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22 Cards in this Set

  • Front
  • Back
product life cycle
describe the stages a really enew product idea goes through from beginning to edn-->divided into 4 major stages: market introduction, market growht, market maturity, sales decilne
market introdution
sales are low as a new idea is frist introduced into the market-->customers aren't looking for the product
market growth
industry sales grow fast, but indstury profts rise and then start falling-->this is time of biggest profits FOR THE INDUSTRY. toward the end, industryprofts decline
market maturity
occurs when industry sales level off and competition gets tougher
sales decline
new products replace old
new porduct
one that is new in any way for the coampny concerened---
new product failures
1. fail to offer unique benefit.
2. bad design
3. rush w/o developing a complet emarketing plan
4. moving too slowly
new-product development process
1. idea geneartion
2. screening
3 idea evaluation
4 development (of product and marekting mix)
5. comercialization
direct marketing
direct communication b/t a seller and an indivdual customer using a prmtoin method other hthan face-to-face personal selling
ideal market exposrue
makes a product available widely enough to satisy fy target customers' needs but not exceed them-->too much expores only increaes the total cost of marketing
intensive distribution
selling a product throug all responsible and suitable wholesalers or retailers who will stock or sell the product
(especially needed for convenience products and business supplies)
selective distribution is
selling through only those middlement who will give the pdocut special attention
exclusive distribution
seeling through only one middleman in a particular geographic area.
in the introduction product life cycle:
innovatrs; uncertainty is high, few competitors, application identification, design/standard devpt, awareness low, user education important, selective distribution
in the growth product life cycle
early adopters, semgents develop, increasing competition, increasing differentiation, design/standard convergence, continue building awareness and educating users, widening distribution
maturiy in product life cycle
marjoiryt adopt, market fragmentation, competition intense, poisitionina and value ar ekey, service ocould bceom a point of difference
"penetration" vs. "skimming"
start at high erprice, than lower the price(skimming)

penetatartion=launch product at reasonable price, hope to maintain Qlevel
pioneer advantage or disadvantage
first one; copy catters can steal idea and make improvements
marketing starategy in intro stage
high investment, penetration vs. skimming, high risk bbut potentailly high pay-off, pioneer dis/advantage
marketing strategy in growth stage
expand product offerings, expand distribution, advertising expenses substantial, sales promion may hurt, could use price competition
marketing strategy for mature products
quality, function, aesthetic modifications
marketing strategy for decliningni market
elimiate or reposition prodcut to extend life, phase out weak itmes, maintain outlest with strong er sales, elimiate others, reduce ad expenses to minimum (just enough to retain hard-core loyals), reduce sales promotions to minimum