• Sun. Jun 20th, 2021

all right so how's everybody doing today so we're gonna talk about global marketing this semester and we're gonna talk about how that's a little bit different from international business and also many of you have taken in fact several of you have also been in my course on cultural aspects of international business and we're going to talk a little bit about the different trade dynamics legal dynamics regulatory dynamics and cultural dynamics we're going to talk about that a little bit throughout the semester but that's not the focus of the course but it's important to ground you that we talked a little bit about that but the way the course is organized is specifically focused upfront on the marketing components of operating in so first of all let's just start at the beginning so to speak let's talk about marketing what are the key activities involved in marketing there's five key components to marketing now this is a bit of a generalization too just so that we could get our arms around this and then we're going to talk about some of the implications in a global setting but the first activity in marketing now mind you each of these activities have like 30 to 50 sub components but just to give you an overview the first activity is to identify an unmet need and we could spend a lot of time talking about how that's done but we're not gonna talk about that right now so that's the first step is to identify an unmet need which is gonna involve doing research and there's two types of research that could be done qualitative and quantitative research who could tell me what's the difference well you made some good points first of all one of the things that Daniel did was give us an example of qualitative research a good example of qualitative research is a focus group a focus group consists of 10 to 12 people and there's a moderator or a facilitator for that discussion and there's the discussion that takes place about a particular product or a particular service for example to try and understand what how we can meet an unmet need or to identify what the unmet need is so that's the first step is to do qualitative research a research plan that involves two cities and four sets of focus groups will cost about $50,000 so that's how much it's gonna cost to do four sets of focus groups in two cities so we want to get somewhat of a representative sample where possible so we don't want to just unless there's a product that was specifically wanting to sell in New York for example we're not going to want to do all our focus groups in New York so we're gonna have to pick the cities that are going to be the most representative of our target market and Daniel told us last time what the definition is the target market who remembers what is the target market and what is the target audience what's the difference I was saying that the market is the people that you want buying your product and the target audiences the met the people you want the message getting to exactly so the target market is who would instantly want to buy a product or service and the target audience is who we want to reach with our advertising so if you see the difference you see why then and very often they're not the same the target market is everybody that we want to buy our product it doesn't mean every person it just means every man for example but our target audience the person that we want to reach with our advertising or the person that we want to receive our message might just be Hispanic men so you see very often the target audience is a subset of the target market and the reason that's important and especially with respect to our discussion of global marketing is because very often we are going to have to customized our advertising campaign very often our target audience is going to be a subset of our target market especially when we already determined that we want to sell our product or service in many markets around the world because we said that the u.s.

Is only 5% of the world population so why is the US so strategic to many companies why is the US market so strategic why is that significant why do so many companies spend so much time money and effort to try and sell their product in the United States and that's why when they divide % of the world's population 5% Dean is am I making this up 5% do you think it's more it's 50% because it's really it's only 5% it's approximately 6 billion people in the world and approximately 300 million of them live in the United States now unless I did my calculations wrong that's only 5% so why do we always talk about getting distribution in the United States what do you think why that's so important the wealthy the United States as compared to other countries we control majority the world's wealth so absolutely so the per capita income is much higher in the United States than it is in other markets so if you're going to sell flat panels 1080p I high-definition black panel plasma monitors see that's something out to rehearse before class right anybody know what it is I just said do you guys know what that is good good then you have to find markets where the people have enough purchasing power where they have enough disposable income where they could afford by those high definition flat panel monitors Lynch the price I can tell you has come down quite a bit over the last five years which is an illustration of what type of pricing strategy why is it that really maybe seven years ago flat panel monitors they didn't have high-definition available in the u.s.

