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t Potential ? Industry Sales ? Market Share 169。2023 Prentice Hall Objectives ? Tracking Identifying Opportunities in the Macroenvironment ? Demographic, Economic, Natural, Technological, Political, Cultural Developments 169。2023 Prentice Hall Macroenvironmental Forces ? Opening of “new” markets ? Emerging transnational firms ? Crossborder strategic alliances ? Regional ethnic religious conflict ? Global branding 169。2023 Prentice Hall Economic Environment Ine Distribution Subsistence economies Rawmaterialexporting economies Industrializing economies Industrial economies Savings, Debt, Credit Availability 169。2023 Prentice Hall Accelerating Pace of Change Unlimited Opportunities for Innovation Increased Regulation Issues in the Technological Environment Varying R D Budgets 169。2023 Prentice Hall Social/Cultural Environment Of Organizations Of Nature Of Oneself Of Society Of the Universe Of Others Views That Express Values 169。2023 Prentice Hall Objectives ? Influences on Buying Behavior ? Buyer Decision Making 169。2023 Prentice Hall Culture Cultural Factors Subculture Social Class Buyer 169。2023 Prentice Hall Influences on Consumer Behavior Personal Influences Age and Family Life Cycle Stage Lifestyle Occupation Economic Circumstances Personality SelfConcept 169。2023 Prentice Hall Four Types of Buying Behavior Complex Buying Behavior Dissonance Reducing Buying Behavior Variety Seeking Behavior Habitual Buying Behavior Significant differences between brands Few differences between brands High Involvement Low Involvement 169。2023 Prentice Hall Objectives ? How Business Consumer Markets Differ ? Organizational Buying Situations ? Participants in the Business Buying Process ? Major Influences on Organizational Buyers ? Business Buyer Decision Making ? Institutional Government Buying 169。2023 Prentice Hall Problem Recognition General Need Description Product Specification Supplier Search Proposal Solicitation Supplier Selection Order Routine Specification Performance Review Post Purchase Purchase Info Search/ Eval Need Recognition 169。2023 Prentice Hall Government Markets Domestic Suppliers Open Bids Cost Minimization Public Review Paperwork 169。2023 Prentice Hall Industry Competition ? Number of Sellers Degree of Differentiation ? Entry, Mobility, Exit barriers ? Cost Structure ? Degree of Vertical Integration ? Degree of Globalization 169。2023 Prentice Hall Competitor’s Expansion Plans Markets Products Individual Users Commercial Industrial Educational Personal Computers Hardware Accessories Software Dell 169。2023 Prentice Hall Defense Strategies Attacker (3) Preemptive defense (4) Counter offensive defense Defender (1) Position defense (5) Mobile defense (2) Flank defense (6) Contraction defense 169。2023 Prentice Hall Specific Attack Strategies ? Pricediscount ? Cheaper goods ? Prestige goods ? Product proliferation ? Product innovation ? Improved services ? Distribution innovation ? Manufacturing cost reduction ? Intensive advertising promotion 169。2023 Prentice Hall Balance Competition Customer + Fighter orientation + Alert + Exploit weaknesses Reactive + ID opportunities + Longrun profit + Emerging needs groups 169。2023 Prentice Hall MarketSegmentation Procedure ?Survey ?Motivations ?Attitudes ?Behavior ?Analysis ?Factors ?Clusters ?Profiling 169。2023 Prentice Hall Bases for Segmenting Business Markets ? Demographic ? Operating Variables ? Purchasing Approaches ? Situational Factors ? Personal Characteristics 169。2023 Prentice Hall Additional Segmentation Criteria ? Ethical Choice of Market Targets ? Segment Interrelationships Supersegments ? SegmentbySegment Invasion Plans ? Intersegment Cooperation 169。2023 Prentice Hall Product Differentiation Form Fea tures Perfor mance Quality Conform ance Quality Dura bility Relia bility Repair ability Style Design 169。2023 Prentice Hall Differentiation ? Personnel ? Channel 169。2023 Prentice Hall Differences Worth Establishing Affordable Superior Profitable Preemptive Distinctive Important 169。2023 Prentice Hall Sales Profit Life Cycles Introduction Growth Maturity Decline Time Sales profits ($) 169。2023 Prentice Hall Maturity Stage ? Market Modification ? Product Modification ? MarketingMix Modification 169。2023 Prentice Hall Market Evolution ? Emergence ? Growth ? Maturity ? Decline 169。2023 Prentice Hall Why New Products Fail ? “ Over Championing” ? Overestimated Demand ? Poor Design ? Poor Marketing Execution ? High Development Costs ? Strong Competitive Reaction 169。2023 Prentice Hall Probability of Success Probability of technical pletion Overall probability of success = Probability of mercialization given technical pletion X Probability of economic success given mercialization X 169。2023 Prentice Hall ConsumerGoods Market Testing Sales Wave Research Test offering trail to a sample of consumers in successive periods. Simulated Test Market Test in a simulated shopping environment to a sample of consumers. Standard Test Market Full marketing campaign in a small number of representative cities. Controlled Test Market A few stores that have agreed to carry new products for a fee. 169。2023 Prentice Hall Characteristics of the Innovation Rate of Adoption ? Relative advantage ? Compatibility ? Complexity ? Divisibility ? Communicability 1