Term
| What is marketing research? |
|
Definition
| Set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid marketers of goods services or ideas. Should only be used to produce unbiased, factual information. |
|
|
Term
| Why do marketers find marketing research valuable? |
|
Definition
1.) it helps reduce some of the uncertainty under which they constantly operate. successful managers know when research might help their decision making and then take appropriate steps to acquire the info they need.
2.) marketing research provides a crucial link between firms and their environments, which enables them to be customer oriented because they build their strategies using customer input and continual feedback.
3.) by constantly monitoring their competitors, firms can respond quickly to competitive moves. |
|
|
Term
| What is the marketing information system ( MKIS) |
|
Definition
| set of procedures and methods that apply to regular, planned collection, analysis, and presentation of information used in marketing decisions. |
|
|
Term
| What are data warehouses? |
|
Definition
| Large computer files that store millions or billions of pieces of individual data. |
|
|
Term
|
Definition
| use of carious statistical analysis tools to uncover previously unknown patterns in data stored in databases or relationships among variables. |
|
|
Term
|
Definition
| a means to accumulate info from sources both internal and external to the organization for the purpose of making it routinely available to mangers for their more informed decision making. it enables a company to better meet the needs of its best business customers, thus improving the overall value of its offering. |
|
|
Term
| What must be an integral part of a firms marketing strategy and decision making? |
|
Definition
| a strong ethical orientation. |
|
|
Term
| when it comes to the ethics of using customer information, what must firms do? |
|
Definition
| marketers musts adhere to legislative and company policies as well as respect consumers desires for privacy. |
|
|
Term
| What three guidelines do the Marketing Association provide for conducting marketing research? |
|
Definition
1) it prohibits selling or fundraising under the guise of conducting research
2.) it supports maintaining research integrity by avoiding misrepresentation or the omission of pertinent research data
3) it encourages the fair treatment of clients and suppliers. |
|
|
Term
| What factors do managers consider before embarking on a marketing research project? |
|
Definition
1.) will the research be useful?
2.) will it provide insights beyond what the managers already know and reduce uncertainty associated with the project?
3.) is top managment committed to the project and wiling to abide by the results of the research? |
|
|
Term
| What is the 5 step process to the marketing research process? |
|
Definition
1) defining objectives
2.) Designing the research project
3.) Data collection
4.) Analyzing Data
5.) Presenting results |
|
|
Term
| When marketers define the objective, what do they need to make sure to do. |
|
Definition
| B/c research is expensive and time consuming marketers need to define in advance exactly what information they are looking for. Marketing research efforts can be wasted if research objectives are poorly defined. |
|
|
Term
| what do researchers do when they design the project? |
|
Definition
they identify the type of data needed and determine the type of research necessary to collect it.
Identifying the type of data needed is the first purpose, and determining market share is also important. |
|
|
Term
|
Definition
| pieces of information already collected from other sources and usually readily available. |
|
|
Term
|
Definition
| data available for a fee from commercial research firms. |
|
|
Term
|
Definition
| data collected to address specific research needs. |
|
|
Term
| what is exploratory research? |
|
Definition
| attempts to begin to understand the phenomenon of interest. provides intitial information when the problem lacks clear definition. |
|
|
Term
| What are some advantages and disadvantages of secondary data? |
|
Definition
Advantages: Saves tome in collecting data because they are readily available
- reduces data collection costs
Disadvantages:
- may not be precisely relevant to information needs.
- Info may not be as timelely as needed
- Sources not original, and therefore useless. |
|
|
Term
| What are some advantages and disadvantages of primary research? |
|
Definition
Advantages:
- specific to the immediate topic at hand.
- offers behaviorial insights unlike secondary.
