Transcript Chpater 8 Developing..

8
MARKETING AN INTRODUCTION
Armstrong/Kotler
Developing New Products
and Managing the Product
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Life-Cycle
Chapter Outline
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New-Product Development Strategy
The New-Product Development Process
Managing New-Product Development
Product Life-Cycle Strategies
Product Decisions and Social Responsibility
International Product and Services Marketing
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Today’s Outline
New product development process
Class activity three
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What do you think about these
NEW PRODUCTS?
• Smucker’s ketchup
• Gerber’s beef mushroom gravy
• Fruit of loom detergent
• Eagle snacks (Anheuser-Busch)
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Why New Products Fail
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No discernible benefits
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Poor match between features and customer
desires
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Overestimation of market size
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Incorrect positioning
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Price too high or too low
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Inadequate distribution
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Poor promotion
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Inferior product
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LO3
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New-product Development Strategy
New-product development is the
development of original products, product
improvements, product
modifications, and new
brands through the
firm’s own productdevelopment efforts.
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The New-product Development Process
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Idea Generation
Internal Idea
Sources
External Idea
Sources
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Idea Generation
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Idea screening
• Screening new-product
ideas in order to spot
good ideas and drop
poor ones as soon as
possible.
• Real
– Any real need and wants
from customer?
• Win
– Any competitive
advantage?
• Worthdoing
– Sufficient profit?
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Concept Development and Testing
Product concept is a detailed version of
the new-product idea stated in meaningful
consumer terms.
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Concept Development and Testing
Concept testing is testing new-product
concepts with a group
of target
consumers to find out if
the concepts have strong
consumer appeal.
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Concept Testing Questions
Battery-Powered Electric Car
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Marketing Strategy Development
Marketing Strategy Statement
Step 1
• Target
market
• Planned
value
proposition
• Sales
• Market
share
• Profit goals
Step 2
• Price
• Distribution
• Marketing
budget
Step 3
• Long-run
sales
• Profit goals
• Marketing
mix
strategy
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Business Analysis
Business analysis is a review of the sales,
costs, and profit projections for a new
product to find
out whether
these factors
satisfy the
company’s
objectives.
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Product development
Product development is developing the product concept
into a physical product in order to ensure that the product
idea can be turned into a workable market offering.
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Test marketing
Test marketing is the stage of new-product
development in
which the product
and marketing
program are
tested in realistic
market settings.
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Commercialization
Commercialization involves introducing a new
product into
the market.
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New Product Development Process
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Customer-Centered New-Product Development
New-product development
that focuses on finding new
ways to solve customer
problems and create more
satisfying customer
experiences.
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Class activity four
New product development
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Systematic New-Product Development
The new-product
development
process should be
holistic and
systematic rather
than
compartmentalized
and haphazard.
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Product Life-cycle Strategies
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Style, Fashion, and Fads
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Summary of Product Life-Cycle
Characteristics, Objectives, and Strategies
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Summary of Product Life-Cycle
Characteristics, Objectives, and Strategies
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General Mills Video Case
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