Term
| the 4 stages of a product life cycle |
|
Definition
introduction (invention)
growth
maturity
decline |
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Term
| the product life cycle is also known as... |
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Definition
| the sales and profit life cycles |
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Term
| definition of product life cycle |
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Definition
| a description of how (described by sales/profits) of how a product in an industry goes through a life cycle. |
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Term
| stages of the product life cycle are defined by... |
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Definition
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Term
| JP says all products eventually ____ |
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Definition
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|
Term
| characteristics of the introduction stage... |
|
Definition
new product offered
new product class
sales and profits = low |
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Term
| marketing during the introduction stage... |
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Definition
| trys to stimulate primary demand and targets innovators and risk takers |
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Term
| primary demand is defined as |
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Definition
| creating initial interest in a product by spreading info on the product, puts an interest on the product, not the brand |
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Term
| example of an introductary product... |
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Definition
| motorola coming out with a new pager and tries to convince innovators (ratracers) and organizations that its useful |
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Term
| the growth stage can be defined as |
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Definition
| the stage where sales and profits grow |
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Term
| characteristics of the growth stage include... |
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Definition
sales and profits grow
competition expands
differentiation strategies
brand marketing
targeting of early adopters |
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Term
| aspects of marketing used in the growth stage |
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Definition
| efforts to stimulate secondary demand for the brand (like Sharp flatscreen TV's), and to create substantive differentiation between product brands |
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Term
| products currently in the growth stage include... |
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Definition
| smartphones, tablets, blue ray discs, streaming video, |
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Term
| JP's example of the growth stage... |
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Definition
| when other competitors introduced product offerings, motorolas product/service fees decrease while sales grow, so motorola offers pagers with word messages and voice messages |
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Term
| characteristics of the maturity stage... |
|
Definition
sales plateau/product is familiar
competition is intense
promotional money is spent here
maximum competitors
-competition can also come from other industries/companies |
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Term
| aspects of marketing at the maturity stage |
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Definition
differentiation continues at a superficial level
promotion increases, price declines (stabilizes)
target early and late majority
try to remove risk/skepticism
find new uses for certain segments |
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Term
| JP's example of the maturity stage include... |
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Definition
| motorola coming out with cheap pagers in different colors or parents to reach teenagers, cell phones begin to have an impact |
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Term
| characteristics of the decline stage... |
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Definition
sales and profits fall
competition increases outside product class
competition decreases inside product class |
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Term
| examples of products in decline... |
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Definition
CD's
land lines
newspapers
disposable cameras |
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Term
| marketing attributes in the decline stage.. |
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Definition
try to find new uses for the product
target laggards (those slow to accept change)
aim for low budgets and costs |
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Term
| JP's decline stage example... |
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Definition
| motorola pagers being replaced by cell phones, puts adds in golden years magazines dipecting old folks paging and harassing their kids |
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Term
| example of decline then reintroduction... |
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Definition
| arm and hammer baking soda becoming obselete then coming out with tooth paste |
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Term
|
Definition
| aka fads, include intense demand at first then quickly burn out, like the billy bass |
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Term
| attributes of an innovator |
|
Definition
2.5% of population
venturesome
will try new ideas
acceptable if risk is daring
cosmopolite in social relationships
communicate with others like themselves |
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Term
| innovators are limited by _________ |
|
Definition
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Term
|
Definition
| FIT fruit and veggis cleaner |
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Term
| college kids were innovators in ______ _________ |
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Definition
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Term
| characteristics of early adapters |
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Definition
13.5% of population
respected
more integrated into the local social system
persons to check with before adopting a new idea
greatest # of opinion leaders
role models |
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Term
| early adopters are ________ to target growth stage |
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Definition
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Term
| since early adopters are considered role models and reference groups, they are _________ in early market share |
|
Definition
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|
Term
| early majority (maturity) characteristics |
|
Definition
34% of population
deliberate
adopt new ideas just prior to average time
seldom hold leadership positions
deliberate for some time before adopting |
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Term
| example of an early majority |
|
Definition
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Term
