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CLEP Principles of Marketing Study Notes

Customers who are at the forefront of trends

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first to buy a new product. Customers who are at the forefront of trends , particularly when it comes to technical products are known as innovators. Likely to have a higher disposable income and are often willing to pay a higher price to be first into the market. They make up about 2.5 percent of the population. 2. Early Adopters - Young, have an above average education and comprise approximately 13.5 percent of the population. 3. Early Majority - speed of adoption increases significantly. Made up of middle class consumers. They are more cautious in making purchases than the early adopters and they make up approximately 34 percent of the population. 4. Late Majority - a group skeptical of new ideas. Tends to be older, more conservative and traditional than the early majority . They also tend to be less educated and more skeptical about new products and ideas. This group makes up about 34 percent of the population. 5. Laggards - price conscious, low-income consumers who are the last to buy a product/services. Make up about 16 percent of the market. They tend to be older and resist change. Often this group will only adopt a new clothing style when other groups have abandoned the style and moved on to something else. Whereas the diffusion process tracks an innovation as it spreads throughout a social system, the adoption process is concerned with the individual 's decision making process. Product Positioning - refers to the decisions and activities intended to create and maintain a certain concept of the firm's product relative to competitive brands in customers' minds. Trying to manipulate the product's position, or image , relative to competing brands and products. The customers' concept of a product's attributes relative to their concept of competitive brands is known as the Product Position. Firms try to shape this perception of a product through Product Positioning. For instance, Volvo has often emphasized its safety features, creating the image of a safer car than other manufacturers.
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Product Mix Expansion - Adding new product lines or adding new products to existing product lines. Gives the company new opportunities for growth. The opposite of this is product mix contraction , and involves reducing the product mix in width or depth. Depth Product Mix - measured by the number of different products offered in each product line. The depth of a product line is the number of products in it. When a firm has a deep product mix, it is focusing on less product lines, more products per line so that it can target numerous segments within each market. Width Product Mix - number of product lines . When a company has a wide product mix, or many product lines, they are employing a diversification strategy --meeting many types of customer needs. A wide product mix indicates many product lines. The width of a product mix is the number of product lines. Calculate the markup as a percentage of the selling price
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Customers who are at the forefront of trends particularly...

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