This is a report on Advance Marketing Management. A partial requirements of the course.

1. Product Strategy and New Product Planning and
Development
Advance Marketing Management
Presented by:
Maria Amelia T. Taway
Master in Business Administration
University of Rizal System – Rodriguez
Presented to:
Engr. JERICHO M INARDA, MSA, RPAE, FRIAgri

2. What is Product?
• is anything that can be offered to a market to
satisfy a want or need
• physical goods (automobiles, books)
• services (haircuts, concerts)
• persons (Michael Jordan, Jackie Chan)
• places (Palawan beach, Disneyland)
• Organization (United Nation, Girl Scout)
• ideas (family Planning, stop smoking)

3. Five Levels of Product
Potential
Augmented
Expected
Basic
Core
1.Core benefit:
The most fundamental level is the core benefits, namely the
fundamental service or benefit that the customer is really
buying. A core product allows a company to demonstrate its
core capabilities and services. The core product usually works
as the "sales pitch" for complementary products and services
the company wants to make money out of. Usually the core
product is the main bread earner for a company. It is the
pedestal on which the company stands to go higher.
For Example, Facebook’s core products is “Facebook the social
network”. What they pitch to you is their core product - the social
network but this is what leads you to use other products and
services that reside in the social network and hence the
company generates revenue

4. Potential
Augmented
Expected
Basic
Core
2. Basic product:
The marketer has to turn core benefits into
basic product, namely a basic version of the
product. Thus, a hotel room includes a bed,
bathrooms, towels, desk, dresser, and closet.
3.Expected product:
A set of attributes and conditions that buyers
normally expect and agree to when they purchase
this product. Hotel guest for example expect a
clean bed, soap, and towels, working lamps and a
quiet place.

5. Potential
Augmented
Expected
Basic
Core
4. Augmented product:
Meet customer desires beyond expectations.
Example, Home Delivery, Installations, After sales
services, Customer Education and Training,
Customer Care, Financing, Free check-up and
consultation, Warranty and Guarantee, Replacement
policy.
5. Potential product:
This encompasses all of the possible augmentations
and transformations the product might undergo in the
future. Here, a company searches for entirely new
ways to satisfy its customers and distinguish its offer.
Example, Marriott’s Towne Place Suites all-suite
hotels represent an innovative transformation of the
traditional hotel product.

6. Product strategy
Similar to making effective use of a map, you first need a
destination, and then you can plan your route. Just as a business
has a strategic vision of what it wants to be when it grows up, the
product has its own strategy and destination.
Why is a product strategy important?
The product strategy forms the basis for executing a product
roadmap and subsequent product releases. The product strategy
enables the company to focus on a specific target market and
feature set, instead of trying to be everything to everyone.

7. Elements of a product strategy
When defining your product strategy be sure to
answer the following questions.
• WHO ARE YOU SELLING TO?
• WHAT ARE YOU SELLING?
• WHAT VALUE DO YOU PROVIDE YOUR
CUSTOMERS?
• HOW WILL YOU PRICE YOUR PRODUCT?
• HOW WILL YOU DISTRIBUTE YOUR
PRODUCT?

8. WHO ARE YOU SELLING TO?
Define your target customer or market. Identify whom you are
selling to, and what that market looks like.
WHAT ARE YOU SELLING?
Describe how potential customers will perceive your product
compared to competitive products. Understand what makes your
product unique in the market.
WHAT VALUE DO YOU PROVIDE YOUR CUSTOMERS?
Determine what problems your product solves for customers. You
cannot be everything to everyone within a particular market, but
you can help to solve specific problems. Create a value
proposition to position the value you provide and the benefits that
customers will receive with your solution.

9. HOW WILL YOU PRICE YOUR PRODUCT?
State how you will price the product. Include
its perceived value and a pricing model.
HOW WILL YOU DISTRIBUTE YOUR
PRODUCT?
Describe how you will sell your product, and
how your target market will acquire your
product.

