Coke and Pepsi and Airwalk Notes

5 categories each takes cues from categories before

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5 Categories- each takes cues from categories before them -Innovators= 37% -Early Adopters= 14% - very beginning of mainstream - Opinion leaders - Early Majority= 34% - Late Majority= 34% - Laggards = 15% (may never adopt trend, new isn’t better, & price is important) Speed of Adoptions -relative advantage= advantage relative to existing product? -compatibility= is it compatible to existing systems? -trial ability= easy to try? -observability= obvious advantage? Study Graph p.282 PLC R&D Pre Development (BCG matrix = ? marks) Innovators Intro Stage No profit Recovering R&D Cost Early Adapters Growth Stage Profits Rise and Peak Early Majority Maturity Stage Sales Peak Late Majority Decline Stage Market Shrinks and Sales Fall Laggards
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Experience Effect - happens during growth stage -sales and profits increasing -prices and cost may be decreasing -System Improving -Economics of Scale -Learning -Improving Production Experience Curve – greater output = less the cost per unit of output. With cost decreasing you can decrease cost and still maintain profit. Pricing umbrella happens in maturity stage if you have a great experience effect. You have the flexibility to play with price, you can maintain price and make extra profit (short term effect) or lower price (collapse price umbrella) and build market shares and force competition out (long term approach) Diffusion of Innovation for Fashion -Skate boarders using shoes functionally -Early adopters, seeing skaters, wear shoes to school -if opinion leader, peers pick up trend -Early adopters translating fashion for mainstream -Early Majority kicks in -“Socially integrating”…everyone using (late majority) -Still cool? No with everyone wearing them. Classic Model of Communication Sender -Source -Get consumers attention -Encoding (Marketing) -put ideas into symbolic form -Goal: receiver understands message -Airwalk and Lambesis = Senders Message -Controlled by Sender -Global Strategy (visuals prevent lang. barriers.) -Themes -Romance -Body Adornment
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-Fun -Sexuality -Excitement Medium (Vehicle Used to Deliver Message) -Choosing Media Type -Media habits of target -Nature of Production -type of message -cost -Noise Receiver -Potential Customers -Began as alternative (extreme athletes) -Became global youth mainstream -Decoding -Assigning meaning to message -Provide Feedback -Through sales or research - Integrated Marketing Communication (IMC) wanting entire marketing
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  • Spring '08
  • billthompson
  • Marketing, sign value, L’eggs

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Christopher Reinemann
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