2011.09 marketing principles
Upcoming SlideShare
Loading in...5
×
 

2011.09 marketing principles

on

  • 2,406 views

 

Statistics

Views

Total Views
2,406
Views on SlideShare
2,390
Embed Views
16

Actions

Likes
2
Downloads
82
Comments
0

1 Embed 16

http://www.pro-ex.org 16

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Note to InstructorNew products are important—to both customers and the marketers who serve them. For companies, new products are a key source of growth. For customers, they bring new solutions and variety to their lives. Yet, innovation can be very expensive and very risky. New products face tough odds. According to one estimate, 90 percent of all new products in America fail. Each year, companies lose an estimated $20 billion to $30 billion on failed food products alone.
  • Note to InstructorIf you are running a marketing plan project in your class, this is a good time to ask why their project ideas might fail in the real market. You can then ask what they plan to do to prevent failure.
  • Note to InstructorDiscussion QuestionIn groups of four come up with one ideas for a new products. It might be helpful if you assign each group a category including kitchen products, office supplies, laptop accessories, dessert products, bathroom accessories, children’s toys, baby products, etc. Students will realize this is very difficult.
  • Note to InstructorIt is not difficult to find examples of companies that are running contests where they ask consumers to send in ideas for new products. Dorito’s recently asked consumers to come up with a new flavor and new advertising. The Classic Mini Cooper brand was running Mini Mania’s the “Awesome New Product” Idea Contest. The grand prize winner received a 25 percent off promo code! Two second place winners will receive 15 percent off promo codes.
  • Note to InstructorThis Web link ties to a concept testing survey at Questionpro. It is helpful to point out to students that there are many online Web survey sites, which offer free surveys for market research. In this example, they supply a template for concept testing.
  • Note to InstructorMany companies use their employees for product testing. Students might have worked at various consumer packaged goods companies, perhaps Quaker Oats, where they had to test cereal every day at lunch. The text gives the example:At Gillette, almost everyone gets involved in new-product testing. Every working day at Gillette, 200 volunteers from various departments come to work unshaven, troop to the second floor of the company’s gritty South Boston plant, and enter small booths with a sink and mirror. There they take instructions from technicians on the other side of a small window as to which razor, shaving cream, or aftershave to use. The volunteers evaluate razors for sharpness of blade, smoothness of glide, and ease of handling. In a nearby shower room, women perform the same ritual on their legs, underarms, and what the company delicately refers to as the “bikini area.” “We bleed so you’ll get a good shave at home,” says one Gillette employee.
  • Note to InstructorHere is a list of the top 10 test markets1. ALBANY—SCHENECTADY—TROY, NY2. ROCHESTER, NY3. GREENSBORO—WINSTON—SALEM—-HIGH POINT, NC4. BIRMINGHAM, AL5. SYRACUSE, NY6. CHARLOTTE—GASTONIA—ROCK HILL, NC/SC7. NASHVILLE, TN8. EUGENE—SPRINGFIELD, OR9. WICHITA, KS10. RICHMOND—PETERSBURG, VASource: Acxiom Corp., June 2004
  • Note to InstructorStandard test markets are small representative markets where the firm conducts a full marketing campaign and uses store audits, consumer and distributor surveys, and other measures to gauge product performance. Results are used to forecast national sales and profits, discover product problems, and fine-tune the marketing program.Controlled test markets are panels of stores that have agreed to carry new products for a fee. In general they are less expensive than standard test market, faster than standard test markets, but competitors gain access to the new product. Simulated test markets are events where the firm will create a shopping environment and note how many consumers buy the new product and competing products. Provides measure of trial and the effectiveness of promotion. Researchers can interview consumers.
  • Note to InstructorThis Web link takes you to Decision Insight—a company involved with online market testing. You can click at many examples they offer of clients as well as their virtual shopping testing products.
  • Note to InstructorDiscussion QuestionName a product at each stage of the PLC.This concept is very new to students. See if they can identify products or product categories that are in each stage of the model. Introduction might include online movie viewing software, growth might include MP3 players, maturity might include bottled water, and decline could include soda (actually in a decline) or videotape players.
  • Note to InstructorStyle is a basic and distinctive mode of expression.Fashion is a currently accepted popular style in a given field.
  • Note to InstructorCars are very mature products so companies are always coming up with new models and features. This is a link to a very funny YouTube ad about a new car product.
  • Note to InstructorThis link is for 1000 Uses of Glad Web site. It is described below, and in the book, as a way to modify the product. In modifying the market, the company tries to increase the consumption of the current product. It may look for new users and new market segments. The manager may also look for ways to increase usage among present customers. The company might also try modifying the product—changingcharacteristics such as quality, features, style, or packaging to attract new users and to inspire more usage. It can improve the product’s styling and attractiveness. It might improve the product’s quality and performance—its durability, reliability, speed, taste.