10. Elements of a product strategy
oDesign
oFeatures
oQuality
oBranding
oTarget Market
oPositioning

11. • Design - What exactly do you want to sell to potential customers? What
will you design to make it stand out from other companies? For example,
attractive product design draws more customers towards your product.
 Features - What features will you add to increase the benefits offered to
your target market? How does your product differ from the others?
"Marketing is not about providing products or services, it is essentially
about providing changing benefits to the changing needs and demands
of the customer.“ Product features differentiate amongst competitors.

12.  Quality - A product's quality should be consistent to make sure
that the product meets the expectations of their target market.
Thus, strengthening the firm's reputation.
 Branding - Brands have the power of instant sales and they
convey the message of confidence, quality and reliability to their
target market. It is also used a tool for companies to
differentiate itself from their competitors.

13.  Target Market - Identify whom you're selling to. Who to aim your product at?
How will customers view your product in the marketplace? "The organization's
marketing task is to determine the needs, wants and interests of target markets
and to achieve the desired results more effectively and efficiently than
competitors, in a way that preserves or enhances the consumer's or society's
well-being.“
 Positioning - How does the company plan to position its product in the market?
Different factors will need to be considered when you position your product in
the marketplace as it will impact on consumer's perceptions about your product
and brand. For example, how you will price the product and the quality of it.

14. Creating your product strategy
In creating product strategy, first identify the market problems you would like to
solve. This includes interviewing your target market, understanding and identifying
competitive market and how you will differentiate market and product.
Product strategy will change over time as you learn more about your market, and as
(if) you decide to enter different markets. Listening to your market and developing
your product strategy is a circular process; as you learn more, you will evolve your
product strategy and the problems you solve.
Power of the product strategy
The power of a product strategy comes from what you define as well as what you
exclude. By identifying a particular target market in your product strategy, you are
also excluding other markets. This helps your company to understand which
projects fall outside the product strategy and distract from strategic goals.

15. PRODUCT MIX
Product mix is a combination of products
manufactured or traded by the same business
house to reinforce their presence in the market,
increase market share and increase the turnover for
more profitability. Normally the product mix is within
the synergy of other products for a medium size
organization. However large groups of Industries
may have diversified products within core
competency.
One of the realities of business is that most firms
deal with multi-products.

16. Product Mix Decisions: Often firms take decisions to change their product mix. These decisions are
dictated by the above factors and also by the changes occurring in the market place.
Product-Mix Management and Responsibilities: It is extremely important for any organization
to have a well-managed product mix. Most organizations break down managing the product mix,
product line, and actual product into three different levels. Product-mix decisions are concerned
with the combination of product lines offered by the company. Management of the companies'
product mix is the responsibility of top management.
Some basic product-mix decisions include:
(1) reviewing the mix of existing product lines;
(2) adding new lines to and deleting existing lines from the product mix;
(3) determining the relative emphasis on new versus existing product lines in the mix;
(4) determining the appropriate emphasis on internal development versus external acquisition in the
product mix;
(5) gauging the effects of adding or deleting a product line in relationship to other lines in the product
mix; and
(6) forecasting the effects of future external change on the company's product mix.

17. Product-Mix Analysis: Since top management is ultimately
responsible for the product mix and the resulting profits or losses,
they often analyze the company product mix.
• The first assessment involves the area of opportunity in a
particular industry or market. Opportunity is generally defined in
terms of current industry growth or potential attractiveness as an
investment.
• The second criterion is the company's ability to exploit
opportunity, which is based on its current or potential position in
the industry. The company's position can be measured in terms of
market share if it is currently in the market or in terms of its
resources if it is considering entering the market.

18. Four different options for a company to follow.
1. High opportunity and ability to exploit it result in the firm's introducing new
products or expanding markets for existing products to ensure future
growth.
2. Low opportunity but a strong current market position will generally result
in the company's attempting to maintain its position to ensure current
profitability.
3. High opportunity but a lack of ability to exploit it results in either (a)
attempting to acquire the necessary resources or (b) deciding not to further
pursue opportunity in these markets.
4. Low opportunity and a weak market position will result in either (a)
avoiding these markets or (b) divesting existing products in them.
These options provide a basis for the firm to evaluate new and existing
products in an attempt to achieve balance between current and future
growth.

