badm 320 test 3

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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


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