Disadvantages:
- More costly to collect
- takes longer to collect
- more sophisticated training. |
|
|
Term
| What are some examples of exploratory research? |
|
Definition
| observation, in depth interviews, focus groups projective techniques. |
|
|
Term
| What is conclusive research, and what are some examples? |
|
Definition
| Information needed to confirm preliminary insights which managers use to purse appropriate actions.Ex: Experiments, survey, scanner, panel |
|
|
Term
|
Definition
| Exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny. May take hours or weeks. |
|
|
Term
| What is an in-depth interview? |
|
Definition
| Exploratory research technique in which trained researchers ask questions, listen to and record answers, and pose additional questions to clarify a particular issue. |
|
|
Term
| what is a focus group interview? |
|
Definition
| Research technique that uses a small group of persons to discuss a particular topic, conversation guided by a trained moderator using unstructured inquiry method. In particular they gather qualitative data about initial reactions to a new or existing product or service. |
|
|
Term
| What is a projective technique? |
|
Definition
| Qualitative research in which subjects are provided with a scenario and express their thoughts and feelings about it. |
|
|
Term
|
Definition
| Systematic means of collecting information from people that generally use a questionarre. |
|
|
Term
|
Definition
| Form that features questions designed to gather information from respondents and accomplish reearcher's objectives, questions can be unstructured ( fill in a box) or structured. |
|
|
Term
| What are unstructured questions? |
|
Definition
| open ended questions that allow respondents to answer in their own words. |
|
|
Term
| What are structured questions |
|
Definition
| Closed-ended questions that provide a discrete set of response alternatives or specific answers, to respondents. |
|
|
Term
| Marketing survey can be what? |
|
Definition
|
|
Term
| What are some benefits of online surveys? |
|
Definition
response rates are relatively high.
respondents may lie less.
It is inexpensive
Results are processed and recieved quickly. |
|
|
Term
| What is experimental research? |
|
Definition
| Quantitative research that systematically manipulates one or more variables to determine which has a casual effect of the other variables. Ex: if the cheescake factory is trying to determine most profitable price for a menu item. |
|
|
Term
| What is scanner research? |
|
Definition
| Quantitative research that uses data obtained from scanner readings of UPC codes at checkout counters. |
|
|
Term
|
Definition
| quantitative research that collects information from a group of consumers ( panel) over time data may be from a survey or record of purchases. |
|
|
Term
| What is a key difference between scanner research and panel research? |
|
Definition
| the nature of aggregation. scanner research focuses on weekly consumption of a particular product, whereas panel research focuses on the total weekly consumption of a particular person or a group of people. |
|
|
Term
| What is the fourth step in the marketing research process? |
|
Definition
| analyzing the data. purpose is to describe, explain, predict, or evaluate a particular situation. |
|
|
Term
| What is the 5th step of the marketing research process? |
|
Definition
|
|
Term
| What does a typical marketing research report include? |
|
Definition
| executive summary, body of the report ( has objectives, methodology, and detailed findings) and conclusions, limitiations, and appropriate supplemental tables, figures, and appendixes. |
|
|
Term
| To be effective a written report must be what? |
|
Definition
| short, interesting, methodical, precise, lucid, and free of errors. |
|
|
Term
| What are some key thoughts on the marketing research process? |
|
Definition
1.) marketing research process doesnt always go step by step.
2.) planning the entire project in advance is important.
3.) |
|
|
Term
|
Definition
| Anything that is of value to a consumer and can be offered through a voluntary market exchange. |
|
|
Term
| What is a product assortment/ product mix? |
|
Definition
| Complete set of all products offered by a firm. |
|
|
Term
|
Definition
| Groups of associated items, including those consumers use together or think of as part of a group of similiar products. |
|
|
Term
| What is a product category? |
|
Definition
| Assortment of items the customer sees as reasonable subtitutes. |
|
|
Term
|
Definition
| Name, term, design, symbol, or any other features that distinguish a seller's good or service from those of other sellers. |
|
|
Term
| What is product line breadth? |
|
Definition
| Number of product lines, or variety offered by the firm. |
|
|
Term
| What is product line depth? |
|
Definition
| Number of categories within a product line. |
|
|
Term
| What is stock keeping units? ( SKU ) |
|
Definition
| Individual items within each product category, the smallest unit available for inventory control. |
|
|
Term
|
Definition
| Number of stock keeping units within a category. |
|
|
Term
| Give an example of a product category and a product line. |
|
Definition
Product category: oral care
Product line: toothbrush, toothpaste, whitening products, floss. |
|
|
Term
| If a firm is adding or deleting product categories, what is it doing? |
|
Definition
| Changing its product mix breadth. |
|
|
Term
| Why do firms what to increase breadth? |
|
Definition
| to capture new product categories, or evolving markets, or increase sales, and compete in new venues. |
|
|
Term
| Why would a firm want to decrease its breadth? |
|
Definition
| because sometimes it is necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities. |
|
|
Term
| Why would a firm want to increase its depth? |
|
Definition
| firms may want to add new product lines or categories to address changing consumer preferences or preempt competitors while boosting sales. |
|
|
Term
| Why would a firm want to decrease its depth? |
|
Definition
| to realign resources. the decision is not taken lightly though. |
|
|
Term
| Why would a firm what to change the number of SKU's? |
|
Definition
| to stimulate sales or react to consumer demand. |
|
|
Term
| Many of the strategies used to make product line decisions for physical products can also be applied to: |
|
Definition
|
|
Term
| What does branding provide? |
|
Definition
| a way for a firm to differentiate its product offerings from those of its competitors and can be used to represent the name of a firm and its entire product assortment. |
|
|
Term
|
Definition
| they add value to merchandise and services beyond physical and functional characteristics or the pure act of performing the service. |
|
|
Term
| How do brands facilitate purchasing? |
|
Definition
| brands are often easily recognized by consumers and, because they signify a certain quality level and contain familiar attributes, brands help consumers make quick decisions. |
|
|
Term
| What are the 6 brand elements? |
|
Definition
| Brand name, URLS, Logos and symbols, characters, slogans, jingles. |
|
|
Term
| What are the 6 ways brands add value? |
|
Definition
1.) they facilitate purchasing
2.) they establish loyalty.
