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47 Cards in this Set
- Front
- Back
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What is the role of college?
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To teach you to think, to understand and solve problems.
To teach you to communicate better; to speak effectively and convincingly; to write coherently and concisely |
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What is the definition of a product?
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a bundle of benefits (needs and wants)
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What are the 3 classes of goods?
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Convenience
Shopping Specialty |
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Branding define by sager
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It's permanent/sticks in buyers head...most products are homogenous goods.
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Branding
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A marketing decision in which an organization uses a name phrase, design, symbols, or combinations of these to identify its products and distinguish them from those of competitors.
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What is product life cycle?
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It's a genesis of a product from the introduction to pull it off the market.
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What is the 1st stage in product adoption called?
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Innovators, they are the risk takers
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Why is the product life cycle helpful?
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a tool for planning- its tracts the product from pre birth all the way too death.
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What are the stages in the product life cycle?
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Introduction
Growth Maturity Decline |
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At what point does the profit unit peak?
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Between the growth and begninng of the Saturated at the Maturity stage
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At what point does the market for the product become saturated?
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Maturity
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What happens during the Maturity stage of new product development?
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There is only a small change in the product,
Promotions are swayed Price drops Distribution is leveled out Competitors are shaken out (weak drop out) |
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What happens is the decline stage?
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Product crashes
Have to find a new use or new market for the product, otherwise company will have to file for bankruptcy |
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What might a company do to move a product from decline stage back to the growth or maturity stage?
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Have to find a new use or new market for the product, otherwise company will have to file for bankruptcy
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How does the new product adoption process work?
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The innovators (.5%) are the risk takers who adopt a new product.
2nd early adopters follow- 3rd- early majority (35%)-Where company wants to be *GROWTH STAGE* 4th late majority (40%)- price lowers Laggards (10%) |
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What is the critical stage to attain in order to break even in adoption process?
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Early Majority- Growth
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Why develop new products?
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satisfy needs *creativity*
to compete with an existing product to close the "planning gap" |
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What is the planning gap?
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New in any way product is involved.
Product sales is one way to close the gap. |
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What is an example of Matrix management?
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how to advertise, assets,
Fritos is an example |
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Who progresses the "Whatever it takes"
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Pharmaceutical Industry; because they have to worry is there patent going to expire.
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New product committee do what?
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Suboptmize
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What are the 9 steps for New Product Development Process
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Ideas
Screening Concept Development Concept Test Strategy Development Business Analysis Product Development Market Testing Commercialization |
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demand oriented
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weigh factors underlying expecting customer tastes & preferences more heavily that (cost, price, compt)
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cost-oriented
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approaches a price setter stresses the cos side of pricing problem, NOT Demand side Prices is set by look @ the production & mktg costs & then adding enough to cover direct expenses, overhead, &profit
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profit-oriented
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ap rice setter may choose to blanace bothe revenues & sales to set price using profit-oriented approaches They might either, involve a traget specific dollar volume of profit or express this target profit as % of sales and investment
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competition Oriented
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rather than emphasize demand, cost, or profit factors, a price setter can stress what competitors/market is doing
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DEMAND ORIENTED
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skimming
penetration presitge price lining odd-even Traget bundle Yield mgt |
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COST OR
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Standard markup
Cost-Plus Experience Curve |
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PROFIT OR
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Target Profit
Target Return-on-sales Target Return-on-Investment |
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Skimming
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setting the highest initial price that customers really desiring the product are willing to pay
Customers are not price sensitive. Successive Layers :Emotional Attachment |
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Penetration
(HENRY FORD) |
setting a low initial price on a new product to appeal immediately to the mass market.
Used to appeal a broader segment of the populations and increase market share |
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Penetration Pricing
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Everything is held constant hard to achieve bc it's constantly changing (technology)
used to appeal to broader segment of the population and increase market share BUILT INFRASTRUCTURE |
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Profit Maximization
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supply changes (ex:price) technology changes.. something is always replacing another thing ie:cell phones
usually something that is not held constant : (water, electric |
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When do firms look at price?
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No Competing prices
***MAZDA MIATA |
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Current Revenue
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fire sale pricing
(Chrysler did the 1% apr finan. to get bailed out , they had enough cars, invested in new vehicles..Invented Mini--VAN |
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Loss Leader Pricing
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is not to increase sales but to attract customers in hopes they will buy other products as well, particularly the discretionary items with large markups.
EXAMPLE: Best Buy, Walmart sell CDS about 1/2 of music companies' suggested retail price to attract customers to their stores. |
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Discount
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are reductions from the list price that a seller gives a buyer as a reward for some activity fo the buyer that is favorable to the seller.
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Quantity Discounts
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reductions of units costs for larger orders
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Seasonal Discounts
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to encourage buyers to stock inventory earlier than their normal demand would require,
TORO-Lawn mowers TRIPS TO CABO |
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Traditional Trade Discounts
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hardware, food, and pharmaceutical items, also may suggest the trade discounts.
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Cash Discounts
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retailers provide to consumers as well to eliminate the cost of credit granted to customers.
2/10 net 30 medical doctors don't have to go thru the insurance companies. |
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Handling & Shipping
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shipping cost are going up.
HEB own their own trucks, they control the shipping costs, and timing. Backhauling to save gas and timing. Having more control vs. the vendor handling the shipping |
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What is a reduction in a list price?
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it's granted to a buyer for performing some function.
buying off season/bulk/cash |
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FOB
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Free On Board pricing
which means the seller pays the cost of loading the product onto the vehicle that is used. |
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FOB Origin pricing
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usually involves the seller's naming the locations of this loading as the seller's factory or warehouse
(FOB DETROIT, FOB FACTORY) |
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price fixing
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illegal under the sherman Act
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Price Discrimination
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the practice of charging different prices to different buyers for goods of like grade and quality.
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