19. Product Life Cycle
The Product life cycle is an important concept in
marketing that provides insights into a product’s
competitive dynamics.
• Product have limited life.
• Product sales pass through distinct stage, each posing
different challenges to the seller.
• Profits rise and fall at different stages of the product life
cycle.
• Products require different marketing, financial,
manufacturing, purchasing and personnel strategies in
each stage of their life cycle.

21. Product Life Cycle

22. Product Life Cycle
Introduction
• Critical Factor - Product Development and Design
• Researching, developing and launching the product.
• Product passes through a low volume introduction phase where
unit profit margin is low and sales volume starts to rise.
Growth
• Critical factor - Advertising and Distribution
• Sales increasing at a faster rate.
• Volume and profit both starts to rise.

23. Product Life Cycle
Maturity
• Critical Factor - Marketing Effectiveness
• Unit profit margin at its highest but the rate of sales volume is slowing
down. For example, there are now new competitors in the market.
Decline
• Critical Factor - Cost Efficiency
• Sales and profit began to fall.
• Declining volume pushes costs up until all profits are eliminated.
• This may be due to the need of disappearing or a better and cheaper
product has been developed in the market.

24. Brand
A brand is the name, term, design, symbol, or a combination of
them, intended to identify the goods or services of one seller or
group of sellers and to differentiate them from those of competitors.
Branding is the major issue in product strategy.
Six levels of meaning:
• Attributes
• Benefits
• Values
• Culture
• Personality
• User

25. Brand Equity
Brand equity is an intangible asset that depends on associations
made
by the consumer.
Brand equity is an important factor in multi-product branding
strategies.
Brands vary in the amount of power and value they have in the
marketplace.
1.Brand awareness
2.Brand acceptability
3.Brand preference
4.Brand Loyalty

26. Three Perspective:
• Financial - One way to measure brand equity is to determine the price premium that a
brand commands over a generic product.
• Brand extensions - A successful brand can be used as a platform to launch related
products. The benefits of brand extensions are the leveraging of existing brand awareness
thus reducing advertising expenditures, and a lower risk from the perspective of the
consumer. Furthermore, appropriate brand extensions can enhance the core brand.
However, the value of brand extensions is more difficult to quantify than are direct
financial measures of brand equity.
• Consumer-based - A strong brand increases the consumer's attitude strength toward the
product associated with the brand. Attitude strength is built by experience with a product.
This importance of actual experience by the customer implies that trial samples are more
effective than advertising in the early stages of building a strong brand. The consumer's
awareness and associations lead to perceived quality, inferred attributes, and eventually,
brand loyalty.

27. Building and Managing Brand Equity: In his 1989 paper, Managing Brand Equity, Peter H.
Farquhar outlined the following three stages that are required in order to build a strong brand:
1. Introduction - introduce a quality product with the strategy of using the brand as a
platform from which to launch future products. A positive evaluation by the consumer is
important.
2. Elaboration - make the brand easy to remember and develop repeat usage. There should
be accessible brand attitude, that is, the consumer should easily remember his or her
positive evaluation of the brand.
3. Fortification - the brand should carry a consistent image over time to reinforce its place
in the consumer's mind and develop a special relationship with the consumer. Brand
extensions can further fortify the brand, but only with related products having a perceived
fit in the mind of the consumer.

28. Ten World’s most valuable brands
Coca-Cola Marlboro
Nescafe Kodak
Microsoft Budweiser
Kellogg’s Motorola
Gillette Bacardi

29. A brand name needs to be carefully managed so that
its brand equity does not depreciate.
Picking a name of a brand is not an easy thing for
companies.

30. Challenges:
TO BRAND OR NOT TO BRAND
In the past most producers went unbranded. The
earliest signs of branding involved medieval
guilds requiring craftspeople to put trademarks
on their products to protect themselves and
consumer against inferior quality. Today,
branding is such a strong force that hardly
anything goes unbranded.

