New Product Developmentand

Product Life-Cycle Strategies

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New Product Development Process

Idea Generation and Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization

New Product Development ProcessStep 1. Idea Generation

Systematic Search for New Product Ideas

Internal sourcesCustomers CompetitorsDistributorsSuppliers

New Product Development ProcessStep 2. Idea Screening

Process to spot good ideas and drop poor ones

Criteria Market Size Product Price Development Time & Costs Manufacturing Costs Rate of Return

New Product Development ProcessStep 3. Concept Development & Testing

1. Develop Product Ideas into Alternative

Product Concepts

2. Concept Testing - Test theProduct Concepts with Groups

of Target Customers

3. Choose the Best One

New Product Development ProcessStep 4. Marketing Strategy Development

Marketing Strategy Statement Formulation

Part Two - Short-Term:Product’s Planned Price

DistributionMarketing Budget

Part Three - Long-Term:Sales & Profit Goals

Marketing Mix Strategy

Part One - Overall:Target Market

Planned Product PositioningSales & Profit Goals

Market Share

Business Analysis

Review of Product Sales, Costs, and Profits Projections to See if They Meet Company Objectives

If Yes, Move to Product Development

If No, Eliminate Product Concept

New Product Development ProcessStep 5. Business AnalysisStep 6. Product Development

New Product Development ProcessStep 7. Test Marketing

StandardTest Market

Full marketing campaignin a small number of representative cities.

SimulatedTest Market

Test in a simulated shopping environment

to a sample of consumers.

Controlled Test Market

A few stores that have agreed to carry newproducts for a fee.

Product Life Cycle

Product Life Cycle – shows the stages that products go through from development to withdrawal from the market

BINTANG

TANDA TANYA

SAPI PERAH

ANJING

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%0%

4x 2x 1,5x 1x 0,5x 0,4x 0,3x 0,2x 0,1x

Model BCG

• Each product may have a different life cycle• PLC determines revenue earned• Contributes to strategic marketing planning• May help the firm to identify when

a product needs support, redesign, withdrawal, etc.• May help in new product development planning• May help in forecasting and managing cash flow

Product Life Cycle (PLC)

Causes of New Product Failures

Overestimation of Market Size Product Design Problems Product Incorrectly Positioned, Priced or

Advertised Costs of Product Development Competitive Actions

To create successful new products, the company must: understand it’s customers, markets and

competitors develop products that deliver superior

value to customers.

Introduction Stage of the PLC

SalesCostsProfits

Marketing Objectives

ProductPrice

Low sales

High cost per customer

NegativeCreate product awareness

and trial

Offer a basic product

Use cost-plus

Distribution Build selective distribution

Advertising Build product awareness among early adopters and dealers

Growth Stage of the PLC

SalesCostsProfits

Marketing Objectives

ProductPrice

Rapidly rising sales

Average cost per customer

Rising profits

Maximize market share

Offer product extensions, service, warranty

Price to penetrate market

Distribution Build intensive distribution

Advertising Build awareness and interest in the mass market

Maturity Stage of the PLC

SalesCostsProfits

Marketing Objectives

ProductPrice

Peak sales

Low cost per customer

High profits

Maximize profit while defending market share

Diversify brand and models

Price to match or best competitors

Distribution Build more intensive distribution

Advertising Stress brand differences and benefits

Decline Stage of the PLC

SalesCostsProfits

Marketing Objectives

ProductPrice

Declining sales

Low cost per customer

Declining profits

Reduce expenditure and milk the brand

Phase out weak items

Cut price

Distribution Go selective: phase out unprofitable outlets

Advertising Reduce to level needed to retain hard-core loyal customers

Tujuan Pemasaran

Perkenal-an

Pertumbu-han

Kedewa-saan

Penurunan

Menciptakan kesadaran dan keinginan mencoba produk

Memaksimal kan pangsa pasar

Memaksimal kan laba, memperta hankan pangsa pasar

Mengurangi pengeluaran

Strategi

Perkenalan Pertumbu-han

Kedewa-saan

Penurunan

Produk Tawaran produk dasar

Tawaran perluasan produk, pelayanan, jaminan

Diversifikasi merk dan model

Lepas jenis produk yang lemah

Harga Menyesuaikan biaya-plus

Harga untuk menembus pasar

Harga sama atau lebih baik dari pesaing

Turunkan harga

Distribusi Buat distribusi selektif

Buat distribusi intensif

Buat lebih banyak distribusi intensif

Selektif lepas segmen yang tidak menguntungkan

Strategi (lanjutan)Perkenalan Pertumbu-

hanKedewa-saan

Penurunan

Pengikla-nan

Bangun kesadarn produk diantara pemakai awal dan penyalur

Bangun kesadaran minat di pasar massal

Tekankan perbedaan dan manfaat merk

Kurangi sampai tingkat yang diperlukan untuk mempertahankan pemakai setia

Promosi penjualan

Gunakan banyak promosi penjualan untuk menarik pencoba

Kurangi untuk mengambil keuntungan dari besarnya permintaan konsumen

Tingkatkan untuk mendorong peralihan merk

Kurangi sampai tingkat minimal

Siklus hidup produk (product life cycle – PLC)

adalah perjalanan penjualan dari suatu produk dalam masa hidupnya. Siklus hidup produk merupakan suatu konsep penting yang memberikan pemahaman tentang dinamika kompetitif suatu produk.

Kesimpulan

• Konsep siklus hidup produk sangat baik digunakan untuk menginterpretasikan dinamika produk dan pasar.

• Kelemahan dari konsep ini, yaitu kurang dapat digunakan sebagai alat prediksi karena sejarah penjualan menunjukkan pola yang beragam, dan tahap-tahapnya itu berbeda durasinya.

• Selain itu, perusahaan juga menemui kesulitan untuk mengetahui di tahap apa suatu produk sedang berada.