1. Market introduction

2. Market growth

3. Market maturity

4. Sales decline

-low sales, low awareness

-informative promotion about product, not brand

-Sales grow quickly

-Competitors enter market

-Biggest industry profits

-CRUCIAL STAGE

-sales level off

-profits begin decline

-persuasive promotion

-subtle differentiation

-products remain in maturity stage until they are replaced

-Product is replaced

-little to no advertising or promotion

-low profit

-Products are easy to use and advantages are easily communicated

-Riskless trial

-Compatible

-Currently accepted or popular style

-Tend to have short lifestyles

-Trickle up vs. trickle down

What is a "new" product?

How long can products be called "new?"

New in ANY way for company (small changes in an existing product make it new)

6 months (according to the FTC)

-Don't differentiate enough to address competition

-Bad design

-Products cost too much to produce to make profit

-Incomplete/inefficient marketing plan

-Don't enter market soon enough

-Long product development (consumer needs/desires change)

-Desirable: high welfare, immediate satisfaction

-Salutary: high welfare, slow satisfaction

-Pleasing: Low welfare, immediate satisfaction

-Deficient: Low welfare, slow satisfaction

1. Idea Generation

2. Screening

3. Idea Evaluation

4. Development

5. Commercialization

Total quality management

Everyone is concerned about end quality- reduces defects

-Convenience

-Product selection

-Special services

-Helpful info

-Social Image

-Shopping atmosphere

Sell at a discounted or bulk rate for an annual membership fee

(Costco & Sam's Club)

Large assortment and low prices in a specific product category

(Petsmart)

1. Supplement-mostly uses website to drive traffic to stores

2. Complement- online & instore sales are equal

3. Online only (efficiency)- low prices

4. Online only (focus)- supplements a catalog or few stores

-cooperative are retailer sponsored that run their own buying organization and conduct joint promotion efforts

-voluntary are wholesaler sponsored that work with independent retailers; often linked by contracts that state operating procedures

A franchise develops marketing strategy and retailers carry out that strategy in their own units

50% of retail sales

Merchant wholesalers that provide all functions

1. General Merchandise- wide assortment of non perishable items

2. Single Line- Narrower line of merchandise

3. Specialty- very narrow, more available product information

Full service wholesalers that accept cash only

(underdeveloped countries)

Wholesalers that do not own the products they sell

Help in buying and selling

What are manufacturers' agents?

Export/import agents?

-Sell similar products for noncompeting producers for commission

-Specialize in international trade

A price reduction to buyers who pay their bills promptly.

Ex: A buyer can deduct 2% if the bill is paid within 10 days

What is a quantity discount?

What is the difference between cumulative and noncumulative?

A price reduction to buyers who buy large volumes.

-Cumulative: discount given over a number of purchases over time (10th free)

-Noncumulative: discount given for a single purchase (bogo free)

A price reduction to buyers who buy merchandise off-season.

Flip flops in winter

What are trade-in allowances?

What are promotional allowances?

-Price reduction given for turning in an old item when buy a new one (15% off new ipod for old one)

-Payments or price reductions to reward dealers for participating in ad or sales support program

1. Suggests benefits & qualities

2. It should be easy to pronounce, recognize & remember

3. Distinctive

4. Extendable

5. Easily translated

6. Capable of registration and legal protection

1. Manufacturer's (national) Brand 

2. Private (store/distributor) Brand

3. License Brand

4. Co-brand

1. Arts/Culture

2. Education

3. Religious

4. Cause Based

1. Consumers (those served)

2. Donors

1. Personal- feel good about giving

2. Social- belong to donor group

3. Functional- Looks good on resume, receive benefits

4. Experiential- volunteer experience

1. Selecting the pricing objective

2. Determining the demand (elastic vs. inelastic)

3. Estimating Costs

4. Analyzing competitors' costs prices and offers

5. Selecting a pricing method

6. Selecting final price

1. Segmentation and positioning

2. Signal of product quality

3. Sales and profit goals

4. Market share goals

5. Social Responsibility

Price Elasticity- high

Standards Issue- present

Technological Change- Low

Entry Barriers- Low

Price elasticity- low

Standards issue- absent

Technological change- high

Entry barriers- high

Need a flexible pricing strategy

(Foods, services-tickets, short time/seasonal demand, fashion)

Higher price for high quality products

Depends on product class

Depends on consumer perception

Profit = Total Revenue -Total Cost

Total Revenue = Unit price x Quantity sold

Total Cost = Fixed cost + variable cost

-Fixed costs don't vary with sales or production levels (rent)

-Variable costs do vary directly with level of production (raw materials)

-Provide offering in as many outlets as possible

-Usually lower priced items (Hershey's vs. Godiva)

-Only some outlets

-When there is need for both coverage and sales effort

-More sales push

-More expensive

-Most exclusive

-only one outlet per geographic area

-More sales push

Innovators

Early adopters (crucial)

Early Majority (most)

Late Majority

Laggards

1. Awareness

2. Interest

3. Evaluation

4. Trial

5. Adoption/Rejection

1.New-to-the-World Products

2. New Category Entries

3. Additions to Product lines

4. Product Improvements

5. Repositionings

1. Materials

2. Processes

3. People

4. Facilities

5. Other

1. Customer group or resellers

2. End users

3. End use

4. Others

Manufacturer's Brand

Private Brand (owned by reseller)

Generic Brand

What makes a strong brand?

(5 things)

1. Vision of the mass market

2. Managerial Persistance

3. Financial Commitment

4. Relentless Innovation

5. Asset Leverage

Describe some brand management challenges.

4 things

1. Brand Proliferation: increased competition

2. Media Fragmentation/Decreased Ad Efficiency

3. Smarter Variety Seeking Consumers

4. Successful New Product Development

1. Establish Identity

2. Brand Meaning

3. Elicit proper brand imagery

4. Create active loyal relationship between brand and customers.

Depth- likelihood and ease with which brand comes to mind

Breadth- range of purchase and usage situations where brand comes to mind

Marriot hotels.

Quality and price have inverse relationship

1. Functional value: squeezable ketchup

2. Attention getting: bright colors, odd shapes

3. Provide Information: usage ideas/benefits

RICE KRISPIES

Low price

intensive distribution

Advertising (pull)

 Competitive price

Selective distribution

Ad, sales promotion, personal selling (push & pull)

High price

exclusively distributed

personal selling (push)