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28 Cards in this Set
- Front
- Back
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Purpose of Product Manager
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full responsibilty for managing the marketing mix of products
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Goal of Market Segmentation
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Small groups of people in a target market with homogenious needs
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Why is demographic segmentation so popular?
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Demographics are widely available, and advertising relies heavily on it.
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Selection criteria for which markets are targeted:
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Markets should have:
Profit Potential Suffiecient Resources A Competitive Advantage |
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Product Positioning
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How the desired Target Market views your product
-Needs/Benefit segmentation important when considering positioning |
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Cannibalism
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Occurs when two or more products aim at the same target market
-When One product in a product line eats away at the sales at another in the same line |
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5 stages in a Product Life Cycle:
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Product Development
Introduction Growth Maturity Decline |
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Product Development Stage
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High Failure Rate among new Product
High costs associated with development Recently, much emphasis has been placed on speed to market |
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Introductory Phase
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The time a product spends in this phase is tough to estimate
Promotion costs are high, so as to increase product awareness -THe choice needs to be made as to whether it will be a pioneer vs. a late entrant, and whether it will use skimming of penetration pricing. |
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Maturity Stage
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Slowed Sales growth may be remedied by:
more promotion stealing customers from competitiors targeting a new target market modifying the product |
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Factors taht affect the adoption rate:
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1.Relative advantage-how much better an option the product is over the nearest competition
2.Comunicability-how easily the benefits can be conveyed 3.Compatibility-how well the product corresponds with customer's lifestyle 4.Complexity- how tough the product is to learn 5.Divisibility-How easily the product can be used for a trial period |
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SKimming vs. Penetration
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Skimming-high prices to skim off the top of the market (high profit, but low market share)
Penetration- cutting the price to gobble up market share (low profit margins, but large market share) |
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Decline Stage
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Must decide whether product should be trashed, or whether it is viable to another company
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Distribution Management
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Managing the transfer of goods from producers to consumers with efficiency and effectivness
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Direct vs. Indirect Channels
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Direct = no middlemen (zero level channel)
Indirect= wholesalers, buyers, etc.... multiple levels inbetween consumer and manufacturers |
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Cost vs. Value of Indirect Channels
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While it does add costs to the consumers to have intermediarys, it also adds valeus in cases (i.e. cow example)
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Intensive Distribution
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In as many outlets as possible, typically convenience goods
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Selective Distribution
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In several outlets, typically shopping goods
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Exclusive Distribution
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In only a few outlets, typically specialty goods
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Horizontal Integration
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When one channel member buys a similar company on the same channel level
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Backwards Channel Integration
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WHen a channel member closer to a consumer buys a company that is farther away from the consumer
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fowards vertical integration
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WHen a channel member farther away from the consumer purchases a channel member closer
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Vertical Marketing System
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Managing the Activities and strategies of Channel Members
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Corporate VMS
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most control, yet most cost
When a corporation controls a channel by owning several companies on different levels of it |
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Contractual VMS
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a legal aggrement specifies how certain channel functions must be formed
----franchising is a common method of this |
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franchiser vs. franchisee
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franchiser-the person who is selling the "concept"
franchisee- the person who purchases the concept |
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Administered VMS
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when the most powerful channel member, or the channel captain, uses its influence to control the activities of other channel members
-members should agree to increase sales and profits -often causes fighting |
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Growth Stage
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Period of time in which a product experiences a growth in sales. Often, a producer of distributor may lose ability to keep up
-COuld result in the "Weeding out" of weaker competition |
