ESRM Final Study Set

PLC Example: Camera

- Camera Obscura - What lifestage is the camera in today?

Consumer Adoption of Products

- Everett Rogers created DIFFUSION OF INNOVATION (DOI) theory to describe stages in the consumer adoption of new products over time. - 5 Consumer Stages: 1) Innovators 2.5 % of pop 2) Early Adopters 13.5% of pop 3) Early Majority - 34 4) Late Majority - 34 5) Laggards - 16

Other Pricing Strategies

- Every day low pricing (EDLP). Low prices all time, no sales. Was-Mart - High-low Pricing: Setting prices higher than EDLP except during special sales when they are less - Product Bundling: combining several products and offering the bundle at a reduced price (printer/copier/scanner) - Psychological Pricing: using price points that make the product appear less expensive than it is. 99cents IN REGARDS TO EXISTING PRODUCTS ^^^^

CASE STUDY - Dream Dinners

- Help body families get dinner on the table. - America wants better food, food that they are proud of, and they are at the center of national trends. - Core demographic: Mother of school age children. Kids are busy with activities and dinner time can be the compromise. - Product Development: Promotion. Dream Dinners has been most successful on social media via word of mouth. Really relies on the customer in the store loving the idea and telling friends. - Competitors: Any food that you can pick up to eat. - Differentiator: you assemble the dinners yourself unlike the premade meals elsewhere. - Pricing: Cost based. Labor not included in model. Average dollar ticket.

"Nudging" Sustainability

- If you want people to use less energy, show people how much energy theyve used compared to neighbors. - Another "nudging" example, one with positive social benefits it putting healthy food at the front of a school cafeteria - results in student choosing to eat more healthy food.

Externalities & Full Cost Accounting

- Includes ALL COSTS arising from a business transaction to ALL STAKEHOLDERS OVER THE ENTIRE PRODUCT LIFECYCLE, including disposal - Traditional price = product costs + profit - Sustainable Price = product costs + externalities costs + profit - Not capturing the cost of externalities leads to the over use and accelerated depletion of nonrenewable natural resources. Externalities are indeed paid, sooner or late, by all citizens and not just product buyers.

Product Value

- Most effective way a company can compete with products offered by competitors is to offer best VALUE - According to the American Marketing Association: A foundation of marketing and "good quality at a fair price" - How consumers value products might depend on more than product quality and price - pr total product offer

Breakeven Analysis

- Process used to determine profitability at various levels of sales. Break even point is where REVENUE = COST. - BEP = Total fixed costs/price - variable costs - Total fixed costs: all costs that remain the same no matter how much is produced or sold - Variable costs: costs that change according to the level of production - Total costs: the sum of fixed and variable costs

Growth Stage:

- SALES: Rapidly increasing - PROFITS: Very high, reach a maximum - COMPETITORS: Growing number - MARKETING OBJECTIVE: Maximize market share - CUSTOMERS: Early Adopters - PRODUCT: Improve product, offer several product versions. - PRICE: Adjust price to meet competition -PLACE: Increase distribution - PROMOTION: Heavy competitive advertising.

T - Market Targeting (Social Responsibility)

- Some concerned about targeting vulnerable segments like children - Example (-) : barbie doll and unrealistic expectations, gender roles, etc. - Example (+): Dove campaign for Real Beauty to challenge beauty stereotypes.

CASE STUDY: Energizer

- Success means more than just having a great product. - Energizer bunny in top 5 most effective marketing icons. - Marketing different than advertising. - Marketing is changing dramatically. Real challenge is understanding customer needs, how they use your product, and being able to capitalize on their needs and address better than anyone else. - 4 production eras. - Online efforts and mobile marketing is taking over. - Technology has shifted power back to consumers. They have a lot more control. Different from a few years ago when retail was primary way to purchase. - Consumers have much more information. - Energize bunny in social settings, building relationships. - Utilize a lot of research with qualitative focus groups early in product development process. - Secondary resource: syndicated date and internal research. - Marketing Environment: global, technological, sociocultural, competitive, and economic factors shape this. - Energizer target market is segmented and thus their marketing efforts are segmented. - Everybody buys batteries. Broad geographic segmentation. - Relationship marketing is more important now than ever. They use facebook and twitter to do so. - Energizer falls everywhere on the spectrum between mass and relationship marketing. - Even product as universal as the energizer battery requires extensive research and development.

