MKT31 - CHAP9

Card Set Information

Author:
crazysparks
ID:
236459
Filename:
MKT31 - CHAP9
Updated:
2013-09-23 02:27:35
Tags:
Study Guide Marketing 31
Folders:

Description:
This is MV's cards Finals_MKT31
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user crazysparks on FreezingBlue Flashcards. What would you like to do?


  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
    • Patents.
    • Licenses.
    • Companies.
  3. Obtaining New Products
    * Develop
    • New products.
    • Modifications to existing products.
    • Improvements to existing products.
  4. Some Succeed – Most Fail
    * Successful new products.
    • Offer a unique superior product.
    • Have a well-defined product concept.
  5. Some Succeed – Most Fail
    * Products fail.
    • Market size may have been overestimated.
    • Poor quality or design.
    • Incorrect positioning, pricing or promotion.
    • Does not deliver superior value.
  6. New-Product Failures
    • Overestimation of market size.
    • Design problems.
    • Incorrectly positioned, priced or advertised.
    • Pushed despite poor marketing research findings.
    • Development costs.
    • Competition.
  7. Disciplined Development Process
    • Idea generation.
    • Idea screening.
    • Product concept.
    • Marketing strategy.
    • Business analysis.
    • Product development.
    • Test marketing.
    • Commercialization.
  8. Sources of new ideas:
    • employees
    • customers
    • suppliers
    • partners
    • competitors
  9. -Narrow down to those worth more time and money.
    Idea Screening
  10. –Develop prototypes and test consumer interest.
    Concept Development
  11. Initial Stages
    • Sources of new ideas
    • Idea screening
    • Concept development
  12. •Process to spot good ideas and drop poor ones.
    •Develop system to estimate: market size,
    product price, development time and costs, manufacturing costs and rate of return.
    •Evaluate these findings against set of
    company criteria for new products.
    Idea Screening
  13. Concept Development and Testing
    • Product idea.
    • Product concept.
    • Product image.
  14. –idea for a possible product that the company can see itself offering.
    Product Idea
  15. –detailed version of the idea stated in meaningful consumer terms.
    Product Concept
  16. –the way consumers perceive an actual or potential product.
    Product Image
  17. Business Case Stages
    • Marketing strategy
    • Business analysis
  18. –Target market.
    –Product positioning.
    –Sales, market share and profit objectives.
    Marketing Strategy
  19. –Review of sales, costs and profit projections.
    –Will product meet corporate objectives.
    Business Analysis
  20. Marketing Strategy
    • Phase One
    • Phase Two
    • Phase Three
  21. –Target market, planned market positioning, sales, market share, profit goals
    Phase One (Marketing Strategy)
  22. –Product’s planned price, distribution, marketing budget
    Phase Two (Marketing Strategy)
  23. –Sales and profit goals, marketing mix strategy
    Phase Three (Marketing Strategy)
  24. •Involves a review of  the sales, costs and profit projections to assess fit with company objectives.
    •If yes, move to the product development phase.
    Business Analysis
  25. •Develop concept into physical product.
    •Calls for large jump in investment.
    •Prototypes are made.
    •Prototype must have correct physical features and convey psychological characteristics.
    Product Development
  26. Commercialization Stage
    • Test marketing
    • Launch product / Commercialization
  27. –Test product in selected markets.
    –Can include virtual testing.
    Test Marketing
  28. –Full market distribution at once or in stages.
    –Often heavy and costly promotion.
    –Measure market acceptance.
    –Adjust to meet launch sales objectives.
    Launch Product / Commercialization
  29. Organizing New-Product Development
    • Sequential approach
    • Simultaneous approach
  30. Each stage completed before
    moving to next phase of the project.
    Sequential Approach
  31. –Cross-functional teams work through overlapping steps to save time and increase effectiveness.
    Simultaneous Approach
  32. Product Life Cycle
    Development

    • Introduction
    • Growth
    • Maturity
    • Decline
  33. -No customers, no profits, heavy spending.
    Development
  34. -Early adopter customers, no profits, high
    launch costs.
    Introduction
  35. -Early majority customers, rapid sales
    growth and revenues.
    Growth
  36. -Late majority customers, flat sales, declining profits.
    Maturity
  37. -Laggard customers, declining sales, replaced by new products.
    Decline
  38. •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. formula
    •Distribution - build selection distribution.
    •Promotion - heavy to entice product trial.
    Introduction Phase
  39. •Sales – rapidly rising.
    •Costs – average cost per customer.
    •Profits – rising.
    •Marketing objectives – maximize market share.
    •Product – offer extension, service, warranty.
    •Price – penetration strategy. formula
    •Distribution – build intense distribution.
    •Promotion – reduce to take advantage of demand.
    Growth Phase
  40. •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. formula
    •Distribution – build more intensive distribution.
    •Promotion – increase to encourage brand switching.
    Maturity Phase
  41. •Modifying the market
    •Modifying the product.
    •Modifying the marketing mix.
    Maturity Stage Strategy
  42. –Increase the consumption of the current product
    Modifying the market
  43. –Changing characteristics such as quality, features or style to attract new users and to inspire more usage.
    Modifying the product
  44. –Improving sales by changing one or more marketing mix elements.
    Modifying the marketing mix
  45. •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. formula
    •Distribution – selective and phase out unprofitable outlets.
    •Promotion – reduce to minimum level.
    Decline Phase

What would you like to do?

Home > Flashcards > Print Preview