Module 4 Flashcards
Provide the Value: Product
How does Kellogg’s utilize product diversification?
By introducing new cereal brands and flavours over the years.
How does Kellogg’s meet changing consumer preferences?
- Product diversification
- Health and nutrition focus
- Innovative packaging
- Catering to dietary restrictions
- Collaborations and limited editions
- Expanding global presence
- Reduced sugar and fortified cereals
Embracing organic and natural trends
What are the 4 key strategies to help us stay competitive, meet customer demands and drive growth?
- Modify Product and/or Reduce Costs to Increase Value
- Find new uses and/or users
- Highlight gaps in the product line
- Eliminates products as necessary
Why is it crucial to modify products and/or reduce costs?
- Enhances customer satisfaction
- Boosts competitiveness
- Optimizes costs and maintains profitability while delivering value to customers
- Supports sustainability efforts
Why is it crucial to find new uses and/or users?
- Expands market reach and diversifies revenue streams
- Encourages product adoption
- Strengthens brand reputation
Why is it crucial to highlight gaps in the product line?
- Identifies lucrative market opportunities and creates a cleat roadmap for product development.
- Promotes customer loyalty - Increases cross-selling potential and encourages customers to explore the entire product range.
Why is it crucial to eliminate products as necessary?
- Frees up resources allows the organization to focus on high-impact, high-potential products.
- Improves operational efficiency and streamlines production, marketing, and distribution processes.
- Demonstrates the company’s commitment to maintaining a relevant and competitive product portfolio.
What are the stages of the product lifecycle?
- Introduction Stage
- Growth Stage
- Maturity Stage
- Decline Stage
List some rules of thumb to ebsure effective decision-making and avoid potential pitfalls when marketing throughout the lifecycle stages:
- Avoid rigid categorization
- Don’t rely solely on lifecycle assumptions
- Consider external factors
- Continuously monitor and reassess
- Avoid neglecting existing customers
- Be prepared for disruptions
- Avoid neglecting innovation
What is the introduction stage?
Your product is launched into the market. Consumers are unfamiliar with it and competition may be limited.
How can you adapt your marketing in the introduction stage?
Focus on creating awareness, generating buzz, and esttablishing a stong market presence.
What is the Growth Stage?
Your product gains momentum and market acceptance. Competitors may start entering the market, and demand for your product increases.
How can you adapt your marketing during the growth stage?
Shift focus towards expanding your market share, maintaining customer satisfaction, and sustaining growth.
What is the maturity stage?
The maturity stage signifies market saturation, intense competition, and slower growth rates.
How can you adapt your marketing strategy during the maturity stage?
You must differentiate your product and focus on customer retention.
What is the decline stage?
The decline stage represents a shrinking market and diminishing demand for your product. It may be caused by technological advancements, changing consumer preferences, or market saturation.
How can you adapt your marketing during the decline stage?
Consider strategies such as product diversification, market exit, or finding niche markets.
What are the stages of the product adoption curve?
- Innovators
- Early adopters
- Early majority
- Late majority
- Laggards
Who are the innovators in the product adoption curve?
- The earliest adopters who seek out new products and innovations.
- They represent a small percentage of the market, usually around 2.5%.
Who are the early adopters in the product adoption curve?
- The early adopters make up about 13.5% of the market.
- They are opinion leaders and influencers within their social circles.
Who are the early majority in the product adoption curve?
- This group constitutes around 34% of the market.
- The early majority is more cautious than early adopters and will wait to see how the product performs in the hands of others before making a purchase decision.
Who are the late majority in the product adoption curve?
- Comprising approximately 34% of the market, the late majority adopts the product once it has become well-established and widely accepted.
- They are often skeptical of change and may need more convincing before trying something new.
Who are the laggards in the product adoption curve?
- Laggards are the last group to adopt a new product, making up the remaining 16% of the market.
- They are typically resistant to change and may only adopt the innovation when it becomes necessary.
Who purchases the product in its introduction stage?
Innovators
Who purchases the product during its growth stage?
Early adopters and the early majority.
Who purchases the product in its maturity stage?
Late majority.
Who purchases the product in its decline stage?
Laggards
