Chapter 5 - Gamers Unite!
Chapter 5 - Gamers Unite! B216
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This 5 page Class Notes was uploaded by KUMIKO Notetaker on Sunday October 4, 2015. The Class Notes belongs to B216 at Republic Polytechnic taught by Gerrard Ong in Summer 2015. Since its upload, it has received 18 views. For similar materials see Marketing in Social Science at Republic Polytechnic.
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Date Created: 10/04/15
Chapter 5 Gamers Unite Product Life Cycle PLC The stages through which individual products develop over time Can also be used for product class or product form Introduction stage Stage market size and growth is slight Possible that substantial research and development costs Marketing costs may be high in order to undergo launch promotion and set up distribution channels Consumers are Innovators Often not taken seriously by their peers Growth stage Rapid growth in sales and pro ts Possible better prices Cheaper for businesses to invest in increasing their market share Consumers are Early Adopters Key opinion leaders with their neighbours and friends Maturity stage Most common stage Companies ght to maintain their market share Marketing and nance become key activities Signi cant moves are likely to be copied by competitors Most pro t is earned Expenditure on research and development is likely to be restricted Improve production ef ciency and quality Consumers are Early Majority They stand back and watch the experiences of others Mass purchases Consumers are Late Majority Slower to catch on to the popularity of new products services ideas or solutions Mass consumption Begins to end Decline stage Market is shrinking reducing the overall amount of pro t Possible to take out some production cost to transfer production to a cheaper facility To control the amount of stocks of the product Product remains pro table Company may decide to end the product Consumers are Laggards Tend to very late to take on board new product 39E ll dir ln39IIitl F39 r l i l I Eiiiilre I quot A Till I39Ii 39 PlI ICJ39CIlLHiEI Eheueieiizrrmse rit l3915 lJ fi39IW tilU I 1 113 veit E1 MJ iisi ilt Ema4 linse Etages ell PLC intiretiuttlen Maturity Decline Liam Shale M lF39ealt sale5 Declining salee High cost per 39 Lew test per Lew test per ml eusteimer euete mew euetemer Negative llquotIEil li Ef fie High Prefite Declining prefits E a mewraters Middle maljeritig Laggartlie Few Stable number Declining number beginning tel 7 r decline item Friideal rt tgil ii iii isei quot Maximise Prefit HE39IleuEE my Athrtl ttt and I I Eiei eed Market weerdime Trial 7 Share i Milk EhE preduct Ether e liaeeii I timere t inn anti Pha 5e euit weal a pmstliuet and madel5 Merrie Secure patent Impreee qu elite Eeelt were te pmteetin acid featu re tn rna ice the d istingu i h brand prnduet new 39 frent again cempetitere39 brantie Product Types 1 Convenient products 0 Frequently purchase 0 Little planning comparison or shopping effort 0 Low consumer involvement 0 A very large market segment Consumed regularly and purchased frequently 0 For examples household items such as food cleaning products personal care products 0 High purchase volume 0 Pricing per item tends to be relatively low 0 See little value in shopping around since additional effort yields minimal savings 0 Pro t per unit sold is very low 2 Shopping Products Less frequent purchase 0 Much planning and shopping effort 0 Comparison on suitability in price quality functionality and design 0 Are willing to spend more time locating these products Relatively more expensive 0 Raising their perceived status level o For examples clothing products personal services electronic products and household furnishings Target market is much smaller 0 Choosing distribution outlets to sell their products 3 Specialty Products 0 Special efforts Little comparison of brands Strong brand preference and loyalty Low price sensitivity Carry a high price Same rate as shopping product Consumers are much more selective Consumers will not shop to compare products Retailers provide the best value For examples highend luxury automobiles expensive champagne and celebrity hair care experts Target market generally very small 4 Unsought Products 0 Little product awareness or knowledge 0 Even if aware little or negative interest Purchase is unplanned by the consumer Customer is exposed too promotional activity 0 For examples salesperson39s persuasion or purchase incentives like special discounts offered Product Levels 1 Core Product Core customer value c quotWhat is the buyer really buyingquot 0 Solving bene ts or services that consumer seeks 2 Actual Product 0 Develop product and service features design a quality level a brand name and packaging Name parts styling features packaging and other attributes have all been carefully combined to deliver the core customer value 3 Augmented Product 0 Around the core bene t and actual product by offering additional consumer services and bene ts 0 For examples might give buyers a warranty on parts and workmanship instructions on how to use the device quick repair services when needed and a tollfree telephone number and website to use if they have a problem ELIE stage Firdruid Type Prndunt lLEW EIE lnlrduminn Elamenigma Glare Growth Shaping L Apt43 Maturity Haitian a Augmented Decline Ulnaiaugiht Practice Questions The group of consumers who purchase a product in the Decline stage of the Product Life Cycle a Laggards b Innovators c Early Majority d Early Adopters Consumers who buy products during the Introduction stage of the Product Life Cycle a Laggards b Innovators c Early Majority d Early Adopters Match the words below to the correct product classi cation Cars IPhone 5 Touch screen laptop Honda Odyssey Ferrari Cannondale mountain bike Telephone SUV Bicycles Laptop Bike Friday Mountain Bike Asus Vivobook Home phone Smart phone Gaming laptop Philips Cordless Phone Alienware M18 Sports car a Product Class b Product Form c ProductBrand Defend brand39s share of the market seek growth by luring customers from competitors a Maturity stage b Introduction stage c Growth stage d Decline stage Build sales and market share develop preference for brand a Maturity stage b Introduction stage c Growth stage d Decline stage Establish a market for product type persuade innovators to buy a Maturity stage b Introduction stage c Growth stage d Decline stage Limit costs or seek ways to revive sales and pro ts a Maturity stage b Introduction stage c Growth stage d Decline stage Identify the following products to which product type Burger King Value Meal SPRIT Apparels Azimuth Limited Edition Watch Great Eastern Life Insurance Policy Samsung 3D Television Red Cross Blood Donations Rolls Royce Vintage Car Identify the following statement to which product level a Mobile lifestyle of the laptop b Brand of the laptop Sony Valo c 2 years onsite warranty d Design of the laptop glossy transparent nish in white colour LCD DQOO39QJ e Free products from purchasing the laptop f 24 hours 7 days customer hotline service g Information processing of the laptop 2 You have been employed by Diesel to market its running shoes Your boss informed you that the shoes are categorised as 39Shopping Product39 and would like you to write a short recommendation on how you would price and promote the product as well as where to sell the product Learning Outcomes Describe product life cycle and the strategies relating to each stage of the cycle Differentiate between convenience shopping specialty and unsought products De ne product and identify the various product levels constituting the quottotal productquot Need answers Feel free to drop me an email 15043445 myrpedusg
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