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Short essays discussing: test marketing, the 4 Ps, product life cycle, & marketing communication mix.... More...
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Paper Abstract:
Short essays discussing: test marketing, the 4 Ps, product life cycle, & marketing communication mix.
Paper Introduction:
Any form of test marketing has its drawbacks. Marketers of food products often use taste testing as a way of predicting consumer behavior with reference to the new product, and this approach has its dangers as well. People select foods based on personal preferences, and when we are talking about foodstuffs, we are really talking about personal preferences over group preferences. That is, each person has his or her own particular likes and dislikes, and some products will appeal to them and some will not. There is not always a clear population dedicated to a certain taste as there might be for other products. To be effective in predicting consumer behavior, a taste test must have a very large base population taking the test to give a good idea of the percentage of the consumer population that will be interested in the product.
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Managers have to understand theserelationships while also seeing how those relationships may differ from oneproduct to another or one product type to another. There is not always a clear population dedicated to a certain tasteas there might be for other products. Managers should consider the way the life cycle of a product relatesto the market and may be affected by the market. The problem of predicting is even greater in the international marketbecause the relationship between a product and the marketplace may differ,depending on how mature that marketplace may be and what sort of a lifecycle products have in that market. For Stouffers to maintain its lead share in the international marketfor low calory frozen food entrees with its Lean Cuisine product line, itneeds to develop new products in keeping with its philosophy and thatappeal its target consumer. It is product-oriented rather than market-oriented. The product hasalready been developed by others and has been fully tested. First, it is important to send a single compelling message. That is, each person has his or her own particularlikes and dislikes, and some products will appeal to them and some willnot. If the price could be lowered, that would make theexisting line more competitive immediately, but often this is difficult todo. This limits the value of the productlife cycle concept as a planning tool--the concept depicts what ishappening to a product at a given time and is not a good predictor of whenit will happen. Product placement is enhanced in this case by the fact that there isan existing line--Lean Cuisine--with a following, and the new products canbe included in this line as new recipes offering the same advantages--lowercalories for weight control. This does not make thePLC a good predictor, but it does mean that the PLC concept can be combinedwith a variety of other information from the market to make some estimatesof the course of the life cycle. Among the possible measures aresales, inquiries, revenues, or inventory turnover for products (t-shirts,mugs, caps, and so on). It would be morecostly to introduce a new line and would require a new package strategy, anew advertising strategy, and unique promotions to serve the needs of thisline and to reach the intended consumer market. If the companyintroduces a new line as well, that new line will require greater attentionas to place and may have entirely different competitors than the existingline. Placement of the new products is made easierby the fact that they are part of an existing line. The place for the drug in the currentmarket will be decided first by informing potential consumers of itsexistence, a drug they already need and know, and second by pricing it soit outshines other generic versions of the same drug and so attracts moreattention on the shelf. This data can be conveyed to doctors who in turn will tell theirpatients. Price is a key issue for generic drugs and is affected by theselection of the product, the placement of the product, and the promotionof the product as well as by issues of ingredients and manufacture. People select foods based on personal preferences, and when we aretalking about foodstuffs, we are really talking about personal preferencesover group preferences. The consumer will notbe attracted to the product of this company by the product itself as muchas by the price. In terms of the 4 P model, this means productsthat offer new types of food, new flavors, and new recipes. This means not only what you can afford, but what will reachthe target consumer. Ifthe product is, say, chili, only those people who have some might alreadylike chili will take the taste test in the first place. It has beenmarketed and has been established in the marketplace as an effective toolfor combating symptoms and effects of a health problem. There are usuallyfour to six distinct stages in the product life cycle, and the followingstages are usually represented when describing the process: design,introduction, growth, maturity, and decline. As noted by Kotler (1997), the tool is best used for theinterpretation of product and market dynamics. NY: Prentice Hall. This division maintains its position by underpricing thecompetition, so any decision to produce or not produce a generic drug willbe made on the basis of the costs involved in producing, distributing, andmarketing it. There is little argument as to when aproduct is in the design and introduction stages, but shifts from growth tomaturity to decline may be arguable. For that matter, the market must understand that it is difficult toascertain from a taste test what percentage of the population would beattracted to the product. A certain kind of productmay be popular in the marketplace for a time and then begin to lose itsallure, and this will affect the life cycle of every product of that typeand contribute to their decline. Each of these factors would be affected by every decision forthe production of generic drugs. Marketers of foodproducts often use taste testing as a way of predicting consumer behaviorwith reference to the new product, and this approach has its dangers aswell. Thesecommunications tools could be applied to an unconventional product, such asprofessional sports teams. The product will then have to fit into a different niche, and thiswould have to be determined by careful analysis of the market and theconsumer base. It is important to reach the target consumersthrough the most cost-effective communication and distribution channelswithin reach. Much of the workof promotion has already been done by the original manufacturer, a companythat has informed doctors and patients that this is a drug that servestheir needs. Considerthis in terms of product packaging, which for a team would be the imagethat is the central issue in communication. This model has been highlysuccessful for many companies and has allowed them to plan the