| late majority (maturity) characteristics |
|
Definition
34% of population
skeptical
adopt new ideas just after average time
adopting may be an economic necessity
adopting may be from reaction to peer pressure
innovations approached cautiously |
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Term
| example of a product in late majority |
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Definition
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|
Term
| laggards (decline) characteristics |
|
Definition
16% of population
traditional
the last people to adopt an innovation
most localite in outlook
oriented to the past
suspicious of the new |
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Term
|
Definition
| old people and crest tooth paste |
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Term
|
Definition
| how quickly an innovation spreads |
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Term
| factors that speed diffusion of an innovation |
|
Definition
-large relative advantage
-high level of compatability
-easily observed
-less complex (simple)
-easy to try (high amount of bros trying it) |
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Term
| example of large relative advantage |
|
Definition
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|
Term
| example of high level of compatability |
|
Definition
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|
Term
| example of being easily observed |
|
Definition
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|
Term
|
Definition
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|
Term
| stages in an individuals adoption process |
|
Definition
awareness
interest
evaluation
trial
adoption/rejection |
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Term
| in the adoption process, personal and interpersonal sources are |
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Definition
| less inportant early and more important later |
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Term
| in the adoption process, impersonal mass media sources are... |
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Definition
| more important early and less important later |
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Term
| the importance of new product development can be attributed to... |
|
Definition
1. it is most often the key to profitability
2. it provides sustainable competitive advantage and survivability
3. it has substantive capacity to change peoples lives (hopefully for the better) |
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Term
| why is new product development the key to profitability? |
|
Definition
-new products are more profitable
-innovation gives price power (price empowerment) |
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Term
| price empowerment (and example) |
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Definition
| the ability to set the market price, like what glade plug ins did |
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Term
| the fail rate for radical innovations is |
|
Definition
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|
Term
| what defines a new product? |
|
Definition
-new to the world
-new category entries
-additions to product lines
-product improvements
-repositionings |
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Term
| new to the world products include |
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Definition
| red bull, in line skates, kevlar, word processing software |
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Term
|
Definition
| first time a company enters a new product or market. includes HP PC's, hallmark gift items, discover card |
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Term
| additions to product lines include |
|
Definition
| line extensions or flankers |
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Term
|
Definition
| an attempt of a company to create a product that will block the position of a competitor (crest creating a toothpaste with baking soda to block arm and hammer) |
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Term
| product improvements include... |
|
Definition
gogurt
windows 7
2010 ford taurus |
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Term
|
Definition
sunny D adding calcium
arm and hammer making toothpaste |
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Term
| in class examples of breakthrough innovations that changed our lives |
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Definition
| mechanical pencil, refridgerator, GPS, portable music, internet, lighters |
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Term
| in class examples of the excitement of winners include |
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Definition
fiji water
mcdonalds
twitter |
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Term
| reasons a firm needs a new product strategy |
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Definition
-to chart the firms direction
-to set the firms goals and objectives
-to tell the firm how it will play the game |
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Term
| a new product strategy can be summed up as... |
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Definition
| a way of providing framework for developing new products, a high level filter to funnel ideas |
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Term
| contents of a new product strategy include... |
|
Definition
focus
goals and objectives
guidelines |
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Term
| the focus of a new product strategy refers to |
|
Definition
| a clear technology dimension and a clear market dimension that match and have good potential (mainly about technology and marketing) |
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Term
| goals and objectives of a new product strategy refer to |
|
Definition
| what the project will accomplish |
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Term
| guidelines of a new product strategy refer to |
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Definition
| rules, requirements, time, quality, cost, etc that effect whether a product will be produced |
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Term
| attributes to technology drivers include... |
|
Definition
-materials (Corning's Glass)
-processes (deloitte's financial information analytical capabilities
-people (like a scientist, engineering group, management group)
-facilities (kim clark paper making lines, white consolidated assembly lines)
-others such as any strong competency (such as AB's knowledge in beer brewing |
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Term
| what are some of mizzous technology drivers |
|
Definition
-administration and educational processes
-teachers and coaches (people)
-cornell hall (facilities) |
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Term
| market drivers include... |
|
Definition
-customer group or resellers
-end users
-end use/activity
-others such as mass customizing, competotrs customers, etc |
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Term
| example of customer group or resellers market drivers |
|
Definition
ski shops
european importers
ford motor co |
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Term
| examples of end user market drivers |
|
Definition
all skiers
beginning skiers
professional skiers |
