33:630:301 Chapter Notes - Chapter 11: Product Differentiation, Marketing Mix
Document Summary
Product life cycle stages a new product goes through in the marketplace. *when a product is introduced to the intended market. Lack of proit= result of large investment costs in product development. Primary demand desire for product class rather than speciic brand because there are few compeitors [adverising and promoion expenditures simulate primary demand] Skimming high iniial price helps the company recover the costs of development and capitalize on price insensiive early buyers. Penetraion pricing low price helps discourage compeiive entry & build unit volume. Repeat purchasers people who tried the product, were saisied, and bought again. Sales= slow [increase at a decreasing rate less new buyers] Market= direct to holding market share through product difereniaion and new buyers. Control markeing cost by improving promoional & distribuion eiciency. Deleion dropping the product from the company"s product line [most drasic] Residual core of consumers sill consume the product in the decline stage. Harvesing company retains the product but reduces markeing costs.
