MGMT 105 Lecture Notes - Lecture 14: Comparative Advantage, Marketing Mix
Document Summary
Intro to marketing (mgmt 105) lecture notes 14. Involves testing the whole marketing mix, not just the product. Amount of test-marketing needed varies with each new product. Can be risky because it may give information to competitors. Signal jamming by competitors may hide useful information about consumer reactions to test-marketed product. Steps to ensure an effective product planning process: Custo(cid:373)er"s (cid:448)ie(cid:449)poi(cid:374)t is take(cid:374) i(cid:374)to a(cid:272)(cid:272)ou(cid:374)t throughout the development process. Avoid pushing product through to design or production stage before sufficient testing has been done. Continually evaluate the idea and reject if needed. Re(cid:272)og(cid:374)ize the fir(cid:373)"s (cid:272)apa(cid:271)ilities a(cid:374)d e(cid:448)aluate produ(cid:272)t/(cid:272)o(cid:373)pa(cid:374)y fit. All consumers go through the new adoption process: Speed of the process differs across the different types of adopters, depending on complexity, compatibility, relative advantage, observability, trialibility. Product life cycle: stages a product goes through from beginning to end. Money needed to attract distributors and build their inventories. Industry sales growth slow and profits very low or even negative.
