Marketing decision
&
P.L.C.

Making Marketing Decisions

Price

Promotion

Place

People

Process

Physical Environment

Stages of the New Product
Development Process
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Stages of the New Product
Development Process
• Stage 1: Idea Generation
– Internal idea sources:
• R & D
– External idea sources:
• Customers, competitors, distributors,suppliers
9 - 15

Intuit, a marketer of financial software, asks for new product ideas from customers
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Stages of the New Product
Development Process
STAGE 2: Idea Screening •
– Product development costs increase substantially in later stages so poor ideas must bedropped
– Ideas are evaluated against criteria; mostare eliminated
9 - 17

MIT VirtualResearch
MIT has developed online techniques to gain consumer feedback on new product ideas
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Stages of the New Product
Development Process
• Stage 3: Concept Development and Testing
– Concept development creates adetailed version of the idea stated in meaningful consumerterms.
– Concept testing asks target consumers to evaluate product concepts.
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Stages of the New Product
Development Process
• Stage 4: Marketing Strategy Development
• The target market, product positioning, and sales, share, and profit goals for the first few years.
• Product price, distribution, and marketing budget for the first year.
• Long-run salesand profit goals and the marketing mix strategy
.
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Stages of the New Product
Development Process
• Stage 5: Business Analysis
– Sales, cost, and profit projections
• Stage 6: Product Development
– Prototype development andtesting
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Stages of the New Product
Development Process
Stage 7: Test Marketing
– Standard test markets
– Controlled testmarkets
– Simulated testmarkets
•
• Stage 8: Commercialization
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Stages of the PLC
9 - 23

Sales
Product Life Cycles and the Boston
Matrix
Effects of Extension
Strategies
Time

Product Life Cycles and the Boston
Matrix
Sales/Profits
PLC and Profits
PLC
Profits
Time
Losses
Break Even