Marketing Management Exam 2

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1

Market leader

Has largest market share

Leads in price changes, new product introductions, distribution coverage and promotional intensity

40%

2

Market challenger

Market group that attacks the leader and other competitors in an aggressive bid for further market share

30%

3

Market follower

Market group that is willing to maintain its share and chooses not to rock the boat or attack the market leader

20%

4

Market nicher

Market group that serves small segments larger firms don't reach

10%

5

Market leader strategies

Expand the total market

Defend market share

Mobile defense

Contraction defense

6

Expanding total market demand strategies

New customers - new users and new uses

More usage - increase amount, level, or frequency used

Additional opportunities to use the brand

New ways to use the brand

7

Protecting market share strategies

Proactive marketing

Defensive marketing

8

Proactive marketing

Responsive marketing

Anticipative marketing

Creative marketing

9

Responsive marketing

Proactive marketing strategy

Finds stated need and fills it

10

Anticipative marketing

Proactive marketing strategy

Looks ahead to needs customers may have in the near future

11

Creative marketing

Proactive marketing strategy

Discovers solutions customers did not ask for but to which they enthusiastically respond

Market driving firms

12

Defensive marketing strategies

Position defense

Flank defense

Preemptive defense

Counteroffensive defense

Mobile defense

Contraction defense

13

Position defense

Defensive marketing strategy

Occupying the most desirable market space in consumer's minds, making the brand almost impregnable

14

Flank defense

Defensive marketing strategy

Erecting outposts to protect a weak front or support a possible counterattack

15

Preemptive defense

Defensive marketing strategy

Attack first in order to keep everyone off balance

Announce a stream of new products in advance

16

Counteroffensive defense

Defensive marketing strategy

The market leader can meet the attacker frontally and hit its flank or launch movements forcing challengers to pull back

Exercise of economic or political clout

17

Mobile defense

Defensive marketing strategy

The leader stretches its domain over new territories through marketing broadening and diversification

18

Contraction defense

Defensive marketing strategy

Market leaders give up weaker markets and reassign resources to stronger ones

19

Potential drawbacks of increasing market share

Antitrust action

Economic cost

Pursuing the wrong marketing-mix strategy

Effect of increased market share on actual and perceived quality

20

Market challenger strategic objectives

Attack the market leader

Attack firms its own size that are not doing the job and are underfinanced

Attack small local and region firms

21

Market challenger attack strategies

Frontal attack

Flank attack

Encirclement attack

Bypass attack

Guerrilla attacks

22

Frontal attack

Market challenger attack strategy

Attacker matches its opponent's product, advertising, price, and distribution

Greater resources will win

23

Flank attack

Market challenger attack strategy

Concentrate your strength's on the enemy's weak spots

Geographic attack

Serve uncovered market needs attack

24

Encirclement attack

Market challenger attack strategy

Attempts to capture a wide slice of territory by launching a grand offensive on several fronts

Challenger must command significant resources

25

Bypass attack

Market challenger attack strategy

Bypassing the enemy altogether to attack easier markets

Diversifying into unrelated products, new geographical regions, new technologies

26

Guerrilla attacks

Market challenger attack strategy

Small intermittent attacks, conventional and unconventional designed to harass the opponent and eventually secure permanent footholds

Selective price cuts, intense promotion, legal actions

27

Market follower strategies

Counterfeiter

Cloner

Imitator

Adapter

28

Counterfeiter

Market follower strategy

Duplicates leader's products and packages and sells it on the black market

29

Cloner

Market follower strategy

Emulates the leaders products, name, and packaging with slight variations

30

Imitator

Market follower strategy

Copies some things from the leader but differentiates on packaging, advertising, pricing, or location

31

Adapter

Market follower strategy

Takes the leaders products and adapts or improves them

32

Market niche stratgies

End user specialist

Vertical level secialist

Specific customer specialist

Product line specialist

Product feature specialist

Quality/Price specialist

Service specialist

Channel specialist

33

Product life cycle

Introduction

Growth

Maturity

Decline

34

Growth-slump-maturity pattern

Sales grow rapidly when the product is first introduced and fall into a petrified level sustained by late adopters buying for first time and early adopters replacing it

Small kitchen appliances

35

Cycle-recycle patter

Aggressively promote new product, when sales decline, another promotion push occurs

Pharmaceutical drugs

36

Scalloped PLC

Product life cycle

Sales pass through a succession of life cycles based on the discovery of new product characteristics, uses, or users

Nylon

37

Style

A basic and distinctive mode of expression

38

Fashion

Currently accepted or popular style in a given field

39

Fad

Fashions that come quickly into public view, are adopted with great zeal, peak early, and decline very fast.

40

Marketing strategies for INTRODUCTION stage of product life cycle

Inform potential consumers

Induce product trial

Secure distribution in retail outlets

41

Inventor

First to deveop patents in a new product category

42

Product pioneer

First to develop a working product model

43

Market pioneer

First to sell in the new product category

44

Marketing strategies for GROWTH stage of product life cycle

Improve product quality and add new features

Add new models and flanker products

Enters new market segments

Increases distribution coverage and enters new distribution channels

Shifts from awareness and trial promotion to loyalty

Lowers prices to attract the next layer of price sensitive buyers

45

Marketing strategies for MATURITY stage of product life cycle

Market modification

Product modification

Marketing program modification

46

Marketing strategies for DECLINE stage of product life cycle

Harvesting

Divesting

47

Harvesting

Marketing strategy for decline stage of product life cycle

Gradually reducing the product cost while trying to remain profitable

48

Divesting

Marketing strategy for decline stage of product life cycle

Selling the product, idea, distribution channel to another firm

49

Marketing strategies in an economic downturn

Explore the upside of increasing investment

Get closer to customers

Review budget allocations

Put forth the most compelling value proposition

Fine tune brand and product offerings

50

Five product levels - Customer value hierarchy

Core benefit

Basic product

Expected product

Augmented product

Potential product

51

Product

Anything that can be offered to a market to satisfy a want or need

52

Core benefit

The service or benefit the customer is really buying

Hotel guest buying rest and sleep

Drill buyer is purchasing holes

53

Basic product

A core benefit is turned into a product

Hotel room includes a bed, bathroom, towels, desk, dressers, etc

54

Expected prodcuct

A set of attributes and conditions the buyer normally expect when they purchase this product

Hotel guests expect clean bed, fresh towels, working lamps, etc

55

Augmented product

A product that exceeds customers expectations

Brand positioning and competition occur here

56

Potential product

Encompasses all the possible augmentations and transformations the product or offering might undergo in the future

57

Consumption system

The way the user performs the task of getting and using products and services

58

Product classificaitons

Durability and tangibility

Consumer goods

Industrial goods

59

Durability and tangibility products

Nondurable goods

Durable goods

Services

60

Nonduarable goods

Tangible goods normally consumed in one or a few uses

Beer, cheese, shampoo

61

Durable goods

Tangible goods that normally survive many uses

Washing machine, car, clothing

62

Services

Intangible, inseparable, variable and perishable products that normally require more quality control, supplier credibility, and adaptability.

