Project Submitted on

“Product Decisions and Marketing’s
Role in New Product Development”
By
Sagar Sharma
(Bachelor of Bus...
Objectives

• Categorize products by type and understand product mix
decisions.
• Discuss the importance of branding, pack...
What is Product ?
• Products are the set of features, functions, and benefits that customers
purchase

Consumer Products
C...
Product Mix Decisions
• Product mix - all the products a
company markets
• Product mix width - the number of
product lines...
Branding, Packaging, Labeling Decisions

• Brands - used to simplify choices and reduce purchase risk
for consumers
• Bran...
• Branding strategies

• Individual brand name
strategy
• Proctor and Gamble, General
Mills, etc.
Branding, Packaging, Labeling Decisions

• Branding strategies
• Family brand name
strategy

• Coca-Cola, Fischer Price, e...
Branding, Packaging, Labeling Decisions

• Labeling helps customers by:

• Identifying the manufacturer, country of
origin...
Product Growth Opportunities

Markets
New

New

Products

Existing

Existing

Market
Penetration
Product Development

Dr. ...
Marketing in New Product Development
• Successful product development:

Uncover unmet
needs and
problems

Develop
competit...
Marketing in New Product Development
Uncover unmet
needs and
problems

Shepherd
products through
a firm

Develop
competiti...
Marketing in New Product Development
Uncover unmet
needs and
problems

Shepherd
products through
a firm

Develop
competiti...
Marketing in New Product Development
Uncover unmet
needs and
problems

Shepherd
products through
a firm

Develop
competiti...
Marketing in New Product Development
Uncover unmet
needs and
problems

Ideation

Gate
1

go

Stage 1

Gate
2

go

Stage 2
...
Marketing in New Product Development
Uncover unmet
needs and
problems

Ideation

Gate
1

go

Stage 1

Gate
2

go

Stage 2
...
Marketing in New Product Development
Uncover unmet
needs and
problems

Ideation

Gate
1

go

Stage 1

Gate
2

go

Stage 2
...
Marketing in New Product Development

Alternate Process
Idea Generation
Screening
Business Analysis
Development
Testing
Co...
Marketing in New Product Development

Alternate Process

Idea Generation
Screening
Business Analysis
Development
Testing

...
Marketing in New Product Development

Alternate Process

Idea Generation
Screening
Business Analysis
Development
Testing

...
Marketing in New Product Development

Alternate Process

Idea Generation
Screening
Business Analysis
Development
Testing

...
Marketing in New Product Development

Alternate Process

Idea Generation
Screening
Business Analysis
Development
Testing

...
Marketing in New Product Development

Alternate Process

Idea Generation
Screening
Business Analysis
Development
Testing

...
Marketing in New Product
Development
Uncover unmet
needs and
problems

Develop
competitively
advantaged
product

Shepherd
...
Product Life Cycle
Product mode
Price policy
Place
Promotion
Profits

Introduction

New
use skimming or
penetration strate...
Product mode
Price policy
Place Promotion
Profits

Introduction

Differentiated products
maintain stable pricing
policy so...
Product mode
Price policy
Place
Promotion
Profits

Introduction

Modify product or
product usage price
reduction increase
...
Product mode
Price policy
Place
Promotion
Profits

Introduction

Maintain a basic product
maintain pricing or rise
prices ...
The Product Diffusion Process

Innovators:
First purchasers of a new product
Venturesome, willing to accept risk, socially...
The Product Diffusion Process

Early Adopters:
Are the next customers to buy new product
Enjoy leadership, prestige, and r...
The Product Diffusion Process

Early Majority:
First part of mass market
Outgoing, communicative, and attentive to
informa...
The Product Diffusion Process

Late Majority:
Second part of mass market
Less cosmopolitan and responsive to change
Includ...
The Product Diffusion Process

Laggards:
Last to purchase
Price conscious, suspicious of change, low income
and status, tr...
Determinants of Rate-of-Adoption

Relative Advantage
Compatibility
Complexity
Triability
Observability
Dr. Rosenbloom

The...
Determinants of Rate-of-Adoption

The degree to which
innovation is
consistent with the
values and
experiences of
potentia...
Determinants of Rate-of-Adoption

Relative Advantage
Compatibility
Complexity
Triability
Observability
Dr. Rosenbloom

The...
Determinants of Rate-of-Adoption

Relative Advantage
Compatibility
Complexity
Triability
Observability
Dr. Rosenbloom

The...
Determinants of Rate-of-Adoption

Relative Advantage
Compatibility
Complexity
Triability
Observability
Dr. Rosenbloom

The...
Thank
You
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Product & Branding

