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69 Cards in this Set
- Front
- Back
What % of new products fail?
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65~95%
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Diffusion
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The process which use of a product spreads throughout population
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Product Adoption
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Process which a customer begins to buy and use a new good, service, or idea
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What are the four types of Innovation Adoptors?
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Early Adoptors, Early majority, Late Majority, Laggards
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What kind of innovation adoptor are opinion leaders? Concerned about social acceptance?
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- Innovators
- Early majority |
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What is the individual adoption process? (6)
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Awareness, Interest, Evaluation, Trial, Adoption...Confirmation
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What influences adoption rate? (5)
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relative advantage: superior benefits
compatibility: consistent with existing behaviour complexity: difficult to undestand? trialability: difficult to try? Observability: benefits visible to others |
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Tipping point
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point where a product's sales spike from a slow climb to an unprecedented new level, often with a steep price decline
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media blitz
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massive advertising campign that occurs over a relatively short time frame
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impluse purchase
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purchase made without any planning or search effort
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innovators
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first segment, roughly 2.5% of a population that adopts a new product
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early adoptor
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those who adopt an innovation early in the diffusion process, after innovators
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early majority
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those who adopt a new product and signals general acceptance of innovation
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late majority
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adoptors willing to try new products when there is little or no risk associated with the purchase (social pressue or economic necessity)
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laggards
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Last consumer to adopt an innovation
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relative advantage
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degree which a consumer perceive that a new product gives superior benefits
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compatibility
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extent to which a product is consistent with existing cultural values, customers, and practices
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complexity
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degree which a consumer finds a new product or its use difficult to understand
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trialability
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ease of sampling a new product and its benefits
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observabilitiy
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how visible a new product and its benefits are to others who might adopt it
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What should you keep in mind when introducing a new product?
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Position new products with respect to existing products
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Cannibalization
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loss of sales of an existing product when a new item in a product line is introduced because customers switch to the new product
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customer alienation
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loss of existing customers when a product is modified or repositions
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Product Management
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systematic and usually team based approach to coordinating all aspects of a product's marketing inintiative including all elements of the marketing mix
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product line
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firm's total product offering designed to satisfy a single need or desire of target customers
eg. P&G's line of cleaning products |
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product line length
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determined by the number of separate items within the same category
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upward line stretch
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adding new items that claim better quality or better features
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downward line stretch
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add items in the lower end
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two-way stretch
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adding items in both upper and lower ends
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filling-out strategy
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adding sizes or styles not previously available in a product category
eg. bite sizes versions of oreos |
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product mix
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total set of all product lines which a firm offers to sell
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product mix width
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number of different product lines which the firm produces
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product quality
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overall ability of a product to satisfy customer's expectations
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Total Quality Management (TQM)
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management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement
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ISO 9000
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criteria by International Organization for standardization to regular product quality in Europe
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ISO 14000
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Standards of the International Organization for Standardization concerned with "environmental management' aimed at minimizing harmful effects on the environment
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six Sigma
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where firms work to limit product defects to 3.4 per million or fewer
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DMAIC
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5 step quality control process. Define, measure, analyze, improve, control
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Introduction Stage
Competition: Objective: Tactics: *GR is dependent on? |
slow growth follows the launch of a new product in the marketplace & low/no profits
Nonexistent if this is a really new product Acquire new customers increase awareness and encourage trial by consumers; secure distribution *Product Adoption factors (rel. adv, compatibility, etc.) |
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Growth Stage
Competition: Objective: Tactics: |
the product is accepted and sales and profitability rapidly increase
growth attracts intense competitor entry retain customers while capturing new customers differentiate from competition |
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Stage of the Product Life Cycle
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Introduction Stage
Growth Stage Maturity Stage Decline Stage |
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Maturity Stage
Competition: Objective: Tactics: |
sales peak. Profit margins may narrow depending on competitive intensity.
Many competitors Retain customers and create niches in the marketplace Be responsive to competition look for new uses and users |
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Decline Stage
Competition: Objective: Tactics: *tip |
sales, profits decrease due to obsolescence or changing customer needs
companies exit; decreasing competitive intensity maintain profitability as long as feasible cut costs, “harvest” *monitor closely to see when to exit |
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Conditioning
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Associate target stimulus with the desired responses
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Observational Learning
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Associate causes and effects by observing other's behaviours
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What made Mattel's Barbie so successful in 1959?
How did they build the barbie brand? |
Aimed advertising to children instead of adults
Uses effective product placement, TV commercials, retail, direct and indirect experience to market to children. Cafeful Product, place, and promotion |
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Who are some companies on Canada's top ten brands?
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Disney, Lego, J&J, Rolex, Nestle, MS, Google, BMV, Sony, Tim Hortons
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Brand
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a name, term, symbol of an element that identifies a firm's products and sets it apart from competition
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trademark
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legal term for brand name, brand mark, or trade character; can be legally registered
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brand equity
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value of a brand to an organizaion
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How do brands resonate with customers?
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Self-concept attachment - helps establish user's identity
Nostalgic attachment - serves as a link with a past self Interdependence - part of the user's daily routine love - emotional attachment |
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brand meaning
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beliefs and associations that a customer has about a brand
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brand storytelling
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marketers seek to engage customers with stories about brands
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brand extension
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new product sold with the same brand name as a strong existing brand
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sub-branding
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creating a secondary brand within a main brand that can differentiate the product line to a desired group
eg. Dodge and Ram |
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family brand/umbrella brand strategy
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a brand that a group of products share
eg. Microsoft Zune, PC, Xbox while P&G has individual brands |
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National or manufacturer brands
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brands that the product manufacturer owns
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private-label brands
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brands that a certain retailer or distributor owns and sells
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generic branding
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products are not branded and sold at the lowest possible price
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licensing
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agreement where one firm sells another firm the right to use a brand name for a specific purpose and a specific period of time
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cobranding
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agreement between two brands to work together and market a new product
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ingredient branding
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branded materials become component parts of another product
eg. Bryer's Ice cream with M&M flavours |
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Package
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cover or container for a product that provides product protection, facilitates product use and storage, and supplies important marketing communication.
Very important to the product identity |
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Universal Product Code
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black bars printed on the bottom or side of most items.
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Who structures organizations for new and existing product management?
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Brand Manager, Product Category Manager, Market Manager manage products depending on the firm and market situation
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Brand Manager
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Individual responsible for developing and implementing marketing plan for a single brand
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product category manager
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individuals who are responsible for developing and implementing the marketing plan for all the brands and products within a product category
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venture team
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group of people in an organization who work together to focus exclusively on development of a new product
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what are different strategies that a firm may choose for their products
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Strategies: Stretching, Filling, Contracting
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