test 2 ch 7 Marketing
Terms
undefined, object
copy deck
- Technology influence on product development
- global positioning system, nanotechnology, radio frequency id, voice over internet protocol
- VOIP markets
- long distance & intl calls, corporate VOIP networks, Internet telephony services for small & midsize companies, internet only telephony services, prepaid calling cards
- New Product/Service Process
- Strategy/Niche -> creative ideas -> creative business ideas -> product development & testing -> product introduction
- search for creative ideas
- create cross functional committees, encourage toll free calls and web site replies, develop incentive programs for employee suggestions, collect stakeholders ideas
- Creative Ideas
- Charles Schwab, Girl scout cookies, blue chip forecasts, houston national bank
- Creative business ideas: Company Fit, Financial analysis
-
Company fit: production fit, distribution fit, product strategy fit
Financial Analysis: financial objectives, business plan, feasibility of idea - Product Development and testing
-
Product Development: r&d, physical prototypes, industrial site placement
Testing: beta testing, store audit, city test audit - Product introduction
- market entry timing, geographical strategy, introduction action plan
- Product life cycle
- Intro, growth, maturity, decline
- Characteristics of the introduction stage
- negative profits, heavy distribution cost, heavy advertising cost
- RFID consumer benefits
- improved car antitheft capacities, consumer savings from reduced costs, improved security of prescription drugs, faster recovery of stolen items, faster & more product recalls
- New product failure: webvan internet home delivery example
- Grocery delivery - consumers are willing to drive to store, industry already mature&efficient, low gross margins, focus on commerce not just ecommerce
- Characteristics of growth stage
-
increasing revenue, experience curve, increasing profits
flatplanel tv, wireless networks, cell phones, vontage long dist. curves fitness centers - Characteristics of maturity stage
-
intense competition, product modification, layering strategy
Campbell soup, merrill lynch, crayola, animal crackers, chevrolet - Merrill Lynch Example
- Profit 17 -28% in 03, fired 24000employees, slashed compensation costs, cut senior perks, closed 300 offices
- Chevrolet Sales trend
- decline stage
- concept of layering
- sales go up and then decline, but w/ layering products life can remain longer, Chicken soup for teenage soul, star trek movies, dental services
- Dental services layering
- cosmetic, healthy gums, straighten teeth, bonding teeth, whitening teeth
- Characteristics of the decline stage
-
reduce product line, reduce promotion, minimize costs
floppy drives, oldsmobile, stethoscope, kodak cameras, monopoly - decline stage strategies
- simplify product line, minimize promotional costs, place premium price on unprofitable products, sell product line, license product line, discontinue
- Branding strategy
- product name choices, grading, major types of branding, battle of the brands
- Product name choices: commodity/generic, grading, branding
- Commodity/generic-no brand any company can use (aspirin, thermos,gasoline), Grading-grades defined by gov (organic,foods,wheat, branding-owned by a company (Coke,pepsi)
- USDA Organic Labeling, trends
- 100% Organic grade must contain 100% certified organic ingredients, increasing by the billions
- Major types of branding
-
national brands are sponsored by manufacturers like Shell, HP, Pepsi-Cola
Private labels are sponsored by retailers like Sears, Walgreens, Randalls - UNILEVER National Brands
- lipton, dove, hellmans, ragu, skippy, lawry
- Store Brands Examples: Federated, JC Penny, May
- Federated: Tasso,Elba for men's suits for CEO's, JCPENNY: Stafford for men's wrinklefree dress shirts, Content for tailored clothes aimed at 30-45age group
- Battle of Brands at Costco, HEB, Walmart, Whole Foods
-
Costco- Kirland Detergent vs P&G Cascade
HEB- Harvest moon vs delmonte
Walmart- Sam's choice vs ORange crush
Whole foods- 365 vsw Kellogg - Service Strategy: characteristics of products vs services
-
more tangible, produced&consumed at diff times, more uniform quality control
more intangible, prod&con same time, more variable quality control - Service strategy: Service Continuum
- Pure tangible good soap/beer, tangible good w/ some services automobile, hybrid restaurant/nightclub, service w/some tangible good telephone, pure service lawyer
-
Capacity management of services
1,2 -
Excess capacity strategies: lay off employees, offer price incentives, develop special promotions
Full capacity strategies: hire part time employees, train employees for multiple tasks, reduce promotions - Growth of home services
- time strapped households, aging population, luxury factor
- variety of home services
- doctor house calls, computer, decorations, horticulture, tools
-
Competition of services:
Fed ex, Pricewaterhousecoopers, bank of america, hilton - ups, methodist, deloitte&touche, Chase, Sheraton
- deregulation of service
- travel, communications financial, professional