Chapter 21 Marketing Analysis Flashcards
New product development
Design, creation and marketing of new goods + services
Successful products should:
DUM
- Desirable features that customers are willing to pay for
- Sufficient differences (USP)
- Be marketed efficiently to customers
Idea generation #1
BRAMES
- Company does own Research and development
- Adapt competitors ideas
- Market research
- Employees
- Brainstorming
- Sales people
Idea screening #2
CBFP
- How will consumers benefit from product
- Is it feasible to manufacture
- Will the product be profitable
Concept development #3
TTFCC
- Who is the target
- What features should it have
- Benefits if it
- Test reaction
- Is it cost effective to manufacture
- Cost to produce
Business Analysis #4
- Finance available for development
- Can it be patented
- Can it fit in the current marketing mix
- How will changes in the economy affect sales
Product testing #5
- Developer prototype
- Test product under typical use conditions
- Use focus groups to adapt products
Test Marketing #6
Pro:
- Consumer behavior + feedback
- Enable final decisions
- Weaknesses of product is identified
Con:
- Costly
- Competitors view product (CopyCat)
Commercialization
- Full scale launch of product
- Induction = product life cycle begins
- Most crucial weeks = Fully stocked all locations
- Await sale results
How Research and development is encouraged by government
- Provides legal security to inventors, through patents/registers
- Provide financial assistance = tax reduction + grants
Influencers on R&D spending
- Nature of industry
- R&D of spending plans of competitors
- Business expectations
- Risk profile and culture of business
- Government policy to business and universities of R&D
Why R&D fails
- poor market research
- poor marketing support
- Inappropriate pricing
- Changes in technology
- Competitors products preferred
Sales forecasting Importantce /use
- Essential to market planning
- key part of screening products
- Planning workforce needs
- Predict max capacity
- Decisions on price change
Time series analysis pro/con
Pro:
- Useful for seasonal predictions
- Reasonably accurate for short-term periods
- Average seasonal variations, allows for planning
Con:
- Complex = Prone to error, needs specialist
- Deeper into the future = less accurate + needs qualitative methods
Sales forecast composite
Pro:
- Quick
- Cheap
Con:
- Sales people are unaware of competitors development and macroeconomic
