MKT 320F Lecture Notes - Lecture 10: Marketing Mix, Business Analysis
Document Summary
The role of product management and new-product development in marketing strategy. A concept that provides a way to trace the stages of a product"s acceptance, from its introduction (birth) to is decline (death) Typical life cycle of a new product concept. Increasing rate of sales: entrance of competitors, market consolidation. Initial healthy profits: aggressive advertising of the difference between brands, wider distribution. Maturity stage: sales increase at a decreasing rate, saturated markets, annual models appear, lengthened product lines, service and repair assume important roles, heavy promotions to consumers and dealers, marginal competitors drop out, niche marketers emerge. Decline stage: long-run drop in sales, large inventories of unsold items, elimination of all nonessential marketing expenses. Bmw film: third most demanded product line in country after coca-cola and microsoft growing at rate of 3. 5% own rolls-royce. Incorrect positioning: no discernable benefits, poor match between features and customer desires, overstimation of market size, price too high or too low.