2011.09 marketing principles 2011.09 marketing principles Presentation Transcript

  • Marketing
    Stephan Langdon, MBA, M Ed
  • Chapter Nine
  • New-Product Development and Product Life-Cycle Strategies
    New-Product Development Strategy
    New-Product Development Process
    Managing New-Product Development
    Product Life-Cycle Strategies
    Additional Product and Service Considerations
    Topic Outline
  • New-Product Development Strategy
    Acquisition refers to the buying of a whole company, a patent, or a license to produce someone else’s product
    New product development refers to original products, product improvements, product modifications, and new brands developed from the firm’s own research and development
    Two ways to obtain new products
  • New-Product DevelopmentReasons for new product failure
  • Which of the following is not a reason that a new product might fail?
    The product is priced too high.
    The product is poorly designed.
    The estimated market for the product is too large.
    All of the above are reasons that a new product might fail.
  • Which of the following is not a reason that a new product might fail?
    The product is priced too high.
    The product is poorly designed.
    The estimated market for the product is too large.
    All of the above are reasons that a new product might fail.
  • New-Product Development Process
    Major Stages in New-Product Development
  • New-Product Development Process
    Idea generation is the systematic search for new-product ideas
    Sources of new-product ideas
    Internal
    External
    Idea Generation
  • New-Product Development Process
    Idea Generation
    Internal sources refer to the company’s own formal research and development, management and staff, and intrapreneurial programs
    External sources refer to sources outside the company such as customers, competitors, distributors, suppliers, and outside design firms
  • Which of the following is not a good external source of ideas?
    Customers
    The R&D department
    Suppliers
    Competitors
  • Which of the following is not a good external source of ideas?
    Customers
    The R&D department
    Suppliers
    Competitors
  • New-Product Development Process
    Identify good ideas and drop poor ideas
    R-W-W Screening Framework:
    Is it real?
    Can we win?
    Is it worth doing?
    Idea Screening
  • New-Product Development Process
    Concept Development and Testing
    Product idea is an idea for a possible product that the company can see itself offering to the market
    Product concept is a detailed version of the idea stated in meaningful consumer terms
    Product image is the way consumers perceive an actual or potential product
  • New-Product Development Process
    Concept testing refers to testing new-product concepts with groups of target consumers
    Concept Development and Testing
  • New-Product Development Process
    Marketing strategy development refers to the initial marketing strategy for introducing the product to the market
    Marketing strategy statement includes:
    Description of the target market
    Value proposition
    Sales and profit goals
    Marketing Strategy Development
  • New-Product Development Process
    Business analysis involves a review of the sales, costs, and profit projections to find out whether they satisfy the company’s objectives
    Marketing Strategy Development
  • New-Product Development Process
    Marketing Strategy Development
    Product development involves the creation and testing of one or more physical versions by the R&D or engineering departments
    Requires an increase in investment
  • New-Product Development Process
    Marketing Strategy Development
    Test marketing is the stage at which the product and marketing program are introduced into more realistic marketing settings
    Provides the marketer with experience in testing the product and entire marketing program before full introduction
  • ________ is a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives.
    Market strategy development
    Product development
    Business analysis
    Forecasting
  • ________ is a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives.
    Market strategy development
    Product development
    Business analysis
    Forecasting
  • When a concept moves into a physical product to insure that the product idea can be turned into a workable product, this is referred to as ___________.
    market strategy
    product development
    business analysis
    commercialization
  • When a concept moves into a physical product to insure that the product idea can be turned into a workable product, this is referred to as ___________.
    market strategy
    product development
    business analysis
    commercialization
  • New-Product Development Process
    Types of Test Markets
  • Which of the following is not a form of test marketing?
    Standard test markets
    Controlled test markets
    Simulated test markets
    Perceptual test markets
  • Which of the following is not a form of test marketing?
    Standard test markets
    Controlled test markets
    Simulated test markets
    Perceptual test markets
  • Some of the drawbacks of ________ test markets are that they can be very costly, and they can give competitors a chance to look at the company’s new ideas.
    standard
    controlled
    simulated
    Internet
  • Some of the drawbacks of ________ test markets are that they can be very costly, and they can give competitors a chance to look at the company’s new ideas.
    standard
    controlled
    simulated
    Internet
  • New-Product Development Process
    Advantages of simulated test markets
    Less expensive than other test methods
    Faster
    Restricts access by competitors
    Disadvantages
    Not considered as reliable and accurate due to the controlled setting
    Marketing Strategy Development
  • New-Product Development Process
    Marketing Strategy Development
  • New-Product Development Process
    Commercialization is the introduction
    of the new product
    When to launch
    Where to launch
    Planned market
    rollout