3.) they impact market value
4.) they are assets
5.) they reduce marketing costs
6.) they protect from competition. |
|
|
Term
|
Definition
| assets and liabilities linked to a brad that add to or subtract from the value provided by the product or service. |
|
|
Term
| What four aspects do firms look at to determine a brands equity? |
|
Definition
1.) brand awarness
2.) percieved value
3.)Brand associations
4.) brand loyalty |
|
|
Term
|
Definition
| Measure of how many consumers are familiar with the brand and its image, created through repeated exposures of brand elements in the firms communication. |
|
|
Term
|
Definition
| relationship between a products or services benefits and cost. |
|
|
Term
| What is brand association? |
|
Definition
| mental links between a brand and its key product attributes. can involve a logo, slogan or famous personality |
|
|
Term
| What is brand personality? |
|
Definition
| set of human characteristics associated with a brand, with symbolic or self expressive meanings for consumers. |
|
|
Term
|
Definition
| when consumers buy the same brand repeatedly over time rather than buying from multiple suppliers withing the same category. |
|
|
Term
| What are the 3 brand ownership strategies? |
|
Definition
| generic, store or private label, and manufacturer or national brand. |
|
|
Term
| what is manufacturer brands? |
|
Definition
| brands owned and managed by the manufacturer. |
|
|
Term
| What are private label or store brands? |
|
Definition
| brands developed and marketed by a retailer, and only available from that retailer. |
|
|
Term
| What is meant by the term generic? |
|
Definition
| product sold without a brand name, typically in commodities markets. |
|
|
Term
| What is a corporate brand? |
|
Definition
| use of a firms corporate name to brand all of its product lines and products. |
|
|
Term
| What is corporate and product line brands? |
|
Definition
| use of a product line name to brand rather than a corporate name. |
|
|
Term
| What are individual brands? |
|
Definition
| use of individual brand names for each of a firms products. |
|
|
Term
| What are the 3 brand name strategies? |
|
Definition
| Corporate or family brand, corporate and product line brand, individual. |
|
|
Term
| What is a brand extension? |
|
Definition
| the use of the same brand name for new products introduced to the same or new markets. |
|
|
Term
|
Definition
| when a brand extension adversely affects consumer perceptions about the attributes of the core brand. |
|
|
Term
|
Definition
| marketing two or more brands together in the same package or promotion. |
|
|
Term
| to prevent potentially negative consequences of brand extension, what caveats must firms consider? |
|
Definition
1.) marketers should carefully evaluate the fit between the product class of the core brand and that of the extension.
2.) firms should carefully evaluate consumer perceptions of the attributes of the core brand and seek out similiar attributes for the extension because brand specific associations are very important for extensions.
3.) Firms should refrain from extending the brand name to too many products and product categories to avoid diluting the brand and damaging equity.
4.) Firms should consider whether the brand extension will be distanced from the core brand, especially if the firm wants to use some but not all of the existing brand associations. |
|
|
Term
|
Definition
enhance consumers perceptions of product quality by signaling an unobservable product quality through links between the firms brand and a well known quality brand.
