Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MGT 4590 > Test 2 > Flashcards

Test 2 Flashcards

1
Q

Why is the product lifecycle important for marketing strategy?

A

Asaproductprogressesthroughitslifecycle,changesinthemarketingmix(4Ps)usuallyarerequiredinordertoadjust
totheevolvingcompetitivechallengesandopportunitiesofeachstage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the key objectives in the introduction stage of the product life cycle?

A

Establish market and build primary demand
Create customer awareness via promotions
identify and target likely “innovators” (first adopters)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the general characteristics of innovators?

A 
more formal education
higher socioeconomic status
more exposure to mass media channels
more exposure to interpersonal channels
more "change agent" contact
more social participation
more cosmopolitan
more venturesome and risk taking
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Factors impacting the innovation’s rate of adoption

A 
relative advantage
compatibility
complexity
divisibility and trialability
communicability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the marketer’s task

A

identify innovators
design products to appeal to innovators
position marketing mix to appeal to innovators
set strategies to overcome barriers inhibiting adoption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are the marketing mix implications of the introduction stage?

A

product - designproducttomeetneedsofinnovators
promotion - buildbrandawareness,education‐focus
place - selectivedistributiontoconveyexclusivity
price - typicallyhigh(skimming)toconveyquality,recoup
developmentcosts,andappealtoprice‐insensitiveinnovators
andearlyadopters;mayengageinlow(penetration)pricingto
erectentrybarrier(e.g.,ToyotaPrius)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what are the key objectives of the growth stage of the product cycle?

A

gain customer preference as new competitors enter the market

increase sales volume

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what are the marketing mix implications for the growth stage of the product cycle?

A

Product– addnewfeatures,packaging,andproductquality
toappealtonewcustomers
Price– reducepricetocapture“earlyadopters”
Place– expanddistribution/availability
Promotion– shifttoemphasizebranddifferentiationand
preference(whyitisbetterthancompetitors’offerings)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the objectives of the maturity stage in the product cycle?

A

Salesleveloffduetosaturation– engagein“market
expansionstrategies”(encouragenewand/moreuse)
toextendproductlifecycle
Emphasizedifferentiationtoretaincustomerloyalty
Avoidpricewars

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what are the marketing mix implications for the maturity stage of the product cycle?

A

Product– modifyproducttoemphasizedifferentiationand featurestodistinguishfromcompetitorofferings
Price– meetcompetitors’prices;avoidpricewars– takepriceout ofcustomerdecisionmaking
Place - distributionbecomesmostintensive;directincentivesto resellerstoavoidlosingshelfspace
Promotion– emphasisondifferentiationandbuildingbrand loyaltyviaemotionalappeals;createincentivesforcustomersto switch(e.g.PepsiChallenge)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are some options for action in the decline stage of the product cycle?

A

Maintainproductinhopesthatcompetitorswillexit
markettoreapremaining“laggards”
Harvestproduct– reducemarketingsupporttoprofit
fromremainingbutdwindlingsales
Divest– discontinueproductandturnattentionto
substitutes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are the marketing mix implications for the decline stage of the product cycle?

A

Product– reduceofferings;orrejuvenatetomakethemlooknew again(e.g.,vinylrecordsforspecialtymarkets)
Price– maybeloweredtoliquidate;pricesmaybe maintained/increasedtoservenichelaggard/specialtymarkets
Place– selectivedistributiontoservenichelaggard/specialty markets
Promotion– reduceexpenditures;reinforcebrandimagefor continuedproducts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is flaw 1 and what is the lesson learned in why most product launches fail?

A

company can’t support fast growth

Have a plan to ramp up quickly if the product takes off!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is flaw 2 and what is the lesson learned in why most product launches fail?

A

Product falls short of claims and gets bashed.

Lesson: Delay launch until product is really ready.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is flaw 3 and what is the lesson learned in why most product launches fail?

A

New item exists in product limbo – lacks distinction (differentiation)
Lesson: Test the product to make sure its differences will sway buyers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is flaw 4 and what is the lesson learned in why most product launches fail?

