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79 Cards in this Set
- Front
- Back
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Product |
Specific combination of goods, services, and ideas that a firm offers to its market |
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New-to-market products |
Never been seen before Create a new market Carry most risk and potential |
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New category entries |
New to company but not new to the marketplace Less risky than new-to-market, but still considerably risky |
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Product line extension |
Extend and supplement company's established product line |
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Product line |
Group of products marketed by the same firm |
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Revamped product |
New packaging, different features, and updated designs and functions |
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What are the stages of new product development? |
1. New-product strategy development 2. Idea generation 3. Idea screening 4. Business analysis 5. Product development 6. Test marketing 7. Product launch |
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Describe 1. new-product strategy development |
Determine the direction the company will take when it develops a new product |
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Describe 2. idea generation |
Coming up with set of product concepts to identify potentially viable new products |
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Describe 3. idea screening |
Firm evaluates idea to see whether it fits into new-product strategy |
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Describe 4. business analysis |
Analyzing new product to determine profitability- estimating costs, demand, selling price |
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Describe 5. product development |
Firm determines that product can be sold in a way that meets customer needs and generates profits May make prototype, test product safety |
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Describe 6. test marketing |
Introduce final product to a geographically limited market to see how will it sells and get reactions from customers |
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Describe 7. product launch |
Completing all final preparations and making fully tested product available to market |
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What are some risks of new product development? |
Product fails to meet customer needs/wants Product is dangerous or defective Supply is inadequate to meet demand Target price is not accepted in market Quality is not up to customer standards |
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How to reduce risks of new product development |
Listen to customer Make commitment to NPD process Understand market trends and anticipate changes Ask the right questions Be willing to fail sometimes |
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Describe innovators |
Buy product immediately after launch |
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Describe early adopters |
Conform more to group norms than innovators Wait for product reviews and more info to purchase |
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Describe the early majority |
More careful, gather more info and spend more time thinking about purchase |
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Describe the late majority |
Cautious about trying new things Often rely on others for info |
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Laggards |
Conservative, don't like change Not worth much marketing effort |
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What is the product life cycle? |
1. Introduction 2. Growth 3. Maturity 4. Decline |
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Describe 1. Introduction |
Product has just launched Few or no competitors Slow sales Firm attempts refinements |
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Describe 2. Growth |
Sales and profits rise Competitors enter market, forcing prices down |
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Describe 3. Maturity |
Focus on profitability, keeping market share for as long as possible Sales level off Competition becomes fierce Profits begin to decline |
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Describe 4. Decline |
Sales and profits fall Competitors begin dropping out |
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Market segmentation |
Dividing large market into smaller groups |
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Demographic segmentation |
Divides by characteristics such as age, gender, income, family size |
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Psychographic segmentation |
Divided by reason consumer made the purchase Lifestyle |
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Geographic segmentation |
Divides markets into nations, regions, etc |
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Behavioral segmentation |
Divides according to how consumers behave with or act toward products |
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B2B Demographic segmentation |
Industry, size, ownership structure |
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B2B Geographic segmentation |
Country, state, etc |
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B2B Behavioral segmentation |
Purchasing patterns, supplier requirements, technological orientation |
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Targeting |
Evaluating each market segment and determining which one presents the most attractive opprotunities |
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Undifferentiated targeting |
Approaches marketplace in one large segment Best for uniform products, like salt |
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Differentiated targeting |
Simultaneously pursue several different market segments Usually have different strategy for each |
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Niche marketing |
Pursuing large market share of small market segment |
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Positioning |
Creating certain perception of product in the eyes of the market |
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Perceptual map |
Visual picture of where products are located in consumers' minds- scales attitudes and perceptions |
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Attributes |
Different characteristics that create a unique position in the market |
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Competitive advantage |
Aspects of your product that make them more desirable than competitors' |
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Purpose of VALS |
Used for psycho graphic segmentation Measures primary motivation and resources |
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Steps of market positioning |
1. Analyze competitors' positions 2. Clearly define competitive advantage 3. Evaluate feedback |
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Repositioning |
Re-establishing product's position to respond to changes in marketplace, marketing mix, and the competition |
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Promotion |
Any way to communicate value |
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Promotion mix (4 things) |
Advertising Sales promotion Personal selling Public Relations |
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Advertising |
Nonpersonal promotion communication about goods, services, ideas, that is paid for by firm |
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Advertising campaign |
Collection of coordinated advertising that shares a single theme |
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Informative advertising |
Attempts to increase initial demand by informing |
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Persuasive advertising |
Attempts to increase demand for existing product |
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Reminder advertising |
Seeks to keep product before the public Reinforces previous promotion |
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Sales promotion |
Nonpersonal communication designed to stimulate quicker, more frequent purchases |
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Sales promotion tools |
Coupons, rebates, samples, contests, sweepstakes, loyalty programs |
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Personal selling |
Two-way flow of personal communication between salesperson and customer that seeks to influence customer's purchase |
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Steps of personal selling |
1. Prospecting and Qualifying 2. Preapproach 3. Approach 4. Sales presentation 5. Handle objections 6. Close sale 7. Follow up |
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Public relations |
Communication focused on promoting positive relations between firm and stakeholders |
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Promotional budget strategy: Affordable method |
Set promotion budget based on what they believe they can afford |
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Promotional budget strategy: Percentage-of-sales method |
Allocate specific percentage of total sales for promotional budget |
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Promotional budget strategy: Objective-and-task method |
Define specific objectives, determine tasks required, then estimate how much each task will cost |
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Supply chain |
set of 3+ companies linked directly by flows or products, services, finances, and info from source to customer |
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Supply chain management |
Actions to coordinate various flows in supply chain |
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Distribution channel examples |
Wholesaler, distributor, retailer |
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Push strategy |
Company builds goods based on sales forecast, puts them in storage, and waits for orders |
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Pull strategy |
Customer orders drive production |
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Logistics |
Part of SCM that plans, implements, and controls flow between point of origin and final product |
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Just in time manufacturing process |
Make products based on customer order |
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Cyclical inventory |
What firm needs to meet average demand |
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Pipeline inventory |
In transit between supplier and customer |
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Anticipative stock |
Purchased when company expects something to occur in the future that will decrease available stock |
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Stockout |
Don't have enough inventory to fill orders |
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Purchasing manager duties |
Select suppliers Negotiate contracts Place purchase orders |
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Purchase order |
Legal obligation to buy certain amount of product at certain price |
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Three functions of warehouses |
Storage Movement Some production |
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Criteria for effective marketing segmentation: substantial |
Substantial- segment must be large enough to make a profit |
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Criteria for effective marketing segmentation: measurable |
Measurable- size and purchasing power of segment must be clearly identified |
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Criteria for effective marketing segmentation: differentiable |
Differentiable- segments must respond differently to different marketing strategies |
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Criteria for effective marketing segmentation: accessible |
Accessible- marketers must be able to serve segment |
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Criteria for effective marketing segmentation: actionable |
Actionable- marketers must be able to attract market segment |
