MARK301 Chapter Notes - Chapter 8: Brand Awareness, Failure Rate, Marketing Mix
14 Sep 2016
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Product: anything that can satisfy a consumers" needs or want. Service: activity/bene t that one party o ers to another that is intangible and does not result in ownership of a physical product. Customer compares competing o erings on price, quality and style. Goods and services marketed to consumers who may to yet recognize need or do not wish to recognize need. Only 10% of new products are still on the market and are pro table after 3 years. Failure rate for industrial products is as high as 30% Newness: up to 12 months old (legal de nition) Newness: line extension, signi cant innovation/improvement, true innovation (company de nition) A high-level executive pushes a favourite idea through in spite of research. The idea is good, but the market size is overestimated. Narrow down to those worth more time and money. Develop a system to estimate: market size, product price, development time & cost, manufacturing costs and rate of return.
