Download - SLT-Chapter 10-check.ppt
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Innovation Management (WBB 10202)Innovation Management (WBB 10202)
Chapter 10Chapter 10
Innovation &
Marketing
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Lesson Outlines
1. Product
2. Price3. Place
4. Promotion
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Innovation Management (WBB 10202)Innovation Management (WBB 10202)
Chapter 10Chapter 10
PROD!"
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Product
Product
Everything, both favorable and
unfavorable, that a person
receives in an exchangeGood
Service
GoodService
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What Is a Product?
ProotionProotion
Place !"istri#ution$Place !"istri#ution$
PricePrice
ProductProductProduct is the“heart” of
Marketing Mix
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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
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/*es o' onsuer Products
3nsoughtProducts
3nsoughtProducts
S*ecialt/Products
S*ecialt/Products
Sho**ingProducts
Sho**ingProducts
onvenienceProducts
onvenienceProducts
onsuer Products
onsuer Products (usinessProducts(usinessProducts
PO"3SPO"3S
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/*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
$nsought
Product
A product unkno#n to the potential buyeror a kno#n product that the buyer doesnot actively seek
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7e0 Product
7e0 Product
A product ne# to the #orld, the
market, the producer, the seller, or
some combination of these
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Wh/ 7e0 Products :ail
%o discernible benefits
Poor match bet#een features and customerdesires
&verestimation of market si'e
(ncorrect positioning
Price too high or too lo#
(nade"uate distribution
Poor promotion(nferior product
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Success :actors
Match #et0een *roduct and arket needsMatch #et0een *roduct and arket needs
"i''erent 'ro su#stitute *roducts"i''erent 'ro su#stitute *roducts
#actor$ in %ucce$$&ul 'e Product$
#actor$ in %ucce$$&ul 'e Product$
(ene'it to large nu#er o' *eo*le(ene'it to large nu#er o' *eo*le
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"i''usion
)iffusion
*he process by #hich theadoption of an innovation
spreads
5
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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
5
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ategories o' )do*ters
P
e r c e n t a g e o '
) d o * t e r s
ie
Innovators2.5>
=arl/)do*ters
8;.5>
LateMa<orit/
;4>
=arl/Ma<orit/
;4>
Laggards8%>
5
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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/
5
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Product Li'e /cle
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-
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Product Li'e /cle
*ime
) o l l a r s
Profits
Sales(ntroductory!tage .ro#th!tage Maturity!tage )ecline!tage
/
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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
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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
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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
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"ecline Stage
1ong4run drop in sales1arge inventories of unsold items
Elimination of all nonessential marketing
expenses“&rgani'ed abandonment”
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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
costs
Fall as result of competition %
efficient produc-tion.
rices fall &usuall#'.
ricesstabili(e atlo" level.
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Innovation Management (WBB 10202)Innovation Management (WBB 10202)
Chapter 10Chapter 10
PRI!
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What Is Price?
Price
Price is that #hich is given up in anexchange to ac"uire a good or
service
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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
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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
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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
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SalesBOriented Pricing O#<ectives
Market
Share
Market
Share
Sales
Maii,ation
Sales
Maii,ation
SalesBOriented Pricing O#<ectivesSalesBOriented Pricing O#<ectivesSalesBOriented Pricing O#<ectivesSalesBOriented Pricing O#<ectives
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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
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Innovation Management (WBB 10202)Innovation Management (WBB 10202)
Chapter 10Chapter 10
P*+!
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Marketing hannels
Marketinghannel
Marketinghannel
Su**l/hain
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
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) co*an/Ds su**l/ chain
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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/
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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
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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/
e*oral"iscre*anc/
S*atial"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.
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ontact =''icienc/
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hannel Interediaries
etailer etailer
MerchantWholesaler
MerchantWholesaler
)gents and(rokers
)gents and(rokers
) channel interediar/ thatsells ainl/ to custoers.
) 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.
