Contracts and sponsorship encourage distributors

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Essentials of Marketing
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Chapter 2 / Exercise 08
Essentials of Marketing
Hair/Lamb
Expert Verified
Contracts and Sponsorshipencourage distributors, complementarygoods providers or large end-users (e.g., universities, governmentagencies) to use the product increasing the likelihood they will buy itwhen faced with their own purchase decision.4.Guarantees and Consignment arrangements can reduce the impact ofmarket uncertainty about a product. For example, a manufacturer canencourage distributors to carry its product by selling it on consignment oragreeing to buy back unsold stock. Similarly, complementary goodsmanufacturers can be motivated to support a new product with guaranteesthat a particular quantity of goods will be purchased.VI.MarketingA.Marketing strategymust take into account the nature of target market and theinnovationin order to shape perceptions and expectations about the product’sinstalled base and availability of complementary goods. Consideration should begiven tailoring marketing to particular adopter categories.B.Major Marketing Methodsinclude advertising, promotions and publicity/publicrelations.
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Essentials of Marketing
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Chapter 2 / Exercise 08
Essentials of Marketing
Hair/Lamb
Expert Verified
1.Advertisingis used to build customer awarenessof a technologicalinnovation through an effective advertising messageplaced in theadvertising mediamost likely to reach the target market.
Show Transparency 12.Promotionsare temporaryselling tactics used at the customer ordistributor level tostimulate purchaseor trial. Examples include:a.Offering samples or free trial.b.Offering cash rebates after purchase.c.Including an additional product with purchase.d.Offering sales bonuses to distributor or retailer sales representatives.3.Publicity and Public Relationscan be used to generate word-of-mouthrecommendations, public awarenessand goodwill.C.Tailoring the Marketing Plan to Intended Adoptersis crucial because eachadopter group responds to different marketing content. For example, earlyadoptersusually respond to marketing materials emphasizing technical contentand the leading edge nature of innovation. Later adopters respond to marketingmaterials that communicate a product’scompleteness, ease of use, lifestylematch, andlegitimacy. Transitioning from marketing to early adopters to lateadopters may have to overcome some difficulties when the early majority is notyet convinced of technology’s utility. Show Transparency 2VII.Creating an Information Epidemic A.Certain individuals can have a disproportionate effect on the marketplace.Gladwell categorized these individuals into three categories: 1.Connectorshave anexceptionally high number of diverseacquaintances, a high social drive, and are likely to bring togetherpeople that are otherwise unlikely to meet.2.Mavensare driven to obtain and share knowledgeabout items ofinterest to them (product prices, attributes, etc.).3.Salespersonsare able to transmit verbal and nonverbal cues that enablethem to influence other’s emotional responsesand for our purposespurchasing decisions.118
B.Using Marketing to Shape Perceptions and Expectations– Advertising,promotions and publicity will all play an important part in shaping the market’sexpectations about the product, the installed base and the availability ofcomplementary goods. 1.

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