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Topic 09 - Innovation & Markets - Coggle Diagram
Topic 09 - Innovation & Markets
9.1 Corporate Strategies
Pioneering Strategy
Such as Apple or Sony
Using R&D (
expensive
) to push the market
Can lead to products being
first-to-market
Imitative Strategy
Producing
similar
work to the "pioneered product"
Uses
other
companies R&D
Means they are
later
to market
Hybird Strategy
Uses both pioneering and imitative
reduces
cost
of R&D
reduces
risk
Market Penetration
if there are 2/10 people own a product then market penetration is
20%
Trying to sell your product category to as many people as possible
Product Promotion can help increase Market Penetration
Market Development
Finding new
product advantages
to appeal to new customers
e.g. Apple trying to convince Blackberry users they need a touchscreen
Product Development
Adding Variations to the Product
A320neo or KitKat Ice Cream
Could be
adding features
,
increasing range
of products (iPhone SE), or
changing characteristics
(flavours)
Product Diversification
a
high-risk strategy
involves a company selling their/new product to a new market sector
e.g. Mitsubushi
Corporate Social Responsibility
economic
social
environmental
9.2 Market Sectors & Segments
Market Sectors
Categories
Client-Sectors
Age, Sex
Geographical
Arid Climate, Mountainous Environment
Selling to Market Sectors
Sell to One Market (
safe
)
Sell to two (iPhone)
Hierachy
Market Sector
Potential Buyers of Products
Market Segmentation
The
process
of dividing customers based off of characteristics in market sectors
Markets Segments
Subgroups
(age,sex,location) of the Market Sectors
Target Market
The Market Segment that present the greatest opportunity for sales
Product Family
A group of products having common classification criteria. Members normally have many common parts, assemblies and/or aesthetic elements.
iPhone & iPad
GICS & SIC
GIC (Global Industry Classification Standard)
SIC - Standard Industry Classification
9.3 Marketing Mix
4P's
Product
Standardization of Products
Government/Trade Unions (EU) set regulations for products
Component Standardization
e.g. EU saying all phones should use USB Type C
Industry-Wide Standards
Agreed simplicity in the industry (e.g. limited cross-sectional beams available to architects to
keep simplicity
and
reduce cost
)
Place
Where should it be sold?
Online (Retail site such as
Amazon
)
Direct from Manufacturer or through a distribution company?
In a store (singular (
small company
), chain (
TNC
) , boutique)
Hybrid - Both Online & Store
Price
Adding a percentage to total cost to create a
profit margin
Calculate total cost -
manufacturing
,
R&D
,
everything else
Demand Pricing
- what is the
target market
willing to pay?
Competitor
Pricing - higher would suggest it might be
better
/ lower suggests you are getting more
product
for lower cost
Psychological Pricing
calling it 49.99 instead of 50
Promotion
Advertising
audio or visual form of communication
Publicity
giving out information
Personal Selling
door-to-door selling
The 4P's help understand the requirements to enter a market space
9.4 Market Research
Why?
Help create
new ideas
Evaluate Market Potential
Analyze methods of promotion
Predict economic performance
Analyze trends
Understand consumers
Types of Data
Primary OR Secondary
Quantitative or Qualitative
Consumer Reactions
To Technology
Technophile - Someone who
loves
technology
Technocautious - people who needs
valid convincing
to use technology
Technophobe - Someone who
resists
all technology
Green Design
Eco phobes, warrior, fans & champions
9.5 Branding
Brand Loyalty (phonemon)
Appealing to locations (glocalization)
McDonalds don't sell
beef products in India
geographic
, gender, age,
culture
Packaging allows for
unique brand identity
Good Branding will cause:
positive feelings
generate sales
products become more accepted