31. Branding gives the seller several
advantages:
• The brand name makes it easier for the seller to process
orders and track down problems.
• The seller’s brand name and trademark provide legal
protection of unique product features, which competitors
would otherwise be likely to copy.
• Branding gives the seller the opportunity to attract a loyal
and profitable set of customers. Brand loyalty gives sellers
some protection from competition and greater control in
planning their marketing program.
• Branding helps the seller segment markets.
• Strong brands help build the corporate image, making it
easier to launch new brands and gain acceptance by
distributors and consumers.

32. Challenges:
BRAND-SPONSOR DECISION
A manufacturer has several options with respect to brand
sponsorship.
Product may be launched as:
• Manufacturer brand - national brand
• Distributor brand - retailer, store, or
private brand
• Licensed brand name - manufacturers to
distributor labels

33. Brand-Name Decision
Four strategies:
1.Individual brand names (Single brand identity). This strategy
permits the firm to search for the best name for each new product. A
new name permits the building of new excitement and conviction.
For example, in laundry detergents Procter & Gamble offers
uniquely positioned brands such as Tide.
2.A blanket family name for all products (Umbrella). The
development cost is less because there is no need for “name”
research or for heavy advertising expenditures to create brand-
name recognition.
3.Separate family name for all products (Family names). Different
brands having a common name stem. Nestle uses Nescafe,
Nesquik, and Nestea for beverages.
4.Company trade name combined with individual product names
(Multi-Brand Category).

34. Typical product-related factors:
• The brand name should suggest about the product benefits
• It should suggest product qualities such as action or color.
• It should be easy to pronounce, recognize, and remember.
• It should be distinctive.
• It should not carry poor meanings in other countries and
languages.
• It should be selected on a pan-Asian, not an ad hoc, basis.
• It should be written in the appropriate system.
• It should be culturally sensitive.
• It should carry the appropriate symbolism.
• It should consider prior brand usage and legal complexities.

35. In determining an appropriate brand name in Asia, marketers must account
a host of linguistic, cultural, and legal consideration in addition to the typical
product-related factors common in the west:
1. The brand name should suggest something about the product’s
benefits.
2. It should suggest product qualities such as action or color.
3. It should be easy to pronounce, recognize, and remember.
4. It should be distinctive.
5. It should not carry poor meaning in other countries and languages.
6. It should be selected on a pan-Asian, not an ad hoc, basis.
7. It should be written in the appropriate system.
8. It should be culturally sensitive.
9. It should carry appropriate symbolism.
10. It should consider prior brand usage and legal complexities.

36. BRAND-Strategy Decision (Branding Approaches)
• LINE EXTENSION
• BRAND EXTENSION
• MULTIBRANDS
• NEW BRANDS (Individual Branding)
• CO-BRANDS
• COMPANY NAME
• ATTITUDE BRANDING
• ICONIC BRANDS
• "NO-BRAND" BRANDING
• DERIVED BRANDS
• OWN BRANDS AND GENERICS

37. BRAND-Strategy Decision
LINE EXTENSION
-occurs when a company introduces additional
items in the same product category under the
same brand name such as new flavors, forms,
colors, added ingredients, package sizes, and
soon.
-Many companies now introducing branded
variants, specific lines of a brand supplied to
specific retailers or channel of distribution.

38. Six factors found to affect the
success or failure of a line
extension1. Line extension of strong brands are more successful than those a weak brands.
2. Line extension of symbolic brands are more successful than those of less symbolic
brands.
3. Line extension that have strong advertising and promotional support are more
successful than those which receive meager support.
4. Line extension entering earlier into a product subcategory are more successful that
those entering later, but only if they are extension of strong brands.
5. Firm size and marketing competencies play a part in
an extension’s success.
6. Incremental sales generated by line extension may
more than compensate for the loss in sales due to
cannibalization.

39. BRAND-Strategy Decision
BRAND EXTENSION
-brand names extended to new-product categories
Example:
1. Bench – from T-shirt, Pants, Fragrances etc.
MULTIBRANDS
-new brands introduce in the same product category
Example: Procter & Gamble and Sara Lee

40. BRAND-Strategy Decision
NEW BRANDS (Individual Branding)
Example: Unilever Products
CO-BRANDS
Various Forms:
1. Component Co-Branding- same company.
2. Multiple-sponsor co-branding- ex.
Technological alliance among giant
companies.

