MARK 201 Chapter Notes - Chapter 11: Brand Management, Product Differentiation, Juicy Couture
Document Summary
When a product is introduced into its intended target market. Trial: the initial purchase of a product by a consumer. Advertising and promotion are often made to stimulate primary demand. Primary demand: the desire for the product class rather than a specific brand. Skimming: strategy to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers. Penetration pricing: to discourage competition, a company can price low (it helps build unit volume) Profit usually peaks as a result of more aggressive pricing and more competitors. Advertising shifts emphasis to stimulate selective demand; product benefits are compared with those of competing brands. Repeat purchases: people who tried the product, were satisfied, and bought it again. Changes appear in this stage ( models, new features, design) Slowing of total industry sales or product class revenue. Most consumers who would buy the product are either repeat purchasers or have tried and abandoned it.
