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BU121 Final Exam Review - BU121 Final Exam Review#2 Key To...

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BU121 Final Exam Review #2 Key To Marketing Convince consumers that your product provides that unique benefit o Done through your product, pricing, distribution/place and promotion decisions o Need to have customers thinking that you are in fact meeting their needs o INTEGRATED SYSTEM OF ACTIVITIES Need to have activities integrated to convince the customer of the unique benefit (ie. High Quality Higher Price) Core Benefit Proposition (CBP) Clear, concise statement of the product’s unique benefit to ensure all decisions deliver same messages A planning statement that combines everything to project the same message (ex. Crest fights cavities better than anyone else) Product The creation of a good or service that provides greater value to the customers than what the competition is offering 6 Types of Product Development o New-To-World Product Development o New Product Line Something new for YOU, is your product better than the competitions o New Product Added to Existing Line Expanding (ex. Brown Sugar Mini Wheats) o Improved Product ( Product Modification) Making thinks better (Ex. Better tasting frozen dinners) o Repositioned Product Creating a different perception of the product o Lower-Priced Version of Existing Product Stripped down version Product Life Cycle Introduction : Sales increasing at a low rate, people are not that aware, may be losing money Growth : when people know about your product, competition enters the market, sales still rise Maturity : When most people have bought the new product, sales level off Saturation : Peak Point, market is saturated with the competition Tom Kapsimalis 1
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Decline : Sales decline, must make changes Product Life Cycle (Figure 16.8, 16.9 & 16.10) Sales Time Introduction Growth Maturity Saturation Decline As you move through these steps, you must consider all 4 P’s, not jus the product Introduction Growth Maturity/Saturation Decline Product Standardized, small mix Increased MS, improve mix Differentiate Maintain MS, cut products not making $ Price Skim/penetrate, cover costs Adjust to meet competition Competitive, aggressive Profitability, liquidation Promotion Awareness, heavy spending on promotion Separate the brand, be competitive Focus on differences, form a brand loyalty Reinforce the product offered, decrease promoting Place Establish network to sell product Solidify relationships, increase number of distributors Loyalty with distributors, take over to do it yourself Get rid of distributors not selling much, focus on what is making the most money Slow Down Cycle – new uses, new users Market Modification o Can essentially move the product back into growth – come up with a new way to use the product (Ex. Arm & Hammer Baking Soda as a cleaner, Triscuits etc.) Tom Kapsimalis 2
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o New Users of the products (Ex. Johnson & Johnson move toward appealing to the whole family) Speed Up Cycle Getting the product off the market and replacing it Planned Obsolescence o Done on purpose Fashion/style o
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