Haircuts, legal advice, appliance repairs

63

Consumer goods classification

Convenience goods

Shopping goods

Specialty goods

Unsought goods

64

Convenience goods

Purchased frequently, immediately, and with minimal effort

Soft drinks, soaps, etc

Impulse goods

Emergency goods

65

Shopping goods

Consumers compare on bases such as suitability, quality, price, and style

Homogenous - differ by price

Heterogeneous - differ by quality

66

Specialty goods

Have unique characteristics or brad identifications for which enough buyers are willing to make a special purchasing effort

Cars, stereo equipment, homes

67

Unsought goods

Goods the consumer does not now about or normally think of buying

Smoke detectors, cemetery plots

68

Industrial goods

Materials and parts

Capital items

Supplies and business services

69

Materials and parts

Goods that enter the manufacturers product completely

Raw materials

Manufactured materials

70

Raw materials

Farm products - wheat, cotton, livestock, fruits

Natural products - fish, lumber, iron ore

71

Manufactured materials

Component materials - iron, yarn, cement

Component parts - small motors, tires, castings

72

Capital items

Long lasting goods that facilitate developing or managing the finished products

Installations

Equipment

73

Installations

Buildings, factories, heavy equipment, machines, computer systems

74

Equipment

Portable factory equipment and tools and office equipment

Don't become part of finished product

75

Supplies and business services

Short term goods and services that facilitate developing or managing the finished product

Maintenance and repair items

Operating supplies

Business advisory services

76

Maintenance and repair items

Paint, nails, brooms, window cleaning, copier repair

77

Operating supplies

Lubricants, coal, writing paper

78

Business advisory services

Legal, management consulting, advertising

79

Product differentiation

Form

Featuers

Customization

Performance quality

Conformance quality

Durability

Reliability

Repairability

Style

80

Services differentiation

Ordering ease

Delivery

Installation

Customer training

Customer consulting

Maintenance and repair

Returns

81

Design

The totality of features that affect how a product looks, feels, and functions to a consumer

82

The product hierarchy

Need family

Product family

Product class

Product line

Product type

Item

83

Need family

Product hierarchy

The core need that underlies the existence of a product family

Example - security

84

Product family

Product hierarchy

All the product classes that can satisfy a core need

Example - savings and income

85

Product class

Product hierarchy

A group of products within the product family recognized a having a certain functional coherence

Example - financial instruments

86

Product line

Product hierarchy

A group of products within a product class that are closely related because they perform a similar function, are sold to same customer groups, are marketed through the same channels, or fall within given price range

Example - life insurance

87

Product type

Product hierarchy

A group of items within a product line that share one of several possible forms of the product

Example - term life insurance

88

Item

Product hierarchy

A distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute.

Example - Prudential renewable term life insurance

89

Product system

A group of diverse but related items that function in a compatible manner

Example - iPod product selections

90

Product Mix

The set of all products and items a particular seller offers for sale

Width

Length

Depth

Consistency

91

Width

Part of product mix

How many different product lines the company carries

92

Length

Part of product mix

The total number of items in a mix

93

Depth

Part of product mix

How many variants are offered of each product in the line

94

Consistency

Part of product mix

How closely related the various product lines are in end use, production requirements, distribution channels, or some other ways

95

Product map

Shows which competitors' items are competing against company X's products

Shows possible locations for new items

Identifies market segment

96

Product line length decisions

Line stretching

Line filling

Line modernization, featuring, and pruning

97

Line stretching strategies

Down market stretch

Up market stretch

Two way stretch

98

Line stretching

When a company lengthens its product line beyond its current range

99

Down market stretch

Product line stretching strategy

Introducing lower priced line

100

Up market stretch

Product line stretching strategy

Introducing a premium product line in the high end market

101

Two way stretch

Product line stretching strategy

Introducing both lower and higher priced product lines

102

Line filling

Lengthening a product line by adding more items within the present range

103

Product mix pricing strategies

Product line pricing

Optional feature pricing

Captive product pricing

Two part pricing

By product pricing

Product bundling pricing

104

Product mix pricing

The firm searches fro a set of prices that maximizes profits on the total mix, not individual products

105

Product line pricing

Products in a line with established quality and price differences

Men's suits for $300, $600, and $900

106

Optional feature pricing

Companies offering optional products, features, and services with their main product

Restaurants price food low and beverages high

107

Captive product pricing

Products that require the use of ancillary or captive products

Low initial razor prices, high prices for replacement blade cartridges

108

Two part pricing

A fixed fee plus a variable usage fee

109

By product pricing

The selling of products that are byproducts of the original product

Meats, petroleum, etc

110

Product bundling pricing

Pure bundling - firm offers its products only as a bundle

Mixed bundling - firm offers products both individually and as a bundle

111

Co-branding

Two or more well known brands are combined into a joint product or marketed together in some fashion

112

Ingredient branding

Special case of co-branding

Creates brand equity for materials, components, r parts that are necessarily contained within other branded products

GORETEX water resistant fibers, Scotchgard fabrics

113

Packaging

All the activities of designing and producing the container for the product

114

Labeling

Identifies the product

Grades the product

Describes the product

Promotes the product

115

Warranty

Formal statements of expected product performance by the manufacturer

116

Service

Any act or performance one party can offer to another that is essentially intangible and does not result int he ownership of anything

