Chapter 9 Innovation/Markets Flashcards
Pioneering Strategy
Being ahead of the competitors by introducing a new product first. This strategy has the potential for high profit if the product is successful.
Imitative Strategy
Developing products that are similar to an existing product , has potential for high profit.
Ansoff Matrix
Marketing planning tool which usually aids a business in determining its product and market growth.
Market Development
Finding new applications for existing products, thereby opening up new markets. Increasing sales to existing customers or finding new customers for an existing product.
Product Development
Creation of new, modified, or updated products aimed at a company’s existing customers.
Market Penetration
Increasing sales to existing customers or finding new customers for an existing product, a tool used to determine the potential growth available for product sales.
Product Diversification
Process of setting uniform characteristics for a particular product, system or service to help increasing sales.
Hybrid Approaches
Multiple mentioned strategies are used at once.
Corporate Social Responsibility
form of self-regulation for a company that centers around the development of goals related to three areas; economic, social, and environmental.
Result of an hybrid strategy
Will adopt an expensive and risky pioneering strategy for some products and safe imitative strategy for others.
Market Sectors
Broad way of categorizing the kinds of market the company is aiming for.
Geographical Sectors
Identify purchases in a particular region, Characteristics might be region, value, and cultural-specific.
Client Based Sectors
Focus on consumers, whether they are individuals or groups, industry related, commercial or government run enterprises.
Mass Market
Produced on a large scale, a product that is available to a large amount of people and can be used by anyone.
Market Segments
- Geographic
- Psychographic
- Demographic
Product Famliy
A group of products having common classification criteria, members normally have many common parts and accessories.
Marketing Mix 4 P’s
- Product
- Price
- Place
- Promotion
Product Standardisation
State based legislation to guarantee quality, safety, and reduce potential risks for the user, allow for interchangeability of components
Demand Pricing
A company will set the price based on the demand for their product.
Competitor Pricing
Watching competitor prices and setting their price lower to increase demand.
Product Line Pricing
Offering of add ons to improve or vary the product maximizes profits by increasing sales.
Psychological Pricing
Where a product is priced to make the customer feel like they are paying less ; $19.99
Cost-Plus Pricing
A company will add a percentage to the total cost.
Competition Based Pricing Strategy
A product is positioned in the market based on the price of similar products/competitors.
