Marketing Management

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Q.1 Explain the concept o newness in new product as it relates to the degree of consumer learning involved (Ch 10: 281, 283/ Note L:12, 13, 14)
Definition of New product
1. Newness compared with existing products
2. Newness from the consumer’s perspective
3. Newness in legal terms
4. Newness from the organization’s perspective
1) Continuous innovation
•Consumers don’t need to learn new behaviors
•E.g. toothpaste can add new attributes like “whitens teeth” or “cooling crystals” when they introduce a new/improve product. But the extra features do not requires buyers to learn new tooth-brushing behavior •Gain consumer awareness and wide distribution

Degree of consumer learning involved (Hgh/ Low)
2) Dynamically continuous innovation
•Only minor changes in behavior are required
•E.g. electric toothbrush
•Advertise point of difference and educating consumers on both the product’s benefits, and advantages of the product 3) Discontinuous innovation
•Making the consumer learn entirely new consumption patterns to use the product •Educating consumers on both the product’s benefits, and proper use of the innovative product •E.g. electric car, wireless router

Q.2 What are the different of skimming pricing, loss leader pricing bundles pricing and odd even pricing? (Ch 13, 14: 389, 391, 397 / Note L9: 20, 23)

Approaches:
1) Demand-Oriented Approaches
2) Competition-Oriented Approaches

S.P: Product enter mkt ( set higher price
Skimming pricing
- Setting the highest initial price that customers really desiring - Enough prospective customers
- The high price will attract competitors
- Lowering price has a minor effect on increasing the sales volume - Customers interpret the high price as high quality
loss leader pricing bundles pricing
- Deliberately sell a product below it customary price in hopes that customers will buy other products as well 23
B.P: Cx travel package
Bundle pricing
- The marketing of two or more products...
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