DSST Things to know_Intro to Business

How it will be produced priced promoted and

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How it will be produced, priced, promoted and distributed Implement the plan Market Segmentation – Geographic Demographic Psychographic (lifestyle, personality traits, motives, values) Behavioral (benefit sought, volume use, brand loyalty, price sensitivity and product end use) Consumer Behavior Influences- Psychological Personal Social Cultural Situational Marketing mix Consumer Decision buying –
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Need/problem recognition Information search Evaluation of alternatives Purchase decision Post purchase evaluation Business to Business (B2B) – Business buyers are trained professionals specialize in purchasing Few in number compared to millions of potential consumers Sellers and buyers develop close relationships over time that facilitate purchasing Consumer Goods – Convenience - milk and bread Shopping – goods subject to comparison shopping (laptop computer) Specialty – hand made clothing or wedding dress Unsought – (life insurance, burial plots) Business to Business (B2B) Goods – Equipment Maintenance Repair Operating (MRO) Raw and processed materials Components Professional services Product Mix – number of product lines, all the products, including peripherals Product Life Cycle – Introduction Growth – competitors enter market Maturity – o May consider a cash cow approach (investing little money in product development) Decline Product Marketing – Branding - name, slogan, symbol, design to differentiate from others o Brand recognition o Brand preference o Brand insistence Brand Types – o Generic o Manufacturer’s or national o Private o Family o Individual o Licensed – allowing others to use name or logo o Co-branding – joining together two names on the same product Packaging o Safeguards the product o Meant to discourage stealing o Promotes product/brand
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o Lists features and benefits o May add utility o Environmentally friendly “green” Product Price – Maximize profits Build market share Build traffic Maximize sales Foster an image (low price or high value) Price Strategies Cost-Based or Cost Plus – based on cost of manufacturing Demand Based or value-based – based on demand of perceived value of the product Competition Based – influenced by what the competition is charging Price skimming – initial high price to recoup cost Penetration pricing – new products initial low cost to introduce a product Price is affected by: Discounts Rebates Product bundling Psychological or fractional pricing $1.99 Loss leaders – lower price on other products to bring customers into the store Promotion – Advertising Personal selling Sales promotions (cents off discount coupons, bounce back coupons, point of sale (POS) displays Publicity and public relations Communication Strategy – (marketing manager or product manager) Develops product message Determines the appropriate media mix
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How it will be produced priced promoted and distributed...

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