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Term
| example of end users market drivers |
|
Definition
skiing
food manufacturing |
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Term
| example of mass customizing market drivers |
|
Definition
courtyard
dow jones personal journal |
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Term
| market drivers have to do with... |
|
Definition
| experience and relationships in the market place |
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|
Term
| disneys market driver include... |
|
Definition
entertainment
brand
child entertainment
relationship with travel agents |
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|
Term
| six flag market drivers... |
|
Definition
|
|
Term
| anheseur busch market drivers... |
|
Definition
great relationship with distributers and sellers
loyal end users
born on date promotion |
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Term
| steps a firm takes to develop new products |
|
Definition
idea generation
concept testing
product development
market testing
product launch
evaluation of results |
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Term
|
Definition
| development of viable new product ideas |
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Term
|
Definition
| testing the new product idea among a set of potential customers |
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Term
|
Definition
| development of prototypes and/or the product |
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Term
|
Definition
| testing the actual products in a few test markets |
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Term
|
Definition
| full scale commercialization of the product |
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Term
|
Definition
| analysis of the performance of the new product nd making appropriate modifications |
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Term
| brainstorming attributes... |
|
Definition
-groups working together to generate ideas
-no idea can be immediately accepted or rejected
-quantity valued over quality |
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Term
| customer input in the new product realm |
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Definition
| as much as 85% of new business product ideas come from customers |
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Term
|
Definition
| modify existing products according to their own specific needs (like nike running shoes) |
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Term
|
Definition
| a brief written description of a product |
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Term
| attributes of concept testing |
|
Definition
-customer reactions determine whether or not it goes forward
-triggers the marketing research process |
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Term
| stages of market development |
|
Definition
prototype
alpha testing
beta testing |
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Term
|
Definition
| creating a mock up/model of what is needing to be tested |
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Term
|
Definition
| an internal test that tests concepts within a company |
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Term
|
Definition
| external concept testing outside of the company to the general public |
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Term
| company that uses alpha and beta testing... |
|
Definition
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|
Term
| market testing includes... |
|
Definition
premarket tests
test marketing |
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Term
| pre market test attributes |
|
Definition
-exposing customers
-surveying customers
-firm makes decisions |
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Term
| pre market tests use _________ markets and less ______ ____________ |
|
Definition
| smaller; test advertising |
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Term
| attributes of test marketing include |
|
Definition
-mini product launch
-more extensive than premarket tests
-estimating market demand |
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|
Term
| what is important in new product development at apple? |
|
Definition
|
|
Term
| what are characteristics that make new product development successful at apple? |
|
Definition
simplicity
consistency
"cool, young, hip" factors |
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Term
| the "place" characteristic of the marketing mix refers to |
|
Definition
|
|
Term
|
Definition
| the physical distributuion of goods between producers and consumers |
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Term
| risk taking in a distribution sense |
|
Definition
| possibility of damaging goods or shrinkage |
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Term
| transactional distribution characteristics |
|
Definition
buying and selling
risk taking |
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Term
| logistical distribution characteristics |
|
Definition
concentration
storing
sorting
physical distribution |
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|
Term
| facilitating distribution characteristics |
|
Definition
|
|
Term
| informing distribution characteristics |
|
Definition
marketing research
providing information |
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Term
| distributors reduce the number of __________ _____________ |
|
Definition
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|
Term
| when using an intermediary like walmart, the number of distribution channels is _________ |
|
Definition
|
|
Term
| converge (or channel width) |
|
Definition
| the number of distributors offering a product or service |
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Term
|
Definition
-the levels of warehouse/distributors/brokers between producer and consumer
-involves how many levels of distribution to use between producer and user, involves a ton of logistics |
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Term
| 3 coverage strategies include |
|
Definition
intensive
selective
exclusive |
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Term
|
Definition
| width of retailers, how many retailers we will sell at |
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Term
| objective of intensive distribution |
|
Definition
| to maximize coverage so consumers can easily buy a product |
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Term
| intensive distribution defined |
|
Definition
| offering as many outlets as possible |
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Term
| intensive distribution defined |
|
Definition
| offering as many outlets as possible |
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Term
| intensive distribution has __________ coverage and ______ sales effort |
|
Definition
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|
Term
| intensively distributed products include... |
|
Definition
low priced items, routinely purchased items
soda, vending machines, displays in stores, magizines |
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Term
|
Definition
| provide offering in selective outlets |
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Term
| objective of selective offerings |
|
Definition
| restrict distribution in geographical area to intermediaries based on performance capability |
