Videos Flashcards
(51 cards)
Market penetration
Selling same product to same market but trying to sell more
Fairly high rate of sucess => 90% or more
Product development
Taking same target but introducing new products
70% chance of success
Market develpment
Taking successful product and moving it to new markets
50% chance of success
Diversification
Going after a brand new product for a brand new prodcut
Lowest chance of success because of so many uknowns
10% - 20% chance of success
School offering classes to new students who go to different universities to try to increase summer enrollment
Market development
Market penetration
Geting exisitng customers to buy more
highest rate of success
coming up with more reasons for them to use the product
starbucks: frequent buyer cards - reward existing users for buying more
- give away after a level of loyalty
Alkaselzer => they decide to take 2 alkaselzers to take better “plop plop fizz fizz” - sells doubled over night
Electronic superstore sends special coupon to its current customers offering them a special discount during slow week
Market penetration
*trying to get exisitng customer to come back one more time
Product development
Selling additional products to the same customer
ex. tide liquid => tide to go pen, tide stain release
Market development
Take same product, move it to new markets
Adjust sweetner depending on customer they are going to
Diversifcation
New product, new audience
Honda sells cars and generators
Strategies in order of success
Market penetration
Product development
Market developpment
Diversification
Elements of a creative strategy? Objective
Trying to get customer to buy for the first time?
or they already know you? trying to get new uses
*increases odds of success
Business to business purchases
Make more purchases than do consumers
Producers
Manufacturers
firms, mines
financial institutions
ORganizaitonal buying is different
Orders are larger
Buying in bulk for raw materials
Organizations buy for a purpose: to use or resell
Basic purchasing needs are economic for organizational buyers - small differences in price can make a big difference in what seller they choose
*some emotional component
Business to business process
Formal
Vendor analysis is consistently used
Larger businesses operate with:
buying center
- buyer, user, influences, gatekeepers, deciders
PO Req
Includes all specifications needed
given to vendors, vendors come back with bids
Buying Center
Formal or informal
Typically involves multiple influences
Varies from purchase to purchase
Buyer and gatekeeper stay same
Decider, user, and influencer may all differ
*typically only buyer position appears on organizational chart
Evaluating Organizational Buying Influences
Vendor Analysis Considers all influences
Behavioral needs are important
Economic importances!!!!
Ethical conflicts may arise
Purchasing may be centralized
Is it ok for a buyer?
As a buyer, you need to be familiar with your company’s policy and be familiar about what you can and cannot accept from vendors
As a buyer, your word is everything
*dont accept anything regardless of what the policy is
Straight Rebuy
Routine purchase
when companies order something very frequently
have a reliable vendor
ex. copying paper at an office
Straight rebuy situatiosn
More difficult to get customers to buy yours instead
New-Task buying
Large capital expenditure
ex. building new technology, building a building
infrequent
try to get a lot of opinions
Will take a lot of time, look at a lot of different vendors
Rare, high risk