41. BRAND-Strategy Decision
COMPANY NAME
-a very strong brand name
ATTITUDE BRANDING
-is the choice to represent a larger feeling, which is not necessarily
connected with the product or consumption of the product at all.
Example : Starbucks, The Body Shop, Apple Computer
ICONIC BRANDS
-are defined as having aspects that contribute to consumer's self-
expression and personal identity. Example, Apple Computer

42. BRAND-Strategy Decision
"NO-BRAND" BRANDING
This no-brand strategy means that little is spent on
advertisement or classical marketing and is attributed to
the word-of-mouth.
DERIVED BRANDS
In this case the supplier of a key component, used by a
number of suppliers of the end-product, may wish to
guarantee its own position by promoting that component
as a brand in its own right.
Example: Intel used in the PC Markets.

43. BRAND-Strategy Decision
OWN BRANDS AND GENERICS
With the emergence of strong retailers the "own
brand", a retailer's
own branded product (or service), also emerged as a
major factor in the marketplace.

44. Packaging and Labelling
Packaging is the science, art and technology of enclosing or
protecting products for distribution, storage, sale, and use.
Packaging also refers to the process of design, evaluation,
and production of packages. Packaging can be described as
a coordinated system of preparing goods for transport,
warehousing, logistics, sale, and end use. Packaging
contains, protects, preserves, transports, informs, and sells. It
is fully integrated into government, business, institutional,
industry, and personal use.
Labelling
-is a subset of packaging.

45. Various factors have contributed to packaging’s growing uses as a marketing tool:
 Self-service
More products are being sold on a self-service basis in supermarkets and discount houses.
It must attract attention, describe the product’s feature, create consumer confidence, and
make favorable overall impression.
 Consumer affluence
Rising consumer affluence means consumer are willing to pay little more for the
convenience, appearance, dependability and prestige of better packages.
 Company and brand image
Well-designed packages can contribute to instant recognition of the company or brand.
 Innovation opportunity
Innovative packaging can bring large benefits to consumer and profits to produce.
 Protecting intellectual property rights
May multinational companies and even well-known domestic companies want packaging
that is difficult to copy.

46. Package labeling (BrE) or labeling (AmE) is any written electronic, or graphic
communications on the packaging or on a separate but associated label
The purposes of packaging and package labels: Packaging and package labeling
have several objectives
1. Physical protection - The objects enclosed in the package may require protection
from, among other things, shock, vibration, compression, temperature, etc.
2. Barrier protection - A barrier from oxygen, water vapor, dust, etc., is often
required.
Permeation is a critical factor in design. Some packages contain desiccants or
Oxygen absorbers to help extend shelf life. Modified atmospheres or controlled
atmospheres are also maintained in some food packages. Keeping the contents
clean, fresh, sterile and safe for the intended shelf life is a primary function.
3. Containment or agglomeration - Small objects are typically grouped together in
one package for reasons of efficiency. For example, a single box of 1000 pencils
requires less physical handling than 1000 single pencils. Liquids, powders, and
granular materials need containment.

47. 4. Information transmission - Packages and labels communicate
how to use, transport,
recycle, or dispose of the package or product. With
pharmaceuticals, food, medical, and
chemical products, some types of information are required by
governments. Some
packages and labels also are used for track and trace purposes.
5. Marketing - The packaging and labels can be used by
marketers to encourage potential
buyers to purchase the product. Package graphic design and
physical design have been
important and constantly evolving phenomenon for several
decades. Marketing
communications and graphic design are applied to the surface of
the package and (in
many cases) the point of sale display.

