DT p21-23

Considerations for Product Market Entry

  • Market Research Importance: Crucial for successful product design and marketing.

    • Informs about trends, price points, competitors, and customer satisfaction.

  • Inbound Marketing: Involves market research to identify market gaps.

  • Outbound Marketing: Promotes products through the marketing mix (4Ps).

Marketing Mix (4Ps)

Product

  • Core Product: Benefits provided to customers.

  • Actual Product: Tangible items being sold.

  • Augmented Product: Additional services like support and after-sales service.

  • Factors Affecting Quality: Aesthetics, performance, maintenance, durability, features, brand name.

  • Unique Selling Point (USP): Distinguishes the product in the market.

Promotion

  • Purpose: Create awareness and generate interest and desire.

  • Methods:

    • Short-term promotions

    • Exhibitions

    • Publicity campaigns

    • Personal selling

    • Targeted ads

Price

  • Affected by demand, costs, taxes, competition, lifecycle stage.

  • Pricing Strategies:

    • Penetration Pricing: Low introductory price to gain market share.

    • Price Skimming: High price set during high demand.

    • Psychological Pricing: Pricing just below an even number (e.g. $1.99).

    • Predatory Pricing: Undercutting competitors to drive them out of the market.

Place (Placement)

  • Refers to how products are distributed to consumers.

  • Main Channels: Direct to customer, via retailers, or wholesalers.

  • Distribution Functions: Engaging buyers, matching offers, negotiating terms.

Advertising Strategies

  • Targeting Users: Key to effective advertising; consider cost and reach.

  • Regulations: Advertisements must comply with standards for legality and honesty.

Advertising Mediums: Advantages & Limitations

Medium

Advantages

Limitations

Television

Mass coverage, high emotive response

Expensive, fleeting exposure

Radio

Local impact, high selectivity

Low attention, audio-only

Newspapers

High believability, local coverage

Short life, often discarded

Direct Mail

Personalised marketing

Often seen as junk, little selectivity

Billboards

Local targeting, flexibility

High costs for prominent locations

Online

Instant impact, broad reach

Can be linked to spam, ad-blocking challenges

Social Media

Encourages interaction, brand loyalty

Time-consuming, costs may be high

Product Launch Considerations

  • Prelaunch Checks: Ensure research and testing completion.

  • Competitive Analysis: Check for similar product launches.

  • Timing: Critical for success; consider uniqueness and features.

  • Awareness Tactics: Involve press releases and social media engagement to inform potential customers.