MKT421 Tutorial - 7079

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  • From: Business, Marketing
  • Posted on: Mon 09 Apr, 2012
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Product cycle, what is the big deal sell it until it can't sell anymore here in the United States, then dump it somewhere in the world, there is always someone that will buy it.  The great thing is that you can still make a profit without putting any real effort into. New products are all right but lots of work, a lot of money and it is still something you do not make a lot of money for your efforts. One thing you have to remember no one is going to pay more, you have to be the cheapest or you’re sunk, no products moving off the shelves.

 Address the statement from the perspectives of:

You are a marketing manager for Pillsbury

You are an advertising manager for Kroger food chain, determining what and where advertising should be placed in your listings.

You are a marketing student needing to set a price on the new product your group has come up with.

You are newly hired manager of a startup company offering a new product or service,

You are a purchasing manager for an off-shore wholesale warehouse chain.

You can also address the statement from other directions; just ensure you note how you are addressing the statement in your comments. (200 word)

 

As noted the pricing is an issue. As to being low or the lowest this would be something that you would have to consider with operations and others in the organization as to profit structure. In the food chain industry they work on very small margins, generally one to two percent as noted in http://www.edsuite.com/proposals/proposals_169/88_1_intel_-_grocery_stores.pdf 
As a point to ponder, what types of activities can you become involved in as Kroger manager to better utilize the small percentages of profits for advertising? (150 word please)

 

 

To some point there are many steps or areas that make up to the product life cycle. The first point as noted in our reading for this week planning is a focus point that has to be completed, taking into account many aspects and areas of production, logistics, as well as the marketing, advertising and sales aspects of the product. 
As point to ponder, if selling the product until it does not sell anymore is wrong, why are items put on closeout sales? (150 word please)

 

 

Interesting your company never dumps. Now let’s look at that, are you saying they never run special sales to intermediaries to clear inventory out of warehouses? Are you saying that there are never sales promotions offered to intermediaries to help them move older product? 
As a point to ponder people first product second sales last, how long do you think you will stay in a position with lost sales, and revenues, explain your answer. (150 word please)


Solution Description

Product cycle, what is the big deal sell it until it can't sell anymore here in the United States, then dump it somewhere in the world, there is always someone that will buy it.  The great thing is that you can still make a profit without putting any real effort into. New products are all right but lots of work, a lot of money and it is still something you do not make a lot of money for your efforts. One thing you have to remember no one is going to pay more, you have to be the cheapest or you’re sunk, no products moving off the shelves.

 Address the statement from the perspectives of:

You are a marketing manager for Pillsbury

You are an advertising manager for Kroger food chain, determining what and where advertising should be placed in your listings.

You are a marketing student needing to set a price on the new product your group has come up with.

You are newly hired manager of a startup company offering a new product or service,

You are a purchasing manager for an off-shore wholesale warehouse chain.

You can also address the statement from other directions; just ensure you note how you are addressing the statement in your comments. (200 word)

 

Product cycle is not just about selling a product until you cannot sell it anymore. Any product goes through different stages; From introduction to growth, to maturity, to decline. At the introduction stage there isn’t any competition. A lot of advertisement needs to be done in order to explain the concept and create a market for the product. Higher prices can be charged at this stage since there is no competition. At growth stage, competitors start entering the market. The prices need to be adjusted in line with the competition. There is greater competition as competitors compete for market share, but since the market is still growing, new clients can be attracted without having to poach away competitor’s clients. At the maturity stage the market becomes stagnant