Marketing Research Process Step 1: Defining the research problem, question, or opportunity and determining the present situation.

- What are current customer needs and satisfaction, current markets/opportunities/effectiveness of marketing strategies. - What are the alternatives? - What information is needed? - How should info be gathered?

Two Types of Markets

1) Business to Business (B2B) Markets: products sold and resold several times before reaching final consumers. B2B refers to companies/organizations that buy goods and services to use in producing their products to sell, rent, or supply to others (consumers, manufacturers, wholesalers, retailers, hospitals, schools, charities, and government). 2) Consumer Market: products are sold to end consumers (individuals or households)

Pricing Strategies:

1) Cost-Based Pricing 2) Demand-Based/Target Cost Pricing 3) Competition-based pricing 4) Breakeven analysis pricing

Marketing Research Process

1) Defining the research problem, question, or opportunity and determining the present situation. 2) Collect research data 3) Analyze data 4) Choose the best solution and implement it.

Marketing Process

1) Finding market opportunities 2) Conducting Research 3) Identifying a target market 4) P - Design and test a PRODUCT 5) P - determine appropriate PRICE 6) P - Select distribution system (getting product to right PLACE) 7) P - Develop a PROMOTIONAL campaign 8) Build Relationship with customers

New Product Development Steps

1) Generating New Product Ideas (Brainstorming) - It takes 7 ideas to generate one commercially successful product - New product ideas come from research, employees, suppliers, and consumer suggestions. 2) Product Screening - Reduces the number of new product ideas being worked on to focus on most promising. - Criteria are applied to determined whether the product fits well with current products, has good potential and is marketable. 3) Product Analysis - Making cost estimates and sales forecasts to get a feel for the potential profitability of a new product. 4) Product Development and Testing - Product concept is developed into a physical prototype or sample -Concept testing takes the prototype or sample to consumers to test their reactions 5) Commercialization - developing advertising and sales campaigns to generate interest in product - promoting the product to distributors and retailed to get wide attention Ex: Space Race Virgin Galactic, Blue Origin (Bezos), SpaceX (Must)

Product

1) Goods 2) Services 3) Organizations 4) Events 5) Spokespeople 6) Places 7) Ideas

Importance of Capturing Externalities

1) Improving the measurement of harm to human health and ecosystems 2) Evaluating cumulative and synergistic impacts 3) Quantifying impacts across multiple scales.

EXPANDED Product Lifecycle as defined by Paun

1) Introduction 2) Growth 3) Maturity 4) Decline 5) SUSTAINABLE PRODUCT WITHDRAWAL AND DISPOSAL - to avoid negative environmental externalities.

Profits - Over the product life cycle

1) Introduction: LOSSES MAY OCCUR due to low sales and high research and development and various product introduction expenses. 2) Growth: VERY HIGH PROFITS, profits dramatically increase due to recouping new product expense, then profits reach a maximum. 3) Maturity: DECREASING PROFITS because of competition. 4) Decline: PROFITS CONTINUE DECREASING AND MAY BECOME LOSSES due to low consumer demand.

Competitors - Over the product life cycle

1) Introduction: No competitors (due to a patent which gives the inventor the exclusive right to their invention) or very few competitors due to high barriers of entry. 2) Growth: Rapidly growing number of competitors. 3) Maturity: The number of competitors stabilizes and then begins decreasing. 4) Decline: Further decreasing number of competitors.

