Marketing Mix product

Question 1

What do we mean by a product?

Answer 1

A material good
An intangible service
A combination of the above
A location
A person
An idea

Question 2

The Product Life Cycle

Answer 2

Product Development Stage

Introduction

Growth

Maturity

Decline

Question 3

PLC - Introduction Stage

Answer 3

Building awareness and develop market for the product:

Product: branding and quality level established,

Pricing: low penetration pricing or high skim pricing

Distribution: selective until the product is accepted

Promotion: aimed at innovators and early adopters

– building awareness and learning

Question 4

PLC - Growth Stage

Answer 4

Building the brand preference and increasing the market share:

Product: maintaining the quality, additional features and services may be added

Pricing: maintaining the initial strategy

Distribution: new channels are added, demand is increasing

Promotion: aimed at broader audience

Question 5

PLC - Maturity Stage

Answer 5

Defending the market share while maximising profit: such as a cash cow

Product: feature may be enhanced to differentiate the product from that of competitors

Pricing: lower because of the competition

Distribution: more intensive, some incenitves offered

Promotion: emphasizes the product differentiation

Question 6

PLC - Decline Stage

Answer 6

Sales are declining so there are several options:

Maintain the product, possibly rejuvenating it by adding new features and finding new uses

Reduce costs and continue the offer

Discontinue the product

Question 7

PLC is Useful for

Answer 7

ADV

• Product termination
• Growth Projections
• Marketing objectives
• Product planning

Dis

• Cannot predict when it will finish
• Difficult to distinguish
• Managing supply
• Competition

Question 8

How the characteristics of a product affect its rate of diffusion

Answer 8

• Differential Advantage
• Complexity
• Trialability
• Compatibility
• Communicabiliity

Question 9

Rate of Adoption

Answer 9

Moore focused on making the big leap from targeting early adopters to marketing to the early majority. (The gap between the two groups is what he dubbed the “chasm.”)

Innovations
Early adopters
The Chasm
Early Majority
Late Majority
Laggards

Question 10

Big-bang disruption

Answer 10

But big-bang disruptions can be marketed to every segment simultaneously, right from the start. When the iPad arrived, it wasn’t just for people who couldn’t afford a laptop. Every millionaire wanted one, too. (Downes & Nunes, 2013)

Question 11

Invention Vs Innovation

Answer 11

Invention - The discovery of new ideas and methods

Innovation - Occurs when an invention is commercialised by bringing it to market

Question 12

Conditions required for innovation

Answer 12

• Moderate environmental uncertainty
• Resource for innovation
• Supportive structures & systems
• Low people turnover
• Exchange of information
• Cohesive Workshops

Question 13

3D Printers

Answer 13

3D printing brings manufacturing on to your desktop. 3D printers create physical replicas of the images from computer screens.

Question 14

New product development process

Answer 14

New Product Strategy

Idea Generation

Screening

Concept Testing

Business Analysis

Product Development

Market Testing

Commercialisation

Question 15

NPD Strategy

Answer 15

1. Strategy: clearly defined goals and objectives.
2. Idea Generation: brainstorm through internal and external sources.
3. Screening: to reduce the number of workable ideas.
4. to develop an idea into a detailed concept that would describe it to a consumer and test it among consumers
5. reviewing the cost and profit estimates to find out if they meet company objectives.
6. developing the product through research and design stages.
7. a trial run of the product where all aspects of the marketing mix are tested.

Question 16

Market Testing

Answer 16

Techniques

• Simulated market test
• Test marketing

Commercialisation: actual introduction of the product into the market commercially.