Chapter9 New Product Development And Plc

Resources:

Marketing an Introduction / Gary Armstrong, Philip Kotler

New Product Development and Life Cycle Strategies

New Product Development Strategy

Idea generationIdea generation

Idea screeningIdea screening

Concept developmentand testing

Concept developmentand testing

Marketingstrategy

Marketingstrategy

Businessanalysis

Businessanalysis

Test marketing

Test marketing

CommercializationCommercialization

Product development

Product development

Idea Generation and Screening

Generation Process

•Internal sources•Customers•Competitors•Distributors and suppliers

Generation Process

•Internal sources•Customers•Competitors•Distributors and suppliers

Screening Process

•Usefulness •Relevance to strategy•Resources•Advertising and etc.

Screening Process

•Usefulness •Relevance to strategy•Resources•Advertising and etc.

Concept Development and Testing

Concept Development

Detailed version of new product ideastated in meaningfulconsumer terms.

Concept Development

Detailed version of new product ideastated in meaningfulconsumer terms.

Concept Testing

Involves testing new product concept with groupsof target consumers.

Concept Testing

Involves testing new product concept with groupsof target consumers.

Marketing Strategy

• Target market• Product positioning• Sales, market share,profit goals for few years

• Target market• Product positioning• Sales, market share,profit goals for few years

• Product price• Distribution• Marketing budget for first years

• Product price• Distribution• Marketing budget for first years

• Long-run sales• Profit goals• Marketing mixstrategy

• Long-run sales• Profit goals• Marketing mixstrategy

Part 1 Part 2 Part 3

Business Analysis

A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives.

Product Development

Developing the product concept into a physical concept in order to ensure that the product idea can be turned into a workable product.

Test Marketing

The stage of new product development in which product and marketing program are tested in more realistic marketing settings.

Commercialization

Introducing a new product into the market.

Product Life-Cycle Strategies