At that time but why were those flat panel 42 inch monitors that was selling for literally $10,000 selling now for let's say around 1500 to 2000 dollars what else been hammer cost less to me aha this is interesting tell us why all right well let's come back to that further then is something more we need to talk about that but first let's identify the pricing strategy that allowed us to go from $10,000 for a flat panel monitor to approximately nowadays it's very common to get a good flat panel monitor of large screen for about 1,500 to 2,000 dollars they even have some that are less than $1,000 now so why is that interesting so we're going to talk about those factors that are controllable and those factors that are not controllable but we need to ask ourselves is it really an invisible hand that's at work there or is it something that us as business and marketing executives can control so the marketing mix remember the marketing mix the marketing mix is the four piece one of the marketing mix elements is price that's something that business executives can determine price product place and promotion that's the marketing mix but tell me what is the pricing strategy you know and you know they put you know somewhere where it was you know and we're going to talk about how that relates to this model sometimes it's also referred to as the adoption curve model I was also going to suggest that throughout with the what it's actually called it there's also a pricing strategy where you'll start out extra high and then as time goes on you'll say okay we might need to lower it because the man there because of popularity yes so who could tell us what that is and who said that you yes what is your name no no one no Alaska yeah all right so skimming so it is a component of prestige pricing and there's certainly very clear evidence of a skimming pricing strategy which is basically what you described we start at a high price and then in a very deliberate and planned way the company lowers the price over time so it's not a knee-jerk reaction to what's happening in the economy or what competitors are doing if you have a skimming strategy which is very popular in the technology sector because this newness factor like you mentioned so new technologies introduced at a high price and then you achieve a certain level of penetration in the marketplace and then how do we get people to adopt and we get more people to purchase a product well in elastic markets we have to lower the price so an elastic market is a price sensitive market not all markets are price sensitive so in a price sensitive market if you lower the price demand is gonna increase that's what Jennifer is talking about in some markets you could lower the price and demand growth increase it's inelastic it's not price sensitive like what for example what would be a good example what do you think utilities yeah so what do you think about that if you lower the price of water or electricity generally you're not gonna start taking more showers because the price per gallon of water that your home has gone down it doesn't mean that there can't be any change in demand there might be some change but when we talk about a market being elastic versus inelastic we want to see a significant change we're expecting to see a significant change if the market is truly elastic just like when we talk about the growth rate of a category the category grows 2% 3% per year you could say that to mature basically a category that's what sure is it's experiencing no or little growth so 2% is not what we need when we talk about growth when we talk about growth in a category we're talking about something that's meaningful 20 30 40 50 percent and in some cases more all right so we talked about skimming and some pricing strategy the strategy can depend from the competition I know or just think that the company um it's part of their strategic plan so as part of the marketing plan of the organization then are going to determine that they can introduce the product on January 1st at $800 and then on June 1st they're gonna introduce the pre introduce the product for $100 less and then three months after that they're gonna reduce the price ten percent and six months after that they can reduce the price 10 percent again so woman that is planned if you're truly following a skimming pricing strategy that's something that the company has mapped out for several years in advance but I want to come back to your point about the cost because what's gonna happen as we move through this adoption curve model as we move through this adoption curve model is we're gonna achieve economies of scale I think that's what you were alluding to is that as we produce a greater number of units in most production environments the course per unit is gonna give mine so after a year or two years or three years four years we would expect to see a reduction in the cost per unit as we achieve efficiencies possibly with getting component parts for a smaller amount that's gonna enable us to follow through on our skimming strategy so it's not in fact I we just lower the price we'd like to think that we're still going to be profitable when we lower the price now we need to go through that analysis to understand but what happens if we lower the price 10% our total revenues going to increase as a result and is it going to increase by an amount greater than the decrease in price so all that because you want to talk about focus groups right qualitative research then there's quantitative research so right now we're still talking about identifying the unmet need just a little bit of an overview quantitative research quantitative research a good example would be a survey survey through the mail telephone internet below of those are examples of surveys more intercept now the difference as you pointed out is that with focus groups basically we have 10 or 12 people in the room and we have some key takeaways that are very