hard to find company that attracts everyone.
Benefits- cost much less to operate Downfalls- many sizable consumers have unique needs, are measureable, reachable and profitable. Could be more effective |
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Differentiated (segmented)
Benefits- Downfalls- |
numerous products are offered to different segments through differential uses of the 4ps.
Benefits- higher total sales, stronger position within each market segment. Downfalls- Increased cost of doing business |
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Concentrated (niche)
Benefits- Downfalls- |
used by small firm that directs efforts toward serving a very small segment. Market more efficiently and effectively, fewer competitors (examples: Whole foods and Zappos)
Benefits- achieves strong market position because of greater knowledge of consumer needs in the niches it serves. Markets more efficiently Downfalls- high risk if segment turns sour or if big firms enter segment with more resources |
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Custom
Benefits- Downfalls- |
extreme version of differentiated marketing. Company strives to meet needs of small segments. One-to-one marketing, allowed more detailed customer data
Benefits- mass customizatoin Downfalls- customer chooses products? |
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Keys to Target Market Selection (just list)
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1) Understand differiantion
2) Synthesize data into so-called competitor capability matrices. 3) This “differential advantage analysis” facilitates target market selection by pointing out the relative strengths (and weaknesses) of the focal firm, but it does not predict the competitive reactions the firm might face if it indeed decides to target a segment. |
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Collect data for each firm in five areas:
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i. Ability to conceive and design
ii. Ability to produce (quality and quantity) iii. Ability to market iv. Ability to finance v. Ability to manage/execute |
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Differentiate (just definition)
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Determine a unique or underserved area & offer superior value
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Positioning (just definition)
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Orchestrate the components of the marketing mix to achieve a valuable location in consumer’s perceptions
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Positioning Maps
Examples: |
show consumer perceptions of their brands versus competing products on important buying dimensions.
Pizza- cost vs thickness |
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Value Proposition (definition)
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the full mix of benefits upon which the brand is differentiated and poistioned. Answer to "why should I buy your brand?"
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What two variables are in the value proposition table?
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Benefits and Price
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Possible Value Propositions (just list):
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More benefits for more price
More "" for the same "" More for less The same for less Less for much less |
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More for more
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most upscale product offering or service charging a high price. Iphone, mercedes.
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More for the Same
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Same quality of more for more product but a lower price.
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The same for Less
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just a plain old good deal.
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Less for much less
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involves meeting consumers' lower performance or quality requirements at a much lower price.
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More for Less
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*winning value proposition
in the long run companies find it very difficult to sustain this positioning. |
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A good positiong statement answers three questions:
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i. Who are the customers?
ii. What is the set of needs that the product fulfills? iii. Why is the product the best option to satisfy those needs |
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Two extreme types of differentiation:
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i. Vertically differentiated- when all buyers agree that product A is better than product B.
1. Result: if they are sold at same price, no one buys B ii. Horizontally differentiated- if products A and B differ in ways independent of buyers’ overall judgments about their quality levels. 1. Result: if they are sold at the same price, some people will prefer one, some the other. |
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Product Layers (just list, from inside to out)
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Core Product
Actual Product Augmented Product |
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Core Layer
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Actual benefit received by consumer
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Actual Layer
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Quality level, feature, design, packaging and brand name of the product.
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Augmented Layer
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delivery and credit, warranty and after-sales service associated with product (warranties, repair/maintenance, installation, customer support services, delivery, credits and product use instructions)
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Product Classifications (just list)
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Convenience
Shopping Specialty Unsought |
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Properties of Convenience:
Buying Behavior Price Distribution Promotion |
Buying Behavior- frequent purchasing, little planing
Price- low Distribution- Wide convenient Promotion- price driven and frequent |
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Examples of Convenience-
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toothepaste, magazine, beer
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Properties of Shopping:
Buying Behavior Price Distribution Promotion |
Buying Behavior- less frequent purchase, planning and research
Price- higher Distribution- Selective Promotion- Brand advertising and personal selling |
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Examples of Shopping-
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Television, phones, clothing
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Properties of Specialty:
Buying Behavior Price Distribution Promotion |
Buying Behavior- Brand pereference, loyalty, little comparison
Price- No Limit Distribution- exclusive Promotion- Selective image based promotion, never price |
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Examples of Specialty-
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Rolex, Mercedes, Gucci
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Attributes of Unsought:
Buying Behavior Price Distribution Promotion |
Buying Behavior- little awareness
Price- Product dependent Distribution- Product dependent Promotion- Aggressive awareness and benefit advertising |
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Examples of unsought:
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Life insurance, innovative introductions
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Product can be... (just list)
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Industrial
People Ideas Places |
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Industrial Products:
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purchased for further processing or for use in conducting business, difference base on purpose
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What is a brand?
