slt-chapter 10-check.ppt

7/21/2019 SLT-Chapter 10-check.ppt

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Innovation Management (WBB 10202)Innovation Management (WBB 10202)

Chapter 10Chapter 10

Innovation &

Marketing

Lesson Outlines

1. Product

2. Price3. Place

4. Promotion

PROD!"

Product

Everything, both favorable and

unfavorable, that a person

receives in an exchangeGood

Service

GoodService

What Is a Product?

ProotionProotion

Place !"istri#ution$Place !"istri#ution$

PricePrice

ProductProductProduct is the“heart” of

Marketing Mix

Product lassi'ications

(usiness

Product

(usinessProduct

onsuer

Product

onsuer

Product

) *roduct used to anu'acture othergoods or services+ to 'acilitate an

organi,ation-s o*erations+ or to resell toother consuers.

) *roduct used to anu'acture othergoods or services+ to 'acilitate an

organi,ation-s o*erations+ or to resell toother consuers.

Product #ought to satis'/ an

individual-s *ersonal 0ants

Product #ought to satis'/ an

individual-s *ersonal 0ants

http://slidepdf.com/reader/full/slt-chapter-10-checkppt 7/602–1

/*es o' onsuer Products

3nsoughtProducts

S*ecialt/Products

Sho**ingProducts

onvenienceProducts

onsuer Products

onsuer Products (usinessProducts(usinessProducts

PO"3SPO"3S

/*es o' onsuer Products

ConvenienceProduct A relatively inexpensive item that meritslittle shopping effort

!hopping

Product

A product that re"uires comparisonshopping, because it is usually more

expensive and found in fe#er stores

!pecialty

Product

A particular item that consumers searchextensively for and are reluctant to acceptsubstitutes

$nsought

Product

A product unkno#n to the potential buyeror a kno#n product that the buyer doesnot actively seek

7e0 Product

A product ne# to the #orld, the

market, the producer, the seller, or

some combination of these

2–89

Wh/ 7e0 Products :ail

%o discernible benefits

Poor match bet#een features and customerdesires

&verestimation of market si'e

(ncorrect positioning

Price too high or too lo#

(nade"uate distribution

Poor promotion(nferior product

2–88

Success :actors

Match #et0een *roduct and arket needsMatch #et0een *roduct and arket needs

"i''erent 'ro su#stitute *roducts"i''erent 'ro su#stitute *roducts

#actor$ in %ucce$$&ul 'e Product$

(ene'it to large nu#er o' *eo*le(ene'it to large nu#er o' *eo*le

2–82

"i''usion

)iffusion

*he process by #hich theadoption of an innovation

spreads

2–8;

ategories o' )do*ters

LaggardsLaggards

Late Ma<orit/Late Ma<orit/

=arl/ Ma<orit/=arl/ Ma<orit/

=arl/ )do*ters=arl/ )do*ters

InnovatorsInnovators

2–84

ategories o' )do*ters

e r c e n t a g e o '

) d o * t e r s

Innovators2.5>

=arl/)do*ters

LateMa<orit/

=arl/Ma<orit/

Laggards8%>

2–85

Product haracteristics and the ate o'

)do*tion

riala#ilit/riala#ilit/

O#serva#ilit/O#serva#ilit/

elative )dvantageelative )dvantage

o*ati#ilit/o*ati#ilit/

o*leit/o*leit/

2–8%

Product Li'e /cle

A concept that provides a #ay totrace the stages of a product+s

acceptance, from its introduction

birth- to its decline death-

2–81

Product Li'e /cle

) o l l a r s

Profits

Sales(ntroductory!tage .ro#th!tage Maturity!tage )ecline!tage

Introductor/ Stage

0igh failure rates1ittle competition

2re"uent product modification

1imited distribution0igh advertising and production costs

%egative profits

Promotion focuses on a#areness andinformation

(ntensive personal selling to channels

2–86

Gro0th Stage

(ncreasing rate of salesEntrance of competitors

Market consolidation

(nitial healthy profits

Aggressive advertising of the differences

bet#een brands

3ider distribution

Prices normally fall

2–29

Maturit/ Stage

!ales increase at a decreasing rate

!aturated markets

Annual models appear

1engthened product lines!ervice and repair assume important roles

0eavy promotions to dealers and consumers

Marginal competitors drop outPrices and profits fall

%iche marketers emerge

2–28

"ecline Stage

1ong4run drop in sales1arge inventories of unsold items

Elimination of all nonessential marketing

expenses“&rgani'ed abandonment”

2–22

Marketing Strategies 'or PL

I7O"3IO7 GOW@ M)3IA "=LI7=

ProductStrateg/

"istri#utionStrateg/

ProotionStrateg/

PricingStrateg/

Limited modelsFrequentchanges

More modelsFrequentchanges.

Large number of models.

Eliminateunprofitable

models

LimitedWholesale/

retail distributors

Expandeddealers. Long-term relations

Extensive.Margins drop.Shelf space

hase outunprofitable

outlets

!"areness.

Stimulatedemand.Sampling

!ggressive ads.

