Internal Marketing and New Product Development

Question 1

Primary reason for new product failure

Answer 1

• inability on part of selling company to match its offerings to needs of the customer
• This inability can be attributed to:
  
  • Inadequacy of upfront intelligence efforts
  • Failure on part of company to stick close to what
    company does best
  • Inability to provide better value than competing
    products and technologies

Question 2

Market segmentation

Answer 2

• Process of dividing a market into groups of similar consumers and selecting the most appropriate group(s) for the firm to serve
• If particular group can be served profitably by a firm, it is viable market segment.
• Selection of the appropriate target market is paramount to developing successful marketing programs

Question 3

Target market

Answer 3

Group or segment a company selects to serve

Question 4

• Market segmentation process

Answer 4

delineate firm’s current situation (situational/SWOT analysis), determine consumer needs and wants, divide markets on relevant dimensions, develop product positioning, decide segmentation strategy, design market mix strategy

Question 5

o Post-hoc segmentation:

Answer 5

people are grouped into segments on the basis of research findings. Used when segmenting for new products

Question 6

o Viable segment

Answer 6

measurable, meaningful, marketable

Question 7

o Can use different bases for segmentation

Answer 7

benefit segmentation, psychographic segmentation, and geodempgraphic segmentation
 Benefit segmentation: satisfying needs by grouping

Question 8

 Benefit segmentation

Answer 8

satisfying needs by grouping consumers on nasis of benefits they are seeking in a product

Question 9

 Psychographic segmentation

Answer 9

consumer lifetsyles (hobbies, interests, opinions, beliefs) as the basis for segmentation

Question 10

 Geodemographic segmentation

Answer 10

identifies specific households in a market focusing on local neighborhood geography. Assumes consumers in certain neighborhoods are similar.

Question 11

What is the new product strategy for Lululemon?

Answer 11

• New-to-the-firm products – Products that take the firm into a category new to it but not to the world

Question 12

broad new product strategy for Lululemon

Answer 12

• Diversification: Seeks to develop new products and cultivate new customers

Question 13

• New product development process

Answer 13

idea generation, idea screening, project planning, product development, test marketing, commercialization

Question 14

Two idea risks of the Mirror:

Answer 14

• Strategic risk: No match between the role of a new product with a specific strategic need of the organization
• Market risk – New product won’t meet a market need in a value-added, differentiated way

Question 15

• What may cause new product failure for Lululemon:

Answer 15

• Faulty estimates of market potential
• Improper channels of distribution selected
• Rapid change in the market or economy after product introduction
• Poor quality of product
• Non-delivery of promised benefits
• Too little marketing support
• Poor perceived price/quality (value) relationship

Question 16

• Offensive Reasons Lululemon is expanding globally:

Answer 16

o Increase long term growth and profit prospects
o Maximize total sales revenue
o Improve overall market position

Question 17

• Issues Lululemon might face in foreign markets:

Answer 17

o Cultural misunderstanding
o Import restrictions
o Economic conditions

Question 18

How should Lululemon organize a global company

Answer 18

Matrix structure: combines worldwide product divisions with divisions responsible for all products sold within a geographic region

Question 19

What is primary vs secondary data?

Answer 19

Primary data: Collected specifically for the research problem under investigation
Secondary data: Previously collected data that could be used for the problem at hand (usually cheaper and can be collected from specific providers)

Question 20

What is qualitative research and what’s an example?

Answer 20

• Qualitative research: Involves face-to-face interviews with respondents designed to develop a better understanding of what they think and feel concerning a research topic
• Focus groups: Involve discussions among a small number of consumers led by an interviewer and are designed to generate insights and ideas about products and brands

Question 21

What is quantitative research and what’s an example?

Answer 21

• Quantitative research: Involves systematic procedures designed to obtain and analyze numerical data
• Survey research: Involves the collection of data by means of a questionnaire. Commonly used to investigate customer beliefs, attitudes, and satisfaction