insightful that are very meaningful to us but the difference is that with qualitative research we can't say 87% said that hot blue is their favorite color because we only spoke to what let's say about 48 people it's about 4 dozen people now the fact that we've identified some of the thing that colors is very helpful because what we do is we do qualitative research first and that is the basis for our quantitative research because when we do the quantitative research we're going to focus on testing the colors for example or the product attributes that came out of the qualitative research because otherwise how would we know what to ask on the survey unless we had qualitative research done beforehand and that research could either be primary research was secondary research least primary research is research that we conduct secondary research is research somebody else has conducted right absolutely so it could be a research report prepared by a consultant that maybe we bought online that's very common you can find a lot of market research reports online some of them are actually only about $1,500 some are more expensive than that but remember $1500 although it might sound like a lot even $5,000 might sound like a lot but remember to do the 4 focus groups it costs us $50,000 now some companies might be willing to do it for lumen for less I'm just giving you an insight into the typical cost for a company to do focus group research because you have to hire a facilitator you have to rent the space so there's an entire industry built around market research and what makes these facilities unique when they're doing focus groups is that there's a mirror behind the facilitator where the client and other members of the research team whether it be the product manager or the marketing director where they sit and could observe what's going on during the focus group and the focus group is videotaped but still people from the brand management team and the product development team usually attend those focus groups who they want to hear for themselves and importantly it's not what I think is a great idea or what Daniel thinks it's a great idea but what the customer says is a idea so it's one our target market says they are willing to purchase it doesn't matter if I like it well you like it it's the fact that the target market says that they like it and the product is useful to them and that they importantly they would buy it so we have to have when we do research we need to probe and understand purchase intent which is really critical because that's ultimately an indicator of our success so customers vote with that dollar if they purchase the product and we generate millions of dollars in sales then we have to determine whether or not we've reached the hurdle profitability in our organization so it doesn't matter if people in the sales organization laugh at you I've had people laugh at me because they thought the idea was ridiculous until Walmart placed the ten million dollar order then they stopped laughing so remember it's about what customers think of the product or service and their willingness to buy the product or service so let's just quickly recap because right now we just talked about one marketing activity identifying the unmet need which we said the way that we do that is through market research we said that there's qualitative research that can be done and quantitative research we do the qualitative research first and from that we gather the information needed to design our survey instrument to design our questionnaire which is an example of quantitative research and only do quantitative research then we have something that's statistically significant so if we have 48 people and I say 25% said they would buy a wireless phone that takes pictures but what are we gonna do what are we gonna do with that that's something that we could test and quantitative research but what do i do what do I go back and tell the vice president marketing 12 people said they would buy it so we need to do quantitative research now quantitative research we need to get a representative sample and in order to have something that's statistically significant we should try in most markets so in general like the United States 1500 in most categories 1,500 respondents is considered to be statistically significant if it's a representative random sample so I have 300 million people we don't need to ask everybody if we ask everybody what is that that's a census who only the government could afford to do that we can't answer I can ask you hundred million people to find out if they would buy this laptop no we need to have a representative sample so advanced men and women different ages different ethnicities different religions guys Jason don't do test-marketed yes there's there yeah a test market is his could be a very competitive race so we were talking about quantitative research and then you raise the question said well how do we get 1500 so 1500 what I'm sharing with you and my experience is a good rule of thumb to get something that's statistically significant now 1500 to get 1500 respondents for example is part of wall intercept research who knows what we mean when we talk about right so what we need to do though to get a representative sample is to be in numerous locations let's say so for example United States we need to be in numerous malls different cities throughout the country to be able to get something that's representative now I mentioned that a few times what does that mean what does that mean to have a representative sample because remember we said we're not doing a census we're doing a sample which means that we're going to get feedback from a relatively small percentage of our target market so importantly when we do the research we're not even trying to get a sample of everybody in the United States only for example men or only those people that buy flowers or only those people that buy or eat yogurt see so it