Chapter 11 - marketing

Chapter 11 - marketing - Chapter 11 1. Introduction a....

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Chapter 11 1. Introduction – a. Performance: sales grow slowly and profit is minimal due to large investment costs in product development b. Marketing: create consumer awareness and stimulate trial/ heavy spending on marketing and promotion to stimulate primary demand c. Pricing – c.i. skimming strategy – high price to recoup costs c.ii. Penetration pricing – low price to discourage competition 2. Growth Stage a. Performance: rapid increase in sales/ appearance of competition/ profit peaks as product and price competition increases b. Marketing: emphasis on stimulating selective demand/ distribution of the product in retail space 3. Maturity Stage a. Performance: sales slow to repeaters only. Others have tried and have abandoned. Fewer new buyers to the market. Profits decline. Weaker competition leaves market b. Marketing: emphasis on maintaining market share. Limit marketing costs by improving promotional and distribution efficiency. 4. Decline stage a. Performance: sales and profits decline. Changes in the environment, needs for the product b. Strategies: deletion – drop product. Or, Harvesting – continue to offer product, but reduce investment in it. 5.
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This note was uploaded on 02/16/2012 for the course MARKETING 33 taught by Professor Filipazzo during the Fall '11 term at Rutgers.

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Chapter 11 - marketing - Chapter 11 1. Introduction a....

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