Stimulatedemand

!dvertise.

romoteheavil#

hase out

promotion

$igh to recoupdevelopment

Fall as result of competition %

efficient produc-tion.

rices fall &usuall#'.

ricesstabili(e atlo" level.

2–24

What Is Price?

Price is that #hich is given up in anexchange to ac"uire a good or

service

2–25

he I*ortance o' Price to Marketing

Managers

evenueevenue

Pro'itPro'it

he *rice charged to custoers

ulti*lied #/ the

nu#er o' units sold.

he *rice charged to custoers

ulti*lied #/ the

nu#er o' units sold.

evenue inus e*ensesevenue inus e*enses

2–2%

Pricing O#<ectives

Pro'itBOriented Pricing O#<ectivesPro'itBOriented Pricing O#<ectives

SalesBOriented Pricing O#<ectivesSalesBOriented Pricing O#<ectives

Status Cuo Pricing O#<ectivesStatus Cuo Pricing O#<ectives

2–21

Pro'itBOriented Pricing O#<ectives

Pro'itBOriented Pricing O#<ectivesPro'itBOriented Pricing O#<ectivesPro'itBOriented Pricing O#<ectivesPro'itBOriented Pricing O#<ectives

Pro'it

Maii,ation

Pro'it

Maii,ation

Satis'actor/

Pro'its

Satis'actor/

Pro'its

argeteturn on

Investent

argeteturn on

Investent

SalesBOriented Pricing O#<ectives

Market

Maii,ation

SalesBOriented Pricing O#<ectivesSalesBOriented Pricing O#<ectivesSalesBOriented Pricing O#<ectivesSalesBOriented Pricing O#<ectives

2–26

Status Cuo Pricing O#<ectives

Maintaineisting

*rices

Maintaineisting

*rices

Meetco*etition-s

*rices

Meetco*etition-s

*rices

Status Cuo Pricing O#<ectivesStatus Cuo Pricing O#<ectives

2–;8

Marketing hannels

Marketinghannel

Su**l/hain

A set of interdependent organi'ationsthat ease the transfer of o#nership asproducts move from producer tobusiness user or consumer

A set of interdependent organi'ationsthat ease the transfer of o#nership asproducts move from producer to

business user or consumer

*he connected chain of all the business

entities, both internal and external tothe company, that perform or supportthe logistics function

*he connected chain of all the businessentities, both internal and external tothe company, that perform or supportthe logistics function

2–;2

) co*an/Ds su**l/ chain

2–;;

Marketing hannel :unctions

S*eciali,ation and division o' la#or S*eciali,ation and division o' la#or

Overcoing discre*anciesOvercoing discre*ancies

Providing contact e''icienc/Providing contact e''icienc/

2–;4

S*eciali,ation and "ivision o' La#or

Provides efficiency and cost savings

Attains economies of scale

Aids producers #ho lack resources to

market directly5uilds good relationships #ith customers

2–;5

Overcoing "iscre*ancies

"iscre*anc/o'Cuantit/

"iscre*anc/o'

Cuantit/

"iscre*anc/o'

)ssortent

"iscre*anc/o'

)ssortent

he di''erence #et0een the aount o'*roduct *roduced and the aount anend user 0ants to #u/.

he di''erence #et0een the aount o'*roduct *roduced and the aount an

end user 0ants to #u/.

he lack o' all the ites acustoer needs to receive 'ull

satis'action 'ro a *roduct or *roducts.

he lack o' all the ites acustoer needs to receive 'ull

satis'action 'ro a *roduct or *roducts.

e*oral"iscre*anc/

S*atial"iscre*anc/

) situation that occurs 0hen a *roduct is*roduced #ut a custoer is not read/ to

#u/ it.

) situation that occurs 0hen a *roduct is*roduced #ut a custoer is not read/ to

#u/ it.

he di''erence #et0een thelocation o' a *roducer and the location o'

0idel/ scattered arkets.

he di''erence #et0een thelocation o' a *roducer and the location o'

0idel/ scattered arkets.

2–;%

ontact =''icienc/

2–;1

hannel Interediaries

etailer etailer

MerchantWholesaler

)gents and(rokers

) channel interediar/ thatsells ainl/ to custoers.

)n institution that #u/s goods'ro anu'acturers+ takes title

to goods+ stores the+and resells and shi*s the.

)n institution that #u/s goods'ro anu'acturers+ takes title

to goods+ stores the+and resells and shi*s the.

