Quiz #4 Flashcards
Identify and describe the steps in the new product development process.
STEP 1) Idea generation: the systematic search for new product ideas
STEP 2) Idea Screening: screening new product ideas to spot good ones and drop poor ones as soon as possible
STEP 3) Concept development & testing: testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
STEP 4) Marketing strategy development: designing an intial marketing strategy for a new product on the product concept
STEP 5) Business analysis: a review of the sales costs and profit projections for a new product to find out whether these factors satisfy the company’s objections.
STEP 6) Product development: developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
STEP 7) Test marketing: the stage of new product development at which the product and its proposed marketing program are tested in realistic marketing settings.
STEP 8) Commercialization: introducing a new product into the market
What is crowdsourcing? How is crowdsourcing useful in new product development?
Crowdsourcing: Inviting broad communities of people customers, employees, independent scientists and researchers and even the public at large- into the new product innovation process.
-Many companies are now developing crowdsourcing or open- innovation new product idea programs. This can produce unexpected and powerful new ideas.
Distinguish between a product idea, a product idea, a product, and a product image.
Product idea: is an idea for a possible product that the company can see itself offering to the market.
Product concept: a detailed version of the new product idea stated in the meaningful consumer terms.
Product image: The perceptions and the mental image associated with the product
Briefly explain each step in a typical product life cycle
STEP 1) Product development: begins when the company finds and develops a new product idea. During product development, sales are zero, and the company’s investment costs mount.
STEP 2) Introduction: a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction.
STEP 3) Growth: a period of rapid market acceptance and increasing profits
STEP 4) Maturity: a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition.
STEP 5) the period when sales fall off and profits drop
What is a promotion mix? Define and provide an example of the major tools used in a promotion mix
Promotion mix: the specific blend of promotion tools that the company uses to engage customers, persuasively communicate customer value and build customer relationships.
Advertising: any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor
Sales promotion: short-term incentives to encourage the purchase or sale of a product or a service
Personal selling: personal customer interactions by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships.
Public relations: Building good relations with the company’s various publics by obtaining favorable publicity building up a good corporate image and handling or heading off unfavorable rumors, stories, and events.
Direct and Digital marketing: engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
How has the new communications model changed the face of today’s marketing communications?
- With internet, social media and other technologies they can connect easily with other consumers
- more and more they are developing focused marketing programs designed to engage customers and build customer relationships in micromarkets
- in the new-marketing communications world rather than using old approaches that interupt customers and force-feed them mass messages, new media formats let marketers reach smaller communities of consumers in more engaging ways.
Why do today’s firms need integrated marketing communications systems? How do firms benefit from such systems?
Today’s firms need integrated marketing communications systems to carefully integrate and coordinate its many communication channels to deliver a clear, consistent and compelling message about the organization
-this benefits firms by carefully coordinating all of their media presence
Define pull marketing strategy and push marketing and provide suitable examples for both.
Push: a promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers. EXAMPLE : Kiosks at mall
Pull: a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel. EXAMPLE: Apple
What is consumer- generated content? provide an example
Consumer generated content: taking advantage of today’s digital and social media technologies many companies are now tapping consumers for marketing content, message ideas or even actual ads and videos. Sometimes the results are outstanding, sometimes they are forgettable
Ex: Taco bell boosted digital and social media coverage of the introduction of its friery doritos locos tacos with consumer generated videos distributed through twitter feeds, social networks and online advertising bus.
Define and provide examples of Paid Media, Earned Media, owned media, and shared media.
Paid Media: Promotional channels paid for by the marketer, including traditional media (such as TV, radio, print or outdoor) and online and digital media (Paid search ads, mobile ads, email marketing or web and social media display ads and sponsored content)
EXAMPLES: Sponsored tweets, facebook sponsored posts, twitter cars, outbrain)
Earned Media: PR media channels such as television, newspapers, blogs, online video sites, and other media not directly paid for or controlled by the marketer but that incorporate the content because of viewer, reader or user interest. EXAMPLES: media relations, blogger relations, investor relations
Shared Media: media shared by consumers with other consumers, such as social media, blogs mobile media and viral channels as well as traditional word-of-mouth.
EXAMPLES: facebook, twitter, youtube, vine, instagram, linkedin
Owned Media: promotion channels owned and controlled by the company, including company websites, corporate blogs, owned social media sites, sales force and events.
EXAMPLES: employee stories, customers stories, brand journalism, podcasts
Differentiate between branded community web sites and marketing websites provide examples to illustrate your response.
Marketing website: a web site that engages consumers to move them closer to a direct purchase or other marketing outcome
EXAMPLE: Geico- Bold headline urges potential customers to “Get a quote”
Branded community website: a web site that presents brand content that engages consumers and creates customer community around a brand
EXAMPLE: ESPN for example you can’t buy anything off their website its just about the brand
Explain the concept of viral marketing:
the digital version of word-of-mouth marketing- videos, ads and other marketing content that is so infectious that customers will seek it out or pass it along to friends
Describe direct-response television marketing:
Direct marketing via television, including direct-response television advertising and interactive television advertising.
Define telemarketing and distinguish between out bound and inbound telemarketing
Telemarketing: using the telephone to sell directly to customers
Outbound: Used to sell directly to consumers and businesses
Inbound: toll-free numbers to receive orders from television and print ads, direct mail or catalogs
Define and provide examples of digital and social media marketing digital age and omni-channel retailing
Digital and social media marketing: Using digital marketing tools such as web sites, social media, mobile apps and ads, online video, email and blogs to engage consumers anywhere, anytime via their digital devices
Digital age: Defined as the time period starting in the 1970s with the introduction of the personal computer with subsequent technology
Omni-channel retailing: creating a seamless cross-channel buying experience that integrates in-store, online and mobile shopping
What are the main forms of direct and digital marketing?
- online marketing
- websites
- videos
- social media
- mobile marketing
Describe spam and permission- based email marketing
Spam: unsolicited, unwanted commercial email messages
Permission-based email marketing: sending email pitches only to customers who “opt in”
Define and provide an example of kiosk marketing, catalog marketing, and mobile marketing
Kiosk marketing: Provide service information and ordering machine placed by companies
EXAMPLE: iPhone cases
Catalog marketing: sending an offer announcement, reminder or other item directly to a person at a particular address
EXAMPLE: sears catalog
Mobile marketing: promotional content delivered to consumers through their mobile devices
EXAMPLES spotify ads
