Ch 8, 10, 11, 12, 16,17 notes

Often take 1 year or more can cost over 1 million

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potential customers in a market situation. Often take 1 year or more Can cost over $1 million Exposes new product to competitors Competitors can “jam” testing programs with their own promotions Alternative to test Marketing Single-source research using supermarket scanner data Simulated (laboratory) market testing Online test marketing Commercialization Ordering Materials Production Inventory Buildup
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Distribution Shipments Sales Fore Training Trade Announcements Customer Advertising New Product Success Factors Listening to customers Producing the best product Vision of future market Getting every aspect right Strong leadership Commitment to new-product development Project-based team approach Why does New Products/service fail? No discernible benefits Poor match between features and customer desires Overestimation of market size Incorrect positioning Price too high or too low Inadequate distribution Poor promotion Inferior product
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Me: Not following steps Inadequate Global issues In new-product development Diffusion The process by which the adoption of an innovation spreads. Innovators First to try product Early Adopters Less than 13%, opinion leaders Early Majority Most of population Late Majority 34%. Product’s that are everywhere Laggards Grandparents Product characteristics Complexity The more complex the product, the slower is its diffusion Compatibility Incompatible products diffuse more slowly than compatible products.
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Cannot replace old product Relative Advantage The degree to which a product is perceived as superior to existing substitutes. How well it will satisfy my needs. Prepared to the existing one Observability The degree to which the benefits or other results of using the products can be observed by others and communicated to target customers Other can see the product. Trialability The degree to which a product can be tried on a limited basis Product Life Cycle Introduction Profits start as negative Innovators Early Adapters Growth Start to see some profits Profits peak Early Maturity Maturity Sales peak Late Majority
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Decline Sales and profits decrease at increasing rate. Laggards? Ch17 Advertising Advertising response function Brand awareness does not increase regardless how much you spend Budget to effectiveness Institutional Advertising Corporate Advocacy Product Advertising Pioneering Introduction stage; stimulates primary demand Competitive Influences demand for product; growth stage Comparative How one product is superior to the competition Advertising campaign Series of related ads 1 st : goals
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DAGMAR Define Target audience Define desired Percentage Define the time frame for change 2 nd : Identify product benefits “Sell the sizzle not the steak” Attribute So? Benefit What is in it for me? 3 rd : Develop and evaluate advertising appeals 4 th : Execute the message 5 th : Evaluate the campaign’s effectiveness Unique selling Proposition Desirable, exclusive, and believable advertising appeal selected as the theme for a campaign Semiotics Objects Sign Interpret Major advertising media
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Newspaper
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