Marketing 3010 Week 10 Notes
Marketing 3010 Week 10 Notes Mkt 3010-001
Popular in Principles of Marketing
verified elite notetaker
Popular in Marketing
This 5 page Class Notes was uploaded by Hannah Stephens on Saturday March 12, 2016. The Class Notes belongs to Mkt 3010-001 at Clemson University taught by Carter Willis McElveen in Spring 2016. Since its upload, it has received 71 views. For similar materials see Principles of Marketing in Marketing at Clemson University.
Reviews for Marketing 3010 Week 10 Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 03/12/16
Chapter 12: Developing New Products Go Pro o 10 year overnight success story o Invented as a wrist camera for surfers o Releasing peripherals and cameras quickly o Gives customers the opportunity to innovate Innovation & Value o Why do firms create new products? Customers needs change Market saturation Managing risk through diversity Managing risk through diversity Fashion cycles Improving business relationships Changing customer needs Diffusion Innovation: process by which innovation spreads New product introductions o Pioneers: radically change competition and consumer preferences o Using the Diffusion of Innovation Theory Don’t necessarily need all 4 factors for innovation to spread quickly; but the more you have the faster it’ll spread 1. Compatibility—works well with products customer already has a. App that needs an updated software will be slower for person to adopt and download b. Apple switched from big to smaller connector people slower to switch 2. Observability—easily observe the benefits a. You can see when car brands make a new model 3. Relative Advantage—VHS vs. DVD, having a huge relative advantage makes products diffuse faster a. Reason iPhone took off 4. Trialability—the more able you are to try it the more likely you are to buy it a. Toyota has a 40 day trial How firms develop new products 1. Idea Generation a. Internal Research and development i. High product development costs ii. Often the source of technological products 2. Research and Design Consortia (collaboration) a. Lower cost and risks, firms join together iii. Form research opportunities iv. Benefits spread to al firms v. Ex. Pharmaceutical industry research 3. Licensing a. Firms purchase rights to technology or ideas from other research 4. Market Testing a. Testing your product in the market 5. Product Launch a. Very expensive 6. Evaluation of Results a. Satisfaction of technical requirements b. Customer acceptance c. Satisfaction of the firms financial requirements d. Failure=not making a profit i. Not even recovering cost Why new products fail o No discernable benefits o Poor match between features and cost and desires o Over estimation of market size o Incorrect positioning/inadequate distribution o Price too high or low o Poor promotion o Inferior product Product Life Cycle (~ 30 years) 1. Intro Stage (high failure rates) a. Slow growth b. Recouping investments, product modification c. Launching products d. High market/product costs e. Awareness 2. Growth a. Increased rate of sale b. Competitors appear c. Aggressive advertising d. Profit rises/ healthy profits e. Wider distribution f. Ex. Organic canned goods, Clorox wipes 3. Maturity a. Most products in US are in this stage b. Defending your market share c. Sales increase at a slower rate i. Line more flat d. Market saturation e. Annual models appear f. Product lines lengthen g. Heavy promotion to consumer h. Marginal competitors start to drop out 4. Decline a. Long run drop in sales b. Eliminate marketing expenses c. Large inventories of unsold items d. Organized environment e. Ex. CD’s/DVDs, folger’s coffee, Crisco Chapter 13: Services Marketing the Intangible Product Disney o Mass customization o Lessons from the Mouse Day 1 in Training/How to create Magical Moments/ Sweat the details Green side up (all hands on deck) Use your mouse ears (weddings/parking solutions? Always show ready: cast members/onstage/ guests not customers Every guest is important: Assertive Friendly: Special Treatment Provide communications training Magic and bands: enhancing customer service further Builds loyalty Other companies use their service as a benchmark The Importance of Services Service driven economy By providing good customer service, firms add value to their products and services Economics of Services o Developed economies increasingly service economies 1. Household maintenance became more specialized 2. High value placed on convenience and leisure 3. Production was cheaper in other countries The Service Continuum o Most services lie somewhere in middle o Picture in book The Service Offering o Core service—the most basic benefit the consumer is buying o Supplementary Service—group of services that support or enhance the core service o i.e. FedEx core service is delivering package but do a lot of other stuff How does Service Market Differs from Product Market o Application question on test!! 1. Intangible a. Requires using cues to aid customers b. Atmosphere is important to convey value c. Images are used to convey value d. Images are used to convey benefit of value e. Nice dr. office vs. messy, gross dr. office f. Restaurant atmospheres 2. Inseparable Production & Consumption a. Production and consumption are simultaneous b. Little opportunity to test a service before use c. Lower risk by offering guarantees or warranties 3. Heterogeneous (Variable) (ways to overcome it) a. Technology b. Training c. Automation i. All 3 are ways to overcome bad service! 4. Perishable a. Cannot store, warehouse, or inventory your services i. Hotel room, seats on airplane b. Why prices change c. Services are perishable d. Restaurant hours i. Why they do promos during dead hours to get people in the door Why are services assessed? o Search quality: applied to goods more often, assessed before purchase o Experience quality: assessed after purchase o Credence quality: assessed only with appropriate knowledge Service as a Process o People Processing: service directed at customer (message, facial) o Possession Processing: service directed at customer’s physical possessions (dry cleaning, maid service) o Mental Stimulus Processing: Service directed at people’s minds (concert, education, football game) o Info processing: service that use technology/brainpower directed at customers’ assets (banking and financial services, insurance) Evaluating Service Quality o Reliability: ability to perform the service dependable and accurately o Responsiveness: willingness to help customers and provide prompt service o Assurance: knowledge and courtesy by employees ad their ability to convey trust and confidence o Empathy: the caring, individualized attention provided to customers o Tangibles: appearance of physical facilities, equipment, personnel, and communication materials The Knowledge Gap o Knowing what customers want 1. Market Research: Understanding customers 2. Evaluating Service Quality 3. Understanding Customer Expectations Closing the Knowledge Gap o Matching customer expectations with actual service through research Understanding Customer Expectations o Based on knowledge and experience o Vary according to type of service o Vary depending on the situation Zone of Tolerance o Range of acceptable outcomes
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'