A

Product defines a new category and requires substantial consumer
education – but doesn’t get it
Lesson: If consumers can’t quickly grasp how to use your product, it’s toast

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is flaw 5 and what is the lesson learned in why most product launches fail?

A

Product is revolutionary, but there’s no market for it.
Lesson: Don’t gloss over the basic questions – “Who will buy this product?” and
“At what price?”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the lessons learned from the 3M case?

A

Forced 3M to shift from product to customer needs
Doctors recognized “upstream” contain of infections prior to surgery was better than control during/after surgery - re-oriented ideas for new products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Define biomicicry

A

Drawing on biological processes, physical traits, and behavioral strategies observed in nature for new product design.

20
Q

what is the example used in the biomicicry lecture?

A

velcro

21
Q

What are the five forces?

A 
existing competition
entrants
suppliers
buyers
subs
22
Q

According to Barney, what conditions must be met to sustain a competitive advantage>?

A 
product must be:
valuable
rare
imperfectly imitable
no substitutes
complex competitive advantage
23
Q

According to Barney, what does it mean when a product is rare?

A

few products possess the attribute

24
Q

According to Barney, why does a competitive advantage need to be complex in order to be sustained?

A

a unique combination of skills and assets are needed to satisfy the wants and needs of the customer

25
Q

what are the elements of a strategy statement?

A

objective
scope
advantage - why should they buy it?

26
Q

what is an example of a bad strategy statement?

A

“maximizing shareholder wealth by

exceeding customer expectations…”

27
Q

what is a strategy statement?

A

the single precise objective (or end) that will drive the

business over the next five years or so

28
Q

what are the elements of scope?

A

Customer or product offering;
geographic location;
and vertical integration

29
Q

how is the advantage defined?

A

Customer value proposition
Unique activities or complex combination of activities allowing that firm alone to deliver the customer value proposition

30
Q

what is edward jones’s strategy statement?

A

To grow to 17,000 financial advisers by 2012 (objective) by offering trusted and convenient face-to-face financial advice (means) to conservative individual investors who delegate their financial decisions, through a national network of one-financial-adviser offices (domain).

31
Q

Draw the BCG matrix

A

look up on internet

32
Q

what are the stars on the BCG matrix?

A

Relates to growth stage of the product life cycle – employ marketing mix (high growth/high market share)

33
Q

strategies of the growth stage of the bcg model

A

 Maintain growth
 Generates and consumes cash – typically needs cash investments to
maintain growth to pursue learning curve/economies of scale
 As star matures and can maintain large market share, it becomes a cash cow

34
Q

What is the cash cow on the BCG model?

A

(Low growth/high market share)

35
Q

what are the strategies of the cash cow on the BCG model?

A 
Maintain position as provides steady cash flow with limited investment 
 Excess cash generation should be “milked” and invested into stars or 
problem children (question marks)
36
Q

what are the dogs of the BCG model?

A

(Low growth/low market share) Relates to the decline stage of the product life cycle – employ marketing mix
strategies related to decline

37
Q

what are the strategies of dogs on the BCG model?

A

Cash cows typically may become dogs
 “Cash traps” – money is tied up in a dying business or that has limited
potential
 Divest or harvest (maximize remaining profits with limited investment)

38
Q

what are the problem children or question marks on the BCG matrix?

A

(High growth/low market share)

39
Q

what are the strategies of the problem children or question marks on the BCG matrix?

A

employ marketing mix strategies related to introduction stage… or divest!
Build up market share to become a star … or get out if market position cannot change

40
Q

what are the elements of the VRIO framework?

A

value
rarity
imitability
organization

41
Q

what is the question of value?

A

“Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?

42
Q

what is the question of rarity?

A

“Is control of the resource/capability in the hands of a relative few?”

43
Q

what is the question of imitability?

A

“Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?”

44
Q

what is the question of organization?

A

“Is the firm organized, ready, and able to exploit the resource/capability?”

45
Q

draw the product life cycle

A

see internet

MGT 4590 (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions