Unit 9 - Innovation and Markets Flashcards
Pioneering Strategy
The process of introducing new areas of thought or development in the design process. (first to market)
Imitative Strategies
Aims to develop a product similar to an existing new product. Takes advantage of R&D, less risky
Hybrid Strategy
mixture of pioneering, imitative strategies
Market Penetration
New customers for an existing product (less risky)
Market Development
Finding new applications for existing products, thereby opening up new markets
Product Development
The creation of new, modified or updated products aimed mainly at a company’s existing customers.
Product diversification
Increasing sales from new products [and]/or [new] markets (most risky)
Corporate Social Responsibility
A form of self-regulation for a company and centres around the development of goals (economic, social, environmental)
Market Sector
A broad way of categorizing the kinds of market the company is aiming for.
Geographical Sectors
values, culture and characteristics of purchasers in that region along with purchasing power
Client based Sectors
Focuses on consumers, industrial, public sector and commercial.
Market Segment
Dividing up the markets into smaller segments targeting customers that share characteristics.
Types of segments
income, profession, age, family, values, behaviour, gender
Product Family
A group of products having common classification criteria. (common parts, assemblies and/or aesthetic elements)
Marketing Mix
Product, Place, Price, Promotion
Product
standardization of products
Place
Implications of internet selling for a company in relation to its supply chain and distribution network.
Price
cost-plus, demand pricing, competitor-based pricing, product line pricing, psychological pricing.
Promotion
advertising, publicity, personal selling.
Literature Search
encyclopaedias, newspapers, magazines, manufacturers information, consumer reports
Expert appraisal
Reliance on the knowledge and skills of an expert in the operation of the product
User Trail
The observation of people using a product and collection of comments from people who have used a product.
User Research
Obtaining users’ responses through questionnaires/surveys and interviews.
Perceptual Mapping
Quickly compare a product to others in the market due to it being a graphical representation.
Environmental Scanning
careful study of various factors influencing the business
Brand
A product from a known organization
Brand Loyalty
Where a person has a favourite supplier and prefers to buy products from them rather than from other suppliers.
Brand Identity
Helps companies to communicate their brand so that is highly recognisable.