117

Categories of service mix

Pure tangible good

Tangible good with accompanying services

Hybrid

Major service with accompanying minor goods and services

Pure service

118

Pure tangible good

Service mix category

Soap, toothpaste, salt

No accompanying services

119

Tangible good with accompanying services

Service mix category

Car, computer, cell phone

120

Hybrid

Service mix category

Equal parts goods and services

Restaurant meal

121

Major service with minor accompanying goods and and services

Service mix category

Air travel

122

Pure service

Service mix category

Purely intangible service

Babysitting, psychotherapy, massage

123

Search qualities

Goods with characteristics the buyer can evaluate before the purchase

Clothing, jewelry, furniture

124

Experience qualitites

Characteristics the buyer can evaluate after the purchase

Vacation, haircuts

125

Credence qualities

Characteristics the buyer normally finds hard to evaluate even after consumption

Auto repair, medical diagnosis

126

Characteristics of services

Intangibility

Inseparability

Variability

Perishability

127

Intangibility

Services characteristic

Services cannot be seen, tasted, felt, heard or smelled before they are bought

Position by using place, people, equipment, communication material, symbols and price

128

Inseparability

Services characteristic

Services are typically produced and consumed simultaneously

Not like physical goods which are manufactured, inventoried, distributed, and then consumed

129

Variability

Services characteristic

The quality of services depends on who provides them, when and where, and to whom, which makes them highly variable

Invest in good hiring and training procedures

Standardize the service performance process

Monitor customer satisfaction

130

Perishability

Services characteristic

Services cannot be stored

Demand strategies - differential pricing, nonpeak demand, complementary services, reservation systems

Supply strategies - part-time employees, peak time efficiency, increased customer participation, shared services, facilities for future expansion

131

Solutions to customer failures

Redesign processes and redefine customer roles to simplify service encounters

Incorporate the right technology to aid employees and customers

Create high performance customers by enhancing their role clarity, motivation, and ability

Encourage "customer citizenship" so customers help customers

132

Types of marketing in service industries

External marketing

Internal marketing

Interactive marketing

133

External service marketing

Normal work of preparing, pricing, distributing, and promoting

134

Internal service marketing

Training and motivating employees to serve customers wel

135

Interactive service marketing

Describes the employees' skill in serving the client

136

Best practices of top service companies

Strategic concept

Top management commitment

High standards

Profit tiers

Monitoring systems

Satisfying customer complaints

137

Service quality model

Highlights the main requirements for delivering high service

Identifies five gaps that cause unsuccessful delivery

138

Gaps that cause unsuccessful service delivery

Gap between consumer expectation and management perception

Gap between management perception and service quality specification

Gap between service quality specification and service delivery

Gap between service delivery and external communications

Gap between perceived service and expected service

139

Determinants of service quality

Reliability

Responsiveness

Assurance

Empathy

Tangibles

140

Customer worries about product service

Failure frequency

Downtime

Out of pocket costs

141

Consumer psychology and pricing

Reference prices

Price quality inferences

Price endings

142

Reference prices

Comparing an observed price to an internal reference price consumers remember or an external frame of reference such as a posted "regular retail price"

143

Steps in the pricing process

Select the pricing objective

Determining demand

Estimating costs

Analyzing competitors' costs, prices, and offers

Selecting a pricing method

Selecting the final price

144

Pricing objectives

Survival

Maximum current profit

Maximum market share

Maximum market skimming

Product quality leadership

145

Survival pricing objective

Companies who are plagued with overcapacity, intense competition, changing consumer wants

146

Maximum current profit pricing objective

Estimate demand and costs and set the price that maximizes profit

147

Maximum market share pricing objective

Higher sales volume is believed to lead to lower unit costs

Market penetration pricing - set the lowest price to sell high volumes

Price sensitive market

Production and distribution costs fall with accumulated experience

Low price discourages competition

148

Maximum market skimming pricing objective

Prices start high and slowly drop over time

High current demands

Unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear

High initial prices does not attract competitors

High price communicates the image of superior product

149

Product quality leadership pricing objective

Company that aims to be the product quality leader

Can charge premiums

150

Determining demand

Price sensitivity

Estimating demand curves

Price elasticity of demand

151

Methods for estimating demand curve

Surveys

Price experiments

Statistical analysis

152

Price elasticity of demand

How responsive or elastic demand is to a change in price

Inelastic - demand hardly changes with large change in price

Elastic - demand considerably changes with change in price

153

Price indifference band

A range of prices in which price changes have no effect on demand

154

Experience or learning curve

Decline in average cost with accumulated production experience

155

Target costing

The concentrated effort by designers, engineers, and purchasing agents to reduce costs

156

Pricing methods

Markup pricing

Target return pricing

Perceived value pricing

Value pricing

Going rate pricing

Auction type pricing

157

Markup pricing method

Markup price = unit cost / (1 - desired markup %)

20% markup

16 / (1 - 0.2) = 20

158

Target return pricing

Firm sets a price that yields its target rate of return

Target return price =

unit cost + ((desired return X invested capital) / unit sales)

159

Invest $1,000,000

Unit cost $16

50,000 unit sales

ROI of 20%

Find Price

= $16 + ((0.20 X $1,000,000) / 50,000) = $20

160

Break even volume

Total revenue curve crosses the total cost curve

Break even volume =

fixed cost / (price - variable cost)

161

Fixed costs - $300,000

Price = $20

Variable costs = $10

= 300,000 / (20 - 10) = 30,000

162

Perceived value pricing

Basing a price on the customer's perceived value

Based on buyer's image of product performance, channel deliverables, warranty quality, customer support, etc

163

Value pricing

Charge a fairly low price for high quality offers to win loyal customers

164

Everyday low pricing

Charging a constant low price with little or no price promotions or specials sales

165

High low pricing

Retailer charges high prices on an everyday basis but runs frequent promotions with prices temporarily lower than everyday low prices

166

Going rate pricing

Firm basis its prices largely on competitor's prices

167

Auction type pricing

English auction - one seller, many buyers increasing bids

Dutch auction - one buyer, many sellers decreasing bids

Sealed bid auctions - allow only one bid per supplier, can't know what other suppliers bid

168

Countertrade

Buyers that offer other items in payment

Barter

Compensation deal

Buyback arrangement

Offset

169

Barter

Buyer and seller directly exchange goods

No money involved

170

Compensation deal

Seller receives some percentage of the payment in cash, the rest in products

171

Buyback agreements

Seller sells plant, equipment, or technology to another country and agrees to accept the products produced with that equipment as partial payment.