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Term
| example of selectively distributed products include |
|
Definition
| power tools, compaq computers, calphalon cookware, swatch watches |
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Term
| selective distribution has _________ coverage and ___________ sales effort |
|
Definition
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|
Term
| compaq selective distribution example |
|
Definition
| being sold at frys and computerland but not sears |
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Term
|
Definition
| using only one outlet in a geographical area |
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Term
| objective of exclusive distribution |
|
Definition
| maximize "push" of a distributor |
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Term
| characteristics of exclusive distribution |
|
Definition
extensive (long term) decision making
high price
specialize in a particular product |
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Term
| exclusive distribution __________ sales effort with __________ coverage |
|
Definition
|
|
Term
| exclusive distribution __________ sales effort with __________ coverage |
|
Definition
|
|
Term
|
Definition
| the sale, and all activities directly related to the sale, of goods and services to ultimate consumers for personal non business use |
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Term
| large retailers dominate but small retailers sell _____ |
|
Definition
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|
Term
| aspects added by small retailers are |
|
Definition
| personal service and value to win customers for life |
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Term
| the 10 largest retailers account for _______ of total retail trade in the US |
|
Definition
|
|
Term
| small retailers succeed by... |
|
Definition
providing better service
using contractual vertical marketing systems |
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Term
|
Definition
| centrally owned and managed stores that carry similar products |
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Term
|
Definition
| single unaffiliated stores |
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Term
|
Definition
| small retailers establish and operate a wholesale warehouse |
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Term
|
Definition
| wholesalers contract with interested retailers to provide services to them |
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Term
|
Definition
| franchisor provides trademark and assistance in return to payments from franchises |
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Term
| business format franchises |
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Definition
| like fast food that do business the way the parent company tells them to (mcD's and subway) |
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Term
| distribution franchise examples |
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Definition
| tire shops or car dealers |
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Term
| department stores and grocery stores are not _______ |
|
Definition
|
|
Term
| pro sports teams are ___________ |
|
Definition
|
|
Term
|
Definition
| firms that have huge selection of one product segment (best buy, barnes and noble, cabelas, best buy) |
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Term
|
Definition
| retailing activities resulting in transactions that occur away from a retail store |
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Term
| 4 types of non store retailing |
|
Definition
direct selling
telemarketing
automatic vending
direct marketing |
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Term
|
Definition
| personal contact between a salesperson and a consumer away from a retail store (door to door, party plan) |
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Term
|
Definition
| salesperson initiaties contact with a shopper and also closes sale over telephone |
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Term
|
Definition
| most intense form or non store retailing, is the sale of products through a machine with no personal contact between a buyer and seller |
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Term
|
Definition
| use of advertising to contact customers who in turn purchase products without visiting a retail store (direct mail, catelogs, televised shopping, online retailing) |
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Term
| as price ______, demand ________ |
|
Definition
|
|
Term
| steps to setting pricing policy |
|
Definition
select the pricing objective
determineing demand
estimating costs
analyze competitor costs, price, and offers
select a pricing method
select final price |
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Term
|
Definition
| when change in price doesnt result in a change in demand (gas, medicine, utilities) |
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Term
| firms can lower price to increase _______ ________ |
|
Definition
|
|
Term
|
Definition
| wanting to gain majority control of a market (IE giving away software for free to beat netscape) |
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Term
|
Definition
| illegal, pricing below cost to drive firms out of the market, internationally know as dumping (hard to prove) |
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Term
| government says _______ companies price too high and need to chill |
|
Definition
|
|
Term
|
Definition
| set price low to gain immediate sales and market share (new airline routes, internet browsers) |
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Term
|
Definition
| set price high to achieve quick large profits (apple, intel pentium shit) |
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Term
| penetration pricing was used by |
|
Definition
|
|
Term
|
Definition
| high penetration and low skimming |
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Term
|
Definition
| present penetration and absent skimming |
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Term
|
Definition
| low penetration and high skimming |
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Term
|
Definition
| low penetration and high skimming |
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Term
|
Definition
| value decreasess over time (hotel rooms, sporting events, airlines) |
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Term
|
Definition
| price acording to the competition |
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Term
|
Definition
| variable cost + (fixed costs / unit sales) |
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|
Term
| mark up price = unit cost / (1-desired return on sales) |
|
Definition
|
|
Term
|
Definition
| the quantity of output at which total revenue = total cost |
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Term
|
Definition
| total fixed costs/(price-unit variable cost) |
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|
Term
| discriminatory pricing examples |
|
Definition
| victorias charging more in OC, movies with special student and senior rates, bars on ladies night |
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Term
| discriminatory pricing is legal if... |
|
Definition
| it doesnt substantially hinder competition |
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