Marketing management accounting

1. UNIT-II
MARKETING MANAGEMENT

2. NEW PRODUCT DEVELOPMENT
 New Product Development refers to the
complete process of bringing a new
product to market.
 Developing new products provides a
means to target new markets, increase
market share, sell more and increase
revenue streams. Meanwhile redesigning
existing products enables costs to be cut,
margins to be increased and ultimately
more profits to be made.

4. Stages of new product development
1. Idea Generation
The new product development process
begins with idea generation, where you
brainstorm an idea (or ideas) that will help
you solve an existing customer problem in a
new and innovative way.
2. Idea screening
This second step of new product
development revolves around screening all
your generated ideas and picking only the
ones with the highest chance of success.

5. 3. Concept development & Testing
All ideas passing the screening stage are
developed into concepts. A product concept is a
detailed description or blueprint of your idea. It
should indicate the target market for your product,
the features and benefits of your solution that may
appeal to your customers, and the proposed price
for the product. A concept should also contain the
estimated cost of designing, developing, and
launching the product.
4. Marketing strategy
The marketing strategy serves to guide the 4 P’s of
marketing of your new product.

6. 5. Business analysis
The business analysis comprises a review
of the sales forecasts, expected costs, and
profit projections. If they satisfy the
company’s objectives, the product can move
to the product development stage.
6. Product Development
The product development stage consists of
developing the product concept into a
finished, marketable product.

7. 7.Test Marketing
Test marketing involves releasing the finished
product to a sample market to evaluate its
performance under the predetermined
marketing strategy.
8. Commercialization
At this point, you’re ready to introduce your
new product to the market. Ensure your
product, marketing, sales, and customer
support teams are in place to guarantee a
successful launch and monitor its performance.

8. PRODUCT LIFE CYCLE (PLC)
The Product Life Cycle is a management
tool that makes it possible to analyze how a
product behaves from its development to its
withdrawal from the market. It covers every
stage of growth, from launch through to
adoption, and sales maturity.
In other words, the product life cycle is the
process a product goes through from when
it is first introduced into the market until it
declines or is removed from the market.

12. BENEFITS OF PLC
 A product life cycle is helpful for marketers
because it helps you figure out what marketing
strategies to use in specific situations.
 You can even use a product lifecycle tool to
estimate profits and revenue.
 New product can be tracked over time,
estimating how much revenue you might
generate in specific situations. The entire
purpose of a product life cycle is to add a bit of
transparency to an unknown situation, helping
you maximize the value of each product you
release.

13. DRAWBACKS OF PLC
 There are a few significant drawbacks of a product life
cycle model. The first drawback is that you do not
necessarily want to pigeonhole yourself into a specific
cycle. It can be very difficult to predict how a product
life cycle is going to unfold, and if you expect one thing
to happen but end up with another, you might not
necessarily know how to respond.
 Another significant drawback of the product life cycle
model is that you do not know how long your product is
going to spend in each individual stage. Even though it
might be helpful to take a look at similar products in the
past, industries can change quickly.
 You might have a hard time figuring out when your
product is going to transition to another stage, and that
can make it difficult to respond accordingly.

14. PRICE
Price is the amount that consumers will be
willing to pay for a product. Marketers must
link the price to the product's real and
perceived value, while also considering
supply costs, seasonal discounts,
competitors' prices, and retail markup.
Pricing is important since it defines the value
that your product are worth for you to make
and for your customers to use.

15. SIGNIFICANCE OF PRICING
Its an important element of marketing
mix
Pricing policy is a major determinant of
its success
Pricing decisions affect the competitive
strength of the firm in the market
Pricing of different goods is also
important from the customer point of
view

18. PRICING POLICIES
Demand oriented pricing
Cost oriented pricing
Competition oriented pricing
Value based pricing

19. PRICING METHODS/STRATEGIES
 Cost-plus pricing- According to this method calculate
cost of your product and add a mark-up.
 Competitive pricing. Set a price based on what the
competition charges.
 Price skimming. Set a high price to enter a market and
lower it as the market evolves. For ex-electronic gadgets
 Penetration pricing. Set a low price to enter a
competitive market and raise it later. For ex- FMCG
market
 Premium pricing. prices are set higher than the rest of
the market to create perceived value, quality, or luxury.
For ex- Apple; as it is perceived as luxuries status symbol
brand.

20.  Follow the leader pricing- price is charged same
as other producers in the market, it generally
happens in oligopoly market
 Discriminatory/Dual Pricing- policy of charging
different prices from different customers
according to their paying capacity.
 Psychological pricing- this policy play with the
psychology of the consumers by slightly altering
price, product placement, or product
packaging. For ex- setting the price 99 instead of
100/-

21.  Bundle pricing-type of promotional pricing where two or
more similar products or services are sold together for
one price. For ex- A taco cantina sells tacos, tortilla
chips, and salsa individually but offers a discounted price
if customers buy an entire meal with all of these items.