Download Section 5.1a

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts

Online shopping wikipedia, lookup

Market penetration wikipedia, lookup

Visual merchandising wikipedia, lookup

Multicultural marketing wikipedia, lookup

Retail wikipedia, lookup

Youth marketing wikipedia, lookup

Consumer behaviour wikipedia, lookup

Target audience wikipedia, lookup

Marketing wikipedia, lookup

Neuromarketing wikipedia, lookup

Integrated marketing communications wikipedia, lookup

Green marketing wikipedia, lookup

Perfect competition wikipedia, lookup

Advertising campaign wikipedia, lookup

First-mover advantage wikipedia, lookup

Food marketing wikipedia, lookup

Supermarket wikipedia, lookup

Planned obsolescence wikipedia, lookup

Global marketing wikipedia, lookup

Sensory branding wikipedia, lookup

Pricing strategies wikipedia, lookup

Marketing strategy wikipedia, lookup

Product placement wikipedia, lookup

Marketing channel wikipedia, lookup

Product lifecycle wikipedia, lookup

Predictive engineering analytics wikipedia, lookup

Product planning wikipedia, lookup

Transcript
Section 5.1
Product Design
Product Defined
• Can be tangible or intangible
• Essential component of the marketing mix
• Products can be goods or services
Product Item and Line
• Product Item: Specific model or size of a
product
• Nike Air Flight Shoe is a product item
– Nike Air athletic shoes are product line
Product Classification
• Consumer Goods: purchased and used by
the ultimate consumer for personal use
• Business Goods: purchased by
organizations for use in their operation
– Depending on the intended use of the product,
the same product could be both a consumer
good and a business good
Example
• Purchase Nike shoes in retail store
– Shoes considered a consumer good
• Retail store buys Nike shoes from outlet
– Shoes considered a business good
– You buy from outlet and they are a consumer
good
Point of Difference
• Organizations design their products to
make them stand out in the market place
– They need to have a point of difference
• A unique product characteristic or benefit that sets
the product apart from a competitor’s product
• Product planning is crucial to the success of a
product
Steps in New Product
Development
• Step 1: SWOT Analysis
–
–
–
–
Strengths
Weaknesses
Opportunities
Threats
• Step 2: Idea Generation
– New ideas come from many sources
•
•
•
•
Consumers
Employees
Research and Development
The competition
Steps in New Product
Development
• Step 3: Screening and Evaluation
– Evaluation and screening of the new product
– Focus Group
• Panel of 6-10 consumers who discuss their opinions about a
topic under the guidance of a moderator
• Moderator asks specific questions to get the panel members
to talk about their ideas and opinions
• Step 4: Business Analysis
– Financial Aspects of making and marketing the
product are assessed
Steps in Product Development
• Step 5: Development
– Development of actual product
– Prototype: the first model of the product
• Companies test its production capabilities to see if the
product can be produced at a reasonable cost
• Step 6: Test Marketing
– Product is tested in the market place.
– Product is offered for sale in a small geographic area
– Marketers test all aspects of the marketing mix during
this step (product, place, price and promotion)
Steps in Product Development
• Step 7: Commercialization
– A process that involves producing and
marketing a new product
– The company offers the product in the
marketplace for sale to the final consumer
– Regional rollouts: involve launching a new
product in certain geographic areas over a set
time period