Developing and Marketing Products

THE TOP TEN MOST IMPORTANT
new to the world products introduced
in the past 100 years are:

1 Penicillin

2 Transistor radio

3 Polio vaccine

4 Mosaic (the first graphic web browser)

5 Microprocessor

6 Black and White Television

7 plain paper copier

8 Alto personal computer ( prototype of today's PC)

9 Microwave oven

10 Arpanet network (groundwork for the Internet)


New products are important to sustain growth, increase revenues and profits, and replaced obsolete items.

The product life cycle is one of the most familiar concepts in marketing. The metaphor that traces the stages (i.e. the products birth or introduction to its death or decline)

Market Segmentation

Market people or organizations with needs or wants and the ability and willingness to buy

Market Segmentation a process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

1)for instance scanners used at the checkout give retailers an accurate assessment of what sells best in their certain region
2) they can appeal to local preferences.
3)To be able to react more quickly to competition

Positioning the place a product, brand, or group of products occupies in a customers minds

Repositioning changing the perception of a brand in a customers mind

Customer Decision Making

Need Recognition an imbalance between desired and actual states

Want recognition of an unfulfilled need and a product that will satisfy it

Cognitive Dissonance inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

Social Responsibility, Ethics, and the marketing Enviromnent

Sustainability is the idea that socially responsible companies will outperform their peers though looking at the world social problems as opportunities to build profits and help at the same time.

Code of Ethics is a guideline to help marketing managers and other employees make better decisions.

External Environment social, demographic, technological, and political, understanding this environment is a key for a companies success, because marketers generally can not control the external environment they can only meet the needs of the target market by researching and creating a marketing mix.

Demographics the study of people vital statistics such as race, age, ethnicity, and location

Gen Y 1979-1994 Gen X 1965-1978 Baby Boomers 1946-1964

What is Marketing?

"Marketing is the activity, set of institutions, and processes for creating, communicating delivering and exchanging offerings that have value for customers, clients, partners, and society at large."

desired outcome

exchange—people giving up something to receive something they would rather have.

Philosophies

A production orientation is a philosophy that
focuses on the internal capabilities of the firm
rather than on the desires and needs of the marketplace. In other words main focus is place on the product itself and what can be produced.

A sales orientation is based on the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits. In other words the focus is on getting the sale, what ever it may takes.

A marketing orientation is a simple and intuitively appealing philosophy that articulates a market orientation. It states that the social and economic justification
for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives. In other words there is focus on what a customers wants and needs, long term goals are achieved for the organization by satisfying the customer.

societal marketing orientation, states that an organization
exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests. Marketing products and containers that are less toxic than normal, are more durable, contain reusable materials, or are made of
recyclable materials is consistent with a societal
marketing orientation. The idea that an organization
exists not only to satisfy customer wants
and needs and to meet organizational objectives
but also to preserve or enhance
individuals’ and society’s
long-term best interests.

Corporate Social Responsibility

“ If business people do have a social
responsibility other than making
maximum profits for shareholders, how
are they to know what it is? —Milton Friedman (1”912–2006)


ethics
the moral principles or values that generally govern the conduct of
an individual or a group

morals
the rules people develop as a result of cultural values
and norms

code of ethics
a guideline to help marketing managers and other employees make
better decisions