Fall 2015 – MKT 3343 – Review for Test 3Bring a photo ID to the exam!!! Exam is Nov. 3rd.Test is composed of 50 multiple-choice covering chapters 11-15. Make sure that your review sheet as enough detail. You should use both the PowerPoint, notes from class, and the book to create your review sheet.You are responsible for: All assigned chapters, video cases shown in class, and lecturesBe able to relate real-world examples to concepts; be able to apply concepts; understand differences and similarities between concepts; don’t just memorize definitionsChapter 11 – Managing Products and Brands1.Product life cycle (PLC) and Fig 11-1 (Know all of the stages and the characteristics of each stage)I.Intro Stagei.Sales grow slowly ii.Profit is minimaliii.Creating awareness to get people to try the product outiv.Product (1 or limited number of variations)a.You don’t have a lot of money, when it gets popular, you can addmoreii.Promotion a.Start with primary demand – as more competitors, move to selective demand – Inform and educateiii.Pricinga.Penetration approach (lowers price, appeals to different people) –Want more people to buy the product; Skimming approach (comein with high price to get as much profit as possible) – Down side is it’s more likely for other companies to become competitors (Happens a lot with technology)iv.Distributiona.Limited; Trying to work out the kinks, etc. v.Primary vs Selectivea.Primary (Just category – Ex. Got Milk? Commercial – not a specificbrand, just general product)b.Selective – Specified brandII.Growth Stagei.Sales grow rapidlyii.Profit usually peaksiii.Stresses differentiation – make product uniqueiv.Repeat purchasersv.Product a.New features (Ex. Flavors, size, etc.)b.New flavors? Will help you beat competitorsii.Promotion a.Stress points of differenceiii.Pricinga.Gain market shareiv.Distributiona.Needs to be wider because there’s more consumers 1
III.Maturity Stagei.Sales usually peak and slowly begin to declineii.Profits continue to declineiii.Maintain brand loyaltyiv.Producta.New users of productb.Further product differentiationii.Promotiona.Dealer support is important(Keeping products on the shelves)b.Reminder for customersiii.Pricinga.Keep market share and profitiv.Distributiona.Max distributionIV.Decline Stagei.Sales and profits continue to declineii.Maintain products as long as profitable, delete when appropriatea.Harvest: Keep around as long as you canb.Delete: Just got rid of the productii.Producta.Best sellersiii.Promotiona.Minimaliv.Pricea.Stay profitablev.Distributiona.Reduce distance, limit to profitable outlets2.Primary vs. selective demanda.ABOVE IN STUDY GUIDE3.Deletion, harvestinga.ABOVE IN STUDY GUIDE4.Shape of the PLC (fig. 11-3) and how it might vary based on the type of producta.High Learning Productsi.Ex. Computers – no one new how to use when first introducedii.Intro stage is really long – then it catches onb.Low Learning Producti.Ex. Razors with new features
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