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Topic Of Presentation:
New product Development and its life cycle Presentators:
Shah Junaid ID#9722
Imran ID#9714
Naveed Afzal ID#9713
Qazi Fazli Rabi ID#4110
Iqra University Peshawar Campus
Subject : Principles Of Marketing.MBA Semester Fall-2010
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THE MEANING OF “PRODUCT”
A product is a set of tangible and intangible attributes, which include packaging, color, price, quality, brand name and manufactures and retailers services , all these that buyer accept as a want satisfaction.
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Seller’sservices
Seller’sservices
Productquality
Productquality Physical
characteristicsof goods
Physicalcharacteristics
of goods
PricePrice
BrandBrand
DesignDesign
PackagingPackagingProductwarranty
Productwarranty
Seller’sreputation
Seller’sreputation
ColorColor
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Product Classification
On the basis of purpose for which they are bought.
Consumer product Business Product
Goods or Services which are bought by final consumer for consumption.
Products which purchased for further processing to produce other products
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What is new Product
A new product is a product which is totally new in concept.
Any product which is perceived by the customer as being new.
A new product can be categorize into :
Truly new product.
Innovated product from the existing one.
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Reasons for new product developing
Computation:
To maintain or to gain the competitive image in the market.
Change the consumer needs: To brings the changes in the consumer needs
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Technology:Technology that in the favors to develop or totake the risk of new product development
Good Image:Company good image in the Market ( in
the mind of customer) to take the risk of new product development.
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Methods used for developing new product
A firm can obtain new product through to ways
By R &D Cell:
Developing new product through R&D , either from entirely new product or bringing innovation in
the existing products.
– By Acquisition
By this a firm buy an other firm wholly or get licensee in order to obtain new product
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Process of new product development
New product are develop through a systematic process ,in which first the product are find out and then it grows.
The whole process can be divide into many stages, some Seven stages are given below.
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Product development process
seven steps
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Stage#1 Idea Generation
The starting stage for new product development in which typically an organization develop a number of ideas for new product
Such types of alternatives idea are develop into a meeting called brain storming session
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Sources for idea generation
The organization takes new ideas from two sources
Internal sources:R&D CellEmployees feed backs
External Sources:
Customer Questions & Complaints
Distributor Feed backs Compotators activates
e.g. their Ads as a clue
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Stage#2 Idea Screening
In this step one idea is selected from the alternative idea of the first stage
The basis for best idea are:
Utilization
How much that product will be able by the Target customer with the sense of that product utilization.
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Resources
Which type, quality and at which price that resources will be available.
Ethical Aspect
What will be the responses of the society to whom that product will launch.
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Stage#3 Product Concept Development
Once the idea is selected in the idea screening stage ,then in this stage the concept of product is developed.
Some time alternative concept of the same product are developed according to customer needs ,wants etc
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Stage#4 Mrkg Strategy Development
Developing strategy that how to introduce the product into market.
Marketing strategy consisting 3 statements
Described the target market
Price ,Channel of distribution and Budget
Goal of the organization,
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Stage#5 Business Analysis
Analysis the product with the business point of view. This analysis involve a review of the sales, cost ,profit.
The main aim of business analysis is to find out whether the product satisfies the company objective or not.
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Stage#6 Product Development
In this stage the product concept is came into its physical form, then this product is presented to the market for testing.
Testing Marketing help the organization in creating financial decision about whether to launch that product in the market or not..
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Stage#7 Commercialization
After successful passing the product from the “ testing market” then the firm properly introduce that product into market.
Note After commercialization Stage then that product's life cycle ( PLC) begin.
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Product life Cycle ( PLC)
The commercialization stage of the new development is consider birth stage for its life cycle
The whole PLC can be divided into Four stages
o Stage -1 Introductiono Stage -2 Growtho Stage -3 Maturityo Stage-4 Decline
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PLC 1st Stage Introductions
It is the pioneer stage of PLC in which the new product is first distributed and made available for purchases.
Characteristic of this stage:
Negative Profit due to:
Low sale volume
Distribution Exps
Promotion Expns
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Some product disappear due to: Failed to attract target customer
Quick attack from compotators
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PLC 2nd Stage Growth
The second stage of PLC in which a product's sales starts climbing quickly. Hence this stage is termed as Market Acceptance stage.
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Characteristic Of this stage: Increase in profit due to : Sale Increase Per unit cost
Competitor enter which push the firm: Introduce new feature Improve product quality
Giving Promotion & discounts Introducing new channels of distribution
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PLC 3rdnd Stage Maturity
The third stage of PLC in which Sales growth slow down.
Characteristic Of this stage:
The product growth begins to slow down (but at later stage of the “Maturity Stage”
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This stage can be longest one if the company meet consumers. Needs e.g. Baring extra features in their productivity.
If the firm don't brings extra features in in their product, then it possible to enter into next stage, that is decline stage.
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PLC 4th Stage Decline
The stage of PLC in which the product is became out of business
Characteristic Of this Stage:
Product sales decrease due to: Shifting consumer tats
Technological Associated with product
Organization that failed to anticipate the decline stage in earlier may possible to go out of the business
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Some firm out innovation in their declined product and this the product is again enter into its life cycle
For example P&G has don with its several brands that where at decline stage.
How a P&G has don with its several brands Principles of Marketing Author P .Kottler Page
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Reference for Data Collection
Principles of Marketing Author P. Kotler
Marketing Author W.J. Stanton
Teacher Lecture Points
Google Images. Wikipedia.org