becomes a little bit challenging it's not just asking we have to have some screening questions so when we approach people one of the things that we need to find out is for example do you mean Joker do you buy yogurt in some cases we might want to get some people to respond to find out why they don't buy yogurt so even though they're they're not a current customer we still would want to find out why they don't eat yogurt that would be a value to us but we're going to get a sample and somebody was going to tell us what that means to get a representative sample yes absolutely you want to add to that down it's one representative sample is a group of people that you can statistically infer something like a certain degree of reliance upon to the larger population that you're aiming to target to it a whole great so everybody you got what Daniel said we have a general population we're gonna get with the sample that population so in this case we do say that the population is our target market those people we want to buy our product or service is that reasonable so we define what the population is it's not just oh we're going to sell the product in in Japan for example but we're gonna sell the product in Israel that our population automatically is everybody in the country know it's reasonable to say that the population is the target market and then we're going to sample that population so we're not gonna ask all men not gonna ask everybody that buys flowers not gonna ask everybody that eats yogurt just a percentage of those people so the people that we ask have got to be representative their demographics have gotta be a match with the demographics of our target market so we want to get the typical let's say consumer of yogurt in Israel no crime we said we're not going to ask everybody so we need to ask when we say a representative sample a proportionate number of men women in and different age groups different income levels so to do more like deceptively search if we're going to do 1500 how much do you think that courses I heard 50,000 anything else so you are actually you're correct to sample 1500 people through that wall intercept research is about one hundred and fifty thousand dollars just to give you a sense of magnitude doesn't mean that some market research firm wouldn't do it rogdon twenty five thousand dollars or hundred and thirty five thousand but it's definitely not five thousand dollars so when we talk about identifying the unmet need what do we talk about we're doing four groups of focus groups so far and quantitative research we've already spent two hundred thousand dollars so this is serious right we're talking about spending a quarter of a million dollars and usually we don't just do four sets of focus groups we usually do at least three sets of four focus groups because each round right each group of four focus groups we learned something and then based on that input if we're testing a particular concept so before we even have a prototype what we're gonna test right right now we're talking about identifying an unmet need the next step is to develop a concept so we're gonna have focus groups to identify the unmet need which could be that what that your wireless communication device also known as the cell phone doesn't have internet access all right well could you imagine you know when I was your age we didn't cellphones does that blow your mind it blows they can it seems like I'm talking about like caveman years isn't that unbelievable even myself I think that like wow like my iPhone is literally an appendage so the the there was a time when cell phones didn't exist and there was also a time when you couldn't access the internet from your cell phone so identifying that unmet need is something that we could understand through focus group research and brainstorming which we could do internal and external so we could do market research internal to the organization very often it's done external to the organization so it's quite common that will tap into the input from people that work in the organization but what we need to be sensitive to is two mentalities what is the marketing orientation and the other is the production orientation the production orientation suggests that a company will try to sell what it could make so what we try to do is sell what we could make that suggests that we have a certain production capability and so we're gonna try and make people buy that product now that's different from the marketing orientation so let me contrast those for you the marketing orientation says that we will make what we can sell so you see the difference the marketing orientation says we will make what we could sell we're going to find out what it is that people want and we're going to develop the production capability and make that the production or patience says well we know how to make let's say what would be a good example we know how to make landline phones so we're just going to keep making them and we're going to try and convince people to buy them I agree I don't recommend the production oriented approach but try it try and understand the perspective of how somebody would get there why would somebody find themselves in that position well if you have 50 billion dollars tied up in manufacturing capability that could make what like it's like the same fax machines or something like that then you're gonna just try and keep making those and try to sell them really the goal of advertising is not to persuade people to buy your product or service if we've done our research if we've identified the unmet need if we develop the product that's going to meet those needs really the goal of advertising is just to make people aware that our product and service now exists and of course you want to create random wareness and a favored group grant attitude but it's not to try and convince people that you need this product we know the sûreté if we did our research we know what they need we