MGT 101 Ch. 12- Smith

Idea development
New ideas come internally from marketing research or employees and from external resources such as agencies, consultants and customers.
New Idea Screening
Screening involves management looking at the companies resources and its ability to produce and market the product; most ideas ares rejected in this phase.
Business analysis
Analyze the products effects on sales, costs and profits
Product development
The few products to reach this stage get prototypes in the development of a marketing strategy
Test marketing
A trial many launch of a product and limited areas that represent the potential market
Commercialization
The full introduction of a complete marketing strategy and the launch of the product for commercial success
Consumer products
Our products intended for household or family use such as convenience products, shopping products, specialty products
Business products
Use directly or indirectly in the operation or manufacturing processes of businesses
Product line
A group of closely related products that are treated as a unit because of similar marketing strategy, production or and use considerations. Product relationships are of key importance
Product mix
All the products offered by an organization
Product strategy
Introductory stage: marketers focus on making consumers aware of the product and its benefits, growth stage: the firm tries to strengthen its market position by emphasizing benefits, maturity stage: severe competition and heavy costs, decline stage: firms me a lemonade models, cut costs and finally phaseout products.
Branding
The process of naming and identifying products
Trademark
A brand registered with the US patent and trademark office is thus legally protected from the use by any other firm
Manufacturer brands
Initiated and owned by the manufacturer to identify products from the point of production to the point of purchase
Private distributor brands
May cost less than manufacturer brands, they are owned and controlled by wholesaler or retailer
Generic products
Products with known brand name that often, and simple packages and carry only their generic name
Packaging
The external container that holds and describes the product, influences consumers attitudes
Labeling
The presentation of important information on a package: closely associated with packaging
Quality
The degree to which a good, service or idea meet the demands and requirements of customers
Steps of pricing strategy
Step one: identify target customers, step two: identify their best alternative, step three: determine the products difference, step four: calculate value based on differentiation
Pricing new products
Price skimming: is charging the highest possible price buyers who want the product will pay, penetration price: is a low-price designed to help a product enter the market and gain market share rapidly
Pricing strategy
Psychological pricing encourages purchasing based on emotional rather than a rational responses to price
Discounts
Temporary price reductions often employed to boost sales
Marketing channel
A group of organizations that moves products from their producer to consumer’s; also called a channel of distribution
Retailers
Intermediaries Who buy products for manufactures and sell them to consumers for home and household use rather than for resale or for use in producing other products
Wholesaler
Intermediaries Who buy from producers or from other wholesalers and sell to retailers
Intensive distribution
A product is made available in as many outlets as possible
Selective distribution
Only a small number of all available outlets are used to expose products
Exclusive distribution
The awarding buy a manufacture to an Intermediary of the sole right to sell a product in a defined geographic territory
Physical distribution
All the activities necessary to move products from producers to customers inventory control, transportation, warehousing and materials handling
Warehousing
The design and operation of facilities to receive, store and ship products
Materials handling
The physical handling and movement of products and warehousing and transportation
Promotion
Encourages consumers to except products and influences opinions and attitudes
Integrated marketing communications
Coordinating and promotion makes elements and synchronizing promotion as a unified effort
Advertising
A paid form of nonpersonal communication transmitted through a mess medium, such as television commercials or magazine advertisements
Advertising campaign
Designing a series of advertisements and placing them in various media to reach a particular target market
Personal selling
Direct, to a communication with buyers and potential buyers
Personal selling is a six step process
Prospecting identifying potential buyers, approaching referral or call, presenting demonstrating the product, handling objections countering reasons for purchase, closing asking for a purchase, following up checking back after purchase
Publicity
Nonpersonal communication transmitted through mass media but not paid for directly by the firm
Motion strategy
Purpose, impact, cost, duration
Buzz marketing
Is a variation of traditional advertising where marketers attempt to create a trend
Sales promotion
Direct inducements offering added value or some other incentive for buyers to enter into an exchange
Importance of marketing strategy
Marketing creates value through the marketing mix, the marketing mix must be carefully integrated into an effective marketing strategy, companies with an effective marketing mix in competitive advantage, advantages often come with a company excels at one or more elements of the marketing mix, companies must monitor demand and adapt the marketing mix when needed