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Final Exam Essay Questions

Final Exam Essay Questions - Final Exam Essay Questions 1...

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Final Exam Essay Questions 1. a. Types of consumer goods and how they differ: Convenience goods: items, such as toothpaste, that the consumer purchases frequently and with a minimum of shopping effort. Shopping goods: items for which the consumer compares several alternatives on criteria such as price, quality, or style, such as everyday clothing. Specialty goods: items that a consumer makes a special effort to search out and buy, like specialty watches. Unsought goods: items that the consumer either does not know about or knows about but does not initially want. These goods differ in terms of: Effort the consumer spends on the decision Attributes used in purchase Frequency of purchase b. 1. New-product strategy development: this stage defines the role for a new product in terms of the firm’s overall corporate objectives. 2. Idea Generation: This stage involves developing a pool of concepts as candidates for new products, and builds on the previous stage’s results. New ideas are generated by customers, suppliers, employees, basic R&D, and competitors. 3. Screening and Evaluation: This stage involves internal and external evaluations of the new-product ideas to eliminate those that warrant no further effort. 4. Business Analysis: This stage involves specifying the features of the product and the marketing strategy needed to commercialize it (bring it to the market) and making necessary financial projections. This is the last step before resources are invested into a prototype. 5. Development: This stage involves turning the idea on paper into a prototype, resulting in a producible product in hand. 6. Market Testing: This stage involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. They use either test marketing or simulated test markets.
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7. Commercialization: This stage involves positioning and launching a new product in full-scale production and sales. Companies proceed very carefully at this stage because it is the most expensive stage for most new products. 3. Advertising is an important part of communication strategy. a. Two basic purposes to advertising: increase demand and elasticity. b. Despite its obvious extra costs, proponents of advertising claim that advertising can actually end up lowering costs to consumers. Illustrate graphically. 4. a. Orientation to the marketplace: b. Selecting a target market : market size, expected growth, competitive position, cost of reaching the segment, and compatibility with the organization’s objectives and resources. c. Two pricing strategies: Target profit pricing or above-, at-, or below-market pricing. Target profit pricing involves a firm setting an annual target of a specific dollar volume of profit. It depends on an accurate estimate of demand. This approach is profit-oriented.
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