Marketing and New Product Development: Terms and Concepts, Quizzes of Introduction to Business Management

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Six Categories of New Products

New-to-the-world New Product Lines Additions to existing product lines Improvements to existing products Repositioned products Lower-Priced Products TERM 2

Steps in new-product development process

DEFINITION 2 Idea Generation Idea Screening Business analysis development test marketing commercialization TERM 3

Customer Needs play an important role in:

DEFINITION 3 Market oriented marketing Societal marketing TERM 4

A clear statement of marketing objectives is

useful for:

DEFINITION 4 A better evaluation of marketing results TERM 5

High Risk to Low Risk ways of entering the

global market place:

DEFINITION 5 Export License and Franchising Contract manufacturing Joint Venture Direct Investment

Business Customers:

Wholesalers Producers Non-profit organizations Retailers Resellers Governments Institutions TERM 7

Primary evaluation criteria in the business

market are:

DEFINITION 7 Quality, service, and price TERM 8

Bases for segmenting a business market can

be:

DEFINITION 8 Size of the companies The company's buying process Geographic location Type of company Product Use TERM 9

Product positioning concerns differentiating a

product about:

DEFINITION 9 Quality and Price Use and application In relation to competitors TERM 10

Consumer products

DEFINITION 10 convenience Shopping Specialty Unsought

Steps of Market

Research

1. Identify the problem 2. Plan research design 3. Select sampling procedures 4. Collect data 5. Analyze data 6. Prepare/present report 7. Follow up TERM 12

Steps of Segmenting a Market

DEFINITION 12 Select a product or product category for study / select a market Choose a basis for segmenting Select segmentation descriptors Profile/analyze segment Select target market Design, implement and maintain TERM 13

Purpose of marketing research is to help

make wise decisions, i.e

DEFINITION 13 Making new customers Keeping current customers Understanding strategy failures and correcting them Exploring the profitability of marketing strategies NOT: bad product / incompetent sales force TERM 14

Benefits of a brand:

DEFINITION 14 Promoting repeat sales Generating new product sales Differentiates a firm's products Encourages customer loyalty TERM 15

Packaging can be used as a tool for

promotion because:

DEFINITION 15 Differentiates the product from the competition Links the product with related products from the same firm

Components of service quality

Reliability Responsiveness Assurance Empathy Tangibles TERM 17

Non-profit organizations

marketing:

DEFINITION 17 Product: Benefit complexity, Benefit Strength, Involvement Place: Facilities dependent, Non-facilities dependent Promotion: Professionals, Sales Promotion, Advertising Price: Separation between payers and users TERM 18

Promotion's role in the marketing

mix

DEFINITION 18 Communication by marketers to potential buyers in order to inform, persuade and remind TERM 19

Elements of promotional

mix

DEFINITION 19 Advertising: Impersonal, one-way mass communication Public Relations: Creating, supporting a positive company image Sales Promotion: Stimulating immediate demand Personal Selling: direct communication either in person or by telephone TERM 20

Goals of Promotion

DEFINITION 20 Induce behaviour Modify behaviour Reinforce behaviour

Tasks of Promotion

Informative promotion: introduce a new product Persuasive promotion: stimulate a purchase Reminder promotion: keep a product in people's mind TERM 22

Factors that effect the promotional

mix

DEFINITION 22 Nature of the product Product life cycle Target market characteristics Type of buying decision Funds Available Push or Pull strategy TERM 23

The effect of advertising on consumers

DEFINITION 23 Change negative attitude to positive Reinforce positive attitude Affect how consumers rank brand attributes TERM 24

Major types of advertising

DEFINITION 24 Institutional advertising: Promote company rather than product Product advertising: Introduction - stimulate demand Growth: influence demand Maturity: show competition weakness Decline: don't advertise TERM 25

Creativity in advertising

DEFINITION 25 Set goals & objectives Identify benefits to be advertised Develop appeal - USP (unique selling proposition) Execute the message Evaluate campaign results Use evaluation to adjust objectives

Media evaluation and selection considerations

Mix Cost per contact Reach Frequency Audience selectivity TERM 27

Objectives of sales promotion

DEFINITION 27 Strategies: Short-term incentive to buy immediately Lowering price or adding value Objectives: Increase trial purchases Increase consumer inventories Increase repeat purchases Encourage brand switching Build brand loyalty TERM 28

