Term
| Strategic Alternative for growth |
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Definition
| market penetration and market development |
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Term
| strategic alternative for profit |
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Definition
| decreasing inputs(cutting costs) or increasing outputs(sales revenue) |
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Term
| What is market penetration? |
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Definition
| Is the activity or fact of increasing market share of existing products or promoting a new product, through strategies such as bunding, advertising, lower prices or volume discounts |
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Term
| What is Market Development? |
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Definition
| Expansion for total market for a product by entering new segements of market, converting non users, and/or increasing usage per user. |
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Term
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Definition
| Selling new products to new markets |
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Term
| What is Product development? |
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Definition
| selling new products to existing customers |
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Term
| How can a product manager increase outputs? |
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Definition
| Improve pricing by increasing the list price, reducing discounts, reducing allowances and so on. Other way is to improve the sales mix. Think the 80/20 rule. 20% of product variants produce 80% of the profits. In this instance you could sell more of the profitable items, or if rule is applied to customers the company could de-emphasize unprofitable customers and focus on more on those producing 80% of the profits. |
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Term
| How can a product manager decrease inputs? |
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Definition
| One way is cost reduction, candidates for reduction are costs of marketing such as advertising, promotion, selling expenses, and marketing research. Another way to decrease inputs is to improve the utlization of assets. Including keeping down accounts receiveable, cost of inventories, and running production equipment more efficiently. |
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Term
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Definition
| It's how the product differs from compeition in the mind of the consumers. Two basic ways to position a product is through a profit route or a growth route. |
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Term
| What are five areas for differentiation discussed in the text? |
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Definition
| Quality,status and image, branding, convenience and service, and distribution |
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Term
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Definition
| A unique design, symbol, words or combination of these employed in creating an image that identifies a product and differentiates it from its competitors. |
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Term
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Definition
| Added value of a brand. It is the brands power dervied from goodwill and name recognition that it has earned over time, that translates into higher sales margin and profit margins. |
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Term
| What are the benefits of a strong brand? |
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Definition
| Increases confidence/reduces risk, creates brand awareness and loyalty, can set prices/margins, gives more bargaining power with buyers, it may deter entry of competitors into the industry, provides some defense against price competition, creates brand resiliency, and can lead to line and category brand extensions |
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Term
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Definition
| taking an exisiting brand names and extending those into new forms, sizes, flavors, etc of an existing product category. |
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Term
| What is category extension? |
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Definition
| When exisiting brand names are extended into new product categories |
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Term
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Definition
| when new brand names are introduced into same product category |
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Term
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Definition
| placing new brand names into new product categories |
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Term
| Advantages of brand extensions |
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Definition
-facilitate new product acceptance
-reduce percieved risk by customers
-increase probability of gaining distribution&trial
-increase efficiency of promotional expenditures
-reduce cost of introductory marketing programs
-allow for packaging and label efficiences
-provide feedback benefits to parent brand
-enhance parent brands image
-bring new customers into brand franchise
-revitalize the brand |
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Term
| Disadvantages of brand extensions |
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Definition
-confuse/frustrate customers
-can encounter retailer resistance
-can fail and hurt parent brands image
-can cannibalize sales of parent brand
-can diminish I.D. w/any one category
-can dilute brand meaning |
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Term
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Definition
all the products under a particular brand name
decisions related too: how products lines should be offered? How man variants should be offered in each product line? how effectively does extension, in turn, contribute to parents brand equity. |
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Term
| What is a brand portfolio? |
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Definition
set of brands that a firm offer in a particular product category.
decisions related too: Are different brands may be designed and what is the marketing appeal to different market segments? will any one brand in the portfolio harm or decrease the equity of other brands in portfolio? Are brands clearly differentiated and appealing to sizable enough market to justify it's marketing and production costs? |
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Term
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Definition
| represent all industries not in existence today. Defined by untapped market space, demand creation and the opportunity for highly profitable growth |
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Term
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Definition
| represent all industries that are in existence today. Lots of competition. Industry boundaries are well-defined and accepted. Try to outperform rivals through low cost or differentation. Try to get greater share of existing demand. As market space gets crowded, profit and growth potential are reduced |
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Term
| How are blue oceans created? |
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Definition
| most are created by expanding industry boundaries |
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Term
| How do you reconstruct boundaries? How do you reach beyond existing demand? |
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Definition
| Reconstruct market boundaries by overcoming beliefs. Reach beyond exisiting demand for uncontested space. |
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Term
| What is value innovaiton? |
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Definition
| Break the value-cost trade off |
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Term
| What are the four actions framework? |
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Definition
| Raise, eliminate, create, and reduce. These actions push companies toward value innovation. Simultaneiously pursuing differentation and low-cost. It immediately falgs companies that are foucsed only on raising and creating. This leads to an increasing cost structure and often over-engineering products and services. |
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Term
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Definition
| Different people will interpret it differently. It can be new to the world, new to the firm, additions to exisiting product lines, improvements and revisions to an existing products, repositioning(products that replace existing products in a line) |
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Term
| What are the steps in new product development process? |
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Definition
| Stage-gate process= idea generation, idea screening, concept devlopment, concept testing, product development, product use testing, market testing and a go no go decision |
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Term
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Definition
| systematic search for new product ideas |
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Term
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Definition
| screening new products in order to spot good ideas and drop poor ideas |
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Term
| What is concept development? |
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Definition
| statement of how the anticipated product features will yield selected benefits relative to other products already available |
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Term
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Definition
| testing new product concepts w/groups of target consumers |
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Term
| What is prodcut development? |
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Definition
| developing concept into a physical product. It determines whether a product concept can be turned into a workable idea |
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Term
| What is product use testing? |
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Definition
| examination of product use under normal operating conditions. It is used to uncover potential problems. |
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Term
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Definition
| stage in which product and marketing program are tested in a more realistic market setting. |
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Term
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Definition
| process by which innovation spreads. |
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Term
| What factors influence rate of diffusion? |
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Definition
| relative advantage, compatibility, percieved risk, complexity, observability and trialability |
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Term
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Definition
| when to many features can make products too overwhelming for consumers |
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Term
| What is global marketing standardization? |
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Definition
| production of uniform that can be sold the same way around the world |
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Term
| Global market customization? |
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Definition
| production of products marketed differently to markets around the world |
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Term
| What are advantages of standardization? |
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Definition
| economies of scale, lower marketing costs, uniformity in marketing practices and consistency in brand image |
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Term
| What are the advantages of customization? |
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Definition
| recognizes differences in consumers' needs and wants, product life cycles, competitive environment, legal environment and marketing institutions |
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Term
| What is fundamental issue that product managers face when going global? |
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Definition
| Is determining extent to which marketing program should be standardized across countries |
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Term
| Obstacles of standardization in product design and pricing |
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Definition
| physical environment, stage of economic and industrial development in a country and cultural factors. |
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Term
| What are country of orgin effects |
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Definition
Country of origin effect is “the effect that the country of origin of the product has
on the buyer’s quality perceptions of the product.”
o Many countries require a country of origin label |
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