Chapter 10 Developing and Managing Products Categories of
- Slides: 15
Chapter 10 Developing and Managing Products
Categories of New Products New-To-The-World New Product Lines Six Categories of New Products Product Line Additions Improvements/Revisions Repositioned Products Lower-Priced Products
Successful New-Product Development Process Long-Term Commitment New Product Strategy New Product Success Factors Capitalize on Experience Establish an Environment
New-Product Development Process New-Product Strategy Idea Generation Idea Screening Business Analysis Development Test Marketing Commercialization New Product
Soft. Book Polaroid Pop. Shot IBM Electronic Newspaper i. Mac Rocket e-book Voice-Egg BMW R 1200 C Nissan SUT (Sports Utility Truck)
Concept Test A test to evaluate a new-product idea, usually before any prototype has been created.
Choosing a Test Market u Similar to planned distribution u Relative isolation and free of influences u Advertising availability; multiple media u Diversified cross section u No atypical purchase habits u Representative population/income u Not overly used or easily “jammed” u Year-round sales stability u Available research/audit and retailers
Why New Products Fail • No discernible benefits • Poor match between features and customer desires • Overestimation of market size • Incorrect positioning • Price too high or too low • Inadequate distribution • Poor promotion • Inferior product
High Low High Magazines Financial Services Recorded Music Flowers Books Business Supplies Abrasives Travel Software PCs Industrial Machinery Medicine Paper Goods Clothes Hand Tools House Paint Consumer Electronics Home Appliances Low Efficiency of the On-Line Sales Channel Where is E-Comm Going to Grow? Degree of Consideration Source: Forrester Research Food, Drink Furniture Banners Only Micro-Site Destination Site
Success Factors in Successful New Products Match between product and market needs Benefit to large number of people Unique but superior product
Categories of Adopters Innovators Early Adopters Categories of Adopters in the Diffusion Process Early Majority Late Majority Laggards
Product Life Cycle Introductory Growth Stage Maturity Stage Decline Stage Product Dollars Category Sales Product Category Profits 0 Time
Product Characteristics and the Rate of Adoption Complexity Compatibility Product Characteristics Predict Rate of Adoption Relative Advantage Observability Trialability
Marketing Strategies for PLC INTRODUCTION Product Strategy Distribution Strategy Promotion Strategy Pricing Strategy Limited models Frequent changes GROWTH More models Frequent changes. Limited Expanded Wholesale/ dealers. Longretail distributors term relations MATURITY Large number Eliminate of models. unprofitable models Extensive. Margins drop. Shelf space Awareness. Aggressive ads. Advertise. Stimulate Promote heavily demand. Sampling demand Higher/recoup development costs Fall as result of competition & efficient production. DECLINE Prices fall (usually). Phase out unprofitable outlets Phase out promotion Prices stabilize at low level.
Diffusion Process and PLC Curve Sales Introduction Early majority Growth Decline Maturity Product life cycle curve Late majority Early adopters Innovators Laggards Diffusion curve
Chapter 11 developing and managing products
Developing and managing products
Developing and managing products
Developing and managing products
Developing and managing brands
Developing service products and brands
Flower of service concept
The flower of service model
Developing new products and services
Managing products and brands
Functional vs innovative products
Coke vs pepsi products
Chapter 8 training and developing employees
Chapter 2 developing marketing strategies and plans ppt
Chapter 8 training and development
Ilumination