48. 6. Security - Packaging can play an important role in reducing the security risks of
shipment. Packages can be made with improved tamper resistance to deter tampering and
also can have tamper-evident features to help indicate tampering. Packages can be
engineered to help reduce the risks of package pilferage: Some package constructions are
more resistant to pilferage and some have pilfer indicating seals. Packages may include
authentication seals and use security printing to help indicate that the package and
contents are not counterfeit. Packages also can include anti-theft devices, such as dyepacks,
RFID tags, or electronic article surveillance. Tags, that can be activated or
detected by devices at exit points and require specialized tools to deactivate. Using
packaging in this way is a means of loss prevention.
7. Convenience - Packages can have features that add convenience in distribution, handling,
stacking, display, sale, opening, reclosing, use, dispensing, and reuse.
8. Portion control - Single serving or single dosage packaging has a precise amount of contents to
control usage. Bulk commodities (such as salt) can be divided into packages that are a more
suitable size for individual households. It is also aids the control of inventory: selling sealed one-liter-
bottles of milk, rather than having people bring their
own bottles to fill themselves.

49. It is sometimes convenient to categorize packages by layer or
function (three levels of material):
• Primary packaging is the material that first envelops the product
and holds it. This
usually is the smallest unit of distribution or use and is the package
which is in direct contact with the contents.
• Secondary packaging is outside the primary packaging – perhaps
used to group primary packages together.
• Tertiary packaging is used for bulk handling, warehouse storage
and transport shipping.
The most common form is a palletized unit load that packs tightly
into containers.
Well-designed packages can create convenience value for the
consumer and promotional value for the producer.

50. Symbols used on packages and labels:
Many types of symbols for package labeling
are nationally and internationally
standardized. For consumer packaging,
symbols exist for product certifications,
trademarks, proof of purchase, etc. Some
requirements and symbols exist to
communicate aspects of consumer use and
safety. Examples of environmental and
recycling symbols include: Recycling
symbol, Resin identification code (below),
and Green Dot (symbol).

51. Bar codes (below), Universal Product Codes, and RFID
labels are common to allow automated information
management. Country of Origin Labeling is often used.

52. Labels perform several functions:
1. Identifies the product brand
2. The Label might also grade the product. Describe the product :
who made it, where it was made, when it was made, what it
contains, how it is to be used, and how to use it safely.
3. The label might promote the product through its attractive
graphics.
Labels eventually become outmoded and need freshening up.
There are several legal concerns surrounding labels, as well as
packaging and products in general. Legal requirements vary from
country to country.

53. DOST - NCR
• In the Philippines,
• http://ncr.dost.gov.ph/index.php/programs-and-services/technical-support-services/packaging-and-labelling

54. New Product Planning and
Development
Every company must develop new products.
New-product development shapes the
company’s future. Replacement products must
be created to maintain or build sales. Customers
want new products, and competitors will do their
best to supply them.

55. six categories of new products identified by the following Booz, Allen &
Hamilton:
1. New-to-the-world products: New products that create an entirely new
market.
2. New product lines: New products that allow a company to enter an
established market for the first time.
3. Additions to existing product lines: New products that supplement a
company’s established product lines (package sizes, flavors, and so on).
4. Improvements and revisions of existing products: New products that
provide improved performance or greater perceived value and replace
existing products.
5.Repositionings: Existing products that are targeted to new markets or
market segments.
6. Cost reductions: New products that provide similar performance at lower
cost.

56. Product Planning and Development
• Refers to the systematic decision making related to all aspects of the
development and management of a firm products.
• New products are created as the result of an idea or perceived gap in the current
world
• It usually arises from a need or want that can’t be immediately filled and leads to
the question:
“Why don’t I create and sell that product?”
In order for a new product idea to succeed, it MUST be or have:
• Desirable attributes for their target market
• Be Unique
• If the new product isn’t, it is doomed to fail.

57. Stages of Product Development
1.Idea Generation 1.Idea Screening
1.Concept
Development and
Testing
Market Strategy
Business
(Feasibility)
Analysis
Product Design Test Marketing
1.Market Entry
Commercialization

58. Stages of Product Development
1.Idea Generation
• An invention or innovation as a result of a gap in the current market
• An idea to produce a product or service not currently available.
• Idea comes from Company employee, Customers, Competitors, Distributors and
Suppliers
2.Idea Screening
• Not all ideas are good ones (example: UFC catsup green and blue).
• Marketers need to test consumer reaction to their idea before they continue
• Develop system to estimate: market size, manufacturing cost, and rate of return.
• Throw the idea around and see what people think.
• Evaluate these finding against set of company criteria for new products.

