Topic Of Presentation: New product Development and its life cycle Presentators: Shah Junaid ID#9722 Imran ID#9714 Naveed Afzal ID#9713 Qazi Fazli Rabi ID#4110 Iqra University Peshawar Campus Subject : Principles Of Marketing. MBA Semester Fall-2010
T HE MEANING OF “PRODUCT” A product is a set of tangible and intangible attributes , which include packaging, color, price, quality, brand name and manufactures and retailers services , all these that buyer accept as a want satisfaction.
8-3 Seller’s services Product quality Physical characteristics of goods Price Brand Design Packaging Product warranty Seller’s reputation Color
Product Classification On the basis of purpose for which they are bought. Consumer product Business Product Goods or Services which are bought by final consumer for consumption. Products which purchased for further processing to produce other products
What is new Product A new product is a product which is totally new in concept. Any product which is perceived by the customer as being new. A new product can be categorize into : Truly new product. Innovated product from the existing one.
Reasons for new product developing Computation: To maintain or to gain the competitive image in the market. Change the consumer needs: To brings the changes in the consumer needs
Continue…. Technology: Technology that in the favors to develop or to take the risk of new product development Good Image: Company good image in the Market ( in the mind of customer) to take the risk of new product development.
Methods used for developing new product A firm can obtain new product through to ways By R &D Cell : Developing new product through R&D , either from entirely new product or bringing innovation in the existing products . By Acquisition By this a firm buy an other firm wholly or get licensee in order to obtain new product
Process of new product development New product are develop through a systematic process ,in which first the product are find out and then it grows. The whole process can be divide into many stages, some Seven stages are given below.
Stage#1 Idea Generation The starting stage for new product development in which typically an organization develop a number of ideas for new product Such types of alternatives idea are develop into a meeting called brain storming session
Continue… Sources for idea generation The organization takes new ideas from two sources Internal sources : R&D Cell Employees feed backs External Sources : Customer Questions & Complaints Distributor Feed backs Compotators activates e.g. their Ads as a clue
Stage#2 Idea Screening In this step one idea is selected from the alternative idea of the first stage The basis for best idea are: Utilization How much that product will be able by the Target customer with the sense of that product utilization.
Continue… Resources Which type, quality and at which price that resources will be available. Ethical Aspect What will be the responses of the society to whom that product will launch.
Stage#3 Product Concept Development Once the idea is selected in the idea screening stage ,then in this stage the concept of product is developed. Some time alternative concept of the same product are developed according to customer needs ,wants etc
Stage#4 Mrkg Strategy Development Developing strategy that how to introduce the product into market. Marketing strategy consisting 3 statements Described the target market Price ,Channel of distribution and Budget Goal of the organization,
Stage#5 Business Analysis Analysis the product with the business point of view. This analysis involve a review of the sales, cost ,profit. The main aim of business analysis is to find out whether the product satisfies the company objective or not.
Stage#6 Product Development In this stage the product concept is came into its physical form, then this product is presented to the market for testing. Testing Marketing help the organization in creating financial decision about whether to launch that product in the market or not..
Stage#7 Commercialization After successful passing the product from the “ testing market” then the firm properly introduce that product into market. Note After commercialization Stage then that product's life cycle ( PLC) begin.
Product life Cycle ( PLC) The commercialization stage of the new development is consider birth stage for its life cycle The whole PLC can be divided into Four stages Stage -1 Introduction Stage -2 Growth Stage -3 Maturity Stage-4 Decline
PLC 1 st Stage Introductions It is the pioneer stage of PLC in which the new product is first distributed and made available for purchases. Characteristic of this stage: Negative Profit due to: Low sale volume Distribution Exps Promotion Expns
Continue… Some product disappear due to: Failed to attract target customer Quick attack from compotators
PLC 2 nd Stage Growth The second stage of PLC in which a product's sales starts climbing quickly. Hence this stage is termed as Market Acceptance stage.
Continue… Characteristic Of this stage: Increase in profit due to : Sale Increase Per unit cost Competitor enter which push the firm: Introduce new feature Improve product quality Giving Promotion & discounts Introducing new channels of distribution
PLC 3rd nd Stage Maturity The third stage of PLC in which Sales growth slow down. Characteristic Of this stage: The product growth begins to slow down (but at later stage of the “Maturity Stage”
Continue… This stage can be longest one if the company meet consumers. Needs e.g. Baring extra features in their productivity. If the firm don't brings extra features in in their product, then it possible to enter into next stage, that is decline stage.
PLC 4 th Stage Decline The stage of PLC in which the product is became out of business Characteristic Of this Stage: Product sales decrease due to : Shifting consumer tats Technological Associated with product Organization that failed to anticipate the decline stage in earlier may possible to go out of the business
Continue… Some firm out innovation in their declined product and this the product is again enter into its life cycle For example P&G has don with its several brands that where at decline stage. How a P&G has don with its several brands Principles of Marketing Author P .Kottler Page
Reference for Data Collection Principles of Marketing Author P. Kotler Marketing Author W.J. Stanton Teacher Lecture Points Google Images. Wikipedia.org