It can also be a prelude to an acquisition strategy, but cant be too different, such as burger kind and haagen das. |
|
|
Term
|
Definition
| contractual arrangments whereby one firm allows another to use its brand name, logo, symbols, or characters for a negotiated fee. |
|
|
Term
| what risk does licensing have for the licensor? |
|
Definition
| dilution of brand equity through over exposure of the brand, especially if the brand name and characters are used inappropriately. |
|
|
Term
| What is brand repositioning? |
|
Definition
| Strategy to change a brands focus to target new markets or realign the core emphasis with changing market preferences. |
|
|
Term
| What can brand re positioning do? |
|
Definition
| change the quality image of the brand, breathe life into old brands, however repositioning is not without costs and risks. |
|
|
Term
| What is the primary package? |
|
Definition
| packaging the consumer uses, such as a toothpaste tube; typically seeks convenience in terms of storage, use, and consumption. |
|
|
Term
| what is the secondary package? |
|
Definition
| wrapper or exterior carton containing primary package; provides UPC label used by retail scanners; can contain product information unavailable on the primary package. |
|
|
Term
| because all packages are critical to the firms brand positioning and shelf appeal, many innovations in design and materials have occured in the past few decades, what are some examples? |
|
Definition
1.) stand up, reclosable zipper pouches.
2.) Aluminum beverage cans
3.) Ring pull cans
4.) aseptic drink bottles
5.) Child-resistant/ senior friendly packages. |
|
|
Term
| Labels on products should do what? |
|
Definition
| provide information the consumer needs for his or her purchase decision and consumption of the product. they must comply with the laws and regulations, such as what ingrediants are inside of it, where it was made, directions for use, etc. |
|
|
Term
| labeling is ultimately a what? |
|
Definition
| a communication tool, and very important. |
|
|
Term
|
Definition
| process by which ideas are transformed into new products and services that will help firms grow. |
|
|
Term
| What 5 step process does IDEO follow? |
|
Definition
1.) observation
2.) brainstorming
3.) Prototyping
4.) Refining
5.) Implementation. |
|
|
Term
| Without innovation and its resulting new products and services, firms would have what two choices? |
|
Definition
| continue to market current products to current customers or take the same product to another market with similiar customers. |
|
|
Term
| Although innovation strategies may not work in the short run, overriding long term reasons compel firms to introduce new products and services. why is this? |
|
Definition
1.) as they add new products to their offerings, firms can create and deliver value more effectively by satisfying the changing needs of their current and new customers or simply keeping customers from getting bored with the current product of service.
2.) the longer a product exists in the marketplace, the more likely it is that the market will become saturated. without new products or services, the value of the firm will ultimately decline.
3.)the portfolio of products that innovation can create helps the firm diversify its risk and therefore enhances firm value better than a single product can.
4.) In some industries such as the arts and software, most sales come from new products. |
|
|
Term
|
Definition
| New product introductions that establish a completely new market or radically change the rules of competition and consumer preferences. |
|
|
Term
|
Definition
| product pioneers, first to create a market or product category. readily recognizable to consumers, they establish a commanding early market share lead. |
|
|
Term
| Do all new pioneers succeed? |
|
Definition
| No, in many cases imitators capitalize on the weaknesses of pioneers and subsequently gain advantage in the market.a lot of new products are failures. |
|
|
Term
| What is diffusion of innovation? |
|
Definition
| Process by which an innovation spreads throughout a target market over time and various categories of adopters. |
|
|
Term
|
Definition
| Consumers who want to be the first to have a new product or service. |
|
|
Term
| The diffusion of innovation follows what kind of curve? |
|
Definition
|
|
Term
| the diffusion of innovation has what kind of people in it? |
|
Definition
| innovators, early adopters, early majority, late majority, laggards. |
|
|
Term
| Why are innovators important? |
|
Definition
| they keep themselves well informed about a product or service, they help the product gain market acceptance, and spread positive word of mouth. |
|
|
Term
| What are early adopters and why are they important? |
|
Definition
| early adopters are the second group of consumers in the diffusion of innovation model to use an innovation. less risk tolerant than innovators, wait to purchase until after careful review. they are crucial to bringing the other three categories to the market. |
|
|
Term
| What is the early majority, and why are they important? |
|
Definition
| early majority represents 34 percent of the population, they are crucial because new products cant bet be profitable until this large group buys them. when early majority has entered the market, competition has reached its peak, there are many price and quality choices. |
|
|
Term
| What is the late majority? |
|
Definition
| Last group of buyers to enter a new product market, when they do, the product has reached its full market potential. |
|
|
Term
|
Definition
| make up roughly 16 percent of the population. they avoid change and rely on traditional products until they are no longer available. |
|
|
Term
| How do firms use the diffusion of innovation theory? |
|
Definition
| firms can predict which types of products customers will buy, they can develop effective marketing mix to push acceptance among each consumer group. |
|
|
Term
| What is one catch of the diffusion rate? |
|
Definition
| different products diffuse at different rates, marketers must understand what the diffusion curve for a new product looks like, as well as the characteristics of the target customers in each stage of the diffusion. |
|
|
Term
| What are the four factors affecting product diffusion? |
|
Definition
1.) compatibility
2.) relative advantage
3.) trialability
4.) observability |
|
|
Term
| What do the four factors affecting the diffusing rate mean? |
|
Definition
relative advantage- if a product is percieved to be better than substitutes, it will diffuse quickly.
