Chapter 12 Dimensions of Marketing Strategy

Development Process: Idea Development

1. from labs, marketing research, engineers, consultants

Development Process: New Idea Screening

2. marketing manager looks at firms resources and goals and asses its ability to produce and market the products. Consider consumer wants, competition, environment, social trends, politics

Development Process: Business Analysis

3. basic assessment of profitability and market fit, market size and competitors studied

Development Process: Product Development

4. make a prototype

Development Process: Test Marketing

5. Trial mini launch in an area that represents total target market

Development Process: Commercialization

6. Full introduction of a complete marketing strategy and the launch of the product for commercial success

Product Life Cycle: Introductory Stage

1. consumer acceptance/awareness limited, sales are 0, profits negative

Product Life Cycle: Growth Stage

2. sales increase rapidly, profits peak then start to decline

Product Life Cycle: Maturity Stage

3. sales continue to increase at beginning then decline

Product Life Cycle: Decline Stage

4. sales fall rapidly, profits decline

Branding

the process of naming and identifying products

Trademarking

a brand that is registered with the US office of patients

How to Calculate the Value of a Product

1. Identify the target consumers

2. Identify their best alternative

3. Determine the product differences

4. Calculate the value of the differences

Price Skimming

Charging the highest possible price people are willing to pay

Penetration Price

Initial low price to enter market that isn't profitable

Psychological Pricing

encouraging purchases based on emotional rather than rational reasons like how people like odd numbers such as 9.99

Reference Pricing

comparing your price to a higher competitors

Marketing Channel

a group of organizations that moves products from producer to consumer

Intensive Distribution

selling a product in as many outlets/stores as possible

Selective Distribution

selling a product in only a few outlets/stores/retailers/wholesalers

Exclusive Distribution

selling a product with only one store

Physical Distribution

all activities to move consumers; inventory control, transportation, storage

Integrated marketing communications

coordinating the promotion mix element and synchronizing promotion as a unified effort