Forms of consumer sales promotion

DEFINITION 28 Coupons and Rebates Premiums Loyalty marketing programmes Contests and sweepstakes Sampling P-O-P Online TERM 29

Forms of trade sales promotion

DEFINITION 29 Training Business meetings Conventions Push money Trade allowances Store demonstrations Free merchandise Trade shows TERM 30

Personal Selling

DEFINITION 30 Detailed explanation or demonstration Variable sales message Directed at qualified prospects Controllable adjustable selling costs Obtaining sales and gaining customer satisfaction

Steps in the selling process

Generating leads Qualifying leads Approaching customer Developing and proposing solutions Handling objections Closing the sale TERM 32

Pricing Objectives - Profit Oriented

DEFINITION 32 Profit Maximization Lower costs, Higher revenue Satisfactory profits Target ROI: net profit after taxes / total assets TERM 33

Pricing Objectives - Sales oriented

DEFINITION 33 Market share, in units Sales maximization TERM 34

What affects elasticity?

DEFINITION 34 Availability of substitutes Price relative to purchasing power Product durability A product's other uses Inflation TERM 35

Yield Management Systems: Methods of filling

unused capacity

DEFINITION 35 Discounting early purchases Limiting early sales at discounted prices Overbooking

Elements affecting price

Price/quality relationship Product life cycle Competition Distribution Internet and extranets Promotion strategy Demands of large customers TERM 37

The steps in price

setting

DEFINITION 37 Establish pricing goals Estimate demands, costs, and profits Choose a price policy to help determine a base price Fine- tuning the base price with pricing tactics TERM 38

Types of price policies

DEFINITION 38 Price skimming Penetration pricing Status quo pricing TERM 39

Legal and ethical constraints on pricing

decisions

DEFINITION 39 Price fixing Predatory pricing Price discrimination Unfair trade practices TERM 40

Pricing tactics for fine-tuning the base price

DEFINITION 40 Discounts (Quantity, seasonal, 0% financing) Geographic (Uniform delivered, freight absorption)

Interactions with the current customer base

Needed: effective interactions with customers Learn about expectations Generate and manage knowledge about customers negotiate mutually satisfying commitments Build long-term relationships New approaches: Web-based interactions Point of sale interactions Transaction based interactions TERM 42

Capturing customer data

DEFINITION 42 Collecting at every transaction and interaction Web Point of Sale Kiosk Customer Service Delivery and Installation Product use and consumption Survey Product Registration TERM 43

Technology to store integrate customer data

DEFINITION 43 Data gathered from various sources: Marketing and sales Other departments of the organization Third-party suppliers of data Needed: Data warehousing Capture data Store data Integrate data strategically for CRM TERM 44

How to identify the best customers

DEFINITION 44 Customers who yeild a high profitability, or have a high potential profitability recency, frequency, monetary TERM 45

Benefits of customer relationship

management

DEFINITION 45 Campaign management Retaining loyal customers Cross- selling other products and services Designing targeted marketing communications Reinforcing customer purchasing decisions Inducing product trial by new customers Increasing effectiveness of distribution channels Improving customer service

Marketing Channels

Getting the right product to the right place at the right time TERM 47

Intermediaries

DEFINITION 47 Economies in distribution overcoming discrepancies in quantity, time, space providing contact efficiency TERM 48

Channel Intermediaries

DEFINITION 48 Retailers Wholesalers Agents and brokers TERM 49

Channel Functions

DEFINITION 49 Transactional Logistical Facilitating TERM 50

Issues of channel strategy

DEFINITION 50 The choice of channel: Market Producer Product The appropriate distribution intensity: Intensive Selective Exclusive

Logistical components of the supply chain

Sourcing and Procurement Production scheduling Order processing and customer service Inventory control Warehousing and Material-handling Transportation TERM 52

Dimensions of classification of retailers

DEFINITION 52 Ownership: Independent/Chain Stores/Franchise outlets Level of service: High to low Product assortment: Defined by breadth and depth Price: From discounters to exclusive specialty stores TERM 53

Major types of retail operations

DEFINITION 53 Department stores Specialty Stores Supermarkets Drugstores Convenience stores Discount stores Restaurants TERM 54

Non-store retailing techniques

DEFINITION 54 Vending Direct retailing Direct marketing Electronic retailing