complexity and trialability- products that are simple are easy to try, and will diffuse faster than more complex products.
compatibility- ritual of having coffee is ingrained in many cultures, but may be slow in markets like china, where tea is more popular.
observability- when products are easily observed, like the starbucks logo, their benefits are communicated to others enhancing the diffusion process. |
|
|
Term
| What is the product development process? |
|
Definition
1.) Idea generation
2.) Concept testing
3.) Product development
4.) Market testing
5.) Product launch
6.) evaluation of results |
|
|
Term
| What can a firm do to generate new ideas for a product? |
|
Definition
| it can use its own Research and development efforts, collaborate with other firms and institutions, license technology from research intensive firms, brainstorm, research competitors products and services, or conduct consumer research. |
|
|
Term
| What is internal research and development, what is one benefit and on disadvantage of this. |
|
Definition
| It's the firms own R and D dept. in which scientists work to solve complex problems and develop new ideas. the costs are high, but the product has a good chance of being a market breakthrough |
|
|
Term
| What are the 6 sources of ideas? |
|
Definition
1) R and D consortia
2.) Licensing
3.) Brainstorming
4.) Competitors products
5.) customer input
6.) Internal R and D |
|
|
Term
| What is R and D consortia? |
|
Definition
| groups of other firms and institutions possibly including government and educational institutions, to explore new ideas or obtain solutions for developing new products. |
|
|
Term
|
Definition
| For many new scientific and technological products, firms buy the rights to use the technology or ideas from other research intensive firms through a licensing agreement. It saves costs, but banks on a solution that exists but isnt marketed. royalties go to the licensor. |
|
|
Term
|
Definition
| when a group works together to generate ideas. no idea can be immediately accepted or rejected. |
|
|
Term
| What is reverse engineering? |
|
Definition
| involves taking apart and analyzing a competitors product to create an improved product that does not infringe on the competitors patents, if any exist. |
|
|
Term
|
Definition
| innovative product users who modify existing products according to their own ideas to suit their specific needs. |
|
|
Term
|
Definition
| brief written descriptions of the product. |
|
|
Term
| Why is customer input important? |
|
Definition
| it is essential to listen to the firm for successful idea generation. 85% of all new B2B product ideas come from customers. |
|
|
Term
| Ideas with potential are what? |
|
Definition
| developed further into concepts, which in this context refer to brief written descriptions about the product, its technology, working principles and forms. and what customer needs it would satisfy |
|
|
Term
|
Definition
| presenting a concept statement that describes a product or service to potential buyers to obtain their reactions. |
|
|
Term
| What does concept testing do for the firm? |
|
Definition
| if the concept fails to meet customers expectations, it is doubtful it would succeed if it were to be produced and marketed. it helps the firm avoid the costs of unnecessary product development. |
|
|
Term
| What is product development or product design? |
|
Definition
| Entails balancing various engineering, manufacturing, marketing, and economic considerations to develop a product or service. |
|
|
Term
|
Definition
| First rough physical form or description of new product, with the same properties as the new product but produced through different manufacturing processes, sometimes crafted individually. |
|
|
Term
|
Definition
| Attempt by R and D to determine whether a product will perform according to its design and satisfy the intended need. |
|
|
Term
| Why are many people concerned with alpha testing? |
|
Definition
| if it involves tests on animals, it can be unethical. |
|
|
Term
|
Definition
| potential consumers examine a product prototype in real-use setting to determine its functionality, performance, potential problems, and other issues. |
|
|
Term
| What is a premarket test? |
|
Definition
| conducted before a product or service comes to market to determine how many customers will try and continue to use it. |
|
|
Term
| During a premarket test, what happens? |
|
Definition
| potential customers are exposed to the marketing mix variables, then surveyed and given a sample of the product to try. they are then surveyed about whether they would buy or use the product again. |
|
|
Term
|
Definition
| introduces new product or service to a limited geographical area ( usually a few cities) prior to a national launch. |
|
|
Term
| What are some advantages and disadvantages of using test marketing? |
