1. Because of expenses, the new product development stages for convenience goods should be reduced to idea generation, screening, and then, product development and commercialization (national roll-out). The savings (from streamlining the development process) will be used in an exorbitant, initial pull promotion campaign. After that, coupons will be offered every third week. With the pull strategy and couponing, the consumer will view the brand and product category as synonymous. Do you agree or disagree with this strategy? Why or why not?
2. A company's marketing strategy can be customer-oriented (i.e., strategy designed by examining primarily customer needs) or competitor-oriented (i.e., strategy based on competitors' actions). In reality, companies do both. For the following scenarios, identify which strategies to emphasize and why.
- A market leader in pharmaceuticals
- A market follower in a mature market
- A market nicher (i.e., company focused on a small segment) in interior decoration of luxury homes
- A market challenger in a mature market with low margins and significant economies of scale effect
1) I do not agree with this strategy. The product development streamlining actually leaves out certain critical stages of product development. The concept that has been developed needs to be tested. This relates to the benefits the product will provide, the examination of costs to produce it, and asking prospective customers what they think of the idea. The strategy also eliminates business analysis. It does not estimate selling price based on competition and customer feedback. The estimates of profitability and break-even point are missing. The beta testing and market testing have been avoided. The customer reaction/acceptance of the product has been ignored. Similarly, the technical implementation including resource estimation, engineering operations planning, supplier collaboration, and program review have been avoided. Most importantly, the development process ignores new product pricing. ...
Successful Brands and Marketing Strategy are discussed step-by-step in this solution. The response also has the sources used.