Girish ramani mktg 347 20 initiatingfactorsexamined

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Unformatted text preview: ternal Technology Invention Alliances Regulation Material Costs & Availability Demographic and Life Style Changes Consumer Requests Specific Market Stimuli Suppliers Drexel University Dr. Girish Ramani MKTG 347 20 Initiating factors examined • Financial goals – Pressure to achieve a resulting impact on stock price Pressure can trigger search for new products and services can Drexel University Dr. Girish Ramani MKTG 347 21 Initiating factors (contd.) • Sales and Market share growth – Requires focus on a small set of markets rather than Requires scattered attention to many markets scattered – Product innovation and lower costs are critical success Product factors in a share based market strategy factors – However, profitability cannot be neglected while However, planning for sales growth ( e.g.Gillette terminated efforts to introduce pocket calculators and digital watches) watches) Drexel University Dr. Girish Ramani MKTG 347 22 Initiating factors (contd.) • Competitive actions – When competitors introduce new When products, firms need to react – Bud Light lime vs. Corona Extra – IBM, a latecomer responded to Apple IBM, and was able to take a lead in the market through a ‘superior’ product strategy strategy – Pandora, Last FM etc. pose a threat to Pandora, the iTunes business model the Drexel University Dr. Girish Ramani MKTG 347 23 Initiating factors (contd.) • Life Cycle – When markets reach maturation, organizations redirect When efforts towards rejuvenating the product, adding a new product or replacing an old product with a new product product – Swiffer Swiffer Swiffer® 360° Dusters Swiffer® – Ipod nano evolution Drexel University Dr. Girish Ramani MKTG 347 24 Example: Life Cycle Management Rejuvenating Mature Products Drexel University Dr. Girish Ramani MKTG 347 25 Initiating factors (contd.) Technology • Rapid change in technology accounts for decline of some Rapid products products – Vinyls CDs – Surface mail Surface MP3 Streaming Email – Asphalt/Gravel Rubber membrane roofing material – Bank Tellers Web Banking Drexel University Dr. Girish Ramani Mobile Banking MKTG 347 26 Initiating factors (contd.) Globalization – Competitive threat from foreign firms to enter traditional Competitive markets ( Korean automobiles in US, iPhones in Japan) markets – Opportunities offered by the world in terms of new markets Opportunities (Asian markets, Eastern Europe) (Asian Drexel University Dr. Girish Ramani MKTG 347 27 Initiating factors (contd.) Regulation – Regulations or deregulations cause Regulations firms to consider new products and services services – Auto companies developed hybrid Auto cars to reduce pollutants and increase gasoline m...
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This note was uploaded on 07/04/2012 for the course MKTG 347 taught by Professor Dr.girishramani during the Spring '12 term at Drexel.

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