172

Offset

The seller receives full payment in cash but agrees to spend a substantial amount of money in the location in which it was produced

173

Promotional pricing

Loss leader pricing

Special event pricing

Special customer pricing

Cash rebates

Low interest financing

Longer payment terms

Warranties and service contracts

Psychological discounting

174

Loss leader pricing

Supermarkets drop prices on well known brands to stimulate additional store traffic

175

Differentiated Pricing

Customer segment pricing

Product form pricing

Image pricing

Channel pricing

Location pricing

Time pricing

176

Price discrimination

Selling a product or service at two or more prices that do not reflect a proportional difference in costs

First degree - separate prices to customers based on the intensity of demand

Second degree - lower prices to customers who buy in large volumes

Third degree - seller charges different amounts to different classes of buyers

177

Customer segment pricing

Different customer groups pay different prices for the same product

178

Product form pricing

Different versions of the product are priced differently but not proportionally to cost

179

Image pricing

Different prices based on image differenes

Perfume in different bottles

180

Marketing channels

Sets of interdependent organizations participating in the process of making a product or service available for use or consumption

181

Marketing channel system

The particular set of marketing channels a firm employs

182

Merchants

Wholesalers and retailers who buy, take title to, and resell merchandise

183

Agents

Brokers, manufacturers' representatives, sales agents who search for customers and may negotiate on the producer's behalf but do not take title of the product

184

Facilitators

Transportation companies, warehouses, banks, ad agencies, who assist in the distribution process but neither take title to goods nor negotiate purchases

185

Push strategy

Uses manufacturer's sales force, trade promotion money to induce intermediaries to carry, promote, and sell the product to end users

Low brand loyalty

186

Pull strategy

Manufacturer uses advertising, promotion ad other forms of communication to persuade consumers to demand the product from intermediaries, this inducing the intermediaries to order it

High brand loyalty

187

Hybrid marketing channels

When a single firm uses two or more marketing channels to reach customer segments

188

Demand chain planning

The company first thinks of the target market and then designs the supply chain backward from that point

189

Value network

A system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings

Firm's suppliers, suppliers' suppliers, immediate customers, end users

190

Enterprise resource planning system

Manage cash flow, manufacturing, human resources, purchasing and other major functions within a unified framework

191

Zero level channel

Direct marketing channel

A manufacturer selling directly to the final customer

192

One level channel

A manufacturer selling to a distributor selling to the final customer

193

Two level channel

A manufacturer negotiating with a representative selling to a distributor selling to the final customer

A manufacturer selling to a wholesaler selling to a retailer selling to the final customer

194

Jobbers

Intermediaries that act as small scale whole-salers

Meat packing industry

195

Channel alternatives

Exclusive distribution

Selective distribution

Intensive distribution

196

Exclusive distribution

Severely limiting the number of intermediares

When producer wants to maintain control over service level and outputs

197

Selective distribution

Relies on only some of the intermediaries willing to carry a particular product

Can gain adequate market coverage

198

Intensive distribution

Places goods or services in as many outlets as possible

Snack foods, soft drinks, newspapers

199

Elements in trade relations mix

Price policy

Conditions of sale

Distributors' territorial rights

Mutual services and responsibilities

200

Channel power

the ability to alter channel members' behavior so they take actions they would not have taken otherwise

201

Types of manufacturers' channel powers

Coercive power

Reward power

Legitimate power

Expert power

Referent power

202

Coercive power

Manufacturer threatens to withdraw a resource or terminate a relationship

203

Reward power

Manufacturer offers intermediaries an extra benefit for performing specific acts or functions

204

Legitimate power

Manufacturer requests a behavior that is warranted under a contract

205

Expert power

The manufacturer has special knowledge the intermediary values

206

Referent power

Manufacturer is so highly respected that intermediaries are proud to be associated with it

207

Efficient consumer response practices

Demand side management - collaborative practices to stimulate demand

Supply side management - collaborative practices to optimize supply

Enablers and integrators - collaborative info tech and process improvement tools to support joint activities

208

Types of vertical marketing systems

Corporate vertical marketing system

Administered vertical marketing system

Contractual vertical marketing system

209

Conventional marketing channel

Consists of an independent producer, wholesaler, and retailer

210

Vertical marketing system

When the producer, wholesaler, and retailer act as a unified system

211

Corporate vertical marketing system

Combines successive stages of production and distribution under single ownership

Sears obtains goods from subsidiaries it owns

212

Administered vertical marketing system

Coordinates successive stages of production and distribution through the size and power of one of the members

Manufacturers of dominant brands can secure strong trade cooperation and support from resellers

213

Distribution programming

Building a planned, professionally managed, vertical marketing system that meets the needs of both manufacturer and distributer

214

Contractual vertical marketing system

Independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone

Wholesaler sponsored voluntary chains

Retailer cooperatives

Franchise orgainizations

215

Wholesaler sponsored voluntary chains

Wholesalers organize voluntary chains of independent retailers to help standardize their selling practices and achieve buying economies

216

Retailer cooperatives

Retailers take the initiate to organize a new business entity to carry on wholesaling and possibly some production

217

Franchise orgainizations

A franchisor might link several successive stages in the production distribution process

218

Horizontal marketing system

Two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity

219

Integrated marketing channel system

Channel in which the strategies and tactics of selling through one channel reflect the strategies and tactics of selling through one or more other channels

220

Channel conflict

When one channel member's actions prevent another channel from achieving its goal

221

Types of channel conflict

Horizontal channel conflict - between members at the same level

Vertical channel conflict - between different levels of the channel

Multichannel conflict - when manufacturer has established two or more channels that sell to the same market

222

Causes of channel conflict

Goal incompatibility

Unclear roles and rights

Differences in perception

Intermediaries' dependence on the manufacturer

223

Strategies for managing channel conflict

Strategic justification

Dual compensation

Superordinate goals

Employee exchange

Joint memberships

Co-option

Diplomacy, mediation, and arbitration

Legal recourse

224

Strategic justification

Strategy for managing channel conflict

Explaining that channels do not compete as much as they think

225

Dual compensation

Strategy for managing channel conflict

Pays existing channels for sales made through new channels

226

Superordinate goals

Strategy for managing channel conflict

Channel members come to an agreement on the fundamental goal they are jointly seeking

