Notes

3 levels of a product: Augmented, Actual, and Core
Product Life Cycle: Product gets old
Planned obsolescence: Company plans to break down product after X years
Newer is better
Diffusion of innovation: The colors are the people. Is a sales graph.
Innovators = First one to buy the product.
Early adopters = A week later will buy the product.
Early majority = Price hasn't dropped. Buying b/c previous 2 said product was good
Late majority = A year later, $100 off. People buy it
Laggards = Value money too much. Still buying old phones
Product life cycle: Introduce the product. Dotted line is the money they make
When there's growth, money line goes up high. In maturity, there is no more advertising, graph starts going down. In decline, laggards are buying it
Upward sloping demand curve: High price leads to higher quantity demanded
Market penetration: Want to get all the customers on your side
Dynamic Pricing Strategy: Prices change
VMS: Manufacturer, wholeselaler, or retailer can directly get to the consumer
3 types of vertical marketing systems:
1) Corporate: Different levels of channels owned by the same company. High control
2) Contractual: Different franchises and big corporation gives them products to sell
3) Administered: Supermarkets that are owned by families/corporations. Get products through trucks and different wholesellers