Marketing REVIEW 3 - Fall 2015 MKT 3343 Review for Test 3 Bring a photo ID to the exam Exam is Nov 3rd Test is composed of 50 multiple-choice covering

Marketing REVIEW 3 - Fall 2015 MKT 3343 Review for Test 3...

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Fall 2015 – MKT 3343 – Review for Test 3 Bring a photo ID to the exam!!! Exam is Nov. 3 rd . 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 lectures Be able to relate real-world examples to concepts; be able to apply concepts; understand differences and similarities between concepts; don’t just memorize definitions Chapter 11 – Managing Products and Brands 1. Product life cycle (PLC) and Fig 11-1 (Know all of the stages and the characteristics of each stage) o Products, like people, have been viewed as having a life cycle. o The concept of the product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline. o Consider total industry sales revenue and total industry profit o o 1) Introduction Stage (technology take more education than introducing new food category) Sales grow slowly (total sales and profits of whole industry)—don’t want lots of variations of this product (too costly, too confusing) Profit is negative or minimal Objective is to create awareness and stimulate trial Product 1. One or limited number of variations Promotion 1. Start with primary demand ( creating demand through product category (not brand) EX. Got Milk (not specific milk) 2. As more competitors, move to selective demand (Creating demand for specific brand) EX. Buy Borden’s chocolate milk 3. Need to inform and educate Pricing 1. Penetration or Skimming a. Penetration : want to go in low prices, get everyone buying it as possible, keep more competitors out b/c won’t look beneficial, producing on larger scale (more economies of scale) pay less with quantities you buy, manufacturing cheaper 1
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b. Skimming (going for hirer price to get as much profit as possible)—make more companies want to come in on the action (see more of this with technology products)—(if new technology don’t want everyone buying it at once yet—b/c glitches in first time things are made) Distribution 1. Limited—not trying to get it out yet, stores might not want it yet, and need to get glitches out first o 2) Growth Stage of (PROFITS ARE PEAKING AT THIS STAGE*) Sales grow rapidly All about selective demand—brand! Profit usually peaks Objective is to stress differentiation 1. Flavors, attributes etc. Repeat Purchasers Product 1. New features (so ppl will want your brand vs. other brands) Promotion 1. Stress points of difference Pricing 1. Gain market share Distribution 1. Want wider distribution o 3) Maturity Stage (SALES ARE PEAKING)*** Sales usually peak and slowly begin to decline (can stay in mature for a long time) 1. Ex. Toilet paper 2. Tide 3. Focus on brand quality (usually cash cows) Profits continue to decline Objective is to maintain brand loyalty Product 1. New uses of the product 2. New users of the product 3. Further product differentiation Promotion 1.
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