Download Developing Successful Products - Garnet Valley School District

Developing Successful
Products
Brandon Burton
Greg Zankowsky
Melina Blundetto
Students will know:
 How customers view products
 How marketers keep a consumer focus during product
development
 The parts of the product mix element
 The three steps of the product design process
 The importance of product lines, packaging, and brand
development
 Consumer markets and what is meant by direct demand
 The importance of the business product classification
system
 What businesses mean by “new” products
 The six steps in new product development
How customers view products
 Concerned about their needs
 View products as a way to satisfy these needs
 The physical characteristics of a product are important
 Durable, attractive, and safe
 A customer’s need vary
 Variety, quality, service, location, price, etc.
How marketers keep a consumer
focus during product development
 Gather Information
 Evaluating marketing study
 Interpreting results to assist in product planning
 Keeps focus on consumer needs
 Design Strategies
 Identify target market
 Determining company strengths and weaknesses
 Evaluating existing and potential competitors
 Conduct Marketing Tests
 Determine whether if a new product will be successful
 Reduce project failures
The parts of the product mix
element
 Offering choices
 Variations
 Offering a guarantee
 Persuade customers to switch products
 Testimonial
 Recommendations
The three steps of the product
design process
 Basic Product
 Simplest form
 Easily identified and used
 Similar to competition
 Modifications and Improvements
 Features and options
 Changes the basic product
 Increases satisfaction
 Services and complementary products
 Services, guarantees, information on effective use of the product,
and additional products that improve the use of the primary product
 Meet additional customer needs
 Improve customer satisfaction
The importance of product lines
 Product line
 A group of similar products with slight variations in the product
mix to satisfy different needs in a market.
 Variation in Quantity
 Expanding from one product to many products.
 Having more choices for customers
 Variation in Quality
 Adding features to basic products may produce several levels of
product choices that vary in quality
 Basic products may be lower in price
 Having a featured product may increase in price.
 Product Assortments
 The complete set of all products a business offers to its market.
Importance of Packaging
 Dual purpose of protection and promotion
 Improves the use of the products
 Solve customer problems related to the use of the
product
 Safety and Protection
 Attractive
 Convey an image
Importance of Brand
Development
 Name, symbol, word, or design
 Provides a unique identification for the company
 Part of the purchase decision
 Gain customer recognition
 Increase likelihood of a sale
 Convey a particular image that can be recalled
Consumer markets and what is
meant by direct demand
 Consumer Market
 Individuals or socially related groups who purchase
products for personal consumption
 Direct Demand
 The quantity of a product or service to meet the needs of
the customers
 The demand for consumer products.
The importance of the business
product classification system
 Capital Equipment
 Land, buildings, and major pieces of equipment.
 Most expensive and most important products purchased.
 Meet specific needs in order to operate successfully.
 Operating Equipment
 Tools, small machines, and furniture.
 Makes production and operations efficient and effective.
 Supplies
 Paper, pencils, paper clips, cleaning supplies, and parts for
equipment repair.
 Can include minor and major expenses for company.
 Standardized
The importance of the business
product classification system
(con’t)
 Raw Materials
 Components used to produce a companies products.
 Adequate supply and equal quality of production.
 Component Parts
 Parts of a businesses products that have been partially or
totally produced by another company.
 For example: computer manufacturer buys computer chips
from another company..
 Designed for needs of one company
What businesses mean by “new”
products
 Changes and improvements to an existing product
 Products that are new to a particular market
 A product can be called new for only six months after
the introduction or change of a product
 A new use for a product can be discovered
The six steps in new product
development
 Idea Development
 Ideas for new products
 Consumer Problems
 Creative Process
 Idea Screening
 Evaluate Ideas
 Select those that have the greatest chance for success
 Develop criteria
 Strategy Development
 Create and test a sample marketing strategy
 Clearly identify an appropriate target market and ensure that
customers exist with the need and money for the product
The six steps in new product
development (cont.)
 Financial Analysis
 Costs of production and marketing, sales projections for the
target market, and resulting profits are calculated
 Product Development and Testing
 Design the product process
 Obtain needed equipment and materials
 Training personnel
 Product Marketing
 Full scale introduction into the market
Key Terms
 Product
 Anything tangible offered to a market by a business to satisfy
needs
 Product line
 A group of similar products with slight variations in the product
mix to satisfy different needs in a market
 Product assortment
 The complete set of all products a business offers to its market
 Trademark
 The legal protection of the words or symbols for use by a
company
 Licensed Brand
 A well-known name or symbol established by one company and
sold for use by another company to promote its products
Key Terms Cont.
 Consumer Markets
 Individuals or socially related groups who purchase products for
personal consumption
 Direct Demand
 The quantity of a product or service needed to meet the needs
of the consumer
 Business Markets
 Companies and organizations that purchase products for the
operation of a business or the completion of a business activity
 Derived Demand
 The quantity of a product or service needed by a business in
order to operate at a level that will meet the demand of its
customers
 New Product
 A product that is entirely new or changed in an important and
noticeable way