* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download New product - Seattle Central College
Marketing communications wikipedia , lookup
Digital marketing wikipedia , lookup
Bayesian inference in marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Price discrimination wikipedia , lookup
Multi-level marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Direct marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Service parts pricing wikipedia , lookup
Street marketing wikipedia , lookup
Planned obsolescence wikipedia , lookup
Food marketing wikipedia , lookup
Multicultural marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Sales process engineering wikipedia , lookup
Target audience wikipedia , lookup
Supermarket wikipedia , lookup
Market penetration wikipedia , lookup
Green marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
First-mover advantage wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Target market wikipedia , lookup
Product placement wikipedia , lookup
Perfect competition wikipedia , lookup
Product lifecycle wikipedia , lookup
Global marketing wikipedia , lookup
Sensory branding wikipedia , lookup
Advertising campaign wikipedia , lookup
Predictive engineering analytics wikipedia , lookup
Pricing strategies wikipedia , lookup
Marketing channel wikipedia , lookup
New-Product Development and Product Life-Cycle Strategies 9-1 Improving New-Product Success To create successful new products, the company must: Understand its consumers, markets, and competitors AND Develop products that deliver superior value to customers. 9-2 New Product Idea Generation Systematic Search for New Product Ideas Obtained From Employees and Also From: Customers Competitors Distributors Suppliers 9-3 New Product Screening Estimate Market Size Product Price Development Time & Costs Manufacturing Costs Rate of Return Evaluate the idea against a set of general company criteria. 9-4 New Product Concept Development 1. Develop New Product Ideas into Alternative Detailed Product Concept 2. Concept Testing - Test the New-Product Concepts with Groups of Target Customers 3. Choose the One That Has the Strongest Appeal to Target Customers 9-5 New Product Marketing Strategy Target Market Marketing Mix Strategy Marketing Budget Sales & Profit Goals Review of above to See if They Satisfy Company Objectives 9-6 New Product Test Marketing Test: Positioning strategy Advertising Distribution Pricing Branding Packaging Budget levels 9-7 Product Life Cycle (Fig. 9-2) Sales and Profits ($) Sales Profits Time Product Development Introduction Growth Maturity Decline Losses/ Investments ($) Sales and Profits Over the Product’s Life From Inception to Demise 9-8 Introduction Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Low sales Costs High cost per customer Profits Negative or low Marketing Objectives Create product awareness and trial Product Offer a basic product Price Usually is high Distribution High distribution expenses Advertising Spending is high to inform consumers 9-9 Growth Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Rapidly rising sales Costs Average cost per customer Profits Rising profits Marketing Objectives Maximize market share Product Offer new product features and models Price Remain where they are or fall slightly Distribution Increase number of distribution outlets Educating consumers and meeting competition Advertising 9-10 Maturity Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Begin to slow Costs Low cost per customer Profits Product High profits, then lower profits Maximize profits while defending market share May modify product Price May decline Distribution Build more intensive distribution Advertising Stress brand differences and benefits Marketing Objectives 9-11 Maturity Stage of the PLC Company tries to increase consumption of the current product Changing characteristics such as quality, features, or styles to attract new users Company tries to improve sales by changing one or more marketing mix elements 9-12 Decline Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Declining sales Costs Low cost per customer Profits Declining profits Marketing Objectives Reduce expenditure and maintain, harvest, or drop the product Product Phase out weak items Price Cut price Distribution Selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers Advertising 9-13 Pick a soft drink, car, or food product, and trace the product’s life cycle. Project when the product might enter a decline stage and discuss strategies to reverse the decline. 9-14