Business Explain: Marketing

What is the product life cycle and what is it based off of?

The course of a product's sales and profits over its lifetime

Four premises:
1. Products have limited life
2. Product sales pass through distinct stages, each with different marketing implications
3. Sales and profits from a product vary at different stages in the life cycle
4. Products require different strategies at different life-cycle stages

What are the types of brand valuation?

1. Market-based: valuation is based on an estimation of the amount for which a brand can be sold
2. Income-based: valuation is based on the future net revenues directly attributable to the brand, discounted to the present value using an appropriate discount rate
3. Formulary: valuation is based on profitability, leadership, stability, market, internationality, trend, support, and protection

What counts most in motivating the sales force?

1. A clear sales task: ensure that the linkage between effort expended and actual sales results is good and tight
2. Need for achievement: salespeople who value achievement exhibit higher levels of performance than do salespeople who emphasize other values
3. Incentive compensation and recognition: incentive compensation makes a strong link between reward (and often recognition) and expended effort
4. Good leadership: goal setting, coaching, evaluation, empathy, and knowledge are leadership skills that can contribute to salesperson performance

What are the determinants of service quality?

1. Reliability: the ability to perform the promised service dependably and accurately—the first time
2. Responsiveness: helping customers promptly
3. Assurance: providing the service with competence, courtesy, credibility, respect, and security
4. Empathy: providing easy access, clear communication, and listening to understand customer needs
5. Tangibles: the appearance of physical facilities, equipment, and personnel