Wholesaling interediaries 0ho'acilitate the sale o' a *roduct #/re*resenting channel e#er.

hannel Interediaries

etailersetailers

MerchantWholesalers

)gentsand

(rokers

)gentsand

(rokers

ake itle to Goodsake itle to Goodsake itle to Goodsake itle to Goods

"o 7O ake itle to Goods"o 7O ake itle to Goods"o 7O ake itle to Goods"o 7O ake itle to Goods

2–;6

hannel :unctions Per'ored #/

Interediaries

6Transactional functions 7 contacting and

communicating #ith prospective buyers to

make them a#are of existing products and

explain their features, advantages, andbenefits

8 1ogistics include transporting, storing, sorting

out, accumulating, allocating, and assorting

products from point of origin to point ofconsumption

9Facilitating functions include research and

financing

2–49

"irect hannel

)irect Channel

A distribution channel in #hichproducers sell directly to

consumers

2–48

hannels 'or onsuer Products

Producer Producer Producer Producer

onsuers onsuers onsuers onsuers

etailers etailers etailers

Wholesalers Wholesalers

)gents or (rokers

W,ole$aler W,ole$aler

!,annel !,annel Retailer Retailer !,annel !,annel Direct Direct !,annel !,annel +gent-Broer +gent-Broer !,annel !,annel

2–42

hannels 'or (usiness Products

Producer

Industrial3ser

Direct Direct !,annel !,annel

Producer

Govt.(u/er

Direct Direct !,annel !,annel

Producer Producer Producer

Industrial3ser

Industrial"istri#utor

)gents or (rokers

+gent-Broer +gent-Broer !,annel !,annel

Indu$trial Indu$trial Di$tri/utor Di$tri/utor

+gent-Broer +gent-Broer Indu$trial Indu$trial !,annel !,annel

2–4;

Levels o' "istri#ution Intensit/

Inten$iveInten$ive

%elective%elective

clu$iveclu$ive

) 'or o' distri#ution aied athaving a *roduct availa#lein ever/ outlet

) 'or o' distri#ution achieved#/ screening dealers to eliinateall #ut a 'e0 in an/ single area

) 'or o' distri#ution thatesta#lished one or a 'e0dealers 0ithin a given area.

2–44

Levels o' "istri#ution Intensit/

Intensit/ LevelIntensit/ LevelIntensit/ LevelIntensit/ Level O#<ectiveO#<ectiveO#<ectiveO#<ective 7u#er o'7u#er o'InterediariesInterediaries

7u#er o'7u#er o'InterediariesInterediaries

Inten$iveInten$ive

%elective%elective

clu$iveclu$ive

)chieve ass arketselling.

onvenience goods.

)chieve ass arketselling.

onvenience goods.

Work 0ith selectedinterediaries.

Sho**ing and soes*ecialt/ goods.

Work 0ith selectedinterediaries.

Sho**ing and soes*ecialt/ goods.

Work 0ith singleinterediar/. S*ecialt/goods and industrial

eEui*ent.

Work 0ith singleinterediar/. S*ecialt/goods and industrial

eEui*ent.

Man/Man/

SeveralSeveral

OneOne

PROMO"IO'

2–4%

Prootion

Promotion

Communication by marketers that

informs, persuades, and reminds potential

buyers of a product in order to influence

an opinion or elicit a response

2–41

Prootional Strateg/

Promotional !trategy

A plan for the optimal use of the

elements of promotion7 Advertising Public :elations !ales Promotion Personal !elling

!ometitive!ometitive

+dvantage +dvantage

Prootional Mi

)dvertising

Pu#lic elations

Sales Prootion Personal Selling

Promotional Mix

Combination of promotion tools used

to reach the target market and fulfillthe organi'ation+s overall goals

2–46

Prootional Mi

)dvertising)dvertising

Pu#lic elationsPu#lic elations

Sales ProotionSales Prootion

Personal SellingPersonal Selling

2–59

)dvertising

Advertising

(mpersonal, one4#ay

mass communication about a product or

organi'ation that is paid for by a

marketer

2–58

)dvertising Media

raditional)dvertising Media

=lectronic)dvertising Media

elevision

7e0s*a*ers

Maga,ines

"irect ail

(ill#oards

ransit cards

Internet

=lectronic ail

Interactive video

2–52

Pu#lic elations

Public :elations

*he marketing function that

evaluates public attitudes, identifies areas

#ithin the organi'ation that the public may

be interested in, and executes a program

of action to earn public understanding and

acceptance

2–5;

:unctions o' Pu#lic elations

=valuates *u#licattitudes

Identi'ies areaso' *u#lic interestIdenti'ies areaso' *u#lic interest

=ecutes*rogras toF0in *u#lic

2–54

Pu#licit/

Publicity

Public information about acompany, good, or service

appearing in the mass media as a

ne#s item

2–5%

Sales Prootion

=ndonsuers

rade ustoersrade ustoers

o*an/=*lo/ees

:ree sa*les:ree sa*les

ontestsontests

PreiusPreius

rade Sho0srade Sho0s

Hacation Givea0a/sHacation Givea0a/s

ou*onsou*ons

2–51

rade Sales Prootion

*rade allo#ances*rade allo#ances

Push moneyPush money

*raining*raining

2ree merchandise2ree merchandise

(n4store demonstrations(n4store demonstrations

5usiness meetings, conventions ; trade sho#s5usiness meetings, conventions ; trade sho#s

Personal Selling

Personal !elling

Planned presentation to one or moreprospective buyers for the purpose of

making a sale

2–56

Personal Selling

raditionalSelling

elationshi*Selling

hank /ou

slt-chapter 10-check.ppt

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