Marketing-Exam1-Set #3
Terms
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- product life cycle
- describe the stages a really enew product idea goes through from beginning to edn-->divided into 4 major stages: market introduction, market growht, market maturity, sales decilne
- market introdution
- sales are low as a new idea is frist introduced into the market-->customers aren't looking for the product
- market growth
- industry sales grow fast, but indstury profts rise and then start falling-->this is time of biggest profits FOR THE INDUSTRY. toward the end, industryprofts decline
- market maturity
- occurs when industry sales level off and competition gets tougher
- sales decline
- new products replace old
- new porduct
- one that is new in any way for the coampny concerened---
- new product failures
-
1. fail to offer unique benefit.
2. bad design
3. rush w/o developing a complet emarketing plan
4. moving too slowly - new-product development process
-
1. idea geneartion
2. screening
3 idea evaluation
4 development (of product and marekting mix)
5. comercialization - direct marketing
- direct communication b/t a seller and an indivdual customer using a prmtoin method other hthan face-to-face personal selling
- ideal market exposrue
- makes a product available widely enough to satisy fy target customers' needs but not exceed them-->too much expores only increaes the total cost of marketing
- intensive distribution
-
selling a product throug all responsible and suitable wholesalers or retailers who will stock or sell the product
(especially needed for convenience products and business supplies) - selective distribution is
- selling through only those middlement who will give the pdocut special attention
- exclusive distribution
- seeling through only one middleman in a particular geographic area.
- in the introduction product life cycle:
- innovatrs; uncertainty is high, few competitors, application identification, design/standard devpt, awareness low, user education important, selective distribution
- in the growth product life cycle
- early adopters, semgents develop, increasing competition, increasing differentiation, design/standard convergence, continue building awareness and educating users, widening distribution
- maturiy in product life cycle
- marjoiryt adopt, market fragmentation, competition intense, poisitionina and value ar ekey, service ocould bceom a point of difference
- "penetration" vs. "skimming"
-
start at high erprice, than lower the price(skimming)
penetatartion=launch product at reasonable price, hope to maintain Qlevel - pioneer advantage or disadvantage
- first one; copy catters can steal idea and make improvements
- marketing starategy in intro stage
- high investment, penetration vs. skimming, high risk bbut potentailly high pay-off, pioneer dis/advantage
- marketing strategy in growth stage
- expand product offerings, expand distribution, advertising expenses substantial, sales promion may hurt, could use price competition
- marketing strategy for mature products
- quality, function, aesthetic modifications
- marketing strategy for decliningni market
- elimiate or reposition prodcut to extend life, phase out weak itmes, maintain outlest with strong er sales, elimiate others, reduce ad expenses to minimum (just enough to retain hard-core loyals), reduce sales promotions to minimum