badm 320 test 3
early adopters
13.5% ; take less risk than innovators, waiting to make sure the product works or some other affirmation
laggards
16%; may never adopt the innovation, avoids change
innovators
2.5%; want to be very first people to obtain the newest gadget
late majority
34%; consumers that still buy the new product but after it has run most of its life cycle
early majority
34%; group that makes products become profitable, wait to make sure the product is perfected
pulsing advertising
a combination of continuous and flighting advertising. continuous advertising throughout the year, but a surge on occasional times.
markdowns
a reduction on the initial selling price
prototype
a rough idea of the product, a clay model for a hypothetical car
push advertising
advertise to other members of the supply chain so that they push the product onto the end customer
push supply chain
allocate merchandise based on forecasts, less complicated, best for products w steady stream of sales
beta testing
allowing select customers to try the product and give feedback on what is good and bad
external service marketing
company markets to the customers
internal service marketing
company markets to the employees
dynamic pricing
continually changing pricing of products or services based on demand and market conditions and situations
maturity stage
cost leadership strategies, saturated market, many suppliers, r&d to support sales and profits, process innovation, late majority
growth stage
differentiation strategy, sales increase, new competitors enter, prices down, profits up, start to gain economies of scale, early adopters and early majority
introduction stage
differentiation strategy, slow sales growth, innovators and affluent buyers, high distribution and promotion expense
compatibility
does the product fit in the environment where it will be sold, mobile phones worked in North Europe
interactive service marketing
employees market to the customers
value based pricing
figure out what people want and then make it
alpha testing
first functioning prototype that we can actually use, done in house without actual customers
communications gap
gap between what the firm promises and what it delivers
customers
how do our customers see us and the industry as a whole?
competition
how does your competition set their prices?
costs
how much does it cost to actually produce the product and service
r-w-w screening framework
identifying new ideas that would be good for the firm or which ideas to drop
observability
if its easy for customers to see and notice the difference, the innovation will be accepted more quickly
relative advantage
if the product performs better than the previous product, or is perceived to be better
market penetration pricing
in order to build up sales, market share, a firm will set initial prices low
pull advertising
inspire end consumers to demand your product
channel members
is everyone in the supply chain making money?
delivery gap
knowing the expectations on the delivery side of our services vs how we are actually delivering
knowledge gap
knowing what customers want and expect vs what you think they want and expect
standards gap
knowing what service standards customers are expecting versus the standards your firm is setting
style life cycle
longer term life cycle, multiple peaks as the style comes in and out of fashion
decline stage
maintain or harvest the product, firms leave the market, cost leadership process innovation, dropping of products, cheapest prices, focus on niche markets
cost based pricing
make something and then get people to buy it
fashion life cycle
medium term life cycle, one peak, longer maturity phase
pull supply chain
orders based on sales data, store level demand, more accurate amount of inventory, used when forecasts are uncertain, more expensive
seasonal discounts
price reductions during off peak seasons in order to spur sales
flighting advertising
selectively advertising at specific times of the year
by-product pricing
selling your leftover product
variable
services are not always the same
perishable
services do not carry over in time
price lining
setting price ceilings and floors for a range of products and then distinguish different price points in between
captive product pricing
the pricing of products that must be used with the main product
diffusion of information
the process where the use of an innovation spreads throughout the marketplace, over time and across various categories of adopters
price skimming
varying level of pricing based on level of demand
fad life cycle
very short term life cycle, strike when the iron is hot
company objectives
what do we want to do/be as a company?
complexity and trialability
when the innovation is hard to explain, it is less likely to be accepted. when it is easy to explain or people can try it out, it will be more likely to be accepted
intangible
you can't touch a service
inseparable
you have to be present to receive the service
