Marketing - New Product Presentation

8/9/2019 Marketing - New Product Presentation

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Course: Principle of Marketing

Presented To:

Miss. Sana Imran

Presented By:

Muhammad Ashfaq Abdul Karim Soomro

Saleha Ansari Musadiq Ahmed

Zahida Khatoon Muddassir Habib



New-Product Development and

Life-Cycle Strategies



Learning Goals

1. Learn how companies find and develop new-product ideas.

2. Understand the steps in the new-product development process.

3. Know the stages of the product life cycle.

4. Realize how marketing strategies change during the products life cycle.



New Product Development

Development of original products, product improvements, product modifications,

and new brands through the firms own R & D efforts.



New Product Development Strategy

1. New products can be obtained via acquisition or

development.

2. New products suffer from high failure rates.

3. Several reasons account for failure.



Stages of the New Product Development Process

Stage 1: Idea Generation

1. Internal idea sources:

R & D2. External idea sources:

Customers, competitors, distributors, suppliers



Contd

Stage 2: Idea Screening

1. Product development costs increase substantially in later stages so poor

ideas must be dropped.

2. Ideas are evaluated against criteria; most are eliminated



Stage 3: C oncept Development and Testing

1. Concept development creates a detailed version of the idea stated in

meaningful consumer terms.

2. Concept testing asks target consumers to evaluate product concepts.

Contd



Stage 4: Marketing Strategy Development

1. The target market, product positioning, and sales, share, and profitgoals for the first few years.

2. Product price, distribution, and marketing budget for the first year.

3. Long-run sales and profit goals and the marketing mix strategy.

Contd



Stage 5:Bu

siness Analysis

Sales, cost, and profit projections

Stage 6: P rod uct Development

Prototype development and testing

Contd



Stage 7: Test Marketing

1. Standard test markets

2. Controlled test markets

3. Simulated test markets

Stage 8: C ommercialization

Contd



Product Life-Cycle Strategies

The Product Life Cycle (PLC) has Five Stages:

Product Development

Introduction

Growth

Maturity

Decline

Not all products follow this cycle:

Fads

Styles

Fashions




The product life cycle concept can be applied to:

1. Product class (soft drinks)

2. Product form (diet colas)

3. Brand (Diet Dr. Pepper)

Using the PLC to forecast brand performance or to develop marketing

strategies is problematic




1. P rod uct Development

y Begins when the company develops a new-product idea

y Sales are zero

y Investment costs are high

y Profits are negative

PLC StagesPLC Stages



y Low sales

y High cost per customer acquired

y Negative profits

y Innovators are targeted[

y Little competition



2. Introd uction



Marketing Strategies: Introduction Stage

y Product Offer a basic product

y Price Use cost-plus basis to set

y Distribution Build selective distribution

y Advertising Build awareness among early adopters and dealers/resellers[

y Sales Promotion Heavy expenditures to create trial



y Rapidly rising sales

y Average cost per customer

y Rising profits

y Early adopters are targeted

y Growing competition



3. Growth



y Product Offer product extensions, service, warranty

y Price Penetration pricing

y Distribution Build intensive distribution

y Advertising Build awareness and interest in the mass market

y Sales Promotion Reduce expenditures to take advantage of consumerdemand




y Sales peak

y Low cost per customer

y High profits

y Middle majority are targeted

y Competition begins to decline



4. Mat urity



Maturity Stage

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




y Declining sales

y Low cost per customer

y Declining profits[

y Laggards are targeted[

y Declining competition



5. Decline



Product Phase out weak items

Price Cut price

Distribution Use selective distribution: phase out unprofitable outlets

Advertising Reduce to level needed to retain hard-core loyalists

Sales Promotion Reduce to minimal level

Contd

Marketing - New Product Presentation

Documents

Transcript of Marketing - New Product Presentation