Sales - Over the product life cycle

1) Introduction: The product is being introduced to consumers, so SALES ARE LOW. 2) Growth: consumers have learned about and like the product, and RAPIDLY INCREASING SALES 3) Maturity: The market becomes saturated. SALES MATURE, meaning they increase but at a slowing rate, then sales reach a maximum, and then sales begin decreasing for the first time. 4) Decline: Changing consumer needs or the product is no longer relevant or useful leads to DECREASING sales.

Other Pricing Strategies: New Products

1) New product pricing: SKIMMING strategy. Uses high initial price to skim revenues from the market. Intention is the company can recover from some of its sunk costs. Works well when: 1) A products quality and image support a higher price 2) competitors should not be able to enter market easily ad undercut price. 2) A PENETRATION strategy uses a low price to attract more buyers, build market share, and discourage competitors. Works well when: 1) Consumers are highly price sensitive and 2) a low price can keep out competition.

Product Line

A group of products that are physically similar or intended for a similar market. Ex: Coca-Cola - Vanilla Coke - Diet Coke - Coke Zero - Coke with Lime - Cherry Coke

Pricing Objectives

Achieve a target profit: e.g. 10% mark up. Build store traffic: e.g. grocery stores "10 for $10" Increase market share: e.g. competitive pricing like 0% car financing Create an image: a higher price may create a status image, often used with designed clothing, jewelry, and perfume. Further social objectives: lower prices so more people can afford it - the government sometimes subsidizes the price of necessities like milk and bread.

Classifying Consumer Products

Consumers goods and services can be classified into 4 categories. 1) Convenience - products purchased frequently with minimal effort. 2) Shopping - products bought only after comparing value, quality, price, and style from variety of sellers. 3) Specialty - products with unique characteristics and brand identity (no reasonable substitutes_ so consumers engage in a special effort to purchase Ex: fine jewelry, medical services 4) Unsought - products consumers are not aware of or have not thought about until they need them. Ex: car towing, burial services, insurance.

Negative Externalities

Costs not currently captured or paid for in the related business transaction. The buyer only pays for the product while society pays the negative externalities? - Green house gas emissions from burning oil, gas, and coal. True cost: purchase price people pay to buy oil/gas/coal + global warming costs to society.

Differentiating Products

Creating real OR perceived product differences through branding, pricing, packaging, and promotion. EX: Various Water Bottle companies

Competition-based pricing

Choosing a price based on competitor prices (above, at, or below competitors. Depends on customer loyalty, perceived product differences, and the competitive climate. Price leadership is when one dominant firms set prices and all competitors in the industry follow.

T - Market Targeting (General)

Evaluating each segments attractiveness and selecting one or more segments to enter or target based on (Ranking): 1) Segment size and growth (sufficient size and goof potential for profit/growth) 2) Segment structural attractiveness (easy to access buyers, few competitors, relative power or competitors) 3) Company objectives and resources are aligned with targeting segments so the company can create customer value.

Product Bundling

Grouping two or more units together and pricing them as a unit at a single price. Factors favoring product bundling include: 1) Customer Factors - buyers may prefer a bundled product if they save time and effort in one stop shopping or if they perceive bundle as less risky. 2) Firm Factors - The strongest case for bundling is when competitors cannot duplicate the bundle or if bundling enables the firm to realize economies of scale. 3) Product Factors - Bundling complementary products, as compared to substitute or unrelated products.

Values and Lifestyle Framework (VALS)

How STP Manifests: VALS: way of segmenting market into 8 segments using psychographics. Short: 1) Survivors 2) Strivers 3) Believers 4) Makers 5) Thinkers 6) Achievers 7) Experiencers 8) Innovators

Expanded Evolution of Marketing

INCLUDES The Sustainability Era: Socially/environmentally responsible marketing that presents needs of consumers while also preserving the ability of future generations to meet their needs.

