MCS 1000 Chapter Notes - Chapter 11: Product Differentiation, Competitive Advantage, Marketing Mix

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Sergio Meza

Document Summary

Describes stages a new product goes through in the marketplace. Occurs when a product is first introduced to its intended target market. Marketing objective: create consumer awareness and stimulate trial. Lack of profit result of large investment costs in product development. Trial: the initial purchase of a product by a consumer. Advertising and promotion expenditures are often made to stimulate primary demand. Desire for the same product, rather than a specific brand (product class) More competitors introduce own product, company focuses on creating selective demand. Emphasis of advertising shifts to stimulating selective demand (product benefits are compared with those of competitors" offerings to gain market share. Changes appear features added to original design. Want to gain as much distribution for the product as possible. Slowing of total industry sales or product class revenue. Customers wither repeat purchases of item or abandon it. Sales increase (at decreasing rate) fewer new buyers enter market.