Q: What are the marketing strategies that would be taken in the introduction stage?
Ans: There are four different marketing strategies in launching a new product. These are-
(i) A rapid-skimming strategy: It consists of launching the new product at a high price
and a high promotion level. The firm charges a high price in order to recover as much gross profit per unit as possible. It spends heavily or promotion to convince the market of the products' merits even at the high price.
A slow-skimming strategy: Slow-skimming strategy consists of launching the new
product at a high price and low promotion. The high price helps to recover as much gross profit per unit as possible and the level of promotion keeps marketing expenses down.
A-rapid penetration strategy: This consists of launching the product at a low price & spending heavily on promotion. This strategy promises to bring about the fastest market penetration and the largest market share.
A-slow penetration strategy: Slow-penetration strategy consists of launching the
product at low level of promotion. The low price will encourage rapid product acceptance and the company keeps its promotion costs down in order to realize more net profit.
Q: Define communication. Mention the types of communication.
Communication is the process by which information is transmitted between individuals
and/or organizations so that an understanding response can result.
Communication is an exchange of facts, ideas, opinions or emotions by two or more
Types of communication:
1. Intrnal -- External
2. For-mal -- Informal (Grapevine)
3. Vertical' -- Horizontal
4. Upward -- Downward