Mktg chap9

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Author:
shienamarie
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232563
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Mktg chap9
Updated:
2013-09-04 02:06:04
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finals mktg
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for finals
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  1. Why Develop New Products?
    • Follow changing market demands.
    • Remain competitive.
    • Keep up to changing technology.
    • Replace dying products.
    • Refresh and evolve existing products.
    • Diversify product offering to reduce risk.
  2. Obtaining New Products
    • Acquire
    • Develop
  3. Acquire
    • Patents.
    • Licenses.
    • Companies
  4. Develop.
    • New products.
    • Modifications to existing products.
    • Improvements to existing products.
  5. Offer a unique superior product.
    Successful new products.
  6. Have a well-defined product concept.
    Successful new products.
  7. Does not deliver superior value.
    Products fail
  8. Incorrect positioning, pricing or promotion.
    Products fail
  9. Poor quality or design.
    Products fail
  10. Market size may have been overestimated.
    Products fail
  11. Only 10% of new products are still on the market and profitable after 3 years.Failure rate for industrial products is as high as 30%
    New-Product Failures
  12. New-Product Failures
    • Overestimation of market size.
    • Design problems.
    • Incorrectly positioned, priced or advertised.
    • Pushed despite poor marketing research findings.
    • Development costs.
    • Competition
  13. Disciplined Development Process
    • Idea generation.
    • Idea screening.
    • Product concept.
    • Marketing strategy.
    • Business analysis.
    • Product development.
    • Test marketing.
    • Commercialization.
  14. Initial Stages
    • Sources of new ideas.
    • Idea screening.
    • Concept development.
  15. Employees, customers, suppliers, partners, competitors.
    Sources of new ideas.
  16. Narrow down to those worth more time and money.
    Idea screening.
  17. Develop prototypes and test consumer interest.
    Concept development.
  18. Process to spot good ideas and drop poor ones
    Idea Screening
  19. Evaluate these findings against set of company criteria for new products.
    Idea Screening
  20. Evaluate these findings against set of company criteria for new products.
    Idea Screening
  21. Concept Development and Testing
    • Product idea
    • Product concept.
    • Product image.
  22. idea for a possible product that the company can see itself offering.
    Product idea.
  23. detailed version of the idea stated in meaningful consumer terms.
    Product concept.
  24. the way consumers perceive an actual or potential product.
    Product image.
  25. Business Case Stages
    • Marketing strategy.
    • Business analysis.
  26. Marketing strategy.
    • Target market.
    • Product positioning.
    • Sales, market share and profit objectives
  27. Business analysis.
    • Review of sales, costs and profit projections.
    • Will product meet corporate objectives.
  28. Involves a review of  the sales, costs and profit projections to assess fit with company objectives
    Business Analysis
  29. If yes, move to the product development phase.
    Business Analysis
  30. Develop concept into physical product.
    Product Development
  31. Calls for large jump in investment.
    Product Development
  32. Prototypes are made
    Prototype must have correct physical features and convey psychological characteristics
    Product Development
  33. must have correct physical features and convey psychological characteristics
    Prototype
  34. Commercialization Stage
    • Test marketing
    • Launch product / Commercialization.
  35. Test marketing
    • Test product in selected markets.
    • Can include virtual testing
  36. Launch product / Commercialization.
    • Full market distribution at once or in stages.
    • Often heavy and costly promotion.
    • Measure market acceptance.
    • Adjust to meet launch sales objectives
  37. Organizing New-Product Development
    • Sequential approach.
    • Simultaneous approach
  38. Sequential approach.
    Each stage completed before moving to next phase of the project
  39. Simultaneous approach
    Cross-functional teams work through overlapping steps to save time and increase effectiveness.
  40. Product Life Cycle
    • Development
    • Introduction
    • Growth
    • Maturity
    • Decline
  41. No customers, no profits, heavy spending.
    Development
  42. Early adopter customers, no profits, high launch costs.
    Introduction
  43. Early majority customers, rapid sales growth and revenues.
    Growth
  44. Late majority customers, flat sales, declining profits.
    Maturity
  45. Laggard customers, declining sales, replaced by new products.
    Decline
  46. Introduction Phase
    • Sales – low.
