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| Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline. |
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| Advertising and promotion expenditures in the introduction stage are often made to stimulate this, the desire for product class rather than for a specific brand, since there are few competitors with the same product. |
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| As more competitors launch their own products and the product progresses along its life cycle, company attention is focused on creating this, the preference for a specific brand. |
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| During introduction, pricing can be either high or low. A high initial price may be used as part of a ______ strategy to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers. |
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| To discourage competitive entry, a company can price low, referred to as this. This helps build unit volume, but a company must closely monitor costs. |
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| This stage of the product life cycle is characterized by rapid increases in sales. This is where competitors appear. It is important here to gain as much distribution for the product as possible. |
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| Product sales in the growth stage grow at an increasing rate becasue of new people trying or using the product and a growing proportion of _____ - people who tried the product, were satisfied, and bought it again. |
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| This is characterized by a slowing of total industry sales or product class revenue. |
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| This occurs when sales drop. Products in this stage tend to consume a disproportionate share of management and financial resources relative to their future worth. A company will follow of two strategies to handle this, deletion or harvesting. |
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| dropping the product from the company's product line, is the most drastic strategy. This is not taken lightly because some consumers are still using the product. |
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| When a company retains the product but reduces marketing costs. The product continues to be offered, but salespeople do not allocate time in selling nor are advertising dollars spent. This is to maintain the ability to meet consumers requests. |
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| Three Asoects of the Product Life Cycle |
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| 1. their Length, 2. the shape of their sales curves, 3. the rate at which consumers adopt products. |
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| Length of the Product Life Cycle |
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| No set time that it takes a product to move through this cycle. As a rule, consumer products have a shorter cycles than business products because of the availability of mass communication. |
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| Shape of the Product Life Cycle |
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| is a sales curve of the product, not all product have the same shape to their curve. high-learning product, low-learning product, fashion product, fad product |
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| The Life Cycle and Consumers |
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| depends on sales to consumers |
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| In essence, a product diffuses, or spreads, through the population. |
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*Innovators -Venturesome; higher educated; use multiple information sources.
*Early Adopters - Leaders in social setting; slightly above average education.
*Early Majority - Deliberate; many informal social contacts.
*Late Majority - Skeptical; below average social status
*Laggards - Fear of debt; neighbors and friends are information sosurces. |
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| Involves altering a product's characteristic, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales. )Not a new product a modified product) |
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| When a company tries to find new customers, increase a product's use among existing customers, or create new use situations. |
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| this is an attempt to bolster. changes the place a product occupies in a consumer's mind relative to competitive products. (Ex: When cheerios changed from being a kids cereal to a being a healthy breakfast for your heart.) |
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| Which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those competitors. Consumers can become more loyal and more efficient. |
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| Any word, device(design, sound, shape, or color), or combination of these used to distinguish a seller's goods or services. |
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| A set of human characteristics associated with a brand name. |
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| The added value a brand name gives to a product beyond the functional benefits provided. Provides a competitive advantage, and consumers are often willing to pay a higher price for a product with this.(marketer builds up over time) |
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| A branding strategy in which a company uses one name for all its products in a product class. (family branding or corporate branding) |
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| the practice of using a current brand name to enter a new market segment in its product class. |
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| A branding strategy that involves giving each product a distinct name. |
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| when a company manufactures products but sells them under the brand name of a wholesaler or retailer. |
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| Where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market. |
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| eight Ps of Services marketing |
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| Expanding the four Ps framework to include productivity, people, physical environment, and process. |
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| Integrating the service component of the marketing mix with efforts to influence consumer demand. |
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| Charging different times of the day or days of the week to reflect variations in demand for the service. |
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