2. WHAT WE WILL BE LEARNING?
Understand
how
companies
find and
develop new-
product ideas.
1
Learn the steps
in the new-
product
development
process.
2
Know the
stages of the
product life
cycle.
3
Understand
how marketing
strategies
change during
the product’s
life cycle.
4
4. WHAT IS PRODUCT DEVELOPMENT?
•Development of original products, product
improvements, product modifications, and
new brands through the firm’s own R & D
efforts.
5. WHY IS IT ESSENTIAL?
Apple Newton
PDA
Too Expensive
6. WORK FLOW
1. Idea Generation
2. Idea Screening
3. Concept development
and testing
4. Marketing strategy
5. Business analytics
6. Product Development
7. Test marketing
8. Commercialization
7. IDEA
GENERATION
Internal sources – many companies give incentives to their employees to
come up with workable ideas, i.e. the research and development division.
SWOT analysis – Company may review its strength, weakness,
opportunities and threats and come up with a good feasible idea.
Market research – Companies constantly reviews the changing needs,
wants, and trends in the market.
Customers – Sometimes reviews and feedbacks from the customers or
even their ideas can help companies generate new product ideas.
Competition – Competitors SWOT analysis can help the company
generate ideas.
8. IDEA SCREENING
• most prominently identified customer needs
• product improvements most needed
• the benefits to your target market
• the technical feasibility of the idea
• the level and scope of research and development required
• the profitability of the idea. What is its potential appeal to the market? How would you price it?
What are the costs in bringing it to market - overall and per unit?
• where the product fits in the market. Is there a gap? How close is it to competitor products?
• the resources it will require in development
• the marketing potential of the idea
• the fit with your business profile and business objectives.
9. NEW PRODUCT CONCEPT DEVELOPMENT AND
SCREENING
• describe it from your customers' point of view
• list features and benefits of your product that may appeal to customers
• research and determine your target audience
• conduct focus groups and market research to determine how your product might
perform in the market
• consider resources required for designing, manufacturing and delivering the
product
10. MARKETING STRATEGY DEVELOPMENT AND
BUSINESS ANALYSIS
• The target market, product positioning, and sales, share, and profit goals for the
first few years.
• Product price, distribution, and marketing budget for the first year.
• Long-run sales and profit goals and the marketing mix strategy.
• Sales, cost, and profit projections( Business Analysis).
11. PRODUCT DEVELOPMENT
• Prototype development and testing
• Rapid prototyping is a group of techniques used to quickly fabricate
a scale model of a physical part or assembly using three-
dimensional computer aided design (CAD) data. Construction of the
part or assembly is usually done using 3D printing or "additive layer
manufacturing" technology.
16. PRODUCT LIFE-CYCLE STRATEGIES
• Low sales
• High cost per
customer acquired
• Negative profits
• Innovators are
targeted
• Little competition
•Product
development
•Introduction
•Growth
•Maturity
•Decline
17. • Product – Offer a basic product
• Price – Use cost-plus basis to set
• Distribution – Build selective distribution
• Advertising – Build awareness among early
adopters and dealers/resellers
• Sales Promotion – Heavy expenditures to create
trial
MARKETING STRATEGIES:
INTRODUCTION STAGE
18. PRODUCT LIFE-CYCLE STRATEGIES
• Rapidly rising sales
• Average cost per
customer
• Rising profits
• Early adopters are
targeted
• Growing
competition
• Product
development
• Introduction
• Growth
• Maturity
•Decline
19. • Product – Offer product extensions, service,
warranty
• Price – Penetration pricing
• Distribution – Build intensive distribution
• Advertising – Build awareness and interest in
the mass market
• Sales Promotion – Reduce expenditures to
take advantage of consumer demand
MARKETING STRATEGIES:
GROWTH STAGE
20. PRODUCT LIFE-CYCLE STRATEGIES
• Sales peak
• Low cost per
customer
• High profits
• Middle majority are
targeted
• Competition begins
to decline
• Product
development
•Introduction
• Growth
• Maturity
• Decline
21. • Product – Diversify brand and models
• Price – Set to match or beat competition
• Distribution – Build more intensive
distribution
• Advertising – Stress brand differences and
benefits
• Sales Promotion – Increase to encourage
brand switching
MARKETING STRATEGIES:
MATURITY STAGE
