Marketing - Developing products

Topics: Brand, Product management, Brand management Pages: 9 (942 words) Published: January 30, 2014
Developing Products and
Managing Product Portfolios
Chapter 12

What We Already Know About
Products
•  How to define a product
•  How to classify a product
–  Consumer v business products
–  Different types of consumer products
•  The product life cycle
•  There are different levels of product:
–  Core benefits
–  Branding, design, quality
–  Support aspects: guarantees, after-sales service

What Is Managing Products About?
•  Ensuring we have the right product mix to
maximise profits. This involves:
–  Developing new products
–  Managing products through their life cycle
–  Modifying products in different ways
–  Deleting weak products

New Product Development
•  New prod development is very risky
•  60% to 90% of new products fail
–  Lack of research
–  Technical difficulties

•  However you must innovate or die!
•  “New Product” has more than one meaning.
–  New to the world product
–  Innovation on existing product
–  New style or image of existing product

Stages In New Product Development (1)
1. Idea Generation
–  develop systematic
approaches
–  internal or external
–  brainstorming
–  rewards to employees
–  ask customers what
they want

2. Screening Ideas
assess against
–  org. objectives
–  ability to produce
–  ability to market
–  wants of buyers
–  test concept with
groups of buyers

Stages In New Product Development (2)
3. Business Analysis
–  contribution to sales,
costs & profits
–  fit with existing
product mix
–  development expertise?
–  strength of demand
–  production expertise

4. Product Development
–  Technical Feasibility
–  at low enough cost
–  concept prototyping
–  benefits linked to
wants in marketplace

Stages in New Product Development (3)
5. Test Marketing
•  Sample launching of
entire marketing mix
–  use selected outlets or
areas (representative)
–  identify product/mix
weaknesses
–  competitor interference
a possibility

6. Commercialisation
–  Modify product after
test marketing?
–  Alter price; attributes?
–  Increase outlets
–  Plan for full scale
production and
marketing - budgets
–  huge promotional costs
- 10% ideas reach here

Product Adoption Process
•  Awareness
•  Interest
–  buyers seek information

•  Evaluation
–  buyers consider products’ benefits

•  Trial
–  supermarket promotions, small paint tins

•  Adoption
–  May be only temporary

Implications of Product Adoption Process
•  Must create awareness first
–  Samples, advertising

•  Evaluation phase
–  Must provide solid reasons to buy

•  Trial
–  Trial offers reduce risk for buyers

•  Adoption
–  Try to achieve on-going brand loyalty –repeat
purchases

Product Life Cycle Management (1)
•  Introduction
– New products start off slowly
– Teething problems need to be ironed out
quickly.
– Make sure that the target market is
responding.

Product Life Cycle Management (2)
•  Growth
–  Develop Product variations to target different
market segments.
–  Expand distribution channels.
•  May move from Selective Distribution to Intensive
Distribution.

–  Advertising should stress brand benefits over
competitors.
–  May need to lower prices.

Product Life Cycle Management (3)
•  Maturity Stage
–  Customers more experienced
–  More segmentation
–  Weak competitors drop out
–  Price cutting common
–  May need to modify product to keep it attractive
•  Functional modifications e.g. more energy
efficient
•  Style modifications e.g. new packaging

Product Life Cycle Management (4)
•  Decline stage
–  Profits are falling
–  New technology e.g. Digital replaced VHS

•  Low or zero advertising
•  May need new outlets to liquidate obsolete stock e.g. discount store.

Product Life Cycle Management (5)
•  Deleting products
–  Products that no longer satisfy a sufficient number of customers
–  Weak products are a drain on co. resources & time
–  Reaction may be...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Product Manager Essay
  • Essay about Marketing and Product
  • Essay about 4 Marketing Tacties41 Products A Product
  • Developing a marketing plan Essay
  • Essay about MARKETING PLAN FOR NEW PRODUCT
  • Marketing and Products Essay
  • Marketing Essay
  • marketing Essay

Become a StudyMode Member

Sign Up - It's Free
Can You Ever Forgive Me? (2018) | Dokumentation | Katy Sky - 22 years girls gyno exam