227

Employee exchange

Strategy for managing channel conflict

Exchange persons between two or more channels

228

Joint memberships

Strategy for managing channel conflict

Marketers can encourage joint memberships in trade associations

229

Co-option

Strategy for managing channel conflict

An effort by one organization to win the support of the leaders of another by including them in advisory councils, boards of directions, etc

230

Diplomacy, mediation, arbitration

Strategy for managing channel conflict

Diplomacy - each side sends a person to meet and resolve conflict

Mediation - relies on a neutral third party to reconcile both parties' interests

Arbitration - two parties present their arguments to a third party who makes a decision

231

Legal recourse

Strategy for managing channel conflict

A channel partner may choose to file a lawsuit

232

Full line forcing

When producers of strong brands sell to dealers only if they will take some or all of the rest of the product line

Tying agreements - are not illegal

233

E-commerce

Using a website to transact or facilitate the sale of products or services online

234

M-commerce

Mobile phone commerce

235

Retailing

All the activities in selling goods or services directly to final consumers for personal, non business use

236

Retailer

Any business enterprise whose sales volume cones primarily from retailing

237

Types of retailers

Store retailers

Nonstore retailing

Corporate retailing and franchising

238

Store retailers

Self service

Self selection

Limited service

Full service

239

Self service store retailer

Cornerstone of all discount operations

Customer carries out own locate, compare, select activities

240

Self selection store retailer

Customers find their own goods, but they can ask for assistance

241

Limited service store retailer

Retailers that carry shopping goods and services

Customers need more information and assistance

242

Full service store retailer

Salespeople are ready to assist in every phase of the locate, compare, select process

243

Nonstore retailing

Direct selling

Direct marketing

Automatic vending

Buying service

244

Direct selling nonstore retailing

Door to door sales, at home party sales

Avon, Tupperware

245

Direct marketing nonstore retailing

Roots in direct mail and catalog marketing

Telemarketing - 1-800-FLOWERS

Television direct response marketing - QVC

Catalog marketing - Land's End catalogs

Electronic shopping - Amazon

246

Automatic vending nonstore retailing

Vending machines

247

Buying service nonstore retailing

Storeless retailer serving a specific clientele

Employees of large organizations who are entitled to buy from a list of retailers that have agreed to discount for members

248

Franchising system

Tightly knit group of enterprises who's systemic operations are planned, directed, and controlled by the franchisor

Franchisor owns trade mark and licenses it to franchisee

Franchisee pays to be a part of the system

Franchisor provides system for doing business

249

Marketing decisions in retailing

Target market

Product assortment

Procurement

Prices

Services

Store atmosphere

Store activities and experiences

Communications

Location

250

Direct product profitability

Used to measure a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store

Receiving, moving to storage, paperwork, checking, loading, etc)

251

Private label brand

A brand that retailers and wholesalers develop

252

Generics

Unbranded, plainly packaged, less expensive versions of common products such as spaghetti, paper towels, canned peaches

Standard or lower quality

Low price due to low cost labeling and packaging, minimal advertising

253

Slotting fee

A fee charged by retailers for accepting a new brand, to cover the cost of listing and stocking it

254

Wholesaling

All the activities in selling goods or services to those who buy for resale or business use

Also called distributors

255

Why are wholesalers used?

Selling and promoting

Buying and assortment building

Bulk breaking

Warehousing

Transportation

Financing

Risk bearing

Market information

Management services and counseling

256

Major wholesaler types

Merchant wholesalers

Full service wholesalers

Limited service wholesalers

Brokers and agents

Manufacturers' and retailers' branches and offices

Specialized wholesalers

257

Merchant wholesalers

Independently owned business that take title to the merchandise they handle

258

Full service wholesalers

Carry stock, maintain a sales force, offer credit, make deliveries, provide management assistance

259

Limited service wholesalers

Cash and carry - sell limited line of fast moving goods for cash

Truck - sell and deliver a limited line of semi-perishable goods

Drop shippers - serve bulk industries, assume title and risk

Rack jobbers - serve grocery retailers in nonfood items

Producers' cooperatives - assemble farm produce to sell to markets

Mail order - send catalogs to customers

260

Brokers and agents wholesalers

Facilitate buying and selling on commission

Brokers - bring buyers and sellers together and assist with negotiations

Agents - represent buyers and sellers in negotiations

261

Supply chain management

Starts before physical distribution

Strategically procuring the right inputs, converting the efficiently into finished products, and dispatching them to the final destinations

262

Market logistics

Planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer requirements at a profit

263

Integrated logistics systems

Materials management, material flow systems, and physical distribution aided by information technology

264

Lean manufacturing

Producing goods with minimal waste of time, materials, and money

265

Market logistics decisions

How to handle order processing

How should we locate stock or warehouse goods

How much inventory should we hold

How should we transport materials and products

266

Containerization

Putting the goods in boxes or trailers that are easy to transfer between two transportation methods

267

Marketing communications

The means by which firms attempt to inform, persuade, and remind consumers - directly or indirectly - about the products and brands they sell

268

Marketing communications mix

Advertising

Sales promotion

Events and experiences

Public relations and publicity

Direct marketing

Interactive marketing

Word of mouth marketing

Personal selling

269

Advertising

Part of the marketing communications mix

Any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor

Print media

Broadcast media - radio, television

Network media - telephone, cable, satellite

Electronic media - videotape, CD, Web page

Display media - billboards, posters

270

Sales promotion

Part of the marketing communications mix

A variety of short term incentives to encourage trial or purchase of a product or service

Consumer promotions - samples, coupones

Trade promotions - advertising and display allowances

Business and sales force promotions - contests for sales reps

271

Events and experiences

Part of the marketing communications mix

Company sponsored activities and programs designed to create brand related interactions with consumers

272

Public relations and publicity

Part of the marketing communications mix

Programs directed internally to employees of the company or externally to customers to promote or protect a company's image

273

Direct marketing

Part of the marketing communications mix

Use of mail, email, telephone, etc to communicate directly with or solicit response from customers

274

Interactive marketing

Part of the marketing communications mix

Online activities and programs designed to engage customers

275

Word of mouth marketing

Part of the marketing communications mix

People to people oral, written, or electronic communication that relate to the experiences of buying or using a product

