Professional Documents
Culture Documents
OBJECTIVES
1. Explain how companies find and develop new product
ideas.
2. List and define the steps in the new product
development process.
3. Describe the stages of the product life-cycle
4. Describe how marketing strategies change during the
products life cycle.
Product Life-Cycle
The two major challenges:
New Product
Development
Original Product
Product Improvements,
Product Modification& New
brands
WHY?
IDEA GENERATION
Idea generation is the systematic search
for new product ideas.
SOURCES
IDEA SCREENING
Helps spot good ideas and drop poor ones as soon as
possible.
Apply systems for rating and screening ideas which
estimates:
Market size
Product size
Develop time and cost
Manufacturing cost
Rate of returns
PRODUCT CONCEPT
PRODUCT IMAGE
Concept Development
It involves developing product ideas into some
alternative product concept, finding out how attractive
each concept is to consumers, and choosing the best
one.
Concept Testing
It involves testing the concepts with a group of target
consumers to find out if the concepts have strong
consumer appeal.
BUSINESS ANALYSIS
PRODUCT DEVELOPMENT
Product Development
It involves developing the product concept into a
physical product in order to ensure that the product
idea can be turned into a workable product.
TEST MARKETING
Product and marketing
program are introduced
into more realistic
marketing settings.
This process can be very
expensive and time
consuming
COMMERCIALIZATION
Commercialization
This step is introducing a new product into the
market.
PRODUCT LIFE-STRATEGIES
INTRODUCTION STAGE
GROWTH STAGE
MATURITY STAGE
DECLINE STAGE
PRODUCT FORMS
BRAND
STYLE
FASHION
FAD
INTRODUCTION STAGE
SALES
Low sales
COSTS
PROFITS
Negative or low
MARKETING OBJECTIVES
PRODUCT
PRICE
Usually is high
DISTRIBUTION
ADVERTISING
GROWTH STAGE
SALES
COSTS
PROFITS
Rising Profits
MARKETING OBJECTIVES
PRODUCT
PRICE
DISTRIBUTION
ADVERTISING
MATURITY STAGE
Market Modification
is an approach in which the company tries to
increase the consumption of the current product.
Product Modification
is an approach to change product characteristics.
Marketing Mix Modification
Is an approach in which the product manager tries to improve
sales by changing one or more marketing mix elements.
SALES
Begin to slow
COSTS
PROFITS
MARKETING OBJECTIVES
PRODUCT
PRICE
May decline
DISTRIBUTION
ADVERTISING
DECLINE STAGE
1. Technological advances
2. Shifts in consumer tastes
3. Increase competition
SALES
Declining sales
COSTS
PROFITS
Declining profits
MARKETING OBJECTIVES
PRODUCT
PRICE
Cut price
DISTRIBUTION
ADVERTISING