Chapter 15 Flashcards
(46 cards)
What are the three substages of the launch cycle?
A: Prelaunch, beachhead, and early growth.
: Main goal of the prelaunch phase?
Build capability to compete and decide on any pre-announcement.
Two kinds of network externalities influencing pre-announcement?
A: Direct (value rises with # of users) and indirect (value rises with complementary products).
Q: Key management decision in beachhead?
A: When to end the beachhead and shift to early growth
Q: What kicks off the beachhead phase?
A: The public launch announcement.
Q: Define lean launch.
A: A flexible supply-chain approach that responds rapidly to sales changes.
Q: Why is beachhead spending heavy?
A: To overcome sales inertia and secure the first “foothold.”
Q: Two forms of postponement.
A: Time postponement (delay inventory) and form postponement (delay final product design).
Q: Consequence of a late launch?
A: Misses market window; sales below potential.
Q: Consequence of an early launch?
A: Product may ship with insufficient market knowledge or readiness.
Q: Launch pattern aimed at very new-to-world items?
A: Innovative new product pattern.
Q: Launch pattern used to erect barriers to entry?
A: Offensive improvement.
Q: Who usually handles availability for goods?
A: Resellers (pre-stocking, stocking, and promotion).
Q: Name one of the three steps to prep salespeople for a new launch.
A: Investigate objections, provide training & materials, ensure product availability.
Q: Purpose of a copy statement?
A: To brief creative teams on target, position, mix covered, and key copy points.
Q: Four basic communications mixes in a launch?
A: 1) Firm → reseller, 2) Reseller → end user, 3) Firm → end user, 4) All firm efforts to end user.
Q: Launch pattern used to deepen share in existing markets?
A: Defensive addition.
Q: What does ATAR stand for?
A: Awareness, Trial, Availability, Repeat.
Q: In ATAR, what aids awareness?
A: Newsworthiness and visible usage by others.
Q: What must every trial have according to ATAR?
A: A customer cost (time, money, or effort).
Q: Successful repeat use is almost certain when?
A: User did a real trial and product use tests predicted high satisfaction.
Pre-announcement
– Advance signal to market, sometimes via “planned leaks.”
Indirect network externality
Product value depends on complementary products.
Direct network externality
Value depends on how many users adopt.
