推广策略08-new product ads.pptVIP

New Product Advertising Type of Demand Sought For a new-to-the-world product: The firm must develop an entry strategy with the emphasis on stimulating primary demand for the product category For a product improvement or upgrade to existing product (e.g., Windows 98; 1996 Ford Taurus; Intel’s Pentium Pro chip): The launch is expected to achieve customer migration (i.e., existing customers should be encouraged to “migrate” to the new product; The goal here is to stimulate replacement demand For a new entry or line addition in an established market: The emphasis is on stimulation of selective demand (drawing market share away from competition) Product Line Replacement Most new products relate to existing products in the company’s product line; they do not enter markets new to the firm The technologically strongest firms cannibalize their own products (and production processes) with newer, higher-performance versions The decision on when to launch the next generation of product is a tricky one, but is likely to depend on at least three important forces: the competitive environment, customer expectations, and profit margins. Cannibalization Revenues rung up by new products may come at the expense of other products sold by that firm Eastman Kodak realized that sales of its traditional films might suffer when it introduced digital-imaging products The prospect of the Smart Car took the sales away from full-size, higher price autos sold by DaimlerChrysler Why does a company take actions that could result in cannibalization? If it doesn’t introduce new products or channels to better serve existing customers, one or more competitors almost surely will. A study on high-tech industry concludes that success with truly innovative new products requires a willingness to cannibalize in order to achieve substantial gains in the future IMC Elements An awareness of the target audience’s information sources, as well as their media habits and preferences An understanding of what the audi