Marketing Final 8 - More product?

Systematic search for new product ideas

• Internal idea sources:

– Internal social networks

– Intrapreneurial programs

• External idea sources:

– Distributors and suppliers

– Competitors

– Customers

Screening new product ideas to spot good ones and

drop poor ones as soon as possible

• Ways of screening new ideas:

– New idea write-up reviewed by a committee

– R-W-W framework—Real, win, worth doing

Developing a new product into alternative product

concepts

– Find out how attractive each concept is to customers

– Choose the best one

• Testing new product concepts with groups of target

consumers

• Methods:

– Presenting the concepts to consumers symbolically or

physically

– Asking customers to respond by answering questions

about their reactions to the concepts

• Initial marketing strategy for a new product

• Three parts of the marketing strategy statement:

– Describes the target market, planned value proposition,

sales, market-share, and profit goals

– Determines product’s planned price, distribution, and

marketing budget

– Develops long-run sales, profit goals, and marketing mix

strategy

A review of the sales, costs, and profit projections for a new product

– To find out whether these factors satisfy the company’s

objectives

Developing the product concept into a physical product

– To ensure that the product idea can be turned into a

workable market offering

• Introduces the product and its proposed marketing

program into realistic market settings

• Gives the marketer an experience with marketing a

product before full introduction

• Tests the product and its marketing program

• Testing takes time, and costs can be high.

Alternatives to standard test markets

– Controlled test markets

– Simulated test markets

• Reasons for using alternative test markets

– Reducing the costs

– Speeding up the process

• Introducing a new product into the market

• Considerations for launching a new product

– When to launch

– Where to launch

Single location, region, national market, or international

marke

Product development

Introduction

Low sales, High cost per customer, Offer a basic product, use cost-plus

Build product awareness among early adopters and dealers. Use heavy sales promotion to entice trial

Growth

Rapidly rising sales, Average cost per customer, Offer product

extensions, Price to penetrate market

Build engagement and interest in the mass market, Reduce to take advantage of heavy consumer demand

Maturity

Peak sales, Low cost per customer, Diversify brand and models, Price to match or beat competitors

Stress brand differences and benefits, Increase to encourage brand switching

Decline

Declining sales, Low cost per customer, Phase out weak

items, cut price

Reduce to level needed to retain hard-core loyals, Reduce to

minimal level