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Principles of marketing Assignment 4

1. Assume you come up with an idea for a new electronic product you think your fellow
students would really like. How would you go through the product development
process? How would you accomplish each step within that process?

During the product development process, a product goes through several stages in order to be
launched successfully. There are several stages to the development of a new electronic
product;
Any product development process begins with idea generation. The idea or concept for a new
product is generated during this step. Based on current marketing trends, similar products that
are available on the market, and a SWOT analysis of both internal and external factors, as
well as analysis of the costs involved and potential risks associated with the project, the idea
of a new electronic product would be properly analysed.
a. Next, the idea generation is screened. As soon as ideas are generated, it is important to
set strategies or specific ideas for the new electronic product as well as determine which ideas
should be dropped and which should be followed. It may be included if a new innovation idea
is generated.
b. After idea screening, we proceed to concept testing. The next step is to find out how
students and customers will perceive the new electronic product, how much they will need or
understand it before moving on.
c. Analyzing and designing a product is the next step. In addition to presenting a
schematic diagram of the product, the parts required for the product may also be listed, as
well as the associated costs.
d. Often a prototype of a new electronic product will be manufactured on a trial basis to
check if the results match the planned prototype or if any changes need to be made to the
circuits or parts.
e. The design review is the next stage of the development process where the function,
appearance, costs associated with the production, and possible enhancements are evaluated.
Most of the changes are minor, but it is done to ensure compliance with the original goals.
f. During the manufacturing step, the necessary testing procedures, assembly instructions
and details, and necessary documentation are developed in order to produce quality products
in large volumes.
g. After manufacturing, the product reaches prospective markets or potential customers
as the final stage of product development. In case of new electronic product same rule
follows. Future electronic designs and marketing skills will be guided by manufacturing
experience, cost of production, reviews from fellow students as well as customers.
2. Select a product you are familiar with and explain the stages of the product’s life
cycle and different ways in which a company can extend its mature stage.

·New products typically require highly skilled labor to produce. A product's comparative
advantage shifts from the innovator to the imitator country as it matures and acquires mass
acceptance.
·Moreover, it facilitates intraindustry trade.
·Extending the mature stage: It is possible to extend the mature stage by creating a
technological gap (Posner, 1961), which means introducing some new innovation to either the
production process or the product itself. This will allow the maturity stage to be extended.

3. What are some brands that you think use selective or exclusive channels? How does
channel choice, in those instances, influence consumer perceptions of value? In what
situations might selective or exclusive channels add real value?
Several renowned brands, such as Mercedes, Apple Inc, Gucci, Toyota, and Adidas, use
selective or exclusive channels.
The channel selection plays a very significant role in how customers perceive a brand's value.
The status symbol of a certain product is important to many customers. When the product is
available everywhere, the brand loses its exclusivity or value. Selective distribution involves
using a greater number of intermediaries than all of those willing to carry a particular product.
There are customers who believe that if the product is only available at a limited location, it
will have a better reputation or brand image.
Those middlemen who will give special attention to the product will be selected for selective
distribution. Distributing selectively means selling products where they sell best.” This
exposure typically occurs when consumers shop for products. Costs can be reduced and better
partners can be obtained through selective distribution. Market growth often results in
selective distribution becoming intensive.
One middleman can only distribute a product in a particular geographic area through
exclusive distribution. There are times when exclusive distribution makes sense, especially
when dealing with specialty products.
A brand's perceived value is greatly influenced by the distribution channel selected. Brand
value will be greater if the product is available in fewer locations.
Selective or exclusive channels can add value in the following situations:
A certain group of customers is targeted by the product;
There is a relatively high price for the product;
A renowned brand is associated with the product
Buying the product as a status symbol is only an option for a small percentage of customers
4. How does disintermediation benefit the consumer? How might it harm the
consumer? Can you think of any revolutionary businesses created in the past few
years due to disintermediation? Be sure to describe one not mentioned already in the
chapter.

When disintermediation occurs in an economy, consumers benefit from lower prices and
predatory pricing, as there are no intermediaries between wholesalers and consumers, like
retailers.
As a result of such an arrangement, customers lose out on the expertise of retailers and might
have to go with a single wholesaler, resulting in monopolies. It also affects the service that a
customer receives.
De-mediation has led to one revolutionary business: Airbnb, which directly connects
customers and seekers to house owners and hoteliers who were looking for a platform to
interact and do business without brokers.