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Pioneering strategy
To create something brand new that has never ever been seen before (the first to market with a new innovation)
Imitative strategy
Develop products that are similar to an existing new product, they look at what the pioneering companies do, and they “almost” copy them
Hybrid approaches
Companies that do a bit of both pioneering and imitative strategy
Market penetration
Taking the existing product and selling it to the same existing market (low risk strategy)
Market development
Taking the existing product and selling it to a new market (medium risk strategy)
Product development
Developing a new product and selling it to the same market (medium risk strategy)
Product diversification
Developing a new product and selling it to an untapped market (high risk strategy)
Corporate Social Responsibility (CSR)
Form of self-regulation for a company that focuses on the development goals relating to economic, social, and environmental factors
Market sectors
The way of categorizing the kinds of market the company is aiming for
Market segments
The level under market sectors, which can be split into different segments (geographic, demographic, psychographic, behavioural)
Product family
A group of products that have a common classification criteria. Members of the product family will normally have many parts and assemblies.
Marketing Mix (The 4P’s)
The four things needed to market a product (product, price, place, promotion)
Penetration pricing
Organisation sets a low price to increase sales and market share, but once the market share is known by the market, the organisation will increase their price
Competition based pricing
Setting a price in comparison to the competitors (either price lower, price the same, or price higher)
Psychological pricing
Considers the psychology of price and the positioning of price within the marketplace. E.g. the seller will charge $199 instead of $200
Cost plus pricing
Choosing to sell the product at a profit (working out how much it cost to produce and ship the product in order to come to a conclusion about the price) E.g. Sony sells their game console at a loss, so that their games will make more money as they know people will keep coming back to buy new games
Product line pricing
Pricing different products within the same product range at different price points
Demand pricing
Setting the initial price high (as much as the market can bear) then slowly lowering the price to make the product available to a wider market
Above the line promotion
Costly advertising, e.g. newspaper, billboard, magazine, radio, TV advertising, paid internet adverts and etc.
Below the line promotion
Indirect selling, e.g. product packaging, window advertising, brand labels on paper bags after we have bought something, so we are basically paid to be walking advertisements, etc.
Market research
Gathering data about individuals or organisations to support decision making
What are the 5 market research strategies?
Literature search, expert appraisal, user trial, user research, perceptual mapping
Literature serach
Reading newspapers and magazines
Expert appraisal
Going to an expert in your field of interest and asking them questions
User trial
Giving a group of people a product and watch how they use and comment on the product
User research
Obtaining users responses through questionnaires, surveys, interviews
Perceptual mapping
Create a graph to compare product with each other, can be used to see where they would sit compared to their competitors
What are the 5 green design consumer reactions
Bright green, green motivated, green hypocrites, green ignorants, dull greens
Bright greens
People who are conscious of environmental issues and look for products that are specifically environmentally friendly
Green motivated
People who are aware, but wouldn’t go out of their way to find an environmentally friendly product if they don’t see one in the shop
Green hypocrites
People who tell others that they would never harm the environment but their actions say otherwise
Green ignorants
People who are completely unaware of anything green and environmentally friendly. They don’t care and are not interested.
Dull greens
The trumps of the world. They believe climate change is a scam and that all environmentally friendly products are useless and stupid
What are the 5 technological consumer reactions
Innovators, early adopters, early majority, late majority, laggards
Innovators
People who adopt the new technologies first, who want to be in as early as possible, almost at the development stages of the product
Early adopters
People who have preorder the new product and will pay anything to be the first. They tend to be influences.
Early majority
They are not stupid. They wait and watch what the early adopters say about the product before purchasing the product. They are still paying the premium price as they are still one of the first to purchase the product.
Late majority
People who are not bothered, they will only upgrade to the new product after theirs breaks.
Laggards
People who are still walking around with the oldest technology possible, desperately changing their batteries, saying that their product is fine and they don’t need a new one.
Branding
It is the marketing practice of creating a name, symbol, or design that identifies as and differentiates a product from other products.
Trademarks
A symbol, word, or words legally registered as a representing company or product
Registered design
An intellectual property mark that protects a product’s appearance
Brand identity
How you want the consumer to perceive your brand
Positive publicity
Can help in sales and use of products, services, and brands
Negative publicity
Discourages the use of products, services, and brands
Point of sales display
When businesses showcase their products and promotions at the point of sales, usually used as display devices to promote their product
Package diversification
Packaging must deliver the right brand message to promote the product and contribute to the brand’s success
Packaging function
Should be easy for the consumer to identify and select your product (Inner packaging, outer packaging, final visible packaging)
Total product experience
Designers and manufacturers creating a fully branded retail experience for consumers
Product standardisation
Setting uniform characteristics for a particular product, system, or service
Government/trading area standardisation
Different countries have different standards for products (e.g. electronic goods have standards for plugs, sockets, voltage)
Component standardisation
Having the same standard format of a component part of the product to allow it to be interchangeable (e.g. USB, HDMI, car tyres)
Industry-wide standards
Industries may voluntarily adopt standards that enable them to work collaboratively and compete effectively in the market (e.g. competing effectively on quality of clothes)
Efficiency and performance
Some governments may be concerned with energy conservation and legislate to prevent products with high energy consumption from being sold
Trigger products
Products that attract consumers to its function and performance
Incremental products
Products that are available to engage consumers in purchasing add-ons
