1、Marketing:An Introduction Thirteenth Edition Chapter 8 Developing New Products:and Managing the Product Life CycleLearning Objectives(1 of 4)8-1.Explain how companies find and develop new product ideas.8-2.List and define the steps in the new product development process and the major considerations
2、in managing this process.Learning Objectives(2 of 4)8-3.Describe the stages of the product life cycle and how marketing strategies change during a products life cycle.8-4.Discuss two additional product issues:socially responsible product decisions and international product and services marketing.Fir
3、st Stop Google:The New Product Moonshot FactoryGoogles innovation machine is renowned for producing new product“moonshots.”Learning Objective 8-1Explain how companies find and develop new product ideas.New Product Development Strategy Developing new products through the firms own research and develo
4、pment efforts Creating successful new products requires Understanding consumers,markets,and competitors Developing products that deliver superior value to customersLearning Objective 8-1 Summary New product ideas from the firms own research and development efforts External sources include competitor
5、s offerings,ideas from distributors and suppliers,as well as customers themselves Crowdsourcing or open-innovation new product idea programsLearning Objective 8-2List and define the steps in the new product development process and the major considerations in managing this process.Figure 8.1-Major St
6、ages in New Product DevelopmentIdea Generation(1 of 2)Systematic search for new product ideas Internal idea sources:Internal social networks Intrapreneurial programs External idea sources:Distributors and suppliers Competitors CustomersIdea Generation(2 of 2)Crowdsourcing:Inviting broad communities
7、of people into the new product innovation processIdea Screening 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 frameworkReal,win,worth doingProduct Concept A product idea is an idea for
8、a possible product that the company can see itself offering to the market.A product concept is a detailed version of the new product idea stated in meaningful consumer terms.Product image is the way consumers perceive an actual or potential product.Concept Development(1 of 2)This is Teslas initial a
9、ll-electric roadster.Later,more affordable mass-market models will be developed.Concept Development(2 of 2)Developing a new product into alternative product concepts Find out how attractive each concept is to customers Choose the best oneConcept Testing Testing new product concepts with groups of ta
10、rget consumers Methods:Presenting the concepts to consumers symbolically or physically Asking customers to respond by answering questions about their reactions to the conceptsMarketing Strategy Development Initial marketing strategy for a new product Three parts of the marketing strategy statement:D
11、escribes the target market,planned value proposition,sales,market-share,and profit goals Determines products planned price,distribution,and marketing budget Develops long-run sales,profit goals,and marketing mix strategyBusiness Analysis and Product Development Business analysis:A review of the sale
12、s,costs,and profit projections for a new product To find out whether these factors satisfy the companys objectives Product development:Developing the product concept into a physical product To ensure that the product idea can be turned into a workable market offeringTest Marketing(1 of 3)Introduces
13、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.Test Marketing(2 of 3)Starbucks quickly introduced a l
14、ess-than-perfect mobile payments app,then worked out the flaws.Test Marketing(3 of 3)Alternatives to standard test markets Controlled test markets Simulated test markets Reasons for using alternative test markets Reducing the costs Speeding up the processCommercialization Introducing a new product i
15、nto the market Considerations for launching a new product When to launch Where to launch Single location,region,national market,or international marketManaging New Product Development Requires a holistic approach Customer-centered new product development Team-based new product development Systematic
16、 new product developmentCustomer-Centered New Product Development(1 of 2)Customer-centered new product development focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.Customer-Centered New Product Development(2 of 2)Financial software maker Intuit f
17、ollows a“Design for Delight”philosophy.Team-Based and Systematic New Product DevelopmentTeam-based new product development Various company departments work together,overlapping the steps in the product development processSystematic new product development Innovation management systems collect,review
18、,evaluate,and manage new product ideasLearning Objective 8-2 Summary New product development process includes Idea generation,idea screening,product concept development and testing,and marketing strategy development Business analysis,product development,test marketing,and commercialization New produ
19、ct development requires a customer-centered,team-based,systematic effort.Learning Objective 8-3Describe the stages of the product life cycle and how marketing strategies change during a products life cycle.Figure 8.2-Sales and Profits over the Products Life from Inception to DeclineProduct Life-Cycl
20、e StrategiesThanks to the“Quaker Up”campaign,137-year-old Quaker has a contemporary appeal as a lifestyle brand.Figure 8.3-Styles,Fashions,and FadsTable 8.2 Summary of Product Life-Cycle Characteristics,Objectives and Strategies(1 of 3)blankIntroduction Growth Maturity Decline Characteristicsblankbl
21、ankblankblankSales Low sales Rapidly rising sales Peak salesDeclining salesCostsHigh cost per customerAverage cost per customerLow cost per customerLow cost per customerProfitsNegativeRising profitsHigh profitsDeclining profitsCustomersInnovatorsEarly adoptersMiddle majority Laggards CompetitorsFew
22、Growing numberStable number beginning to declineDeclining numberMarketing objectivesblankblankblankblankblankCreate product awareness and trialMaximize market shareMaximize profit while defending market shareReduce expenditure and milk the brandTable 8.2 Summary of Product Life-Cycle Characteristics
23、,Objectives and Strategies(2 of 3)blankIntroduction Growth Maturity Decline StrategiesblankblankblankblankProduct Offer a basic product Offer product extensions,service,and warrantyDiversify brand and modelsPhase out weak itemsPriceUse cost-plusPrice to penetrate marketPrice to match or beat competi
24、torsCut priceDistributionBuilt selective distributionBuild intensivedistributionBuild more intensivedistributionGo selective:phase out unprofitable outletsTable 8.2 Summary of Product Life-Cycle Characteristics,Objectives and Strategies(3 of 3)blankIntroduction Growth Maturity Decline Strategiesblan
25、kblankblankblankAdvertisingBuild product awarenessamong early adoptersand dealersBuild engagement and interest in the mass marketStress brand differencesand benefitsReduce to level needed to retain hard-core loyalsSales PromotionUse heavy salespromotion to entice trialReduce to takeadvantage of heav
26、yconsumer demandIncrease to encouragebrand switchingReduce to minimal levelSource:Based on Philip Kotler and Kevin Lane Keller,Marketing Management,15th ed.(Upper Saddle River,NJ:Pearson Education,2016),p.358.2016.Printed and Electronically reproduced by permission of Pearson Education,Inc.,Upper Sa
27、ddle River,New JerseyLearning Objective 8-3 Summary Stages of the product life cycle:Product development Introduction stage Growth stage Maturity stage Decline stageLearning Objective 8-4Discuss two additional product issues:socially responsible product decisions and international product and servic
28、es marketing.Product Decisions and Social Responsibility Considerations for companies Public policy issues Regulations regarding acquiring or dropping products Patent protection Product quality and safety Product warrantiesInternational Product and Services Marketing(1 of 2)Lays famously funky Chine
29、se chip flavors include cucumber.International Product and Services Marketing(2 of 2)Challenges facing international marketers:Finding what products and services to introduce and in which countries Deciding on how much to standardize or adapt the products and services for world markets Service firms
30、 are taking the lead in international expansion.Learning Objective 8-4 Summary Socially responsible product decisions Public policy issues and regulations International product and services marketing Standardize or adapt offerings for world marketsLearning Objectives(3 of 4)8-1.Explain how companies
31、 find and develop new product ideas.8-2.List and define the steps in the new product development process and the major considerations in managing this process.Learning Objectives(4 of 4)8-3.Describe the stages of the product life cycle and how marketing strategies change during a products life cycle.8-4.Discuss two additional product issues:socially responsible product decisions and international product and services marketing.
