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30 Cards in this Set
- Front
- Back
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def the product life cycle
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stages a new product goes thorugh in the marketplace (intro, growth, maturity, decline)
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describe the introduction stage
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sale slow, profit minimal, large investment costs, create customer awareness and stimulate TRIAL, heavy spending on ads, stimulate primary demand, company attention focused on creating selective demand, gaining distribution can be a challenge, skimming strategy or penetration pricing might be used,
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def primary demand
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desire for prduct class rather than for a specific brand
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def selective demand
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preference for a specific brand
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describe growth stage
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rapid increase in sales, competitors appear, more aggressive pricing, profit peaks, advertising shifts to stimulating selective demand, firms try to grow proportion of repeat purchasers, changes appear in product (POD), product proliferation, important to gain as much distribution as possible
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describe maturity stage
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slowing sales, marginal competitors leave market, sale increase at decreasing rate, fewer new buyers, profit declines due to price competition, cost of gaining new buyers increases, marketing directed towards keeping market share through differentiation and finding new buyers
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describe the decline stage
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sales drop, not because of any wrong strategy, but because of environmental changes
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def deletion (a part of decline stage)
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dropping product from line, most dramatic strategy in decline stage
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def harvesting (a part of decline stage)
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when a company retains the product, but reduces marketing costs (Tab soda provided by coke)
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what are the 3 aspects of the product life cycle?
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1. thier length
2. the shape of thier sales curves 3. the rate at which consumer adopt products |
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there are four different life-cycle sales curves for different kinds of products. what are they? (can you remember what their graphs looked like?)
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high learning, low learning, fashion, fad
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def diffusion of innovation
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when a a product diffuses, or spreads, thorugh the population
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what five categories and profiles does a product go through as it is transferred through diff types of buyers? (think of a bell curve, who adopts product first and last?)
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innovators, early adopters, early majority, late majority, laggards
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what are some common reasons for resisting a product in the introduction stage?
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usage barriers, value barriers, risk barriers, psychological barriers
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how do companies try to overcome people who are too scared to try a new product in the intro stage or even growth stage?
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warraties, money-back guarantees, usage instructoins, demonstrations, free samples
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what are MARKET MODIFICATION strategies
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finding new customers, increasing product use, creating new use situations
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what does CDI stand for and how do you calculate it?
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CDI = category development index
(percent of a product category's total US sales in market segment) / (percent of hte total US population in a market segment) x 100 = CDI CDI over 100 = strong product category presence |
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what does BDI stand for and how do you calculate it?
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BDI = Brand development index
(percent of a brands total US sales in a market segment) / (percent of the toatl US population in a market segment) x 100 = BDI BDI over 100 = strong brand presence |
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what are the four factors that trigger the need for repositioning action?
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1. reacting to a competitors position
2. reaching a new market 3. catching a rising trend 4. changing value offered |
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whats the difference between trading up and trading down?
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trading up is when you add more attributes or higher quality materials to a product to add value to it, whereas trading down involves reducing features, quality, or price (downsizing makes ppl pissed coz they have to pay same price for less product)
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def branding
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org uses name, phrase, design, symbols, or combo of these to ID its products and distinguish from competitors
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def brand name
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word, device (design, sound, shape, or color), or combo used to distinguish goods or services
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def brand equity
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added value a brand name gives to a product beyond the functional benefits provided, this is a comp advantage, consumers willing to pay more for one brand over another even when fuctional benefits of product are identical
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brands, unlike phsysical assets, that depreciate with time and use, can _________ in value when effectively marketed
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appreciate or increase
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what are the five criteria used when trying to select a good brand name?
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name should:
1. sugguest product benefits 2. memorable, positive, distinct 3. should fit company image 4. no legal restrictions 5. simple |
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waht are the 4 diff branding strategies?
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multiproduct, multibranding, private (when it manufactures products, but sells them under brand name of wholesaler or retailer), mixed (frim markets products under own name, adn that of a reseller because segment attracted to reseller is diff from its own market - elizabeth arden)
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def subbranding
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combines coporate or fam brand with a new brand, to distinguish part of product line from others (Gatorade G2)
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def fighting brands
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main purpose is to confront competitor brands (Ford's introduction of the fusion)
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what are th 8 P's of service marketing?
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product, productivity, price, place, promotion, people, physical environment, process
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______ plays two essential roles, 1. to affect consumer perceptions 2. to be used in capacity management (efforts to influence customer demand)
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PRICE
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