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Product & Branding

  1. 1. Project Submitted on “Product Decisions and Marketing’s Role in New Product Development” By Sagar Sharma (Bachelor of Business Administration 3rd Year) 106/10 civil lines, Ajmer 305001 Website: www.dezyneecole.com
  2. 2. Objectives • Categorize products by type and understand product mix decisions. • Discuss the importance of branding, packaging, and labeling. • Understand growth strategies. • Learn to evaluate product development success. • Identify the actives for product development success. • Learn methods for understanding customer needs.
  3. 3. What is Product ? • Products are the set of features, functions, and benefits that customers purchase Consumer Products Convenience Shopping Specialty Unsought Business-to-Business Products Installations Accessories Raw Materials Component Parts/Materials Supplies Dr. Rosenbloom
  4. 4. Product Mix Decisions • Product mix - all the products a company markets • Product mix width - the number of product lines a company markets • Product mix depth - the number of brands within each product line Dr. Rosenbloom
  5. 5. Branding, Packaging, Labeling Decisions • Brands - used to simplify choices and reduce purchase risk for consumers • Brand equity - marketplace value of a brand based on reputation and goodwill Dr. Rosenbloom
  6. 6. • Branding strategies • Individual brand name strategy • Proctor and Gamble, General Mills, etc.
  7. 7. Branding, Packaging, Labeling Decisions • Branding strategies • Family brand name strategy • Coca-Cola, Fischer Price, etc. Dr. Rosenbloom
  8. 8. Branding, Packaging, Labeling Decisions • Labeling helps customers by: • Identifying the manufacturer, country of origin, ingredients • Reporting expiration dates, content grading • Explaining product use • Warning about potential misuse • Providing care instructions • Serving as a communications link between the user, eventual buyers, and the company Dr. Rosenbloom
  9. 9. Product Growth Opportunities Markets New New Products Existing Existing Market Penetration Product Development Dr. Rosenbloom Market Development Product Diversification
  10. 10. Marketing in New Product Development • Successful product development: Uncover unmet needs and problems Develop competitively advantaged product Dr. Rosenbloom Shepherd products through a firm
  11. 11. Marketing in New Product Development Uncover unmet needs and problems Shepherd products through a firm Develop competitively advantaged product Idea generation and screen Ideation Gate 1 go Stage 1 Gate 2 Stage 2 Gate 3 kill kill go recycle recycle Stage 3 Gate 4 go Stage 4 Gate 5 kill kill recycle go recycle kill recycle Dr. Rosenbloom go Stage 5 Review
  12. 12. Marketing in New Product Development Uncover unmet needs and problems Shepherd products through a firm Develop competitively advantaged product Preliminary investigation Ideation Gate 1 go Stage 1 Gate 2 Stage 2 Gate 3 kill kill go recycle recycle Stage 3 Gate 4 go Stage 4 Gate 5 kill kill recycle go recycle kill recycle Dr. Rosenbloom go Stage 5 Review
  13. 13. Marketing in New Product Development Uncover unmet needs and problems Shepherd products through a firm Develop competitively advantaged product Detailed investigation Ideation Gate 1 go Stage 1 Gate 2 Stage 2 Gate 3 kill kill go recycle recycle Stage 3 Gate 4 go Stage 4 Gate 5 kill kill recycle go recycle kill recycle Dr. Rosenbloom go Stage 5 Review
  14. 14. Marketing in New Product Development Uncover unmet needs and problems Ideation Gate 1 go Stage 1 Gate 2 go Stage 2 Gate 3 kill kill go recycle recycle Stage 3 Gate 4 go Stage 4 Gate 5 kill kill recycle Shepherd products through a firm Develop competitively advantaged product recycle Development kill recycle Dr. Rosenbloom go Stage 5 Review
  15. 15. Marketing in New Product Development Uncover unmet needs and problems Ideation Gate 1 go Stage 1 Gate 2 go Stage 2 Gate 3 kill kill go recycle recycle Stage 3 Gate 4 go Stage 4 Gate 5 kill kill recycle Shepherd products through a firm Develop competitively advantaged product recycle go Stage 5 kill recycle Testing and validation Dr. Rosenbloom Review
  16. 16. Marketing in New Product Development Uncover unmet needs and problems Ideation Gate 1 go Stage 1 Gate 2 go Stage 2 Gate 3 kill kill go recycle recycle Stage 3 Gate 4 go Stage 4 Gate 5 kill kill recycle Shepherd products through a firm Develop competitively advantaged product recycle go Stage 5 Review kill recycle Dr. Rosenbloom Product launch
  17. 17. Marketing in New Product Development Alternate Process Idea Generation Screening Business Analysis Development Testing Commercialization Sources of ideas: sales force customers competitors suppliers company personnel retailers wholesalers Dr. Rosenbloom
  18. 18. Marketing in New Product Development Alternate Process Idea Generation Screening Business Analysis Development Testing Screening criteria: company objectives production capability marketing capability product risk product fit Commercialization Dr. Rosenbloom
