Presentation6

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Presentation6

  1. 1. With the name ofAlmighty Allah, who isthe most Beneficent &Merciful
  2. 2. Presentation Principles of Marketing
  3. 3. Presented To: Prof. Aisha Ghias
  4. 4. Presented BY :  Amir Mahmood # 44  Awais Akmal # 55  Shoaib Sultan # 57
  5. 5. TopicNew Product Development & PLC
  6. 6. New product development
  7. 7. The development of original products,product improvements, productmodification through firms own R & Ddepartment.
  8. 8. Every product go through a life cycle, it born, goesthrough several stages and eventually dies then a newproduct come that better serve the consumer needs.
  9. 9. Challenges under product life cycleChallenge of new product development.Challenge of product life cycle strategies.
  10. 10. Challenge of new product development:The challenge of new product is that, all productseventually decline and a firm developing new products.(According to the taste of consumers).
  11. 11. Challenge of product life cycle strategies:Challenge of product life cyclestrategies is that, the firm mustadopt its marketing strategies inthe face of changing tastes,technologies and competition
  12. 12. A firm can obtain new products in the two ways. Through the Acquisition New product development
  13. 13. Stages in the development of the new product1 Idea generation2 Idea screening3 Concept development and testing4 Marketing strategy5 Business analysis6 Product development7 Test marketing8 Commercialization
  14. 14. Idea GenerationWhat type of product & mkt?Company Objectives
  15. 15. Idea Generation (i) Internal idea source (ii) External idea source.
  16. 16. Internal Idea Sources Executives Engineers Scientists Manufacturing staff Sale People employees
  17. 17. External Source of Idea Customers Competitors Distributors Suppliers Others
  18. 18. Idea ScreeningScreening new product ideas inorder to spot good ideas anddrop poor ones as soon aspossible.
  19. 19. Idea Screening Reduce number of ideas Favorable Ideas( match the company’s objectives) Save future Cost target mkt Competition Manufacturing Cost Development time and cost
  20. 20. Concept Development & Testing Concept Development Concept Testing
  21. 21. Concept Development On the basis of screened ideas make product. Imaginary product on the basis of favorable ideas An attractive idea must be developed into a product concept. What type of product What are the feature Image of the product
  22. 22. Concept testing1. Testing new product concepts with a group of target to find out if the concepts have strong consumer appeal2. Low direct marketing3. Feed back from the customer
  23. 23. Product Development StrategyDesigning an initial marketing strategy for anew product based on the product Concept.( A detailed version of the new product ideastated in meaningful consumer terms)
  24. 24. Marketing Strategy Development Target Market, planned product positioning and sales, market share and the profit goals for the first few years Product planned price, distribution, marketing budget for the product The planned long rum sale, profit goals, marketing mix strategy
  25. 25. Business Analysis expected costs Expected profit for the product marketing costs R & D, operations costs accounting Costs finance costs
  26. 26. Product Development Physical product Jump in investment quickly and at budgeted costs functional features psychological characteristic
  27. 27. Test MarketingThe stage of new product development in which theproduct and marketing program are tested in morerealistic mkt setting
  28. 28. Feature of Test MKT Cost can be high Advertising Competitors gain Advantage Distribution It take lot of time Pricing It does not give us product Branding success guarantee Packaging
  29. 29. Test Marketing1 Standard Test Market2 Controlled Test Market.3 Simulated Test Markets
  30. 30. Standard Test Market Marketing Campaign Consumers & Distributor surveys Measure to gauge the product performance Forecast National sale and profit Product potential problems Take very much time Competitors can monitor
  31. 31. Commercialization Introducing a new into the market High cost ( rent, advertising, sale promotion) Launching time Place
  32. 32. Organizing for the new Product Sequential product Development simultaneous product development team based development collaborative product development overlapping the steps in the product development Marketing Finance Design Manufacturing Legal department Supplier companies Consumer companies
  33. 33. Sequential PD Development It step by step process Steps or stages work independently. Control risky & complex projects. Very slow
  34. 34. Simultaneous product development team based development collaborative product development overlapping the steps in the product development
  35. 35. Limitations In super fast, risky and costly Tension & Confusion Chances of quality affect
  36. 36. The Product Life Cycle (PLC) Product Development Introduction Stage Growth Stage Maturity Stage Decline Stage
  37. 37. Introduction It takes time It sales is low Profit is low or negative High distribution Promotion expenses
  38. 38. Growth Stage High sale Early Adopter Later Buyer Profit increase Unit cost fall Improved quality and feature
  39. 39. Maturity Stage Sales growth slow down More longer Strong challenges to the management Competitors, mark down prices Increase advertising Sales promotion More work on R & D
  40. 40. Decline Stage Sales slow down No profit
  41. 41. Characteristics Introduction Growth Maturity DeclineSales Low Sale Rapidly Rising Sales Peak Sale Declining SaleCosts High cost per Avg. cost per Low cost per customer Low cost per customer customer customerProfits Negative Rising Profits High Profit Declining ProfitsCustomers Innovator Early Adopter Middle Majority LaggardCompetitors Few Growing Number Stable no. beginning to Declining No. decline
  42. 42. Introduction Growth Maturity DeclineMarketing Create Maximize Maximize profit ReduceStrategies Product market share while defending expenditure Awareness market share
  43. 43. Strategies Introduction Growth Maturity DeclineProduct Offer a Basic Offer product Diversify brands Phase out Product extensions service, & models weak items warrantyPrice Use Cost Plus Price to penetrate Price to match or Cut Price market beat competitorsDistributi Build Selective Build Intensive Build More Go Selectivon Distribution Distribution Intensive DistributionAdvertisi Build product Build product Stress brand Reduce tong awareness among awareness in the mass Differences and level neede early adopters market benefits to retain ha core loyalSales Use heavily sales Reduce to take Increase to Reduce ToPromotio promotion to entire advantage of heavy encourage brand minimumn trail consumer demand Switching level

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