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Chp 10+11 (New Product &Product Management)
Key factors-Fail products 1-not sig different-2 no economical access to buyers(cant get in stores)-3 Incomplete mrkt & product definition b4 product development Need to have (a) well defined target mrkt, (b) specific customers’ needs & wants (c) what the product will be & do in terms of satisfying target consumers’ needs/wants 4- bad timing(Zune) 5- poor quality. 6- Poor execution of the marketing mix(name, $$, package, promote & distribution. 7- too little mrkt attractiveness ( ideal is large trgt mrkt w/ high growth & real buyer need, often trgt mrkt is too small or competitive to warrant the huge necessary to reach it) Product Lines- a group of products that are closely related because they are similar in terms of customers needs+wants, mrkt segment, sales, outlets or prices. Such as nike product lines of shoes+clothes. Product Mix- all the product lines offered by a company ex. Fortune brand has product mix of sports eqipt and plumbing sply. Classification of good- Convenience prdct: toothpast-inexpensive-widespread-aware of brand-substitues accepted- frequent purchase(little time/effort spent shop). Shopping Pdct: cameras,TVs,briefcase,plane ticket- fairly expensive-large # of selective outlets-differentiation from competitors stressed-prefer specific brands but will allow subs-infequent purchase; needs lot of comparison shopping time. Specialty P: rolls-royce,rolex,heart surgery- very expensive-very limited-uniqueness of brand & status stressed-prefer specific brand will not accept subs-infrequent purchase; need extensive search and decision time. Unsought P: burial insurance, thesaurus- price vary-often limited-awarness is essential-will substitute- very infrequent; some comparison shop. Buisness Goods (B2B): prdct organizations buy that assist directly or indirectly in providing other products for resale.ex imac sold for personal + business firms- sold through salesperson contacting firm & offer discount for multi purchase. Product Life Cycle-Intro stage- gain awarness-1 prdct-skimming or penetration-inform educate-limited disturbs few compete. Growth stage-stress differentiation-more competer-more versions of prdct-price=gain mrkt share-more outlets. Maturity stage-many competer-full prct line-price=defend mrkt share, profit.-maintanin brand loyalty-reminder orient-max outlets. Decline stage-compter decline-product=best sellers- price=stay profitable-minimal promo-fewer outlets Branding- Identify + differentiate-It is something that resides in the minds of consumers – perceptual entity rooted in reality. To build a brand need to give the consumers label for the product & provide meaning for the brand to consumers. Branding involves creating mental structures & helping consumers organize their knowledge about products & services in a way that clarifies their decision making and, in the process, provides value to the firm. Good Brand Name- –It should suggest something about the product’s benefits–It should suggest the product or service category–It should be easy to spell, pronounce, recognize, and remember –It should be memorable, distinctive, and positive–It should not carry poor meanings in other countries and languages Packaging+Labels-•Communication benefits-Perceptual benefits-Functional benefits-Connecting with consumers-Environmental concerns-Health, safety, and security issues-Cost Reduction (warm delights) MultiProduct Branding Strat- uses one name for all products (nike). +(A): subbranding (Gatorade- G2), Brand equity; if one product is liked, easy transfer to other products, Product Line Ext.; uses existing brand name to enter new mrkt segment in its product class (campells soup; orig, chuck, home cook ect.) leads to less cost of ads+promo which = raise of brand awareness. Brand Ext. use of current B name to enter diff. product classes Ex. Huggies extend to baby toiletries, Honda extend to snowblower, lawn...
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