Principles of Marketing_Ch-9

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Principles of Marketing

Kotler and Armstrong

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Textbook

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Chapter 9:

Ne Prod!ct"evelopmentand Prod!ct #ife$

C%cle &trategies

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Ne Prod!ct "evelopment

#earning 'b(ectives

• 'b(ective ): Explain ho co!panies "ndand de#elop ne product ideas.

• 'b(ective *: $ist and de"ne the steps in thene product de#elop!ent process and the

!a%or considerations in !anaging thisprocess.

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#earning 'b(ectives

• 'b(ective +: 'escri(e the stages o) theproduct li)e cycle and ho !ar*eting

strategies change during a product+s li)ecycle.

• 'b(ective ,: 'iscuss to additional productissues socially responsi(le product decisionsand international product and ser#ices!ar*eting.

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#earning 'b(ective )

• Explain ho co!panies "nd and de#elopne product ideas.

e Product 'e#elop!ent /trategy



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Ne Prod!ct "evelopment &trateg%

-a%s to 'btain Ne Prod!cts

Ac.!isition re)ers to the (uying o) a hole

co!pany, a patent, or a license toproduce so!eone else+s product.

Ne prod!ct development re)ers to

original products, product i!pro#e!ents,product !odi"cations, and ne (randsde#eloped )ro! the "r!+s on researchand de#elop!ent.


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#earning 'b(ective )

• Explain ho co!panies "nd and de#elopne product ideas.

e Product 'e#elop!ent /trategy



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#earning 'b(ective *

• $ist and de"ne the steps in the ne productde#elop!ent process and the !a%or

considerations in !anaging this process.

e Product 'e#elop!ent Process

anaging e Product 'e#elop!ent

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Process

Ma(or &tages in Ne Prod!ct "evelopment

4I57E 8 9.1

9-9Copyright © 2016 Pearson Education,Inc.

Product Ideas

' e# el o p!

ent


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ProcessIdea

/eneration

Idea generation is the

syste!aticsearch )or neproduct ideas.

/ources o) neproduct ideas

• Internal

• External Copyright © 2016 Pearson Education,Inc.

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ProcessIdea

/eneration

Internal so!rces re)er to the co!pany+s on)or!al research and de#elop!ent, !anage!ent

and sta, and intrapreneurial progra!s.

0xternal so!rces re)er to sources outside theco!pany such as custo!ers, co!petitors,

distri(utors, suppliers, and outside design "r!s.


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ProcessIdea

/eneration

Crodso!rcing in#ol#es in#iting (road

co!!unities o) people:custo!ers,e!ployees, independent scientists andresearchers, and e#en the pu(lic at large:into the ne product inno#ation process.


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Process

Idea &creening

• Identi)y good ideas and drop

poor ideas• 7-;-; screening )ra!eor*

• Is it real<

• Can e in<

• Is it orth doing<


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Process

Concept "evelopment and Testing

Prod!ct idea is an idea )or a possi(leproduct that the co!pany can see itsel)oering to the !ar*et.

Prod!ct concept is a detailed #ersion o)the idea stated in !eaning)ul consu!erter!s.

Prod!ct image is the ay consu!ers

percei#e an actual or potential product.Copyright © 2016 Pearson Education,Inc.

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Process

Concept testing

re)ers to testingne productconcepts ithgroups o) target

consu!ers.

Concept "evelopment and Testing


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ProcessMarketing &trateg%

"evelopment

Marketing strateg% development isdesigning an initial !ar*eting strategy )ora ne product (ased on the productconcept.

• Marketing strateg% statement consistso)

• =arget !ar*et description

•

>alue proposition plannedCopyright © 2016 Pearson Education,Inc.

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Process

1!siness Anal%sis

1!siness anal%sis is a re#ie o) the

sales, costs, and pro"t pro%ections )or ane product to "nd out hether these)actors satis)y the co!pany+s o(%ecti#es.


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Process

Prod!ct "evelopment

Prod!ct

development isde#eloping theproduct conceptinto a physical

product to ensurethat the productidea can (e turnedinto a or*a(le!ar*et oering.Copyright © 2016 Pearson Education,Inc.

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Process

Test Marketing

Test marketing isthe stage o) neproductde#elop!ent inhich the product

and its proposed!ar*eting progra!are tested inrealistic !ar*etsettings.