First Mover Advantage

If a company is not the first to market the new product, but instead the second, the products lifetime profits are 12% lower than the company first to market If a firm is third to sell its lifetime profits are 33% lower

Bottle Bill

Deposit laws significantly reduce container little. They require distributors and retailers to collect a refundable deposit (5-10 cents) on glass, aluminum, and plastic beverage containers. Benefits: Keeps garbage out of landfills. Creates a source of recycled materials for bottlers. Reduces production of beverage containers made out of virgin materials. Incentive to clean up litter. Who holds container deposits? Varies. Special unit in state government, the state government itself, and sometimes the distributors and retailers.

Product Packaging

Key functions are: 1) Attract buyers attention 2) Protect the product and make it tamperproof 3) Provide information about the product 4) Explain product benefits 5) Provide warranty info and warnings 6) Indicate price, value and uses.

Marketing Research Process Step 3: Analyze Data

Marketers turn data info useful information by: - Analyzing data using statistical so software like SPSS and SAS. - Then after the data is analyzed and interpreted, marketers plan, make recommendations for developing new products, etc. and implement changed in the marketing mix components.

Nonprofit Marketing

Marketing Essential to Nonprofits for: - Fundraising Ex: For combatting world hunger, protecting and securing land, etc. - Public Relations Ex: Encourage people to donate blood - Ecological Practices Ex: Reduce carbon emissions, promote safe environmental practices - Changing public opinions and attitudes Ex: "Friends don't let friends drive drunk", political campaigns, etc. - Increasing membership Ex: Religion institutions, universities, Sierra Clubs, etc.

Marketing

Nickels Definition: The activity, institutions, and processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society. Simplified by Pain: Marketing refers to satisfying buyers wants and needs Goal of Marketing: attract new buyers through offering superior value and keeping current customers by delivering satisfaction

Externality Pricing Example:

PSE offers customers the option to buy electricity generated from renewable resources. The program is voluntary, requires no contract. PSE's renewable energy costs as little as $4 per month to offset a portion of households electricity with renewable energy.

Price

Price - 1 of 4 components of marketing mix. Only "P" that generates sales revenue. Affects consumer evaluations of the product itself In the narrowest sense, price is the amount of money charged for a product. In its broadest sense, price is the sum of the values that customers exchange for the benefits of owning or using the product. Pricing decisions need to be coordinated with promotion and distribution decision.

Price Floor and Ceiling

Price Floor: Bare minimum of production cost. No profits below this price. Price Ceiling: The most that consumers are willing to pay. Based on their perceptions of value. In between: Competition and other external factors

Cost Based Pricing

Pricing based on the costs of producing/buying, distributing, and promoting the product - plus a rate of return (profit)

Breakeven analysis pricing

Process of determining profitability at various levels of sales. The break even point is where sale revenues equal all costs.

Marketing Mix

Product Price Place Promotion 4 P's: Companies blend each marketing mix tool into a comprehensive, integrated marketing program aimed at positions products with target customers.

Total Product Offer

Product is more than physical good or service and consists of everything consumers evaluate when deciding whether to be. Elements may be tangible or intangible. See picture for components.

Classifying Industrial Products

Products used in the production of other products (B2B Products) 1) Production Goods - Raw Materals: oil, timber, metal - Component parts: engines, microprocessors - Production materials: nuts and bolds 2) Support goods - Installations: buildings, machines, equipment - Accessory equipment: tools and office equipment - Supplies: office supplies - Services: maintenance and repair

S - Segmenting the Consumer Market (Methods)

Segmentation Methods: 1) Psychographic: by values, lifestyle, interest. Ex: Zipcar as an low-cost, low-hassle, environmentally responsible alternative to owning a car w/environmental commitments, social change, etc. 2) Benefit: according to different benefits that consumers seek from the product (e.g. organic, convenience, durability, luxury, economy, safety) 3) Volume: by usage and loyalty (nonusers, ex-users, potential users, first-time users, loyal users) 4) Geographic: divisions by cities, counties, states, nations. 5) Demographic: Divisions by age, income, race, gender, occupation, education, etc.

MODULE 11

Segmenting, Targeting and Positioning

Factors Affecting Price

Internal Factors: - Marketing Objectives (Profit maximization, Product Quality Leadership) - Marketing mix - Costs External Factors: - The market and demand - Customers perceptions of price and value - Competitors costs and prices.