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it’s like your name, but not just your name. It distinguishes your market offerings from other companies market offerings.
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Brand Recognition
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important for products where there is little differentiation. Built through advertising.
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Brand Preference
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Stage where consumer will prefer one brand over another but will not demand that brand every time.
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Brand Insistence
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go out of your way to buy that brand, usually a specialty item
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Product Line
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Closely related, one brand name, one category
ex: excedrin PM, excedrin NIGHT, excedrin nausea, etc |
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Product Mix
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all products lines and items that a particular seller offers for sales
ex: pepsico sells pepsi, fanta, tropicana, gatorade, etc |
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Product Mix Width
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# of different product lines carried
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Product Mix Depth
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the of version offer of each product in the line
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Consistency
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how closely related various line are
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Brand Equity:
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added value to the firm, the channel, or the consumer which a brand endows a product (high brand equity, higher degree of preference and insistence)
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National Brands
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manufactures brands, global (Coca-cola)
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Private Label Brands
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brand owned and sold by retailer (Sam’s cola)- hard to promote but sell lower with higher profit margins, lack national recognition can be hard to promote
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*National Brands make more money because they don’t have to pay for their brand equity like they do with__________
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Private Label Brands
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Licensing
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One firm sells another the right to use a brand name for a specific purpose and for a specific time period.
Examples: Jurassic Park movie Jurassic Park candy, key chains & toys. Oreo Cookies Oreo Cereal |
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Co-Branding
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Two brand names on one package
Example: DQ Oreo Cookies and Cream Blizzard. |
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Characteristics of Services (just list)
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Intangible
Perish-ability Variability Inseparability |
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Intangible
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Customers can't see touch, or smell services
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Perish-ability
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Can't store services later for sale
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Variability
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Service quality varies and is not exactly the same from time to time
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Inseparability
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Most services are produced, sold , and consumed at the same time
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Product Development Flow Chart (just list)
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1. Idea Generation
2. Screening 3. Concept Testing 4. Marketing Strategy Development 5. Business Analysis 6. Product Development: 7. Test Marketing 8. Commercialization |
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1) Idea Generation
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The systematic search for new product ideas
Ex: Brainstorming, focus groups, social media, etc |
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2) Screening
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Reduce the number of ideas and drop poor ones before incurring significant expense.
Potential (Worth doing badly) Cost Degree of Difficulty Competitive Fit Barriers to Entry Longevity What else? |
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Product Lifestyle (just list)
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1) Introduction
2) Growth 3) Maturity 4) Decline |
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Product Lifestyle Characteristics
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Products have a limited life
They pass through distinct stages Profits vary by stage Products require different management at different stages |
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Product Objectives with Product Lifestyle (just list)
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Trial
Share Diversity Harvest |
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Sales Stage Characteristics
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Goes from low to high to decline
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Costs Stage Characteristics
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High to very low
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Profits Stage Characteristics
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Loss to Peak to Eroding (like sales)
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Customers
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Inooveators Early Adopters Mid-Najority, Laggards
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Competitors Stage Characteristics
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Few to Peak to Decline
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Preventing Decline Strategies (just list)
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Penetration Strategy
Market-Development Strategy Find New Uses Change Packaging, Labels, etc |
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Market Penetration Strategy
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1) Encourage current customers to buy more
2) Attract competitor's customers 3) Convince non-users to use the product |
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Market-Development Strategy
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1) Expand distribution channels
2) Sell in new locations. 3) Identify the potential users |
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Find new uses for product
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Same Customers- Penetration Strategy
New Customers- Market Penetration Strategy |
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Growth Strategies (just list)
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Product-Development Strategy
Diversification |
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Product Development Strategy
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1) Develop new features
2) Develop different quality levels. 3) Improve the technology |
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Diversification Strategy
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Concentric- develop new producs with the earlier technology for new segments
Conglomerate- Develop new products for new markets Horizontal Diversification- develop new products with new technology for old customers |
