Manage the Product
http://www.accessmylibrary.com/article-1G1-179934995/effect-cigarette-advertising-bans.html
Product Life Cycle: Cigarettes
I am very interested by the Product Life Cycle of tobacco products, specifically in the Western World. Based upon observations, I would say that cigarettes are in the decline stage, however there is some debate about whether they are still in the maturity stage. Regardless, they are headed towards the decline stage quickly if not already there. But the interesting aspect of their decline is that the companies that produce cigarettes and other tobacco products face legislation that stifles many of the campaigns that other companies would try in the decline stage. They have many laws limiting their advertising liberties. I am interested to see what these companies will do as legislation only gets tighter and their sales continue to drop. Intense product placement? Invest more heavily in markets overseas?
Sunday, October 31, 2010
Saturday, October 30, 2010
Chapter # 7
Create the Product: Innovation
And interesting aspect of product development is the idea that the full phases of new-product development, from idea generation to commercialization, are completed by one company and the benefits can be taken by another. The idea of generic brands and knock-offs.
As talked about in the chapter frequently there is a very high cost associated with putting a new product or service on the market. Market research, testing and technical development are costly and not all companies have the financial resources to do so. It is not unseen to see one company initially take on this task and develop a great idea but due to factors in the market another company is able to use their research to their own advantage. This is commonly seen when looking at the drug industry. Due to trust in the FDAs approval it is very easy for consumers to transition quickly to the generic brand after the initial twenty years where the brand name has exclusive rights. A great example of this is with the drug ibuprofen. The brand name of this is Advil or Motrin. So many consumers buy ibuprofen today that it has now almost turned into a brand name of its own.
And interesting aspect of product development is the idea that the full phases of new-product development, from idea generation to commercialization, are completed by one company and the benefits can be taken by another. The idea of generic brands and knock-offs.
As talked about in the chapter frequently there is a very high cost associated with putting a new product or service on the market. Market research, testing and technical development are costly and not all companies have the financial resources to do so. It is not unseen to see one company initially take on this task and develop a great idea but due to factors in the market another company is able to use their research to their own advantage. This is commonly seen when looking at the drug industry. Due to trust in the FDAs approval it is very easy for consumers to transition quickly to the generic brand after the initial twenty years where the brand name has exclusive rights. A great example of this is with the drug ibuprofen. The brand name of this is Advil or Motrin. So many consumers buy ibuprofen today that it has now almost turned into a brand name of its own.
Chapter # 6
Sharpen the Focus: Target Marketing
http://www.youtube.com/watch?v=M11SvDtPBhA
When segmenting according to an age demographic it is interesting to look at the power that children and teenagers have. It would be foolish as a company to not try to put yourself in their field of vision. I think that one of the best illustrations of an attempt to make an impression on a young demographic by a hurting company is GM's presence in Miley Cyrus' music video "Party in the U.S.A." As a company that is trying to reposition itself in the consumers mind after the problems it encountered in the past few years it is wise to try and begin this process with children. If they can successfully create a positive image, for tweens especially as they enter their driving years, then they will have a relatively loyal market based upon image alone.
In the video Miley is portraying an image of carefree American youth. She is doing so while dancing on and around Chevys, GMs as well as their sport model of the Cadillac. This is a great idea, as a national icon for younger children across the nation Miley holds a lot in influence. Her presence around these products is a great promotional tool. Product placement is a smart way to target this specific demographic.
http://www.youtube.com/watch?v=M11SvDtPBhA
When segmenting according to an age demographic it is interesting to look at the power that children and teenagers have. It would be foolish as a company to not try to put yourself in their field of vision. I think that one of the best illustrations of an attempt to make an impression on a young demographic by a hurting company is GM's presence in Miley Cyrus' music video "Party in the U.S.A." As a company that is trying to reposition itself in the consumers mind after the problems it encountered in the past few years it is wise to try and begin this process with children. If they can successfully create a positive image, for tweens especially as they enter their driving years, then they will have a relatively loyal market based upon image alone.
In the video Miley is portraying an image of carefree American youth. She is doing so while dancing on and around Chevys, GMs as well as their sport model of the Cadillac. This is a great idea, as a national icon for younger children across the nation Miley holds a lot in influence. Her presence around these products is a great promotional tool. Product placement is a smart way to target this specific demographic.
Chapter # 5
Business to Business Marketing
When reading through the different types of buying situations I decided to apply them to my work organizations recent purchases. Comparing what we purchase to "straight re-buy," "modified re-buy," and "new-task buy." I work for Graduate Programs in Business at Washington State University. Our office sells education so we do not purchase many goods, however we do purchase things that are needed to keep our office running. An example of a straight re-buy for us would be the purchase of office supplies from WSU's central stores. We buy from them every time, and know that it will be delivered quickly and at an affordable price. A modified re-buy for our team would be the purchase of a new copier. Ours has been inconsistent at best for some time and the decision was made to acquire a new one. We have shopped around for the proper fit, looking specifically for the most competitive price and the highest performance standards to fit our needs. Lastly, a new-task buy for Graduate Programs would be the outsourcing of our admissions help for our growing online programs. We have a company that is now under the WSU brand name that has undergone extensive training in order to assist with large volumes of inquiries for our Online MBA program. This hiring/service purchasing decision was brand new, took extensive research and we are still in the process of creating a relationship with the men and women on this separate team.
When reading through the different types of buying situations I decided to apply them to my work organizations recent purchases. Comparing what we purchase to "straight re-buy," "modified re-buy," and "new-task buy." I work for Graduate Programs in Business at Washington State University. Our office sells education so we do not purchase many goods, however we do purchase things that are needed to keep our office running. An example of a straight re-buy for us would be the purchase of office supplies from WSU's central stores. We buy from them every time, and know that it will be delivered quickly and at an affordable price. A modified re-buy for our team would be the purchase of a new copier. Ours has been inconsistent at best for some time and the decision was made to acquire a new one. We have shopped around for the proper fit, looking specifically for the most competitive price and the highest performance standards to fit our needs. Lastly, a new-task buy for Graduate Programs would be the outsourcing of our admissions help for our growing online programs. We have a company that is now under the WSU brand name that has undergone extensive training in order to assist with large volumes of inquiries for our Online MBA program. This hiring/service purchasing decision was brand new, took extensive research and we are still in the process of creating a relationship with the men and women on this separate team.
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