chapter 14 Flashcards
definition of go to market strategy
a detailed plan for reaching target customers and delivering your product effectively
what does GTM look at?
- product market fit
- competitor analysis / customer demand
- value prop uniqueness –> claim to superiority
- target market and pricing
- distribution and sales channels
- market and promo strategies
- customer acquisition and retention plans
- required resources
3 types of demand
- primary demand
- replacement demand
- selective demand
what is primary demand
new to world products
what is replacement demand
product improvement and upgrade (ex: new compact car)
what is selective demand
for entry into established markets
what is butt-on product replacement
The existing product is simply dropped when the new one is announced.
example: James charles marketing of Painted and dropping his original palette.
what is low season switch
Same as butt-on, but arranging the switch at a low point between seasons.
Example: if a store switches out their bathingsuits to winter coats in August, a low shopping season.
high season switch
Arranging the new item at the top of a season
Example: Video game manufacturers put new
replacement items out during the holiday buying season
roll in roll out
products introduced gradually with certain markets
Example: Fiat launched the new 500 in Italy first, then rest of Europe,
then North America.
downgrading
Keeping the earlier product alongside the new, but with decreased support.
example: Older computer chips are marketed alongside newer
ones but with less channel support.
splitting channels
old products sold as discount, new products sold as premium
example: A smartphone manufacturer splits its sales channels by selling high-end models exclusively through authorized retailers and company-owned stores, while offering budget models through online marketplaces and discount retailers.
what are 4 alternate ways to segment a market?
- end use
- geographic/demographic
- behavioral/psychographic
- benefit segmentation
5 factors that affect diffusion of information
- relative advantage
- compatibility
- complexity
- divisibility
- communicability
what is relative advantage
how much better the new product is compared to what people are currently using
what is compatibility
how well the product fits into the users lifestyle and tools
what is complexity
how easy or hard is the product to understand
what is divisibility
whether the product can be tried in small, low cost ways before full adoption
what is communicability
how easy it is to explain or see the benefits of the product
1st step in creating a positioning statement
start with target segment (who/when)
2nd step in creating a positioning statement
value –> what the brand offers from users view
3rd step in creating a positioning statement
reason to believe –> what is the reason to claim that value?
4th step in creating a positioning statement
relative to whom –> establish a reference point
explain the positioning ladder
it looks at how brands position themselves in the mind of the consumer
- looks at unique selling propositions and how they differentiate