276

Personal selling

Part of the marketing communications mix

Face to face interaction with prospective purchasers

277

Macromodel of the communications process

Sender

Receiver

Message

Media

Encoding

Decoding

Response

Feedack

Noise

278

Micromodels of consumer response

AIDA model

Hierarchy of effects model

Innovation adoption model

Communications model

279

Response hierarchy model

Buyers pass through cognitive, affective, and behavioral stages

Learn - feel - do

Do - feel - learn

Learn - do - feel

280

AIDA consumer response hierarchy model

Attention

Interest

Desire

Action

281

Hierarchy of effects consumer response hierarchy model

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

282

Innovation adoption consumer response hierarchy model

Awareness

Interest

Evaluation

Trial

Adoption

283

Communications consumer response hierarchy model

Exposure

Reception

Cognitive response

Attitutde

Intention

Behavior

284

Developing effective communications

Identify the target audience

Determine the communications objectives

Design the communications

Select the communications channels

Establish marketing communications budget

285

Communications objectives

Category need

Brand awareness

Brand attitude

Brand purchase intention

286

Category needs

Communications objective

Establishing a product or service category as necessary to remove or satisfy a perceived discrepancy between a current motivational state ad a desired motivational state

New to the world products

287

Brand awareness

Communications objective

Fostering the consumer's ability to recognize or recall the brand within the category, in sufficient detail to make a purchase

288

Brand attitude

Communications objective

Helping consumers evaluate the brand's perceived ability to meet a currently relevant need

289

Brand purchase intention

Communications objective

Moving consumers to decide to purchase the brand or take purchase related action

290

Creative communications strategies

The way marketers translate their messages into specific communication

Informational appeal

Transformational appeal

291

Informational appeal

Creative communication strategy

Elaborates on product or service attributes or benefits

Problem solution ads

Product demonstration ads

Product comparison ads

Testimonials

292

Transformational appeal

Creative communication strategy

Elaborates on a nonproduct related benefit or image

What kind of person uses a brand

What kind of experiences results from using a brand

Positive (humor, love, pride) and negative appeals (fear, guilt, shame)

293

Message source attributes

Expertise

Trustworthiness

Likabilty

294

Expertise

Message source attribute

The specialized knowledge the communicator posses to back the claim

295

Trustworthiness

Message source attribute

How objective and honest the source is perceived to be

296

Likability

Message source attribute

Describes the source's attractiveness

297

Principle of congruity

Implies communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience

298

Personal communication channels

Let two or more persons communicate face to face or person to audience

Advocate channels - company salespeople contacting buyers

Expert channels - independent experts making statements

Social channels -neighbors, friends, family talking to target buyers

Earned media - unsolicited professional commentary

299

Nonpersonal communication channels

Media

Advertising

Sales promotions

Events and experiences

Public relations

300

Methods of establishing marketing communications budget

Affordable method

Percentage of sales method

Competitive parity method

Objective and task method

301

Affordable method

Method of establishing marketing communications budget

Budget set at what the company thinks it can afford

302

Percentage of sales method

Method of establishing marketing communications budget

Budget set at a certain percentage of current or anticipated sales or of the sale price

303

Competitive parity method

Method of establishing marketing communications budget

Budget set to what competitors spend

304

Objective and task method

Method of establishing marketing communications budget

Develop communication budgets by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing them

Establish market share goal

Determine percentage of the market that should be reached

Determine the percentage of aware prospects that should be persuaded to try the brand

Determine the number of advertising impressions per 1 percent trial rate

Determine the number of gross rating points that would have to be purchased

Determine the necessary advertising budget on the basis of the average cost of buying a gross rating point

305

Advertising characteristics

Pervasiveness

Amplified expressiveness

Control

306

Sales promotion characteristics

Ability to be attention getting

Incentive

Invitation

307

Public relations and publicity characteristics

High credibility

Ability to reach hard to find buyers

Dramatization

308

Events and experiences characteristics

Relevant

Engaging

Implicit

309

Direct and interactive marketing characteristics

Customized

Up to date

Interactive

310

Word of mouth marketing characteristics

Influential

Personal

Timely

311

Personal selling characteristics

Personal interaction

Cultivation

Response

312

Factors in setting the marketing communications mix

Type of product market

Buyer readiness stage

Product life cycle stage

313

Integrated marketing communications

A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time

314

Advertising

Cost effective way to disseminate messages, whether to build a brand preference or to educate people

Mission

Money

Message

Media

Measurement

315

Advertising objective

A specific communications task and achievement level to be accomplished with a specific audience in a specific period of time

Informative advertising

Persuasive advertising

Reminder advertising

Reinforcement advertising

316

Informative advertising

Advertising objective

Aims to create brand awareness and knowledge of new products or new features of existing products

317

Persuasive advertising

Advertising objective

Aims to create liking, preference, conviction, and purchase of a product or service

318

Reminder advertising

Advertising objective

Aims to stimulate repeat purchase of products or services

319

Reinforcement advertising

Advertising objective

Aims to convince current purchasers that they made the right choice

320

Factors affecting advertising budget

Stage in the product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency

Product substitutability

321

Steps for developing the advertising campaign

Message generation and evaluation

Creative development and execution

Legal and social issues

322

Creative brief

Elaboration of the positioning statement

Includes considerations such as key message, target audience, communications objectives, key brand benefits, supports for the brand promise and media

323

Creative advertising development and execution

Television ads

Print ads

Radio ads

324

Television ads

Reaches broad spectrum

Low cost per exposure

Ability to demonstrate product use

Brief

Clutter

High cost of production/placement

325

Print ads

Detailed product information

Ability to communicate user imagery

Flexibility

Ability to segment

Passive medium

Clutter

Unable to demonstrate product use

326

Print ad parts

Picture

Headline

Copy

Signature

327

Radio ads

Pervasive media

Flexibility

Targeted stations

Lack of visual images

Passive nature of audience

328

Media selection

Finding the most cost effective media to deliver the desired number and type of exposures to the target audience

Find level of brand awareness required for trial rate

Find how many exposures are required to reach brand awareness level

Exposures are a product of reach, frequency, and impact

329

Reach

The number of different persons or households exposed to a particular media at least once during a specified time period

