BU121 Lecture Notes - Lecture 5: Profit Margin, Planned Obsolescence, Promotional Mix
Document Summary
Key chapter concepts: creating marketing strategies: classifying consumer products vs. classifying business products. Altering the speed of cycle: come up with more uses for the product. Expand the market example: johnson and johnson expanded users to the whole family, not just babies: planned obsolescence: speed up the cycle so people have to keep buying more. Example: clothing may still fit but new fashion keeps coming out to replace the older products (style or fashion obsolescence, quality obsolescence- small appliances) Functional obsolescence (technology makes certain products obsolete- example: blurays are making dvds obsolete) isn"t planned: pricing. Channels and marketing intermediaries (what intermediaries are you going to put between you and the customer) Alternative channel arrangements and strategic channel alliances. Functions of distribution channels (what are they actually going to do for you) Intensity of distribution related to product classification: classification tells you how the consumer buys so you can determine how to sell. Convenience good/service: staples branding, max exposure, shelf position.
