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Should a marketer set the same market share objectives or other objectives
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BRAND MANAGEMENT AND PRODUCT DECISIONS

What are the stages in the product life cycle?

Development-Introduction-Growth-Maturity-Decline

What happens to profits across the life cycle?

Negative profit-growing profit-high profit-moderate profit

Should a marketer set the same market share objectives or other objectives across

the life cycle?

No.

Introduction: Marketers attempt to build share quickly to gain first-mover advantages.

Advertising should focus on

selling the idea

.

Growth: Satisfaction and loyalty are important. Show

uniqueness

to competitors.

Maturity:

Low-cost

position is critical for long-term success. Invest on streamlining and improve

the manufacturing process.

Decline: Most companies with a declining product want to maintain the lucrative replacement

market but are willing to give up market share in exchange for earnings. Turn to

shallower

product line

.

If actual products seldom precisely follow the theoretical product life cycle curve,

what use is the product life cycle concept?

Researchers need to develop other mathematical and statistical models that examine market size,

the number of initial buyers, and the time between first and repeat purchase. These can be very

useful, particularly for products that behave similarly to those modeled.

How does positioning relate to the product life cycle?

Introduction: specialty-Growth & Maturity: comparison-Decline: commodity

How do companies extend life cycles?

Selling to new segments, stimulate more frequent use, encourage more use per occasion, promote

more varied use

What is the adoption/diffusion curve?

Adoption Process

: the 5 steps an individual consumer goes through in making a product choice:

knowledge, persuasion, decision, implementation, and confirmation.

Diffusion Process

: the spread of innovations from one group of consumers to another over time.

Innovators, early adopters, early majority, late majority, laggards

Why is it often preferred over the product life cycle to build marketing strategies?

Sales are influenced dramatically by the interaction of buyers, through word of mouth, as well as

by promotions and messages from marketers.

 

 

 

Product acceptance is passed from one group of consumers to the next.

Which group of customers (according to diffusion theory) are extremely important

to target, what are their characteristics and why should they be targeted?

Early adopters: they have high incomes and educational level, they are key to good word-of-

mouth publicity and wider acceptance, they are well respected in their community, compared

with the innovators, they are ten times powerful on influencing people.

Product planning is often designed to manage existing and new products for

existing and new market segments.

What are the 4 product strategies that result?

Core product focus (penetration), product development, market development, diversification

What are 4 major marketing decisions executives must make in order to do a good

job of new product development?

Market leadership

: Will they be a market leader, close follower, or also ran?

Line depth and breadth

: Broader or deeper lines?

New product timing according to competitive market conditions

: How rapid must stream

occur?

Amount to be invested in new products

: how much will be invested in R&D over time?

Is it better to have sequential or simultaneous new product development processes,

why?

Simultaneous product development: marketing coordinates multi-functional team, faster

commercialization, better products, lower costs, obtains return on commercialization more

rapidly

What characteristics should an innovation possess in order to be adopted quickly?

Relative advantage

Compatibility: fit easily to consumers’ thought

Product Complexity: the degree of understanding and using

Trialability: the ease for customers to test

Observability: watching someone use a new product

According to the New Product Development Process, at what stage should a

prototype of the product be developed?

Product development

Do strong companies test a “product” or the “strategy which includes the new

product

?

Strategy that includes the new product

INTEGRATED MARKETING COMMUNICATIONS

 

 

What is difference between a push or pull communications strategy?

Pull strategy attempts to influence consumers directly, to build demand so consumers will “pull”

the product through the channel of distribution.

Push strategy attempts to influence distribution channel members, to promote to end users.

Why do many companies use some push and some pull?

The combination approach markets directly to both the channel and end user, speeding adoption

and the overall flow through the channel. It also helps address conflict that may arise between

marketers and retailers. Retailers want to stock the most profitable products, which may not be

marketers’ biggest brands. Using a pull strategy to create strong demand at the consumer level

makes channel members more willing to handle the product.

What are the goals of integrated marketing communications?

Goals:

to establish a

one-to-one relationship

with consumers; to encourage

meaningful

communication

between a firm and its customers

Objectives: provide information, create demand for product, communicate value and uniqueness,

close the sale, and build relationships and loyalty

Why is it important to know the objectives of a communication in order to fully

examine its effectiveness?

Advertising: to create awareness and product knowledge; to gain attention and can lead to liking

and brand preference.

Sales Promotion; Personal Selling; Sponsorship: to be more useful when desire is created; to

move buyers to action by reinforcing their conviction to try the brand.

The effectiveness of personal selling increases dramatically in the late stages of he buying

process, especially for high-priced items in consumer markets.

The Hierarchy of Effects model describes stages of product adoption from

attention through action or purchase.

Why do most integrated marketing

communications strategies utilize several media at all stages?

Inform and educate consumers—new products

Persuade consumers—during growth and early maturity

Remind and reinforce to consumers—in mature or decline

What does synergy mean?

Working together and 1+1>2

The advertising plan is generally based on target audience analysis, creative

designing and measurement.

What is the first step in evaluating an advertisement

or aspect of IMC?

Most marketers start by identifying criteria or measures.

Factors: market share; sales level; profitability; members of loyal customers; amount of brand

recognition; brand image; knowledge of the product...

 

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