330

Frequency

The number of times within the specified time period that an aver person is exposed to the message

331

Impact

The qualitative value of an exposure through a given medium

A food ad will have higher impact in Bon Appetit than in Fortune magazine

332

Total number of exposures

Also called gross rating points

E = Reach X Frequency

333

Weighted number of exposures

WE = Reach X Frequency X Impact

334

Place advertising

Out of home advertising

Billboards

Public spaces

Product placement - cabs, buses, benches, etc

Point of purchase - ads on shopping carts, aisles, shelves

335

Major types of media

Newspapers

Television

Direct mail

Radio

Magazines

Outdoor

Yellow pages

Newsletters

Brochures

Telephone

Internet

336

Macroscheduling decions

Relates to seasons and the business cycle

337

Microscheduling decions

Calls for allocating advertising expenditures within a short period to obtain maximum impact

338

Media schedule timing patterns

Continuity

Concentrated

Flighting - advertising then no advertising the advertising then no advertising

Pulsing - continuous low weight advertising with periods of heavier activity

339

Buyer turnover

The rate at which new buyers enter the market

Higher rate more continuous the advertising should be

340

Purchase frequency

The number of times the average buyer buys the product during the period

Higher the frequency the more continuous the advertising should be

341

Forgetting rate

The rate at which the buyer forgets the brand

The higher the rate the more continuous advertising should be

342

Evaluating advertising effectiveness methods

Communication effect research

Sales effect research

343

Communication effect research

Method to evaluate advertising effectiveness

Copy testing

Seeks to determine whether an ad is communicated effectively

344

Sales effect research

Method to evaluate advertising effectiveness

Historical approach - correlates past sales to past advertising expenditures

Experimental design - measure advertising's sales impact

345

Sales promotion

Consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade

Offers an incentive to buy

346

Manufacturer promotions

Rebates, gifts to motivate purchase,

347

Retailer promotion

Price cuts, feature advertising, coupons

348

Consumer sales promotion tools

Samples

Coupons

Cash rebates

Price packs (cents off deals)

Premiums/gifts

Frequency programs

Prizes/contests

Patronage awards

Free trials

Product warranties

Tie in promotions

Cross promotions

Point of purchase displays and demonstrations

349

Trade sales promotion tools

Price off - discount of list price

Allowance - amount offered in return for agreeing to feature products in some way

Free goods

350

Sales force promotion tools

Trade shows and conventions

Sales contests

Specialty advertising

351

Forward buying

Retailers buying a greater quantity during the deal period than they can immediately sell

352

Diverting

Retailers buying more cases than needed in a region where the manufacturer offers a deal and shipping the surplus to stores in other regions

353

Lead time

The time necessary to prepare the sales promotion program prior to launching it

354

Sell in time

Sales promotions

Begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers

355

Events and experiences objectives

To identify with a particular target market or lifestyle

To increase salience of company or product name

To create or reinforce perceptions of key brand image associations

To enhance corporate image

To create experiences and evoke feelings

To express commitment to the community or social issues

To entertain key clients or reward key employees

TO permit merchandising or promotional opportunities

356

Public

Any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives

357

Public relations

A variety of programs to promote or protect a company's image or individual products

Press relations

Product publicity

Corporate communications

Lobbying

Counseling

358

Marketing public relations

Support corporate or product promotion and image making

Serves a special constituency, the marketing department

Launching new products

Repositioning a mature product

Building interest in a product category

Influencing specific target groups

Defending products that have encountered public problems

Building the corporate image in a way that reflects favorably on its products

359

Decisions in marketing public relations

Establishing objectives

Choosing message ad vehicles

Implementing the plan

Evaluating the results

360

Tools in marketing public relations

Publications

Events

Sponsorships

News

Speeches

Public service activities

Identity media

361

Direct marketing

The use of consumer direct channels to reach and deliver goods and services to customers without using a marketing middleman

362

Direct marketing channels

Direct mail

Catalog marketing

Telemarketing

Interactive TV

Kiosks

Web sites

Mobile devices

363

Direct mail

Sending an offer, announcement, remind, or other item to an individual consumer

Use recency, frequency, monetary amount formula to select customers

Very targeted

364

Parts of direct mail campaign

Choose objectives

Select target prospects - RFM

Develop offer elements

Test elements

Execute

Measure success

365

Telemarketing

Type of direct marketing

The use of the telephone and call centers to attract prospects, sell to existing customers, and provide service by taking orders and answering questions

366

Public and ethical issues with direct marketing

Irritation

Unfairness - marketers take advantage of vulnerable or impulsive buyers

Deception and fraud

Invasion of privacy

367

Advantages of interactive marketing

Tailored messages possible

Easy to track responsiveness

Contextual ad placement possible

Search engine advertising possible

368

Contextual placement

Buying ads on sites related to the marketer's offereings

369

Disadvantages of interactive marketing

Consumers can screen out messages

Bogus clicks cause errors

370

Interactive marketing options

Web sites

Search ads

Display ads

Email

Mobile marketing

371

Web sites

Interactive marketing option

Ease of use

Physical attractiveness

372

Search ads

Interactive marketing option

Marketers bid on search terms that serve as a proxy for the consumer's product or consumption interests

When consumer searches for a key term the marketer's advertisement displays above the results

Advertisers pay only when people click on the links

373

Display ads

Interactive marketing option

Banner ads

Small rectangular boxes containing text and perhaps a picture that companies pay to place on relevant web sites

374

Interstitials

Advertisements, often with video or animation, that pop up between changes on a web site

375

Earned media

All the PR benefits a firm receives without having directly paid for anything

376

Paid media

Press coverage of company generated advertising, publicity, or other promotional efforts that was paid for

377

Sources of word of mouth

Online forums

Blogs

Social networks

378

Buzz marketing

Marketing that generates excitement, creates publicity, and conveys new relevant brand related information through unexpected or even outrageous means

379

Viral marketing

Marketing that encourages consumers to pass along company developed products and services or audio, video, or written information to others online

380

Steps in designing a sales force

Sales force objectives

Sales force strategy

Sales force structure

Sales force size

Compensation

381

Types of sales representatives

Deliverer

Order taker

Missionary

Technician

Demand creator

Solution vendor

382

Deliverer

Type of sales representative

Major task is the delivery of a product

383

Order taker

Type of sales representative

An inside or outside order taker

384

Missionary

Type of sales representative

Salesperson not permitted to take an order but expected to build goodwill or educate potential users

