Girish ramani mktg 347 20 initiatingfactorsexamined

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online