Product Development Sports and Entertainment Marketing Think About It! • Think of two sports and two entertainment products • Are they new or old? Types of New Products • New-to-the-World Products – Brand new innovations (the first of anything) • New Product Category Entries – Nike adding sports equipment to there existing apparel and shoe market • Product Line Extensions – Adding an additional flavor of Gatorade – Newest Twilight Movie • Product Improvements – NEW and IMPROVED!! ACTIVITY!! Come up with an example of each • • • • New-to-the-World Products New Product Category Entries Product Line Extensions Product Improvements Product Life Cycle Four Stages of the Product Life Cycle Introduction Decline Growth Maturity Stages of Product Life Cycle • Stage 1: Introduction (new to the market) Companies • promote consumer awareness • get customers to try the product • educate consumers about the product • Stage 2: Growth Competitors are entering the marketplace The product must be improved to stay competitive Sold in more locations Stages of Product Life Cycle • Stage 3: Maturity Stage Product has reached its peak Sales slow down Repeat customers may stop buying and it may be hard to attract new customers Stages of Product Life Cycle • Stage 4: Decline Sales and profit continue to drop There is no longer a demand for the product Product may be dropped by the company Good Example: cassette tapes Think about it! Think of a product that is currently in each of the stages of the product life cycle. Introduction Growth Maturity Decline What can be done to extend the Product Life Cycle • Develop new uses for the products • Develop new product features and line extensions • Increase the existing market (target market) • Change Marketing Mix (5P’s) • Link products to a trend Activity • In groups of 4, each group is to create a new product which can be a variation of an existing product with a point of difference. • Then each group is to come up with a plan of how to market this product in each stage of the product life cycle. • Think about - Is the product itself reasonable? Is the plan appropriate? Does the plan properly manage each stage of the life cycle? But before any of this can happen … companies must conduct … Market Research The process of systematically collecting, recording, analyzing, and presenting data related to marketing goods and services Why is Market Research important? Global Market – other countries are different from the US and companies need to learn and understand their needs and wants before they enter that market Competition – companies need an “edge” to compete in the marketplace, so the need to research what their competitors are doing Changing Market – customer needs change daily, it is important to understand them before a company enters the marketplace 5 steps in Market Research 1. 2. 3. 4. 5. Identify the problem Conduct secondary research Select and design primary research Collect data Report and analyze data Identify the Problem Ask questions that research could answer Example: A golf ball manufacturer might ask “What can we do to improve the image of our golf ball and stand out from the rest of the market?” Objective: To determine how golfers select their golf balls Conduct Secondary Research Secondary research: published data that have been collected for some other purpose Data that a company DOES NOT compile themselves Examples: Government records (census: demographics, etc), sales figures, trade organizations Design Primary Research Primary Research: Original research conducted for a specific marketing situation Secondary research is done first because it may answer all the questions and primary research may not be needed Collect Data Data: records or facts and figures that are organized and analyzed in some way Ways to collect Experiment – try it out Observation – watch it happen Survey – ask about it Report and Analyze In order for data to be useful it must be reported and analyzed What does the information collected tell us about the consumer (or subject)?