Transcript MM3 slides here

Lesson 5: Innovation and new
Product Development
• Innovation triggers.
• Market demand dynamics and innovation
challenges
• Innovation adoption and diffusion within
markets
• Innovation strategies
• Key success factors and pitfalls to avoid
Why Innovate ?
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Growth and profitability
Changing patterns of needs
Exploiting marketing opportunities
Shortening technology and PLC
Stretch and leverage core competencies
Discruptive technologies
Demand and opportunities
• Existing demand
• Latent demand
• Incipient demand
Innovation adoption and
diffusion
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Innovators
Early adopters
Early majority
Late majority
Laggads
(refer to diagram of Page 8,9 and 10)
Innovation strategies
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create new positioning propositions
create new distribution channels
create new market segments
seek process breakthroughs
develop and launch new products
‘No innovation’ - alternatives
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cost reduction
repositioning
improvement
line extensions
new to the world products
The Innovation process
New product development
process
• The new product development process consists of seven
steps. These are;
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new product strategy
exploration
screening
business analysis
development
test-marketing
commercialisation
• The new product development process can take anywhere
from a number of months to a number of years.
NPD process
Failures of innovation
Building an innovation culture
Lesson 6: Pricing
• Theory and practice of pricing .
• Pricing objectives
• Pricing methods: cost-based, value/utility,
economic value to customer and competive
pricing.
• Challenges and opportunities in new
product pricing
• Price adjustments and responding to
changes in competitors’ price
Assignment B
Lesson 7:Advertising
• The promotion mix.
• The communication process and
developing an effective communication
strategy.
• Deciding the communication budget and
selecting the communication mix.
• Developing the advertising plan.
• Determinants of an effective plan.
• Measuring advertising effectiveness.
The communication process
model
The communications process
• Communication is an
exchange process in
which thoughts or ideas are exchanged.
• Promotion is the means by which organisations
communicate with their target markets.
• The process includes a sender, who encodes a message
which is sent through a message channel to a receiver who
decodes the message and then provides feedback to the
sender.
Figure 17.1
Advertising planning
• How advertising works
• see figure 7.1 (page 7)
Developing the advertising plan
Kotler’s 5-step process
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Objective setting
Budget decision
message decision
media decision
campaign evaluation
See figure 7.2 (page 9)
Other points
• Experimentation and Test Marketing
budgeting approaches
• Evaluation and control
• Measuring advertising effectiveness
Lesson 8: Sales Promotion, Direct
Marketing and Public Relations
• Management of sales promotion.
• The available techniques, and
limitations of techniques.
• Setting clear objectives and
measurement of promotion
effectiveness.
What is Sales Promotion
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Sales promotion: Targets and modes
Role of Sales Promotion
Growing importance of sales promotion
Benefits and Limitation of sales
promotion
• Major decisions in sales promotion
What objectives
• Consumer objectives
• Intermediary / dealer objectives
• Sales force objective
• Review Promotional vehicles
• Building the promotional programme
and pre-testing
• Evaluation
Direct Marketing
• Growth in Direct Response maketing
Different methods of direct
marketing
• The most common methods are;
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database marketing
direct-selling
direct-mail marketing
catalogue selling
telemarketing and call centres
direct-response advertising
electronic home shopping.
Publicity and public relations
Publicity
• Publicity is managed
by the public relations
department of a firm.
• It is non-personal
stimulation of demand
for goods, services or
business units by generating commercially significant
news about them in the mass media, or by obtaining
favourable presentation of them on radio, television or any
other media.
ASSIGNMENT C
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Lesson 9: Personal Selling
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Role of personal selling.
Salesforce tasks.
Selling tasks.
A conceptual model of the sales
process.
• Steps in the selling process.
Lesson 10:Distribution
Channels
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Strategic role of distribution.
Alternative distribution strategies.
Factors affecting channel strategy.
Key considerations in channel selection
and management.