Marketing Study Guide

Marketing Study Guide: * Obtaining new products: * New-product development and acquisition * Product classifications * Product improvements, product modifications, and original products * Crowdsourcing * Crowdsourcing is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new-product innovation process * Product Life Cycle * Product development: Sales are zero, investment costs mount * Introduction: profits are nonexistent, heavy expenses, slow sales growth, * Growth: rapid market acceptance and spike in profits * Maturity: acceptance, profit levels off or decline slowing of sales grow, slowing of growth, competition * Decline: sales fall off and profits drop * Fixed costs * These are costs that do not vary with production or sales level. Examples include rent, salaries, insurance, and accountancy costs. * Variable costs * These are costs that vary directly with the level of production. Examples include materials, labor, fuel, etc * Economies of scale * The increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods * Perceptions of price * High price = high quality * Promotion mix – what is it * Is the specific blend of promotion tools that the company uses to persuasively communicate with customer value and build customer relationships. * Advertising * Any paid form of non-personal presentation and promotion of ideas goods or services * Feedback – in the communications process * After sending a message one must research the effects of the message . Remember, how many times you see it, what points do you recall, and how you feel