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P


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Process

Test MarketingMarketing &trateg% "evelopment

;hen test!ar*eting is

li*ely

• e productith largein#est!ent

• ncertaintya(out productor !ar*eting

progra!

;hen test!ar*eting is

unli*ely

• /i!ple lineextension

• Copy o)co!petitorproduct

• $o costs

• anage!entcon"dence


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Process

Commerciali2ation

Commerciali2ation in#ol#es introducinga ne product into the !ar*et.

•

;hen to launch<• ;here to launch<

• Planned !ar*et rollout<


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Managing Ne Prod!ct "evelopment

/uccess)ul ne product de#elop!ent should(e

• Custo!er centered

• =ea! (ased• /yste!atic


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Team$1ased Ne Prod!ct"evelopment

Team$based ne prod!ct development in#ol#es #arious co!pany depart!entsor*ing closely together, o#erlapping thesteps in the product de#elop!ent process

to sa#e ti!e and increase eecti#eness.


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&%stematic Ne Prod!ct"evelopment

• Inno#ation !anage!ent syste!• Creates an inno#ation-oriented co!pany

culture

• ?ields a large nu!(er o) ne product ideas

Ne Prod!ct "evelopment inT!rb!lent Times

• =e!pted to reduce spending

• ay (eco!e less co!petiti#eCopyright © 2016 Pearson Education,Inc.

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#earning 'b(ective *

• $ist and de"ne the steps in the ne productde#elop!ent process and the !a%or

considerations in !anaging this process.

e Product 'e#elop!ent Process

anaging e Product 'e#elop!ent


d l


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#earning 'b(ective +

• 'escri(e the stages o) the product li)e cycleand ho !ar*eting strategies change during

a product+s li)e cycle.

Product $i)e-Cycle /trategies



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Prod!ct #ife$C%cle &trategies

3I/450 6 97*


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• Product de#elop!ent

• @ero sales and increasing in#est!entcosts

• Introduction

• /lo sales and nonexistent pro"ts• 5roth

• 7apid !ar*et acceptance and increasing

pro"ts• aturity

• /lo sales groth and pro"ts le#el o ordecline

• 'eclineCopyright © 2016 Pearson Education,

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4I57E 8 9.&


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Introd!ction &tage

• /lo sales groth

• $ittle or no pro"t• Aigh distri(ution and pro!otionexpenses


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/roth &tage

• /ales increase

• e co!petitors enter the !ar*et

• Pro"ts increase

• Econo!ies o) scale

• Consu!er education

• $oering prices to attract !ore(uyers


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Mat!rit% &tage

• /lodon in sales

• any suppliers

• /u(stitute products

• B#ercapacity leads toco!petition

•

Increased pro!otion and 7'to support sales and pro"ts


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Mat!rit% &tageModi8cation &trategies

• odi)y the !ar*et

• odi)y the product

•

odi)y the!ar*eting !ix


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"ecline &tage

•

aintain the product• Aar#est the product

• 'rop the product


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9-&6

=a(le 9.2 D Part 1


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9-&

=a(le 9.2 D Part 2



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#earning 'b(ective +

• 'escri(e the stages o) the product li)e cycleand ho !ar*eting strategies change duringa product+s li)e cycle.

Product $i)e-Cycle /trategies

• Product de#elop!ent

• Introduction

• 5roth

• aturity

• 'ecline

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#earning 'b(ective ,

• 'iscuss to additional product issuessocially responsi(le product decisions and

international product and ser#ices !ar*eting.

dditional Product and /er#ice

Considerations

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Additional Prod!ct and &ervice Considerations

Prod!ct "ecisions and &ocial

5esponsibilit%

Pu(lic policy and regulationsregarding de#eloping and droppingproducts, patents, Fuality, sa)ety,and product arranties should (econsidered care)ully.


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Additional Prod!ct and &ervice ConsiderationsInternational Prod!ct and &erviceMarketing

• 'eter!ininghat products

and ser#ices tointroduce inhich countries

• /tandardiGation#ersuscusto!iGation

• Pac*aging and

la(eling Copyright © 2016 Pearson Education,Inc.9-1



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#earning 'b(ective ,

• 'iscuss to additional product issuessocially responsi(le product decisions and

international product and ser#ices !ar*eting.

dditional Product and /er#iceConsiderations

•

Product 'ecisions • Pu(lic policy and regulations

• /ocial responsi(ility

• Products and ser#icesCopyright © 2016 Pearson Education, Inc. 9-2



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Principles of Marketing_Ch-9