  19. 19. Marketing in New Product Development Alternate Process Idea Generation Screening Business Analysis Development Testing Business analysis assessment: financial budgets potential market growth rate Commercialization Dr. Rosenbloom
  20. 20. Marketing in New Product Development Alternate Process Idea Generation Screening Business Analysis Development Testing Development activities: prototype feasibility testing preliminary market strategies Commercialization Dr. Rosenbloom
  21. 21. Marketing in New Product Development Alternate Process Idea Generation Screening Business Analysis Development Testing Testing: consumer testing test marketing simulated test marketing Commercialization Dr. Rosenbloom
  22. 22. Marketing in New Product Development Alternate Process Idea Generation Screening Business Analysis Development Testing Commercialization: full-scale production full-scale marketing integration into firm Commercialization Dr. Rosenbloom
  23. 23. Marketing in New Product Development Uncover unmet needs and problems Develop competitively advantaged product Shepherd products through a firm • NPD project leadership • Project leaders - most frequent, appointed by upper management with formal power • Champions - unofficial, informally influence • Process owners - build and maintain expertise in NPD, may act in leadership roles as well Dr. Rosenbloom
  24. 24. Product Life Cycle Product mode Price policy Place Promotion Profits Introduction New use skimming or penetration strategies rapidly building distribution network build general demand expected loses Growth Dr. Rosenbloom Maturity Decline
  25. 25. Product mode Price policy Place Promotion Profits Introduction Differentiated products maintain stable pricing policy solidify distribution channels and network generate secondary demand start of profits Growth Dr. Rosenbloom Maturity Decline
  26. 26. Product mode Price policy Place Promotion Profits Introduction Modify product or product usage price reduction increase distribution efforts concentrate on product Positioning highest profits (peak) Growth Dr. Rosenbloom Maturity Decline
  27. 27. Product mode Price policy Place Promotion Profits Introduction Maintain a basic product maintain pricing or rise prices limit distribution efforts cut-back on advertising and sales promotions reduced profits Growth Dr. Rosenbloom Maturity Decline
  28. 28. The Product Diffusion Process Innovators: First purchasers of a new product Venturesome, willing to accept risk, socially aggressive, communicative, and cosmopolitan 2.5% Innovators Early Adopters Early Majority Dr. Rosenbloom Late Majority Laggards
  29. 29. The Product Diffusion Process Early Adopters: Are the next customers to buy new product Enjoy leadership, prestige, and respect that early purchases bring Tend to be opinion leaders Adapt new ideas but use discretion 13.5% Innovators Early Adopters Early Majority Dr. Rosenbloom Late Majority Laggards
  30. 30. The Product Diffusion Process Early Majority: First part of mass market Outgoing, communicative, and attentive to information cues 34.0% Innovators Early Adopters Early Majority Dr. Rosenbloom Late Majority Laggards
  31. 31. The Product Diffusion Process Late Majority: Second part of mass market Less cosmopolitan and responsive to change Include lower economic and social brackets, those past middle age, and skeptics 34.0% Innovators Early Adopters Early Majority Dr. Rosenbloom Late Majority Laggards
  32. 32. The Product Diffusion Process Laggards: Last to purchase Price conscious, suspicious of change, low income and status, tradition bound, and conservative Often difficult to market to this small group 16.0% Innovators Early Adopters Early Majority Dr. Rosenbloom Late Majority Laggards
  33. 33. Determinants of Rate-of-Adoption Relative Advantage Compatibility Complexity Triability Observability Dr. Rosenbloom The degree to which the innovation appears superior to previous ideas Directly related to adoption rates
  34. 34. Determinants of Rate-of-Adoption The degree to which innovation is consistent with the values and experiences of potential adopters The higher, the faster the rate-ofadoption Relative Advantage Compatibility Complexity Triability Observability Dr. Rosenbloom
  35. 35. Determinants of Rate-of-Adoption Relative Advantage Compatibility Complexity Triability Observability Dr. Rosenbloom The relative difficulty understanding the innovation In most cases, the more difficult, the longer it will take to gain general acceptance
  36. 36. Determinants of Rate-of-Adoption Relative Advantage Compatibility Complexity Triability Observability Dr. Rosenbloom The degree to which the innovation can be tried on a limited basis First adopters face financial loss and ridicule from others lessened by limited trials
  37. 37. Determinants of Rate-of-Adoption Relative Advantage Compatibility Complexity Triability Observability Dr. Rosenbloom The degree to which the results of using the product are observable to others Tangible superiority will increase the adoption rate
  38. 38. Thank You

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