know what their unmet needs are yeah Jason that seems to be true for market orientation if you're talking about production orientation of you I mean the goal just seems to be creating demand because you don't know that people want it but you're the case doing so as an advertiser your goal is to create demand well for a production orientation that's absolutely right what you're trying to do is create demand for a product whether or not it's needed or not simply simply because we have the capability now that's different about then if we were to say that everybody is not aware that they need this product per se because remember we're always looking ahead of the curve so it may not even be a lot of people like for example with the iPod what's so impressive about the iPod is that Apple didn't create or an event the mp3 player that's really impressive they didn't create that product what they did was very effectively brand the mp3 player using the iPod brand architecture so what they did is they wrapped the mp3 player in the iPod brand-name and then made people aware of the features and benefits of the product what you're saying is true in regards to it you know if you're doing marketing right then you're not there's an entire so no not not that it saying not to create a need of course we want to create category need whether it's for milk or our news juice right Josh of course you want to create category need but that's difficult saying you're trying to persuade people and even in some cases of trying to force them to buy a product that they don't need simply because we have that manufacturing capability so it's those two elements together it's not just that you're trying to persuade I'm not saying that there's not element of appetizing that's persuasive but I'm saying from the manufacturers standpoint that their motivation is based on the fact that they had the production capability right but there's like an entire subset of advertising of like products for the advertising itself creates the need whereas somebody wouldn't normally think that oh this is a problem but it's what they see the advertisement and they think like oh that is a problem I do need that product so I would say that's building awareness of of either the product or the category right so I'm not saying that we don't want to certainly one of the objectives of advertising can frequently be to create category need so now you're forcing me to explain the orange juice example so you ready Josh here we go all right so this is the this is a good example like for as you're mentioning category need are you familiar with the Got Milk campaign so the purpose of the god new campaign is about cleaning category need to make people aware of the benefits of drinking milk and it doesn't focus on a particular brand what it does is it focuses on a product type which is to try and create demand for milk not for the XYZ brand of milk or the ABC brand of milk but for milk as category is what Daniel is referring to so often we do have advertising that will focus on creating category mean which is also sometimes referred to as primary demand now what are the things that the manufacturers of orange juice realize to their research is why it is that people purchase milk this was very insightful and something that had a significant impact on their business strategy they started to research to understand who is in their competitive set they wanted to know who are their direct competitors and who are their indirect competitors and why so you might think that their direct competitors let's say from innovate from innovate orange juice one of their direct competitors is Tropicana because if people are in a grocery store they're gonna choose between Minute Maid orange juice Tropicana what are some other friends of our luxurious invention is natural simply orange but they didn't just stop there they wanted to find out who are their indirect competitors and who maybe are indirect competitors but can be classified as direct competitors so I wanted to find out why people drink milk and they found out that people drink milk because they want calcium vitamin D for example and so what did that cause the orange juice companies to do is to start promoting the fact that orange juice is high in potassium high in vitamin C contains calcium contains vitamin A vitamin D and they realize that in some cases milk was a substitute for orange juice or depending on whose perspective you could say that orange juice is a substitute for milk so the gut milk campaign which is somewhat unusual why because competitors are working together because they're saying you know what this dairy farmer is he's not really my competitor and this dairy farmer is really not my competitor maybe at some level but why don't we all put our resources together and promote and then he was suggesting the category to get people to drink more milk overall because you know our competitor is not a B C dairy company or XYZ dairy company but if competitors for milk is orange juice so this is something that they learned through their research which is very compelling because they understood the motivation for purchasing the product so it's not just enough to understand that people purchase your product but why why do they purchase your product or why do they not purchase your product is important questions but the first identifying somebody is we're gonna get to the yes yes so I told you that could be 30 or 50 components and we just looked at some fur and identifying an unmet need just to the view make sure that the Sonia don't want to tenant research qualitative research primary research secondary research we talked about direct competitors and indirect competitors from there the next step is to develop a concept determine a price that customers are willing to pay create awareness so create awareness for our brand and then and the order matters in this case and then gain distribution so we can identify