385

Technician

Type of sales representative

A salesperson with high level of technical knowledge

386

Demand creator

Type of sales representative

Relies on creative methods for selling tangible and intangible products

387

Solution vendor

Type of sales representative

A salesperson who's expertise is solving a customer's problem

388

Sales force objectives and strategies

Prospecting

Targeting

Communicating

Selling

Servicing

Information gathering

Allocating

389

Leveraged sales force

Focuses reps on selling the company's more complex and customized products to large accounts and uses inside salespeople and web ordering for low end selling

390

Workload approach

Used to determine sales force size

Customers grouped into size classes

Desirable call frequencies are established

Number of accounts in each size class multiplied by frequency

Average number of calls possible per year established

Number of reps = total annual calls required / average annual calls one sales rep can make

391

Sales force compensation methods

Fixed amount

Variable amount

Expense allowances

Benefits

392

Steps in managing the sales force

Recruiting and selecting representatives

Training and supervising

Motivating

Evaluating

393

Steps in personal selling

Prospecting and qualifying

Preapproach - learn as much as possible

Presentation and demonstration

Overcoming objections

Closing

Followup and maintenance

394

Incremental innovation

Entering new markets by tweaking products for new customers, using variations on a core product to stay one step ahead of the market, and creating interim solutions for industry wide problems

395

Factors causing new product failure

Shortage of important ideas in certain areas

Fragmented markets

Social, economic, and governmental constraints

Cost of development

Capital shortages

Shorter required development time

Poor launch timing

Shorter product life cycles

Organizational support

396

New product development organizational approaches

Cross functional teams

Stage gate systems

397

Venture teams

Organizational approach for new product developent

Cross functional groups charged with developing a specific product or business

398

Skunkworks

Informal workplaces, sometimes garages, where intrepreneurial teams attempt to develop new products

399

Stage gate system

Organizational approach for new product development

Divides the innovation process into stages, with a gate or checkpoint at the end of each stage

Managers review criteria and make a decision at each gate

400

New product development decision process

Idea generation

Idea screening

Concept development and testing

Marketing strategy development

Business analysis

Product development

Market testing

Commercialization

401

Ways to generate ideas for new products

Interacting with others

Interacting with employees

Studying competitors

Adopting creativity techniques

402

Creativity techniques for generating new product ideas

Attribute listing

Forced relationships

Morphological analysis

Reverse assumption analysis

New contexts

Mind mapping

403

Attribute listing

Creativity technique for generating new product ideas

List the attributes of an object

Modify each attribute

404

Forced relationships

Creativity technique for generating new product ideas

List several ideas and consider each in relationship to each of the others

405

Morphological analysis

Creativity technique for generating new product ideas

Start with a problem (getting something from one place to another)

Think of dimensions such as the type of platform (cart, chair, sling, bed)

Think of the medium (air, water, oil, rails)

Think of the power source (compressed air, electric motor, magnetic fields)

406

Reverse assumption analysis

Creativity technique for generating new product ideas

List all normal assumptions about something and then reverse them

407

New contexts

Creativity technique for generating new product ideas

Take familiar processes and put them into a new context

408

Mind mapping

Creativity technique for generating new product ideas

Start with a thought, write it on paper, then think of the next thought, write it on paper, then think of the next thought, etc

409

Lateral marketing

Combining two product concepts or ideas to create a new offering

Gas stations + food = gas station stores

Cereal + snacking = cereal bars

Audio + portable = Sony Walkman

410

Drop error

when a company dismisses a good idea

411

Product idea

A possible product that a company might offer to the market

412

Product concept

An elaborated version of the idea expressed in consumer terms

413

Concept testing

Presenting the product concept to target consumers and getting their reactions

Communicability and believability - are the benefits clear and believable?

Need level - do you see this product as solving a need?

Gap level - do other products currently satisfy this need?

Perceived value

Purchase intention

User targets, purchase occasions, purchase frequency

414

Conjoint analysis

A method for deriving the utility values that consumers attach to varying levels of a products attributes

How important are each attribute of a product

415

Business analysis for new product development

Estimate total sales

Estimate total costs

416

Quality function deployment

Takes the list of desired customer attributes generated by market research and turns them into a list of engineering attributes that engineers can use

417

Alpha testing

Testing the product within the firm to see how it performs in different applications

418

Beta testing

Allowing outside consumers to test the product

419

Consumer goods marketing testing strategies

Sales wave research

Simulated test marketing

Controlled test marketing

Test markets

420

Sales wave research

Type of marketing testing strategy for consumer goods

Consumers who initially try the product at no cost are reoffered it or a competitors product at slightly reduced prices to see how often they are purchased over and over again

421

Simulated test marketing

Type of marketing testing strategy for consumer goods

Qualified shoppers are shown both new ad and popular brand ad and sees afterwards which shoppers purchase which brands

422

Controlled test marketing

Type of marketing testing strategy for consumer goods

A company with new products specifies the number of stores and geographic locations it wants to test

Research firms delivers product and controls location, shelf space

Records purchases

423

Test market

Type of marketing testing strategy for consumer goods

Putting the product up for sale in a full blown test market

424

Commercialization of a new product

When (Timing)

Where (Geographic strategy)

To whom (Target market)

How (Introductory marketing strategy)

425

Critical path scheduling

Used to coordinate the many tasks in launching a new product

Develops a master chart showing the simultaneous and sequential activities that must take place

426

Consumer adoption process

Awareness

Interest

Evaluation

Trial

Adoption

427

Adoption

An individual's decision to become a regular user of a product

428

Innovation

Any good or service or idea that someone perceives as new no matter how long its history

429

Adopter groups to new products

Innovators

Early adopters

Early majority

Late majority

Laggards

430

Relative advantage

The degree to which the innovation appears superior to existing products

431

Compatibility

The degree to which the innovation matches the values and experiences of the individuals

432

Complexity

The degree to which the innovation is difficult to understand or use

433

Divisibility

The degree to which the innovation can be tried on a limited basis

434

Communicability

The degree to which the benefits of use are observable or describable to others