development,production, and reduction in production of products as the marketplacechanges and the position of the product on the life cycle progresses. It is less valuable formaking strategic decisions because the definitions of the different stagesin the life cycle are flexible and the means for identifying when a productis in a given cycle are inexact. The company should introduce new foods in the Lean Cuisine line firstand analyze the market to see if a new line for a different segment of themarket would be warranted. The productlife cycle concept depicts new products as having a similar life cycle,with a pattern showing growth, plateau, and decline. The maturity of such products isdependent on their health in the market. Advertising and promotion used for sports teams must be directed atthe most effective medium. Placement of the product is something that is important in order toattract the consumer and outdo the competition, but with a generic drugmuch of this work has already been done by the company that developed andmarketed it in the first place. Marketing management: Analysis, planningimplementation, and control. A larger groupwill shy away from the test because they simply do not like chili under anycircumstances. How youdefine success will determine how you judge the communications you use anddetermine what works and what does not. (1997). Competitive prices must be maintained for the Lean Cuisine line,however. This means knowing who theprimary customers are as well as knowing their key consumer motivations.For a sports team, this includes such things as local pride, support forone or more specific players, competition with other teams, and so on. Reference Kotler, P. When a taste test is held in a supermarket, acertain percentage of those taking the test will like the product and acertain percentage will not. Information has to be ascertained onhow PLC operates in these different markets. The same approach and rules applied toother products would be used in conveying this message. Of course, price has to be kept at least at its current level for thenew products to be competitive, and price must also be kept low on theexisting products. Promotion also comes in with the placement of the product on theshelf, packaging that attracts the eye, and similar means to inform thepublic in the store. The four p's affecting marketing are product, price, place, andpromotion. The decisions as to whichproduct to produce will be made on the basis of price, potential market,and potential liability for drugs that might cause side effects or someother problem. Campaign monitoring begins when the other means of communication arebeing formed, meaning that the team needs to know beforehand whatmeasurement of success will be used in the monitoring process. Research is an important tool so that you can develop a clearlydefined target market for your communication. Promotion as well will differ as to whether the products are part ofan existing line or a new line. The product life cycle concept derives from biological constructs,given that organisms such as human beings have a life cycle ranging frombirth to death, with clear if flexible stages between the two. The company might introduce a more upscale version of this lineto appeal to a different consumer base at a higher price, though, and thiscould increase market share in another way. Promotion is also to be minimal for the same reason. Packaging can also serve to set the product apart,but packaging has to be kept to a simple level in order to protect the lowprice. Changes in these areas would signal success orfailure of the marketing communication campaign. New products in the existing line arepromoted with similar packaging, similar promotions, and relatedadvertising along with the existing Lean cuisine line. It is an indication that the consumer willnot reject the product outright because it does not taste good, but thereare other factors that will figure in the decision to buy or not to buy,including everything from price to ingredients, caloric content, healthfactors, personal preferences, seasons, and the tastes of other familymembers. To be effective in predictingconsumer behavior, a taste test must have a very large base populationtaking the test to give a good idea of the percentage of the consumerpopulation that will be interested in the product. Whether it is viable to produce a given generic productthus becomes an issue of how low the price can be set. This means further research to match the motivationsof the consumer with the communications means echoing those motivations--sports shows on radio, for instance, or newspapers read by the localpopulation, especially newspapers with the most-read sports pages. As noted, this division operates on the basis of keeping costs down sothat the generic drugs can be sold as cheaply as possible. The conventional marketing communication mix includes tools such asresearch, product or service packaging, pricing, distribution, promotionand advertising, sales, budgeting and campaign monitoring. This does not indicate the percentage of thepopulation as a whole that likes or does not like the product, however. In addition, the fact that a consumer likes the taste of a certainfood when sampling it in a testing situation does not mean that the sameconsumer will buy the product. A taste test only gives an indication of how appealing a productmay be to the taste buds of the consumer, but translating that intoconsumer behavior involves a number of steps in which other factors canintervene to change the outcome. The intent would be to convey information andimage to the consuming public. Since everymanufacturer could produce these drugs, given that the drugs are no longerunder patent protection, keeping the price low is an essential competitivestrategy. It is important to focus everyword, visual, and sound of the campaign on one core idea, and this ideacould be embodied in a mascot such as an animated character, a visual thatcould be reproduced on products, in advertising, on television, and--ifgiven a voice--on the radio. This makes predicting consumer behaviordifficult under any circumstances. The product generally has an identifiable target market--itis possible to know the number of people who require the drug at this timeand to predict the number who will need it in the future. Any form of test marketing has its drawbacks. The results can thus be misunderstood or misapplied if thisfact is not kept in mind. Asnoted, the price must be kept low for a generic drug to be competitive whenother companies are producing exactly the same drug. The product itself is determined by what products have fallen out ofpatent and so can be produced by the company. One way tocounter competition is to develop new products that the competition has notyet produced and to attract the consumers who have been satisfied in thepast with Lean Cuisine meals, as well as new customers attracted by the newproducts. The new version of the product may have a different name thathas to be conveyed, and the second important bit of information is theprice.
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