Environmental sustainability portfolio

Internal: 1) Pollution Prevention (eliminating or reducing waste before it is created. 2) New Clean Technology (developing new sets of environmental skills and capabilities) External: 1) Product Stewardship (minimizing environmental impact through the entire product life cycle). 2) Sustainability Vision (creating a strategic framework for future sustainability)

PLC Marketing Mix Strategies

Introduction State: - SALES: low - PROFITS losses may occur - COMPETITORS: none-few - MARKETING OBJECTIVE: create product awareness and trial - CUSTOMERS: Innovators - PRODUCT: Offer one basic product - PRICE: Target innovators with a skimming price - PLACE: Use selective distribution - PROMOTION: Use heavy promotion to build primary demand (product awareness) and to get stores/distributors to carry the product.

Marketing Research

Involves analyzing markets to determine opportunities and challenge, and finding the information needed to make good decisions. Research can identify: - The effectiveness of current marketing strategies are - Changing consumer needs - Emerging market trends - Attitudes held by stakeholders - The enviro and social impact of business decisions

Demand-based/target-cost pricing

Is based on demand (buyers sensitivity of demand to changes in prices and involves designing a product that satisfies buyers and meets the company profit foals.

P - Positioning

Using product design, features, style, quality, etc. to create a distinctive and desirable place in the minds of target consumers relative to competing products. Ex: Seventh Generation - cleaning supplies company that offers products that are a green alternative

CASE STUDY: Forensics of Shopping Behavior

What research approaches were used to collect data? - Mostly experimental, but some observation and in home surveying. What are some observation research examples? 1) Watching shoppers in a store via store cameras. What are some survey research examples? 1) Going to peoples home to extract buyer information. People are willing to share more info when they feel safe in the confines of their home, asking about how and why they buy. - Asking teenage girls about why they choose to buy deodorant. Less about function more about sent. What are some experiment research examples? Tests on consumer behavior: 1) American consumers naturally turn right when entering a store while British consumers turn left. So they put fake fireplace on left side of store to lure shoppers. 2) Differences between men and women shopping. Women need a more creative approach. 3) Red objects in the back of the store when people don't typically explore all of the store.

Product Life Cycle (PLC)

The PLC is a theoretical model of what can happen to a products sales and profits over time. The PLC has 4 stages: 1) Introduction 2) Growth 3) Maturity 4) Decline PLC framework describes how a products sales and profits might unfold over time AND suggests marketing mix strategies for each PLC stage.

Quote by Paun in Lecture

Most research tries to establish a confusion or reach verification that no one can successful criticize or undermine. Calls for a shift in focus: If I try to discover a few questions that no one has thought of asking, then I will discover something truly original and important to research.

Pricing and Social Responsibility

- Predatory pricing: selling below cost to punish competitors with the intent of putting competitors out of business. Against the law - eliminating competition. - Discriminatory pricing: selling different prices to different people. - Price fixing: when companies in an industry where they are almost oligopolies, they collude, talk about prices, and fix them as an industry. Illegal - because it eliminated competitive prices that are good for consumers. - Deceptive Pricing: states a price that misleads the consumer. Great prices may not actually be available.

Why new products fail

7 Primary Reasons: 1) Not delivering what was promised 2) Poor product planning 3) Poor product design 4) Product is poorly positioned, placed, priced, and/or promoted 5) Market size is overestimated 6) Costs are underestimated 7) Competitor reactions

No Deposit, No Return

The capturing of negative externalities. Ex: Beverage Container Externalities. Glass bottles require a lot of energy to make. They are 100% recyclable, and disposal to landfills is 100% resource loss. Plastic bottles require a lot of energy as well, require a fossil fuel, and degrade in sunlight which can cause water and soil contamination.