    Marketing Strategy Development
  • The systematic search for new-product ideas is called ________.
    idea generation
    idea search
    idea screening
    concept development
  • The systematic search for new-product ideas is called ________.
    idea generation
    idea search
    idea screening
    concept development
  • Once the new product ideas have been screened, the next step in the new product development process is ________.
    marketing strategy
    concept development and testing
    product development
    none of the above
  • Once the new product ideas have been screened, the next step in the new product development process is ________.
    marketing strategy
    concept development and testing
    product development
    none of the above
  • The final stage in new product development is referred to as ________.
    new product penetration
    commercialization
    consumer initiation
    idea screened
  • The final stage in new product development is referred to as ________.
    new product penetration
    commercialization
    consumer initiation
    idea screened
  • Managing New-Product Development
    Successful new-product development should be:
    Customer centered
    Team centered
    Systematic
  • Managing New-Product Development
    Customer-centered new product development focuses on finding new ways to solve customer problems and create more customer satisfying experiences
    Begins and ends with solving customer problems
    New-Product Development Strategies
  • Managing New-Product Development
    Sequential new-product development is a development approach where company departments work closely together individually to complete each stage of the process before passing it along to the next department or stage
    Increased control in risky or complex projects
    Slow
    New-Product Development Strategies
  • Managing New-Product Development
    Team-based new-product development is a development approach where company departments work closely together in cross-functional teams, overlapping in the product-development process to save time and increase effectiveness
    New-Product Development Strategies
  • Managing New-Product Development
    Systematic new-product development is an innovative development approach that collects, reviews, evaluates, and manages new-product ideas
    Creates an innovation-oriented culture
    Yields a large number of new-product ideas
    New-Product Development Strategies
  • Product Life-Cycle Strategies
    Product Life Cycle
  • Product Life-Cycle Strategies
    Product development
    Sales are zero and investment costs mount
    Introduction
    Slow sales growth and profits are nonexistent
    Growth
    Rapid market acceptance and increasing profits.
    Maturity
    Slowdown in sales growth and profits level off or decline
    Decline
    Sales fall off and profits drop
  • Which of the following is not a stage in the product life cycle (PLC)?
    Idea screening
    Growth
    Maturity
    Decline
  • Which of the following is not a stage in the product life cycle (PLC)?
    Idea screening
    Growth
    Maturity
    Decline
  • Which stage of the product life cycle (PLC) is characterized by slow growth because the product has achieved acceptance by most of its potential buyers?
    Introduction
    Growth
    Maturity
    Decline
  • Which stage of the product life cycle (PLC) is characterized by slow growth because the product has achieved acceptance by most of its potential buyers?
    Introduction
    Growth
    Maturity
    Decline
  • Product Life-Cycle Strategies
    Fads are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity
  • Product Life-Cycle Strategies
  • ________ tend to grow slowly, remain popular for a while, and then decline slowly.
    Fads
    Styles
    Fashions
    Designs
  • ________ tend to grow slowly, remain popular for a while, and then decline slowly.
    Fads
    Styles
    Fashions
    Designs
  • Product Life-Cycle Strategies
    Slow sales growth
    Little or no profit
    High distribution and promotion expense
    Introduction Stage
  • Product Life-Cycle Strategies
    Sales increase
    New competitors enter the market
    Price stability or decline to increase volume
    Consumer education
    Profits increase
    Promotion and manufacturing costs gain economies of scale
    Growth Stage
  • Product Life-Cycle Strategies
    Slowdown in sales
    Many suppliers
    Substitute products
    Overcapacity leads to competition
    Increased promotion and R&D to support sales and profits
    Maturity Stage
  • Product Life-Cycle Strategies
    Market modifying
    Product modifying
    Marketing mix modifying
    Maturity Stage Modifying Strategies
  • Product Life-Cycle Strategies
    Maintain the product
    Harvest the product
    Drop the product
    Decline Stage
  • In the ________ stage, sales start climbing quickly and competition often enters the market.
    introduction
    growth
    maturity
    decline
  • In the ________ stage, sales start climbing quickly and competition often enters the market.
    introduction
    growth
    maturity
    decline
  • Product Life-Cycle Strategies
    Summary of Product Life Cycle
  • Additional Product and Service Considerations
    Public policy and regulations regarding developing and dropping products, patents, quality, and safety
    Product Decisions and Social Responsibility
  • Marketers should consider public policy issues involving product safety, environment, and warranties. This is referred to as ________.
    social responsibility
    positioning
    marketing mix
    commercialization
  • Marketers should consider public policy issues involving product safety, environment, and warranties. This is referred to as ________.
    social responsibility
    positioning
    marketing mix
    commercialization
  • Additional Product and Service Considerations
    International Product and
    Service Marketing—Challenges
    Determining what products and services to introduce in which countries
    Standardization versus customization
    Packaging and labeling
    Customs, values, laws
  • Marketing
    Stephan Langdon, MBA, M Ed