Marketing Test 3

Front 1

stages of product life cycle

Back 1

1. product development
2. introduction
3. growth
4. maturity: profits, peak
5. decline: sales

Front 2

goals of PLC stages

Back 2

introduction: awareness
growth: max. share
maturity: max. profits and defend
decline: milk brand

Front 3

introduction strategies

Back 3

keep prices high -- skim
seek innovators through selected channels
high promotional budget

Front 4

growth strategy

Back 4

extend and broaden channels
advertise through mass media
defend against me too entrants
price so that you can gain mkt. share

Front 5

maturity strategies

Back 5

cut costs, no development
simplify prod. line
min. advertising (wonder bread)
exit with grace (ibm typewriter)

Front 6

bass model

Back 6

innovation diffusion

forecasting LT sales pattern for new tech. with two types of conditions:
1. firm just introduced product and has observed sales for a few time periods
2. firm hasnt introduced it yet but its similar to others with known sales histories

Front 7

two types of consumers

Back 7

innovators and imitators

innovators influenced by sales effort and publicity -- p

imitators influenced by word of mouth -- q

p and q: pace of adoption -- high p = adoptions occur fast

Front 8

sustaining innovations vs. disruptive innovations

Back 8

sustaining: improve existing products and are valued by customers

disruptive: offer different types of value and are usually discontinuous

Front 9

percentages of adopters

Back 9

early innovators: 2.5%
early adopters: 13.5%
early majority: 34%
late majority: 34%
laggards: 16%

Front 10

roger's framework

Back 10

relative advantage
compatibility
complexity
divisibility
communicability

Front 11

psychographic profile

Back 11

describes personality of target user

Front 12

stage gate process for new product development

Back 12

1. idea gen.
2. prelim. screening
3. concept dev.
4. bus. case analyis
5. development
6. product testing
7. market factor testing
8. test marketing
9. commercialization

KILL POINTS in between each step

cost of error and financial commitment increases with each step

Front 13

market factor testing

Back 13

test individ. mkt. mix elements in sim. environments to test the effect on expected sales

Front 14

test marketing

Back 14

mimic actual mkt. conditions by offering to small test group similar to whole mkt. and measure results

good: low launch cost, fine-tuned launch, insight

bad: expense and time, comp. reactions, alerts competition, draws attention

Front 15

communications mix

Back 15

advertising
personal selling
sales promotion
PR
direct marketing - web

NOT necessarily integrated

Front 16

internet implications

Back 16

transactional efficieny: cost of transactions and dist., integration of firm processes and supply chain

comm. costs of consumer: searching for prod. info. -- comparisons, discussing new products, post sales support, communicating preferences

addressability: one to one, one to many

interactivity: monologue, dialogue

forms of communication: firm to consumers, consumers among themselves

comm. costs to firm: advertising, product info., customer service, marketing research

new opps. for guerilla marketing

Front 17

choosing among media for ads

Back 17

reach: % of people exposed to ad
freq: ave. # of exposures
impact: overall effectiveness

frequency depends on complexity: the more complex, the more freq. that is needed

Front 18

ad. message types

Back 18

action: add >> behavior

informative/rational: ad >> attitude and behavior (attitude can effect behavior)

emotional: ad >> brand assoc. >> attitude and behavior (attitude can effect behavior)

Front 19

sales promotions can effect sales and brand equity

Back 19

promote as sales are starting to go up

can increase sales, bring them back to normal, or cause and dip in profit below normal but then go back to normal b/c of home inv.

Front 20

busisness case for mobile marketing

Back 20

migrating from functionality to customer experience

opp. to provide utility and capture value

used in 70% of the world

high level of consumer insight

new tech. = growth opp.

Front 21

human case for mobile marketing

Back 21

next one billion internet users will connect through mobile devices

telecomm creates wealth for emerging countries

biggest issue is price -- add revenues could subsidize cost -- make world a better place

Front 22

why moblie broadband = game changer

Back 22

always on

transformative b/c its always on, with you, and knows where you are

Front 23

challenages for mobile marketing

Back 23

requires trad. channel to activate

carriers control and can mask the information

lack of stds. for carriers and devices

Front 24

mobile marketing opportunites

Back 24

integrated payments, location-based services, moblie bar codes

opp. to make money beyond advertising

Front 25

smartphones as game changers

Back 25

maps, e-mail, apps

push vs. pull with phone

text messages campaigns

Front 26

methods of going international

Back 26

direct investment: greater control, comittment, profit potential, and risk

joint venture: medium control, comittment, profit opp., and risk

exporting: lowest amt. of comittment, control, profit opp., and risk

Front 27

standard (global) marketing mix

Back 27

focus on similarities across countries

same brand identity, target

same or similar product and marketing mix

Front 28

adapted (multinational) marketing mix

Back 28

diff. strategy for each country

diff. target, products, marketing mix

adapated brand identity

Front 29

old vs. new way of measuring marketing performance

Back 29

old: internal oriented, looking back, punitive philosopy, fact finding, measurement control based on accounting and performance, bottom-line oriented, post-action control, output measures only, accounting profit and financial focus, unbalanced scorecard, focus on firm's success

new way: ext. oriented, looking foreward, analytic philosopy, learning and improvement, measuring control based on marketing perfomance measures, variety of measures other than bottom-line, steering control, emphasis on input or intermediate measures, SH value creation, business focus, balanced scorecard, focus on success for customers

Front 30

principles of monitor and control

Back 30

powerful way of changing indiv. behavior in firms

based on results

feedback cycles: amt. of time between actions and when firm measures the results -- SHOULD NOT BE TOO SHORT!

Front 31

iceberg principal

Back 31

1/7 of drivers above surface

6/7 of drivers below surface

Front 32

relationships with control measures

Back 32

input >> intermediate >> output

tendency to focus mostly on output/lagging measures

Front 33

intermediate ad. measures

Back 33

awareness: degree of it

# press mentions: indicator of customer awareness

message recall: ad. effectiveness indicator

interest: likelihood of purchasing

liking: positive feelings toward prod./brand

quality perception

Front 34

input measures: new prod. devel.

Back 34

qualified ideas gen.: HQ ideas drive prod. devel.

new concepts tested: vigor in development

licenses/tech. purchases checked out: ext. gen. of new prod. possiblities

beta tests

test mkts. conducted: amt. of new products coming on mkt.

new prod. launched: needed to generate sales

Front 35

marketing audit

Back 35

process for eval. firms marketing practices

environment
obj./strat.
org.
systems
productivity
implementation

problems: not enough info. on customer behavior, mkts. not segments correctly, cutting prices instead of increasing value, failure to invest for future (esp. in HR), new prod. develop. given to developers, mkting. only considering mkting. dept.'s job

Front 36

balanced scorecard

Back 36

balances input, int., and output mkt. measures