New Product A product new to the world, the market, the producer, the seller, or some combination of these.
New pdt development New to world New product line Addition to existing pdt line Repositioning, cost reductions Acquired Companies Acquired Patents Acquired Licenses Strategies for Obtaining New Product Ideas
Categories of New Products New-To-The-World New Product Lines Product Line Additions Improvements/Revisions Repositioned Products Lower-Priced Products Six Categories of New Products
Will new product deliver sales vol., sales ,growth, profit?
Concept Development 1. Develop New Product Ideas into Alternative Detailed Product Concepts 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 Product Image is the Way Consumers Perceive an Actual or Potential Product
Improves communication b/w marketers, engineers, manufacturing
Functional aspects n psychological parameters like size, color, weight
Alpha test- test pdt within firm
Beta test- customer will use prototype
Consumer test-invite consumer to co. n give them samples
Test Marketing Standard Test Market Full marketing campaign in a small number of representative cities. Controlled Test Market A few stores that have agreed to carry new products for a fee. Simulated Test Market Test in a simulated shopping environment to a sample of consumers. Sales wave research Reoffering pdt or competitor brand at less cost
Choosing a Test Market Advertising Packaging Product Budget Levels Positioning Distribution Pricing Branding Elements that May be Test Marketed by a Company Test Marketing is the Stage Where the Product and Marketing Program are Introduced into More Realistic Market Settings.
Elimination of all nonessential marketing expenses
Rate of decline depends on change in tastes or adoption of substitute products
Marketing Strategies for PLC INTRODUCTION GROWTH MATURITY DECLINE Product Strategy Distribution Strategy Promotion Strategy Pricing Strategy Limited models Frequent changes More models Frequent changes. Large number of models. Eliminate unprofitable models Limited Wholesale/ retail distributors Expanded dealers. Long- term relations Extensive. Margins drop. Shelf space Phase out unprofitable outlets Awareness. Stimulate demand.Sampling Aggressive ads. Stimulate demand Advertise. Promote heavily Phase out promotion Higher/recoup development costs Fall as result of competition & efficient produc- tion. Prices fall (usually). Prices stabilize at low level.