Chapter 7 – Principles of Marketing

Story Board
Words, arts, and illustrations to describe an idea as most detailed as possible.
Offering Development – 7 Steps
Idea Generation (Concept test)
Screening
Features
Development
Tests: Alpha & Beta
Market Introduction
Evaluation
Lead Users
Potential customers who are innovative and develop new applications or new products for their own use without the aid of a supplier.
Concept Testing
Presenting an idea for an offering (including possible marketing communication ideas) to consumers for their reaction early in the offering development process.
Focus Group
A group of potential buyers brought together to discuss a marketing research topic with one another
Contribution Margin
Sales Price – VC
Breakeven
Total Fixed Cost / Contribution Margin
Alpha Test
The testing of a product in a laboratory setting (Product test).
Beta Test
The testing of a product by real customer in the customer’s location (Market test)
Product Life Cycle (PLC)
Introduction
Growth
Maturity
Decline
Webber’s Gaps
Distribution Gap
Price Gap
New uses Gap
New product features Gap
New markets (customer) Gap