Product Development Sports and Entertainment Marketing Think of

Product Development Sports and Entertainment Marketing

Think of two sports products Think of two entertainment products Are the products you came up with new or old?

Types of New Products • New-to-the-World Products – Brand new innovations (the first of anything) • New Product Category Entries – Nike adding sports equipment to there existing apparel and shoe market • Product Line Extensions – Adding an additional flavor of Gatorade – Disney’s High School Musical III • Product Improvements – NEW and IMPROVED!!

ACTIVITY!! Come up with one sports and one entertainment example of each • New-to-the-World Products • New Product Category Entries • Product Line Extensions • Product Improvements

7 Steps in New Product Development Step 1: SWOT Analysis S – company strength Strengths could be well trained employees or an excellent service record W – company weakness Weaknesses should be the opposite of the above O – external opportunities Capitalize on a current trend or if a competitor receives bad publicity T – company threats

7 Steps in New Product Development Step 2: Idea Generation Involves generating new product ideas This comes from many sources such as employees, consumers, research and development departments and even competitors

7 Steps in New Product Development Step 3: Screening & Evaluation Can the company make the product happen? Should the company seek opinions of consumers (i. e. researchers develop a focus group)

7 Steps in New Product Development Step 4: Business Analysis This step involves researchers analyzing financial position as well as any legal constraints Can it be patented or copyrighted?

7 Steps in New Product Development Step 5: Development (create prototype) Step 6: Test Marketing Marketers test all aspects of the marketing mix – 5 P’s Step 7: Commercialization Produce and market a new product - introduce it to the public

What Happens Next…. . Product Life Cycle Four Stages of the Product Life Cycle Introduction Growth Decline Maturity

Stages of Product Life Cycle • Stage 1: Introduction (new to the market) Companies • promote consumer awareness • get customers to try the product • educate consumers about the product • Stage 2: Growth Competitors are entering the marketplace The product must be improved to stay competitive Sold in more locations

Stages of Product Life Cycle • Stage 3: Maturity Stage Product has reached its peak Sales slow down Repeat customers may stop buying and it may be hard to attract new customers

Stages of Product Life Cycle • Stage 4: Decline Sales and profit continue to drop There is no longer a demand for the product Product may be dropped by the company Good Example: cassette tapes

Think about it! Think of a product that is currently in each of the stages of the product life cycle. Introduction Growth Maturity Decline

What can be done to extend the Product Life Cycle • Develop new uses for the products • Develop new product features and line extensions • Increase the existing market (target market) • Change Marketing Mix (5 P’s) • Link products to a trend

Activity • In groups of 4, each group is to create a new product which can be a variation of an existing product with a point of difference. • Then each group is to come up with a plan of how to market this product in each stage of the product life cycle. • Think about - Is the product itself reasonable? Is the plan appropriate? Does the plan properly manage each stage of the life cycle?

But before any of this can happen … companies must conduct … Market Research The process of systematically collecting, recording, analyzing, and presenting data related to marketing goods and services

Why is Market Research important? Global Market – other countries are different from the US and companies need to learn and understand their needs and wants before they enter that market Competition – companies need an “edge” to compete in the marketplace, so the need to research what their competitors are doing Changing Market – customer needs change daily, it is important to understand them before a company enters the marketplace

5 steps in Market Research 1. 2. 3. 4. 5. Identify the problem Conduct secondary research Select and design primary research Collect data Report and analyze data

Identify the Problem Ask questions that research could answer Example: A golf ball manufacturer might ask “What can we do to improve the image of our golf ball and stand out from the rest of the market? ” Objective: To determine how golfers select their golf balls

Conduct Secondary Research Secondary research: published data that have been collected for some other purpose Data that a company DOES NOT compile themselves Examples: Government records (census: demographics, etc), sales figures, trade organizations

Design Primary Research: Original research conducted for a specific marketing situation Secondary research is done first because it may answer all the questions and primary research may not be needed

Collect Data: records or facts and figures that are organized analyzed in some way Ways to collect Experiment – try it out Observation – watch it happen Survey – ask about it

Report and Analyze In order for data to be useful it must be reported analyzed What does the information collected tell us about the consumer (or subject)?