Professional Documents
Culture Documents
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter 9
New Product Development
and
Product Life-Cycle Strategies
Copyright 1999 Prentice Hall
New-Product Development
Strategies
Strategies for Obtaining New Product Ideas
Acquired
Companies
Original
Products
Acquired
Patents
Product
Improvements
Acquired
Licenses
Product
Modifications
New
Brands
Copyright 1999 Prentice Hall
9-2
9-3
Concept
Development
and Testing
9-4
Business
Analysis
Product
Development
Idea
Screening
Test
Marketing
Idea
Generation
Commercialization
9-5
C
O
M
P
E
T
I
T
O
R
S
Copyright 1999 Prentice Hall
D
I
S
T
R
I
B
U
T
O
R
S
S
U
P
P
L
I
E
R
S
Market Size
Product Price
Development Time & Costs
Manufacturing Costs
Rate of Return
9-6
9-7
9-8
If No, Eliminate
Product Concept
If Yes, Move to
Product Development
Copyright 1999 Prentice Hall
9-9
Standard
Test Market
Full marketing campaign
in a small number of
representative cities.
Controlled
Test Market
A few stores that have
agreed to carry new
products for a fee.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.
9-10
9-11
Commercialization is the
Introduction of the New Product
into the Marketplace.
When?
Where?
To
Whom?
How?
Speeding Up Development
Simultaneous
Step 1
Sequential
9-12
Step 2
Step 1
Step 2
Step 3
Step 3
Step 4
Step 4
Copyright 1999 Prentice Hall
9-13
Profits
Time
Product
Development
Introduction
Growth
Losses/
Investments ($)
Maturity
Decline
9-14
Low sales
Costs
Profits
Negative
Create product awareness
and trial
Marketing Objectives
Product
Price
Use cost-plus
Distribution
Advertising
9-15
Costs
Profits
Rising profits
Marketing Objectives
Product
Price
Distribution
Advertising
9-16
Peak sales
Costs
Profits
High profits
Marketing Objectives
Product
Price
Distribution
Advertising
9-17
Declining sales
Costs
Profits
Declining profits
Marketing Objectives
Product
Price
Cut price
Distribution
Advertising