Topic 9 HL DT

Pioneering Strategy

Being first to market with a new innovation

Hybrid Approach

Mixture of both pioneering and imitative strategies

Market Development

Increasing sales using existing products, opening new markets

Product development

Increasing sales by introducing new products into an exisitng market

Product diversification

Introducing new products into a new market

Corporate Social Responsibility (CSR)

Self regulation that a company centers around the development of Economic, Social and Environmental factors.

Market sectors

Helps to categorize the kinds of market that the company is aiming for

Client based sectors

Mainly focuses on consumers

Market segment

Divides consumers into smaller segments where each customers have similar characteristics and tastes

Product family

A group of products with a common classification criteria

Marketing Mix

Consists of the 4p’s (Product, Price, Place and Promotion)

Place

Location of the product where it will be sold to the customer

Channels of Distribution

The means used to get a product to the consumer

Setting Price

Setting the correct price of a product that will attract consumers when entering a existing/new market while generating profits.

Penetration

Sets the price of the product low to enter a current/existing market to increase sales

Competitor based pricing

Setting a price in comparison with competitors. (Prices can be lower, higher or stay the same)

Psychological pricing

Where a product is priced to give an impression that it is cheaper

Cost Plus Pricing

Adding a percentage of contribution to the cost plus output to determine its selling price

Product line pricing

Different products from the same product range are positioned at different price points

Demand Price

A pricing strategy where a company will set the price based on the demand for the product

Trigger products

Attracts consumers because it works well and does what it is intended to

Incremental products

Engaging customers to purchase add-ons

Literature research

The use of newspaper, reports, etc. to conduct research

Event appraisal

Relying on the knowledge and skills of an expert in the operation of the product

Perceptual Mapping

A tool used to quickly compare a product to others in the market based on a graphical representation.

Environmental scanning

The study and interpretation of the political, economic, social and technological events and trends that can influence a business.

Brand

A type of product manufactured by a company under a name

Brand Loyalty

When a consumer/consumers favor one supplier over the other despite selling the same product.

Registered design

The feature of shape, pattern, etc which gives the product its unique appearance

Trademark

A symbol, or word that is legally registered to represent a company or product

Imitative strategy

Developing products that are similar to other products

User trial

Observing people using the product and collecting comments from them

Product Standardization

Setting similar characteristics for a product. It consists of: Component standardization, government standards for a particular market segment