8/3/2019 Chapter 5 Baru

1/22

Innovation

Management

WBB10202

INNOVATION

ANDMARKETING

Chapter 5:

8/3/2019 Chapter 5 Baru

2/22

Innovation

Management

WBB10202

Introduction

-The customers` acceptance on

innovative product.-Only special customer who is receptive to

innovation.

-Customers skeptical and wait for massmarketed.

8/3/2019 Chapter 5 Baru

3/22

Innovation

Management

WBB10202

How to market innovative

product

Educate customers about the problem.

Explain how the product is different.

Be authentic.

Position the product as high-quality

alternative.

Consider the impact of premium pricing.

8/3/2019 Chapter 5 Baru

4/22

Innovation

Management

WBB10202

What is Product?

-A product may be defined as everything(both favorable and unfavorable) that

one receives in an exchange.

- It can be tangible good, a service, an

ides or a combination of these things.

8/3/2019 Chapter 5 Baru

5/22

Innovation

Management

WBB10202

Consumer Product

-A consumer product is purchased tosatisfy an individual`s wants.

- It can be classified on the basis amountof effort in the shopping process.

8/3/2019 Chapter 5 Baru

6/22

Innovation

Management

WBB10202

Consumer Product

Classification

1. Convenience product

- An inexpensive item requires littleshopping effort, products purchased

regularly with little planning and require

wide distribution.

8/3/2019 Chapter 5 Baru

7/22

Innovation

Management

WBB10202

Consumer Product

Classification

2. Shopping product

- Requires comparison coz more expensivethan convenience product and is found in

fewer stores.

- Consumers usually compare items acrossbrands and stores.

8/3/2019 Chapter 5 Baru

8/22

Innovation

Management

WBB10202

Shopping product

Homogeneous consumers see as

being the same and shop for the lowest

price.

Heterogeneous consumers to differ in

quality, style, suitability and lifestylecompatibility.

8/3/2019 Chapter 5 Baru

9/22

Innovation

Management

WBB10202

Consumer Product

Classification

3. Specialty product search for

extensively and substitutes are not

acceptable.

8/3/2019 Chapter 5 Baru

10/22

Innovation

Management

WBB10202

Consumer Product

Classification

4. Unsought product a product that is

known about or not actively sought by

consumers.

8/3/2019 Chapter 5 Baru

11/22

Innovation

Management

WBB10202

Product Failure

Not offer discernible benefit

Poor match

Overestimation of market size

Incorrect positioning

Incorrect pricing

Inadequate distribution Poor promotion

Inferior product

8/3/2019 Chapter 5 Baru

12/22

Innovation

Management

WBB10202

Price

-An exchange to acquire a good orservice.

- Related to the perceived value at thetime of transaction and based on the

amount of expected satisfaction to bereceived from the good and service.

8/3/2019 Chapter 5 Baru

13/22

Innovation

Management

WBB10202

The Importance of Price to

Marketing Managers

- Revenue and profit for the company.

- High price = lost sales, low price =revenues not meet company`s goals

- Setting right price can be the most

stressful and pressure-filled tasks- Buyers are more efficient and better

informed

8/3/2019 Chapter 5 Baru

14/22

Innovation

Management

WBB10202

Place

Marketing Channels/Distribution

- The set of interdependent organizationsthat facilitate the transfer of ownership

as products move from producer to

business user or consumer.

8/3/2019 Chapter 5 Baru

15/22

Innovation

Management

WBB10202

Types of

Channel Intermediaries

1. Retailers sell mainly to consumers.

2. Merchant wholesalers facilitate thesale of product and services from themanufacturer to producers, resellers,

government institutions.

3. Agents and brokers facilitate the saleof a product from producer to end user.

8/3/2019 Chapter 5 Baru

16/22

Innovation

Management

WBB10202

Promotion

- Is a communication by marketers that

informs, persuades and reminds

potential buyers of a product to

influence an opinion or elicit a

response

8/3/2019 Chapter 5 Baru

17/22

Innovation

Management

WBB10202Promotional Strategy

1. Advertising

2. Public relations3. Sales promotion

4. Personal selling

8/3/2019 Chapter 5 Baru

18/22

Innovation

Management

WBB10202Advertising

- is an impersonal one-way mass

communication about a product or

organization that is paid for by the

sponsor.

8/3/2019 Chapter 5 Baru

19/22

Innovation

Management

WBB10202

Public relations

- Is the marketing function that evaluates

public attitudes, identifies areas and

executes a program of action to earn

public understanding and acceptance.

8/3/2019 Chapter 5 Baru

20/22

Innovation

Management

WBB10202

Sales promotion

- consists of all marketing activities thatstimulate consumer purchasing and

dealer effectiveness.

8/3/2019 Chapter 5 Baru

21/22

Innovation

Management

WBB10202

Personal selling

- Is a situation in which two people

communicate in an attempt to influence

each other in a purchase situation.

8/3/2019 Chapter 5 Baru

22/22

Innovation

Management

WBB10202

Advantages of Personal

Selling

- Provide a detailed explanation or demo- Message can be varied by the

salesperson

- Direct to specific qualified prospects

- Costs can be controlled- Most effective in obtaining a sale andgaining satisfied customer.