59. Stages of Product Development
3.Concept Development and Testing
• If the feedback from consumer and your business
associates is positive, a prototype or sample is
created
• This stage will allow you to see if the product
works and to allow your target market to use it or
provide feedback for improvement, etc.
• Product Idea: idea for a possible product that the
company can see itself offering.
• Product Concept: detailed version of the idea
stated in meaningful consumer terms.

60. Stages of Product Development
4.Market Strategy
• The development of your marketing strategy
• Determine your target market and how to use the 4P’s to optimally sell
them your product.
• Part One Describes:
• The target market, planned product position sales, market share and profit goals.
• Part Two Outlines the First Year’s:
• Product’s planned price, distribution, and marketing budget.
• Part Three Describes Long-Run:
• Sales and profit goals, marketing mix strategy.

61. Stages of Product Development
5.Feasibility Analysis/ Business Analysis
• Often done at the same time as the product design and market strategy stages
• Involves a review of the sales, costs, and profit projections to assess fit with company
objectives.
• Many questions are answered in this stage
For example:
Materials or labor required?
Price of production?
Distribution channels?
Cost of promotion?
• This analysis will simply answer the following question
“Can we make and sell this product and make money doing it?”
• If yes, move to the product development phase.

62. Stages of Product Development
6.Product Development
• What the product will look like?
• Design will depend on what it does and
what the target market wants
• Develop concept into physical product.
• Calls for large jump in investment.
• Prototypes are made
• Prototypes must have correct physical
features and convey psychological
characteristics.

63. Stages of Product
Development
7. Marketing Test / Test Marketing
• Test acceptance of the product
• Product and program introduce in more realistic
market setting.
• Usually occurs by offering the product to a
random sample of your target market
• Customer feedback is used to improve the
venture and determine whether the product
should “go to market”.
• Product Life Cycle begins and, it’s life will be
determined by the consumer market,
competitions and further product advantage.
• Can be expensive and time consuming, but
better than making major marketing mistake.

64. Stages of Product
Development
8. Commercialization
• Must decide on Timing: when to introduce the
product?
• Must decide on Where to introduce the
product: single location, state region, national,
international
• Must develop a market rollout plan. To whom?
(Target-Market Prospects)
• How? (Introductory Market Strategy)

65. references:
• http://www.consolidatedlabel.com/label-articles/five-key-elements-creating-successful-labeling-strategy/
• http://catalog.flatworldknowledge.com/bookhub/2030?e=fwk-133234-ch07_s02#
• Marketing Management, Millennium Edition, Tenth Edition by Philip Kotler Copyright © 2000 by Prentice-Hall, Inc. Developing New Product Market page 329-357 and page 161-196
• Marketing Management an Asian Perspective page 315-346 and 354-371 and 446-485
• McGrath, M. E. (2001). Product Strategy for High Technology Companies. New York: McGraw-Hill.
• Source: Boundless. “Packaging and Labeling.” Boundless Business Boundless, 20 Sep. 2016. Retrieved 15 Feb. 2017
from https://www.boundless.com/business/textbooks/boundless-business-textbook/product-and-pricing-strategies-15/product-packaging-and-
branding-99/packaging-and-labeling-468-6131/
• The McGraw−Hill Companies, 2001
• The 20 Ps of Marketing: A Complete Guide to Marketing Strategy by David Pearson
• The Ultimate Guide to Strategic Marketing: Real World Methods for Developing Successful, Long-Term Marketing Plans by Robert J. Hamper McGraw-Hill. (c)
2014
• Thomson, B. (2004). Creating a Strategic Product Plan. Retrieved June 30, 2010, from http://www.pragmaticmarketing.com/publications/topics/08/how-to-
make-product-management-strategic
• Wikipedia; Product Strategy