Wholesaling interediaries 0ho'acilitate the sale o' a *roduct #/re*resenting channel e#er.
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2–;
hannel Interediaries
etailersetailers
MerchantWholesalers
MerchantWholesalers
)gentsand
(rokers
)gentsand
(rokers
ake itle to Goodsake itle to Goodsake itle to Goodsake itle to Goods
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
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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
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"irect hannel
)irect Channel
A distribution channel in #hichproducers sell directly to
consumers
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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$aler
!,annel !,annel Retailer Retailer !,annel !,annel Direct Direct !,annel !,annel +gent-Broer +gent-Broer !,annel !,annel
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hannels 'or (usiness Products
Producer
Industrial3ser
Direct Direct !,annel !,annel
Producer
Govt.(u/er
Direct Direct !,annel !,annel
Producer Producer Producer
Industrial3ser
Industrial3ser
Industrial3ser
Industrial"istri#utor
Industrial"istri#utor
)gents or (rokers
)gents or (rokers
+gent-Broer +gent-Broer !,annel !,annel
Indu$trial Indu$trial Di$tri/utor Di$tri/utor
+gent-Broer +gent-Broer Indu$trial Indu$trial !,annel !,annel
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Levels o' "istri#ution Intensit/
Inten$iveInten$ive
%elective%elective
clu$iveclu$ive
) 'or o' distri#ution aied athaving a *roduct availa#lein ever/ outlet
) 'or o' distri#ution aied athaving a *roduct availa#lein ever/ outlet
) 'or o' distri#ution achieved#/ screening dealers to eliinateall #ut a 'e0 in an/ single area
) 'or o' distri#ution achieved#/ screening dealers to eliinateall #ut a 'e0 in an/ single area
) 'or o' distri#ution thatesta#lished one or a 'e0dealers 0ithin a given area.
) 'or o' distri#ution thatesta#lished one or a 'e0dealers 0ithin a given area.
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Levels o' "istri#ution Intensit/
Intensit/ LevelIntensit/ LevelIntensit/ LevelIntensit/ Level O#<ectiveO#<ectiveO#<ectiveO#<ective 7u#er o'7u#er o'InterediariesInterediaries
7u#er o'7u#er o'InterediariesInterediaries
Inten$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
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Innovation Management (WBB 10202)Innovation Management (WBB 10202)
Chapter 10Chapter 10
PROMO"IO'
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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
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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
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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
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Prootional Mi
)dvertising)dvertising
Pu#lic elationsPu#lic elations
Sales ProotionSales Prootion
Personal SellingPersonal Selling
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)dvertising
Advertising
(mpersonal, one4#ay
mass communication about a product or
organi'ation that is paid for by a
marketer
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)dvertising Media
raditional)dvertising Media
raditional)dvertising Media
=lectronic)dvertising Media
=lectronic)dvertising Media
elevision
adio
7e0s*a*ers
Maga,ines
(ooks
"irect ail
(ill#oards
ransit cards
Internet
=lectronic ail
Interactive video
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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
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:unctions o' Pu#lic elations
=valuates *u#licattitudes
=valuates *u#licattitudes
Identi'ies areaso' *u#lic interestIdenti'ies areaso' *u#lic interest
=ecutes*rogras toF0in *u#lic
=ecutes*rogras toF0in *u#lic
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Pu#licit/
Publicity
Public information about acompany, good, or service
appearing in the mass media as a
ne#s item
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Sales Prootion
=ndonsuers
=ndonsuers
rade ustoersrade ustoers
o*an/=*lo/ees
o*an/=*lo/ees
:ree sa*les:ree sa*les
ontestsontests
PreiusPreius
rade Sho0srade Sho0s
Hacation Givea0a/sHacation Givea0a/s
ou*onsou*ons
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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
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Personal Selling
Personal !elling
Planned presentation to one or moreprospective buyers for the purpose of
making a sale
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Personal Selling
raditionalSelling
raditionalSelling
elationshi*Selling
elationshi*Selling
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hank /ou