Sustainability & Product Obsolescence

- Planned Product obsolescence refers to causing products to break down or become obsolete prematurely. By: Using materials that will break, holding back functional features and introducing them later to make older models obsolete, perceived obsolescence: continually changing consumer concepts of acceptable styles. - Disposing of stuff prematurely has very negative environmental consequences.

Evolution of Marketing:

- Production Era: produce as much as you can because demand is unlimited. Focus on mass production. - Selling Era: By 1920s, supply exceeded demand so focus changed from production to persuasion to sell excess inventory. - Marketing Concept Era: 1950's competition intensified/businesses needed to be more responsive to consumers to get their business. Focus: Customer comes first - Customer Relationship Era: A RESULT OF FINANCIAL CRISIS IN JAPAN. 1) In 1990s bus focus on building and maintaining long-term buyer-seller relationships by learning as much as possible about customers and satisfying/exceeding expectations. 2) Focus was to build long-term customer loyalty (e.g. Frequent Flyer programs) because the cost of selling a product to a new customer is about 6 times more than selling to existing customer. - On Demand Era: 24/7 digit technology has increased consumer demand for more product information, and they share, compare, and rate their experiences.

VALS In Depth

1) Survivors: - Value: personal and financial safety and security. - Tendencies: Surveyors tend to buy lottery tickets and gamble at casinos. - Ex: Toyota Ad w/little red riding hood. Not driving Toyota and her car is dead on side of the road. She is stranded, at risk and vulnerable. "Performance you can use if you want to be safe and secure" 2) Strivers: - Values: Value having fun and prefer a job over a career. - Tendencies: seek stylish products and view shopping as a social activity. - Ex: Stetson Cologne Company - "experience the freedom" with backpacker. 3) Believers - Values: friends, pets, family and tradition. - Tendencies: Tend to buy moist dog food and choose familiar products rather than being seekers of new products. Connections to brand loyalty. - Ex: Idaho ad - two happy pets in front of boat. 4) Makers - Values: self-sufficiency and like to make, build, and fix things. - Tendencies: to own wood stoves and woodworking tools. - Ex: Home depot wedding registry ad. 5) Thinkers - Values: Value knowledge and having time for reflection. - Tendencies: Tend to own saunas and hot tubs and belong to book clubs. - Ex: LL bean ad. Picture of calm water and sailboat. Reflective advertisement. 6) Achievers - Values: achievement, recognition, and status - Tendencies: own indoor swimming pools and time-saving devices. - Ex: Evian water superhero woman 7) Experiencers - Value: excitement, risk and adventure. - Tendencies: tend to drive sports cars and own radar detectors. - Ex: Tequila ad w/jet plane 8) Innovators - Value: variety, change and new ideas. - Tendencies: buy new products before other consumers. - Ex: Apple Ad - "Think different"

Story of Stuff Discussion Q's

1) What do the following story of stuff terms refer to, and which marketing mix tool does each relate to? - Externalized costs - Percieved and planned obsolescence - Materials throughput - Synergistic Impacts 2) Annie says US has 5% of works pop but uses 30% of resources and makes 30% of water. How did this happen? 3) Do you know of firms involved in addressing ecological or social issues?

Branding

Brand: a name, symbol, or design that identifies the product and distinguishes it from competitors products. Brand Loyalty: the degree to which consumers are committed to buying a specific brand. Brand Equity: The value of the brand name and associated symbols. Brand Awareness: How quickly or easily a given brand name comes to mind when a product category is mentioned. Brand Manager: Manager who is responsible for the brand and manages the marketing mix elements.

S - Segmenting the Consumer Market (General)

Dividing market into smaller segments of buyers with distinct and similar needs, characteristics, behaviors that might require different marketing strategies or mix. Effective Segmentation - Segments Must be (5): 1) Measurable (size/purchasing power can be measured) 2) Accessible (can be reached) 3) Substantial (large and profitable) 4) Differentiable (respond differently to marketing mix elements) 5) Actionable (effective marketing mix program can be designed).

