CLEP Principles of Marketing Study Notes

Sample launching of the entire marketing mix occurs

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Sample launching - of the entire marketing mix occurs in the Test Marketing phase of the new-product development process, and is the final step before Commercialization. (Sometimes, commercialization is listed as a sixth step instead of being combined with test marketing .)
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Price fixing - an illegal practice involving an agreement between competitors regarding price. Price fixing is illegal, and practically any agreement regarding price between competitors is considered price fixing. The biggest form of price fixing involves one or more competitors agreeing to set a specific price for a certain product or service. This is different from price discrimination ( exists when sales of identical goods or services are transacted at different prices from the same provider )--many forms of price discrimination are legal, depending on the basis for the discrimination. Focus groups - small groups of consumers who are brought together under the direction of a moderator while researchers record their observations, comments, and reactions. Used to collect consumer feedback on new product development, pricing, branding and other issues. Participants are typically paid for their time. Internet focus group -uniquely attractive when the subject is evaluating Web sites or Internet software . Allow for the discussion of specialized subjects as each participant has his or her computer to view technical diagrams and descriptions. As with traditional focus groups, Internet focus groups, feature a moderator who is in control of the session, using a predetermined set of questions. Calculate the markup as a percentage of the cost when the product cost is $40 and the selling price is $60. The markup would be 50 %. The answer is 50%. Take the markup (60 - 40 = 20) and divide it by the cost (20 / 40). You divide it by the cost because you are calculating markup as a percentage of the cost. If you divide it by the selling price (20 / 60) you get 33.3%, so when the markup based on cost is 50%, the markup based on price is 33.3%. Product Adoption Process - steps buyers go through in accepting a product. Consists of 5 steps: 1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption- When a buyer accepts a product and decides to continue using it regularly. Buyer buys a product and decides to continue buying it; however, they still require reassurance or confirmation on a regular basis to stick with that product. This process is often taken into account in the commercialization phase of new product development, where companies try to promote the product to make people aware of the product, and even offer samples or trials to help them decide to purchase the product for the first time. Diffusion Process - divides into 5 categories the people who decide to adopt a product based on how soon after its initial release they purchase it. Progression through which an innovation travels through the social system . 5 Groups of People: (in order) 1. Innovators - first to buy a new product. Customers who are at the forefront of trends
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Sample launching of the entire marketing mix occurs in the...

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