|
Definition
| it costs more and takes longer than premarket tests. however the firm can study actual consumer behavior, which is more reliable than a simulated test. |
|
|
Term
| If the market testing returns with positive results, than what? |
|
Definition
| the firm is ready to introduce the product to the entire market. It is the most critical step because it requires tremendous financial resources and extensive coordination of all aspects of the marketing mix. it might be difficult to recover after the failure of a product. |
|
|
Term
| What does a product launch involve? |
|
Definition
| the firm confirms its target market based on research, and decides how the product will be positioned. then the firm finalizes the remaining marketing mix variables for the product, as well as the marketing budget for the first year. |
|
|
Term
| in terms of launching a product, what must the firm be sure of when it comes to promotion, place, price, and timing? |
|
Definition
promotion- the more complex products need to provide and educate consumers on the benefits they would receive.
place- the firm must have an adequate quantity of products available for shipment and to keep in stock at the relevant stores.
price- the firm needs to ensure that they get the price right. it is easier to start high and offer promotions, rather than start at a low price.
timing- certain products, like movies, have a time when they should be released. |
|
|
Term
| How do firms measure the success of a new product? |
|
Definition
1.) its satisfaction of technical requirements, such as performance.
2.) customer acceptance
3.) its satisfaction of the firms financial requirments such as sales and profits. |
|
|
Term
| What is the product life cycle? |
|
Definition
| defines the stages of new products as they enter, get established, and ultimately leave the marketplace; offers marketers a starting point for strategy planning. |
|
|
Term
| What is the introduction stage? |
|
Definition
| stage of the product life cycle when the innovators start buying the product. |
|
|
Term
| What is the growth stage? |
|
Definition
| stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge. |
|
|
Term
| what is the maturity stage? |
|
Definition
| when sales reach their peak, so firms try to rejuvinate products by adding new features or repositioning. |
|
|
Term
| what is the decline stage. |
|
Definition
| when sales decline and the product exits the market. |
|
|
Term
| what are some key facts about the product life cycle? |
|
Definition
| not every product follows this shape. some white good categories like washers stay in the maturity stage till a new product replaces them. |
|
|
Term
| What are some key facts about the introduction stage? |
|
Definition
| usually starts with a single firm, and innovators are the ones who try it first. it is characterized by initial losses by the firm, but firms might see profits at a later stage. |
|
|
Term
| What is the growth stage marked by? |
|
Definition
| more product adopters, rapid growth in industry sales, increased competitors and product versions. market is more segmented. profits rise due to scale of economy. |
|
|
Term
| what is the maturity stage marked by? |
|
Definition
| adoption of the product by the late majority, and intense competition. market costs increase as firms defend their market share. |
|
|
Term
| What strategies might firms use in the maturity stage to increase their customer base or defend their market share? |
|
Definition
1.) entry into new markets or market segments- firms might try to enter less saturated market. Even in mature markets, firms may be able to find new market segments. new trends or tastes can open opportunities. New market opportunities may emerge through simple product design changes.
2.) development of new products- firms need constant innovation to defend market share against competition. sometimes new products are introduced by less than famous companies. |
|
|
Term
| what do firms in the decline stage do? |
|
Definition
| position themselves for a niche segment of die hard consumers or those with special needs or they completely exit the market. |
|
|
Term
| What is important about the shape of the life cycle of a product? |
|
Definition
| it is assumed to be bell shaped, but this it not always the case. each product has its own shape. |
|
|
Term
| what is the most challenging part of the product life cycle? |
|
Definition
| managers dont know the shape of the curve. a manager could think something is in the decline stage, but really it has a lot more potential. |
|
|
Term
| when breakthrough innovations are few and far between... |
|
Definition
| firms use the product life cycle to identify the consumer promotions needed at each stage to get the most out of their existing brands. |
|
|