Promotion

I.e. Advertising, personal selling, sales promotion, public relations. Refers to what sellers to do inform, persuade, and remind people about their products and the company and motivate people to buy those products, or think about the company as a whole. Promotion includes: - Personal Selling - Public relations - Sales promotions - Advertising - Word of mouth

Place

I.e. Channels, coverage, locations, inventory, transportation, logistics Developing Distribution channels, or the set of marketing intermediaries that move products from producers to business to consumers. EX: Whole foods - hundreds of suppliers. Mission statement says "we treat our suppliers with respect, fairness and integrity"

Price

I.e. List price, discounts, allowances, payment period, credit terms Selecting a Price depends on: - Production and other costs - Consumer demand - Prices charged by competitors - Firms pricing strategy Ex: Walmart - mission is all about cheap.

Product

I.e. Variety, quality, design, features, brand name, packaging, services - Good, service, or idea that satisfies want or need. - Begins with new product development and test marketing - A total product offering is developed - Some firms create product differentiation - Generating brand loyalty and equity is important. A brand name is a word or figure that differentiates one sellers good from competitors.

Markets to Consumers

STP - Segmenting, Targeting, and Positioning. *In absence of STP there is: Mass Marketing: Developing products for large groups of people. The size & diversity of the consumer market forces marketers to decide which groups they want to serve. Use: Used to be only strategy in early days of marketing. But not much use today. In todays market, so many different types of consumers its ineffective. S: Market Segmentation - diving a market into smaller segments of buyers with distinct and similar needs, characteristics, behaviors that might require different marketing strategies or mix. - Every market has segments, but not all segments are equally useful to company. - Ex: Car market - consumers who chose biggest and comfortable vs ones who care about price vs ones who care about sustainability. T: Target Marketing - Process of evaluating each market segments attractiveness and selecting one or more segments to enter market. P: Positioning - using product design, features, style, quality, etc. to create a distinctive and desirable place in the minds of target consumers relative to competing products. I.e. differentiating product.

Decline Stage

Sales: Decreasing Profits: Further decreasing profits that may become losses Competition: Further decreasing, few in numbers. Marketing Objectives: Reduce expenditures. Customers: Laggards Product: Reduce Product Versions. Price: Consider Price increase if most competitors are gone. Place: Decrease Distribution, drop unprofitable outlets. Promotion: Reduct to only loyal customers.

Maturity Stage

Sales: Mature, reach a maximum. Profits: Decreasing Competitors: Stable number, then decreasing. Marketing Objective: Maximize Profits while defending market share. Customers: Early and late majority Product: Differenziate product (more product versions) to satisfy different consumer segments Price: Further reduce produce Place: Intensify Distribution Promotion: emphasize brand name and benefits. Encourage brand switching.

Product Mix

The combination of all product lines offered by a manufacturer. Ex: Seventh Generation - Kitchen product lines - Bathroom Product line - Laundry product lines - Baby product lines

Oregon Recycling History

The origins of the US bottle bill. Oregon bottle bill of 1971 was the first bottle deposit plan.

Marketing Research Process Step 2: Collect Research Data

Two Types of Data: - Secondary: existing data that you can use. (+) Using secondary data minimizes costs and you should start by looking here. (-) May not provide all the info needed - Primary Data: own data, collected yourself. (+) More relevant, accurate (-) More expensive Primary Data collected through: 1) Observation: - Type: Exploratory. - Use: exploring new situation in which very little information is known. Such new inquiry you are observing just to be in formed. - Ex: Kraft Canada. Watch how canadian homes use their products via video. 2) Survey: - Type: Descriptive - Use: learning about peoples/firms attitudes, preferences, and behaviors. You know enough about a situation that you can frame questions that are meaningful. - Ex: Survey Q: would you look at a clothing label to decide whether or not you would buy a garment based on its eco-friendliness? 3) Experiment - Type: Causal - Use: Often used in sciences. Giving groups of people different "treatments" to determine cause and effect. - Ex: McDonals use experiments before deciding on price. New sandwich offered at one price in one city and another price in another. Differences ins sales related to price charged.