New Product Development
LEARNING RESOURCES
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<----- Extending the Product Life Cycle
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1.NEW PRODUCT DEVELOPMENT & PRODUCT LIFE CYCLES
a.Development process
i.Idea generation
1.Sources
a.Internal sources through research & development
b.Watching/listening to customers
c.Consumers create new products
d.Competitors
e.Distributors & suppliers
f.Trade magazines & shows
g.Seminars
h.Laboratories
i.Inventors
2.Follow an idea management system that is systematic
ii.Idea screening
iii.Concept development & testing
1.Product idea vs. product concept vs. product image
iv.Marketing strategy development
1.Part 1
a.State target market
b.Plan the product positioning
c.Predict the sales, market share, and profit goals for first few years
2.Part 2
a.Price
b.distribution
c.marketing budget for year
3.Part 3
a.Predicts long-run sales, profit goals, and marketing mix strategy
v.Business Analysis
vi.Product Development
vii.Test Marketing
viii.Commercialization
1.Market roll out
b.Sequential product development vs. simultaneous product development
c.Product life-cycle strategies
i.The cycle
1.Product development
2.Introduction
a.Takes time & money
b.Market pioneer
c.High promotion spending
d.Basic versions produced
e.Low to negative profits
3.Growth
a.Sales climb
b.New competitors enter market
c.Prices stable
d.Trade off between high market share and high profit
4.Maturity
a.Longer lasting stage
b.Most products exist in this stage
c.Many producers = greater competition
d.Slowdown in sales
e.Prices fall
f.Decreased profit
g.More promotions & advertising
h.Modifications are tried
i.More R & D for newer products
ii.Modifying the product
iii.Modifying the market
iv.Modifying the marketing mix
5.Decline
a.Sales drop
b.Profits drop
c.Firms withdraw from market
d.Advertising and promotions are reduced
e.Strategies
i.Maintain
ii.Harvest
iii.drop
ii.Uses
1.describes product class
2.describes product form
3.describes brand
4.describes styles, fashions, or fads
NEW PRODUCT DEVELOPMENT & PRODUCT LIFE CYCLES VOCABULARY
New-product development business analysis commercialization marketing strategy development
Concept testing decline stage fad fashion
Growth stage idea generation idea screening introduction stage
Maturity stage product concept product development product life-cycle (PLC)
Style test marketing sequential product development
Simultaneous (or team-based) product development
a.Development process
i.Idea generation
1.Sources
a.Internal sources through research & development
b.Watching/listening to customers
c.Consumers create new products
d.Competitors
e.Distributors & suppliers
f.Trade magazines & shows
g.Seminars
h.Laboratories
i.Inventors
2.Follow an idea management system that is systematic
ii.Idea screening
iii.Concept development & testing
1.Product idea vs. product concept vs. product image
iv.Marketing strategy development
1.Part 1
a.State target market
b.Plan the product positioning
c.Predict the sales, market share, and profit goals for first few years
2.Part 2
a.Price
b.distribution
c.marketing budget for year
3.Part 3
a.Predicts long-run sales, profit goals, and marketing mix strategy
v.Business Analysis
vi.Product Development
vii.Test Marketing
viii.Commercialization
1.Market roll out
b.Sequential product development vs. simultaneous product development
c.Product life-cycle strategies
i.The cycle
1.Product development
2.Introduction
a.Takes time & money
b.Market pioneer
c.High promotion spending
d.Basic versions produced
e.Low to negative profits
3.Growth
a.Sales climb
b.New competitors enter market
c.Prices stable
d.Trade off between high market share and high profit
4.Maturity
a.Longer lasting stage
b.Most products exist in this stage
c.Many producers = greater competition
d.Slowdown in sales
e.Prices fall
f.Decreased profit
g.More promotions & advertising
h.Modifications are tried
i.More R & D for newer products
ii.Modifying the product
iii.Modifying the market
iv.Modifying the marketing mix
5.Decline
a.Sales drop
b.Profits drop
c.Firms withdraw from market
d.Advertising and promotions are reduced
e.Strategies
i.Maintain
ii.Harvest
iii.drop
ii.Uses
1.describes product class
2.describes product form
3.describes brand
4.describes styles, fashions, or fads
NEW PRODUCT DEVELOPMENT & PRODUCT LIFE CYCLES VOCABULARY
New-product development business analysis commercialization marketing strategy development
Concept testing decline stage fad fashion
Growth stage idea generation idea screening introduction stage
Maturity stage product concept product development product life-cycle (PLC)
Style test marketing sequential product development
Simultaneous (or team-based) product development