The document discusses principles of marketing, specifically new product development and the product life cycle (PLC). It provides details on developing new products, including idea generation, concept development and testing, marketing strategy development, and commercialization. It also outlines the typical stages in a product's life - introduction, growth, maturity, and decline - and the marketing strategies used at each stage. The challenges of new product development and adapting to a product's changing life cycle are also addressed.

1. With the name of
Almighty Allah, who is
the most Beneficent &
Merciful

2. Presentation
Principles of Marketing

3. Presented To:
Prof. Aisha Ghias

4. Presented BY :
 Amir Mahmood # 44
 Awais Akmal # 55
 Shoaib Sultan # 57

5. Topic
New Product Development
& PLC

6. New product development

7. The development of original products,
product improvements, product
modification through firms own R & D
department.

8. Every product go through a life cycle, it born, goes
through several stages and eventually dies then a new
product come that better serve the consumer needs.

9. Challenges under product life
cycle
Challenge of new product development.
Challenge of product life cycle strategies.

10. Challenge of new product
development:
The challenge of new product is that, all products
eventually decline and a firm developing new products.
(According to the taste of consumers).

11. Challenge of product life cycle
strategies:
Challenge of product life cycle
strategies is that, the firm must
adopt its marketing strategies in
the face of changing tastes,
technologies and competition

12. A firm can obtain new products in the two ways.
 Through the Acquisition
 New product development

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. Idea Generation
What type of product & mkt?
Company Objectives

15. Idea Generation
 (i) Internal idea source
 (ii) External idea source.

16. Internal Idea Sources
 Executives
 Engineers
 Scientists
 Manufacturing staff
 Sale People
 employees

17. External Source of Idea
 Customers
 Competitors
 Distributors
 Suppliers
 Others

18. Idea Screening
Screening new product ideas in
order to spot good ideas and
drop poor ones as soon as
possible.

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. Concept Development &
Testing
 Concept Development
 Concept Testing

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. Concept testing
1. Testing new product concepts with a group of target to
find out if the concepts have strong consumer appeal
2. Low direct marketing
3. Feed back from the customer

23. Product Development
Strategy
Designing an initial marketing strategy for a
new product based on the product Concept.
( A detailed version of the new product idea
stated in meaningful consumer terms)

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. Business Analysis
 expected costs
 Expected profit for the product
 marketing costs
 R & D, operations costs
 accounting Costs
 finance costs

26. Product Development
 Physical product
 Jump in investment
 quickly and at budgeted costs
 functional features
 psychological characteristic

27. Test Marketing
The stage of new product development in which the
product and marketing program are tested in more
realistic mkt setting

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. Test Marketing
1 Standard Test Market
2 Controlled Test Market.
3 Simulated Test Markets

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. Commercialization
 Introducing a new into the market
 High cost ( rent, advertising, sale
promotion)
 Launching time
 Place

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. Sequential PD Development
 It step by step process
 Steps or stages work independently.
 Control risky & complex projects.
 Very slow

34. Simultaneous product development
 team based development
 collaborative product development
 overlapping the steps in the product
development

35. Limitations
 In super fast, risky and costly
 Tension & Confusion
 Chances of quality affect

36. The Product Life Cycle (PLC)
 Product Development
 Introduction Stage
 Growth Stage
 Maturity Stage
 Decline Stage

38. Introduction
 It takes time
 It sales is low
 Profit is low or negative
 High distribution
 Promotion expenses

39. Growth Stage
 High sale
 Early Adopter
 Later Buyer
 Profit increase
 Unit cost fall
 Improved quality and feature

40. 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

41. Decline Stage
 Sales slow down
 No profit

42. Characteristics Introduction Growth Maturity Decline
Sales Low Sale Rapidly Rising Sales Peak Sale Declining Sale
Costs High cost per Avg. cost per Low cost per customer Low cost per
customer customer customer
Profits Negative Rising Profits High Profit Declining Profits
Customers Innovator Early Adopter Middle Majority Laggard
Competitors Few Growing Number Stable no. beginning to Declining No.
decline

43. Introduction Growth Maturity Decline
Marketing Create Maximize Maximize profit Reduce
Strategies Product market share while defending expenditure
Awareness market share

44. Strategies Introduction Growth Maturity Decline
Product Offer a Basic Offer product Diversify brands Phase out
Product extensions service, & models weak items
warranty
Price Use Cost Plus Price to penetrate Price to match or Cut Price
market beat competitors
Distributi Build Selective Build Intensive Build More Go Selectiv
on Distribution Distribution Intensive
Distribution
Advertisi Build product Build product Stress brand Reduce to
ng awareness among awareness in the mass Differences and level neede
early adopters market benefits to retain ha
core loyal
Sales Use heavily sales Reduce to take Increase to Reduce To
Promotio promotion to entire advantage of heavy encourage brand minimum
n trail consumer demand Switching level