what men need develop a concept and that's why when we developed a concept why we're going to do so many rounds of qualitative research just first we have with soliciting input from the target market then we're going to develop that into a concept and then when they take those concepts or concept boards to research and then based on that we're going to develop prototypes so prototypes can be very expensive so you want to take concept boards to research first then once you get enough input and you could fine-tune those concepts then you could develop prototypes then we're going to determine a price that the customers willing to pay and then I think I did misspeak the next step four would be to gain distribution and then build awareness so I fell into the trap that I wanted to call to your attention which is before you start advertising you need to make sure that your product is available so the fourth step is to gain distribution and then start to build awareness because what we don't want to happen except in rare situations and in some unique categories we don't want to happen is to spend a lot of money on avatar and then have people let's say go into the store like Walmart or Target at Best Buy and find that the product isn't on the shelf yes they do so there's a question we have to ask ourselves did they do that on purpose or alright do they have trouble forecasting cuz forecasting demand is very difficult to do to properly and accurately forecast demand is very challenging if you could do that with a high level of precision you should see me after class all right because 100 billion dollar companies struggle doing that and they have dozens of people working as part of a team to try and anticipate and forecast demand is something that's very difficult to do sometimes companies guess wrong and that's why they have a shortage now in some categories there is a belief that they're creating built up demand that they're creating this pent up demand when they're creating some level of hype for a particular product now if the product is a high involvement product you could play that game because people will continue to go back to the store and look for let's say a new release of a DVD or a new release of a video game but that's for a high involvement product do you think those are high involvement something that people will spend a lot of time researching the cars would also be a good example usually products that are expensive or considered to be high involvement but what's expensive to some is not expensive to others but certainly cars can be considered high involvement what do you think why are video games considered crying about them I thought my Bobby really is like you spend I can read the details about it yeah you don't think that gaming in general is sort of I hate to use the word like cult-like I mean it's like I mean that's phenomenon of like this sort of category of again gamers in general there's a very high level of involvement in purchasing the product but it's something a product that once you purchase that you use and you're intimately involved in I'm not a gamer I have a Playstation I think it's probably the original one but what do you guys think do you think like gaming like that's a phenomenon that's people are very involved in or yeah that's kind of where it's like buying soda oh you get people sometimes people feel very strongly about Coke versus Pepsi but if they don't have the product depending on the level of brand loyalty very often people buy a different brand well maybe they'll buy orange juice instead right but I wouldn't think that milk or orange juice is a high involvement product but gaming that's quite a phenomenon and not in our culture today also yeah I think that's a good example of a cultural phenomenon but other other products not so much even on music there is definitely a group of people that feel this affinity to a particular musician or singer if you go into the store and they don't have the product they don't have it you know we're supposed to drop on January 15 and it's not in the store well if that's one of your favorite singers then you're gonna go back again and they're chomping on that so they take advantage of that they're from a consumer behaviour their point they understand that so I agree that in some category it does create a level of height right a level of anticipation you went to the store they didn't have the product so what is it do make it less desirable important styrofoam right in many cases it makes it more desirable now you want it even more but not in all categories though so that's the thing is we have done as executives we have to know how to apply these concepts and understand when they're relevant and not relevant but in terms of adoption let's some let's get to this before we go and talk about what's called the diffusion of innovation sometimes referred to as the adoption current model this model suggests that adoption occurs at different rates now there's certain percentages associated with the model it's conceptual for us that key takeaway is is that it's relevant and it's applicable doesn't mean exactly to that percentage but the idea is that there is a certain group of people that will purchase a product when it first comes out and then our challenge is to modify the marketing mix to get the next group the next segment to adopt the product and that's why this is very relevant to what we talked about in terms of the skimming pricing strategy which is you introduced a product at a high price so that group the ones that are there first to buy we call the innovators then we have the early adopters we have the early majority and then and non-adopters this is in Chapter 12 yeah sometimes a term used is laggards but I think it will be user-friendly turn his non-adopters right so not adopters are those people that are not gonna purchase the product so we have a certain percentage about two and a half percent that are going