Get documents about "LHM Chapter 10 7e
Shared by: rajeevrainbow
-
Stats
- views:
- 67
- posted:
- 6/26/2009
- language:
- English
- pages:
- 45
Document Sample
Developing and Managing Products Chapter 10 Prepared by Deborah Baker Texas Christian University Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 1 Learning Objectives 1. Explain the importance of developing new products and describe the six categories of new products. 2. Explain the steps in the new-product development process. 3. Explain why some products succeed and others fail. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 2 Learning Objectives (continued) 4. Discuss global issues in new-product development. 5. Explain the diffusion process through which new products are adopted. 6. Explain the concept of product life cycles. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 3 1 On Line http://www.chrysler.com Learning Objective Explain the importance of developing new products and describe the six categories of new products. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 4 1 New Product A product new to the world, the market, the producer, the seller, or some combination of these. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 5 1 On Line http://www.newproductworks.com New Product Introductions, 1964-2000 Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 6 1 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 7 Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 2 Learning Objective Explain the steps in the new-product development process. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 8 2 The New-Product Development Process Long-Term Commitment New Product Strategy Capitalize on Experience New Product Success Factors Establish an Environment Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 9 2 New-Product Development Process New-Product Strategy Idea Generation Idea Screening Business Analysis Development Test Marketing Commercialization New Product Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 10 2 On Line http://www.ideo.com Idea Generation Customers Employees Distributors Competitors Sources of New-Product Ideas Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning R&D Consultants Creative Thinking 11 2 Brainstorming The process of getting a group to think of unlimited ways to vary a product or solve a problem. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 12 2 Idea Screening The first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are inappropriate for some other reason. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 13 2 Concept Test A test to evaluate a new-product idea, usually before any prototype has been created. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 14 2 Business Analysis Demand Considerations in Business Analysis Stage Cost Sales Profitability Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 15 2 Development Creation of prototype Marketing strategy Packaging, branding, labeling Manufacturing feasibility Final government approvals if needed Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 16 2 Simultaneous Product Development A new team-oriented approach to new-product development. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 17 2 On Line http://www.google.com Test Marketing The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 18 2 Checklist for Selecting Test Markets Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 19 2 Alternatives to Test Marketing Single-source research using supermarket scanner data Simulated (laboratory) market testing Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 20 2 Production Inventory Buildup Commercialization Distribution Shipments Sales Training Steps in Marketing a New Product Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning Trade Announcements Customer Advertising 21 3 Learning Objective Explain why some products succeed and others fail. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 22 3 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 23 Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 3 On Line http://www.jnj.com Success Factors Factors in Successful New Products Match between product and market needs Unique but superior product Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning Benefit to large number of people 24 3 Success Factors Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 25 4 Learning Objective Discuss global issues in new-product development. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 26 4 On Line http://www.levi.com Global Issues Develop product for potential worldwide distribution Build in unique market requirements Design products to meet regulations and key market requirements Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 27 5 Learning Objective Explain the diffusion process through which new products are adopted. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 28 5 Diffusion The process by which the adoption of an innovation spreads. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 29 5 Categories of Adopters Innovators Early Adopters Categories of Adopters in the Diffusion Process Early Majority Late Majority Laggards Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 30 5 Diffusion of Three Familiar Products among U.S. Households Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 31 5 Categories of Adopters Percentage of Adopters Early Innovators Adopters 2.5% 13.5% Early Majority 34% Late Majority 34% Laggards 16% Time Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 32 5 On Line http://www.electronicgadgetdepot.com Product Characteristics and the Rate of Adoption Complexity Compatibility Product Characteristics Predict Rate of Adoption Relative Advantage Observability Trialability Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 33 5 Marketing Implications of the Adoption Process Word of Mouth Communication Aids the Diffusion Process Direct from Marketer Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 34 6 Learning Objective Explain the concept of product life cycles. Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 35 6 Product Life Cycle A concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death). Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 36 6 Introductory Growth Stage Stage Product Life Cycle Maturity Stage Decline Stage Product Category Sales Dollars Product Category Profits 0 Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning Time 37 6 Product Life Cycles for Styles, Fashions, and Fads Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 38 6 Extending the PLC Change product Change product use Change product image Change product positioning Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 39 6 Introductory Stage High failure rates of New Products Little competition Frequent product modification Limited distribution High marketing and production costs Negative profits Promotion focuses on awareness and information Intensive personal selling to channels Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning Full-Scale Launch 40 6 Growth Stage Offered in more Increasing rate of sales sizes, Entrance of competitors flavors, options Market consolidation Initial healthy profits Promotion emphasizes brand ads Goal is wider distribution Prices normally fall Development costs are recovered 41 Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 6 On Line http://www.mcdonalds.com Maturity Stage Many consumer products are in Maturity Stage Declining sales growth Saturated markets Extending product line Stylistic product changes Heavy promotions to dealers and consumers Marginal competitors drop out Prices and profits fall Niche marketers emerge Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 42 6 Long-run drop in sales Decline Stage Large inventories of unsold items Elimination of all nonessential marketing expenses Rate of decline depends on change in tastes or adoption of substitute products Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 43 6 INTRODUCTION Marketing Strategies for PLC GROWTH MATURITY DECLINE Product Strategy Distribution Strategy Limited models Frequent changes More models Frequent changes. Large number Eliminate of models. unprofitable models Extensive. Margins drop. Shelf space Phase out unprofitable outlets Phase out promotion Prices stabilize at low level. Limited Expanded Wholesale/ dealers. Longretail distributors term relations Awareness. Aggressive ads. Stimulate Stimulate demand.Sampling demand Higher/recoup development costs Fall as result of competition & efficient production. Promotion Strategy Pricing Strategy Advertise. Promote heavily Prices fall (usually). Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 44 6 Introduction Diffusion Process and PLC Curve Growth Maturity Decline Sales Product life cycle curve Early majority Late majority Early adopters Innovators Laggards Diffusion curve Chap. 10 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning 45
Related docs
