7. The development of original products,
product improvements, product
modification through firms own R & D
department.
8. Every product go through a life cycle, it born, goes
through several stages and eventually dies then a new
product come that better serve the consumer needs.
9. Challenges under product life
cycle
Challenge of new product development.
Challenge of product life cycle strategies.
10. Challenge of new product
development:
The challenge of new product is that, all products
eventually decline and a firm developing new products.
(According to the taste of consumers).
11. Challenge of product life cycle
strategies:
Challenge of product life cycle
strategies is that, the firm must
adopt its marketing strategies in
the face of changing tastes,
technologies and competition
12. A firm can obtain new products in the two ways.
Through the Acquisition
New product development
13. Stages in the development of the new
product
1 Idea generation
2 Idea screening
3 Concept development
and testing
4 Marketing strategy
5 Business analysis
6 Product development
7 Test marketing
8 Commercialization
19. Idea Screening
Reduce number of ideas
Favorable Ideas( match the company’s
objectives)
Save future Cost
target mkt
Competition
Manufacturing Cost
Development time and cost
21. Concept Development
On the basis of screened ideas make product.
Imaginary product on the basis of favorable ideas
An attractive idea must be developed into a product concept.
What type of product
What are the feature
Image of the product
22. Concept testing
1. Testing new product concepts with a group of target to
find out if the concepts have strong consumer appeal
2. Low direct marketing
3. Feed back from the customer
23. Product Development
Strategy
Designing an initial marketing strategy for a
new product based on the product Concept.
( A detailed version of the new product idea
stated in meaningful consumer terms)
24. Marketing Strategy
Development
Target Market, planned product positioning
and sales, market share and the profit
goals for the first few years
Product planned price, distribution,
marketing budget for the product
The planned long rum sale, profit goals,
marketing mix strategy
25. Business Analysis
expected costs
Expected profit for the product
marketing costs
R & D, operations costs
accounting Costs
finance costs
26. Product Development
Physical product
Jump in investment
quickly and at budgeted costs
functional features
psychological characteristic
27. Test Marketing
The stage of new product development in which the
product and marketing program are tested in more
realistic mkt setting
28. Feature of Test MKT
Cost can be high Advertising
Competitors gain Advantage Distribution
It take lot of time Pricing
It does not give us product Branding
success guarantee
Packaging
29. Test Marketing
1 Standard Test Market
2 Controlled Test Market.
3 Simulated Test Markets
30. Standard Test Market
Marketing Campaign
Consumers & Distributor surveys
Measure to gauge the product performance
Forecast National sale and profit
Product potential problems
Take very much time
Competitors can monitor
32. Organizing for the new Product
Sequential product Development
simultaneous product development
team based development
collaborative product development
overlapping the steps in the product development
Marketing
Finance
Design
Manufacturing
Legal department
Supplier companies
Consumer companies
33. Sequential PD Development
It step by step process
Steps or stages work independently.
Control risky & complex projects.
Very slow
34. Simultaneous product development
team based development
collaborative product development
overlapping the steps in the product
development
35. Limitations
In super fast, risky and costly
Tension & Confusion
Chances of quality affect
36. The Product Life Cycle (PLC)
Product Development
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
37.
38. Introduction
It takes time
It sales is low
Profit is low or negative
High distribution
Promotion expenses
39. Growth Stage
High sale
Early Adopter
Later Buyer
Profit increase
Unit cost fall
Improved quality and feature
40. Maturity Stage
Sales growth slow down
More longer
Strong challenges to the management
Competitors, mark down prices
Increase advertising
Sales promotion
More work on R & D
42. Characteristics Introduction Growth Maturity Decline
Sales Low Sale Rapidly Rising Sales Peak Sale Declining Sale
Costs High cost per Avg. cost per Low cost per customer Low cost per
customer customer customer
Profits Negative Rising Profits High Profit Declining Profits
Customers Innovator Early Adopter Middle Majority Laggard
Competitors Few Growing Number Stable no. beginning to Declining No.
decline
44. Strategies Introduction Growth Maturity Decline
Product Offer a Basic Offer product Diversify brands Phase out
Product extensions service, & models weak items
warranty
Price Use Cost Plus Price to penetrate Price to match or Cut Price
market beat competitors
Distributi Build Selective Build Intensive Build More Go Selectiv
on Distribution Distribution Intensive
Distribution
Advertisi Build product Build product Stress brand Reduce to
ng awareness among awareness in the mass Differences and level neede
early adopters market benefits to retain ha
core loyal
Sales Use heavily sales Reduce to take Increase to Reduce To
Promotio promotion to entire advantage of heavy encourage brand minimum
n trail consumer demand Switching level