Marketing Class Notes

Marketing Class Notes - BMGT 350 Class Notes 27/03/2008...

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Unformatted text preview: BMGT 350 Class Notes 27/03/2008 09:59:00 Exam #2 Overview Format 50 Multiple choice Nature: Application, comprehension, definition Content: lecture, text Chapter: 5,6,4,10,9,12 Date: Tuesday, April 8 Time: 9:30-10:30 Note: Retailing and Pricing will appear on the final Consumer Goods Convenience products: not willing to spend much time or effort seeking; inexpensive o Staples: (milk) o Impulse: (candy) o Emergency: (batteries) Shopping Products: worth the time and effort to compare existing products o (1) Homogeneous seek lowest price (sugar) o (2) Heterogeneous inspect quality (i.e. business suit) Specialty Products: make a special effort to find; high willingness to search; uniqueness (engagement ring) Unsought products: dont yet want or know they exist (Internet) o 1. New unaware of benefits o 2. Regularly aware of product but not interested (gravestones) Product Mix Lingo For large, diversified firms many product lines may be created (eg P&G) o 1. Product Mix: set of all product lines and items the firm offers o 1. Product mix: set of all product lines and items the firm offers o 2. Width: # of different product lines the firm carries o 3. Length: total # of items firm carries o 4. Depth: total # of versions offered of each product in the line o 5 consistency: how closely related the various product lines are (e.g. use, production) Reasons for Product Failure (90% failure rate) Potential market is overestimated Poor design Incorrectly positioned Priced too high Weak advertising Pet project scenario NDP costs are higher than expected Competitors fight back Newness Effect: Low to Marketing High to Marketing High to comp. Low to comp. Why Create New Products? NP Lines Entirely NP Augment Changes Repositioni ng New products are critical to survival o Market shifts o Competition changes o Product life cycle marches on Product Life cycle: Market introduction Market growth Market maturity price wars are common in this one Sales decline Market evolution: 1 Market Crystallization 2. Market Expansion 3. Market Fragmentation 4. Market Consolidation 5. Market Termination Maturity Stage Strategies Promote more consumption (orange juice) Expand target markets (baby shampoo) Find other product uses (baking soda) Price below the traditional market (Bic) Create new outlets (Woolite) Add new ingredients (Tide) Make bold guarantees (Sprayn Wash) Diffusion of Innovation Innovators (2.5%)Innovators (2....
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This note was uploaded on 04/18/2008 for the course BMGT 350 taught by Professor Boyd during the Spring '08 term at Maryland.

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Marketing Class Notes - BMGT 350 Class Notes 27/03/2008...

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