to purchase the product when it first comes out those are the people that are gonna purchase the iPhone it's $600 when the first comes out so after the first two and a half percent and it could be three and a half percent it could be five percent the idea that a small percentage of the target market is going to purchase the product at six hundred dollars so then after they purchase that and hopefully we thought about this who I'm before the question is how do we get the early adopters to purchase how do we get the next thirteen and a half percent to purchase how do we get the early majority to purchase how do we get the late majority to purchase and these well basically you don't really expect that they're gonna purchase the product but one of the things we want to find out in research is why we should understand why there's non-adopters because maybe these not adopters we could convert to adopters need to understand maybe the product is too complex that's one of the challenges of advertising technology products is we have to spend a lot of time communicating how to use the product and its features and benefits so technology companies they spend a lot of time and also promote that their product is easy to use somebody's a you know very simple this kind of plug-and-play approach to design that basically you just take let's say like the desktop computer out of the box plug it in and you could use it and they've tried very hard to make that a reality you know now they color code the woman the wires when I got my first computer the wires we're in color code it was tricky to spend it to set it up now you're like are you take the purple wire that's the keyboard and write it simple and that's intentional because they understand that people figure when I get home how am I going to put this thing together so the companies tried to encourage us and convince us that no it's simple take it off the box plug it in and you could use it so what's one of the ways that we could accelerate the rate of adoption because what we're looking at here is this is time so this could be one year two years three years four years five years etc and this is we could say the number of units or the dollar sales as we move through time how can we accelerate the rate of adoption that's our challenge we need to understand that keep takeaway for us is that there is an adoption curve model that everybody doesn't go out and buy the product when its first released 200 million people just go out and buy the product what we need to understand is that this model is something that we're responsible for managing global marketers we need to manage the rate of adoption it's our responsibility so how are we going to get the early adopters to purchase our product what some of our options because remember our biggest weapon if you will is the marketing mix those are the controllable factors there's controllable factors and factors that are not controllable like just quickly an uncontrollable factor would be like the economy we have no control over that's a recession if there's a recession lumber that's that's a problem we can't control that but what could we do you know reduce the price right in an elastic market we could lower the price and our expectation is that the number of units of in themself is going to increase what else could we do so absolutely so promotion is wonderful for peace and promotion also includes advertising but advertising does not begin with P right so promotion is all inclusive including sales promotions trade promotions and also advertising so we could advertise and build awareness create as daniel said category need for let's say mp3 players but also secondary demand for a particular brand so when we're advertising for a particular product we're creating very often we are creating primary demand and you say wow it doesn't that benefit everybody yes so my Tropicana advertises then building awareness and trying to create a favorable Brandt attitude for the Tropicana brand but they were also creating demand for orange juice right that's that's unavoidable so this bit of a benefit for that yes the simply orange benefit from that yes all the brands in the category benefit from that what else creates the distribution channels absolutely so one of the four pieces place so you could expand distribution and not today but we'll talk about intensive distribution selective distribution exclusive distribution which has to do with how much distribution there is of our particular product what else what else could we do well you guys really have mentioned promotion which could be a contest or a sweepstake or a coupon or Daniel – this guy's marketing yes absolutely which would be what you think of like a sample or a trial or I mean I was gonna say oh yeah yeah outdoor advertising right that's solutely yeah that's what you want to do is to saturate a particular market to create a strong brand presence but also we could add features we can add features to the product so like think back to the iPod right there was no LCD screen right wasn't video capability then they added LCD screen but of course it was black and white then they added it in color and so as they added more features and more functionality and more benefits then we move through the adoption current model so what do we do we modified the marketing mix and accelerated ideally the rate of adoption through this model right the different generations have their own curve yeah well I would look at it in terms of the product life cycle which is also a bell-shaped curve so I think you could look at it that way what was the rate of adoption for a particular model for example so absolutely you could do that generally you would look at it in terms of the entire category or entire product line but certainly the same concepts is relevant so we'll continue to talk about this more next time all right have a good night

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