    • Costs – high cost per customer.
    • Profits – negative.
    • Marketing objectives -- create product awareness and trial
    • Product -- offer a basic product.
    • Price -- use cost-plus.
    • Distribution – build selection distribution.
    • Promotion -- heavy to entice product trial.
  47. Marketing objectives - create product awareness and trial.
    Introduction Phase
  48. Product - offer a basic product.
    Introduction Phase
  49. Price - use cost-plus..
    Introduction Phase
  50. Distribution - build selection distribution
    Introduction Phase
  51. Promotion - heavy to entice product trial
    Introduction Phase
  52. Growth Phase
    • Sales – rapidly rising.
    • Costs – average cost per customer.
    • Profits – rising
    • Marketing objectives – maximize market share.
    • Product -- offer extension, service, warranty.
    • Price – penetration strategy.
    • Distribution – build intense distribution.
    • Promotion – reduce to take advantage of demand.
  53. Maturity Phase
    • Sales – peak.
    • Costs – low cost per customer.
    • Profits – high.
    • Marketing objectives – maximize profits while defending market share.
    • Product – diversify brand and models.
    • Price – match or best competitors.
    • Distribution – build more intensive distribution.
    • Promotion – increase to encourage brand switching.
  54. Maturity Stage Strategy
    • Modifying the market.
    • Modifying the product.
    • Modifying the marketing mix.
  55. Increase the consumption of the current product.
    Modifying the market.
  56. Changing characteristics such as quality, features or style to attract new users and to inspire more usage
    Modifying the product.
  57. Improving sales by changing one or more marketing mix elements.
    Modifying the marketing mix.
  58. Decline Phase
    • Sales – declining.
    • Costs – low cost per customer.
    • Profits – declining.
    • Marketing objectives – reduce expenditures and milk the brand.
    • Product – phase out weak items.
    • Price – cut price.
    • Distribution – selective and phase out unprofitable outlets.
    • Promotion – reduce to minimum level.
  59. how to modify the market
    • Look for new users and market segments.
    • Reposition the brand to appeal to larger or faster-growing segment.
    • Look for ways to increase usage among present customers.
  60. how to modify the product
    • Improve durability, reliability, speed, taste.
    • Improve styling and attractiveness.
    • Add new features.
    • Expand usefulness, safety, convenience
  61. how to modify the marketing mix
    • Cut prices.
    • Launch a better ad campaign
    • Move into larger market channels.
    • Offer new or improved services to buyers
  62. Sales – low.
    Introduction phase
  63. Costs – high cost per customer
    Introduction phase
  64. Profits – negative.
    Introduction phase
  65. Sales – rapidly rising.
    Growth Phase
  66. Costs – average cost per customer.
    Growth Phase
  67. Profits – rising.
    Growth Phase
  68. Marketing objectives – maximize market share.
    Growth Phase
  69. Product -- offer extension, service, warranty.
    Growth Phase
  70. Price – penetration strategy.
    Growth Phase
  71. Distribution – build intense distribution.
    Growth Phase
  72. Promotion – reduce to take advantage of demand.
    Growth Phase
  73. Sales – peak.
    Maturity Phase
  74. Costs – low cost per customer.
    Maturity Phase
  75. Profits – high.
    Maturity Phase
  76. Marketing objectives – maximize profits while defending market
    share.
    Maturity Phase
  77. Product – diversify brand and models.Price – match or best competitors.
    Maturity Phase
  78. Distribution – build more intensive distribution.
    Maturity Phase
  79. Promotion – increase to encourage brand switching
    Maturity Phase
  80. Sales – declining.
    Decline Phase
  81. Costs – low cost per customer.
    Decline Phase
  82. Profits – declining.
    Decline Phase
  83. Marketing objectives – reduce expenditures and milk the brand.
    Decline Phase
  84. Product – phase out weak items.
    Decline Phase
  85. Price – cut price.
    Decline Phase
  86. Distribution – selective and phase out unprofitable outlets.
    Decline Phase
  87. Promotion – reduce to minimum level.
    Decline Phase

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