Reference no: EM132226525

Degrees of Newness:

Explain the significance of “newness” in new products and services as it relates to the degree of consumer learning involved.

-From the important perspective of the consumer, ‘newness’ is often seen as the degree of learning that a consumer must engage in to use the product. This approach classifies new products according to the degree of learning required by the consumer as shown as below:

With a continuous innovation, no new behaviors must be learned. Ex: improved razor, toothpaste or detergent.

With a dynamically continuous innovation, only minor behavioral changes are required. Ex: electric toothbrush, smartphones.

With a discontinuous innovation, consumers must learn entirely new consumption patterns to use the products. Ex: Digital video recorder, electric car.

Required: Thinking about newness from the consumer's perspective, discuss one product on the market right now for each level of the degree of learning. Be sure to discuss price, placement, time on the market before consumers adopted, etc. How did the marketing plan impact/get shaped by the degree of newness? Write 200 words

Product Life Cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity and decline.

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.

Introduction Stage – In the introductore stage, the need is to establish primary demand. This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.

Growth Stage – The growth stage requires selective demand strategies.The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.

Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.

Decline Stage –The decline stage necessitaes a deletion or harvesing strategy. Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.

Required:

Identify one brand that is currently in each stage of the product life cycle. For this brand, provide at least two recommendations that would help maximize the brand for that particular stage. Write 200 words.

Please write in your own words and don't copy from anywhere. Please follow the insteuctions and write approapriate answers.