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1、Chapter 9- slide 1Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallChapter NineNew-Product Development and Product Life-Cycle StrategiesChapter 9- slide 2Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development and Product Life-Cycle Strategies New-P

2、roduct Development Strategy The New-Product Development Process Managing New-Product Development Product Life-Cycle Strategies Additional Product and Service ConsiderationsTopic OutlineChapter 9- slide 3Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development Strateg

3、yAcquisition refers to the buying of a whole company, a patent, or a license to produce someone elses productNew product development refers to original products, product improvements, product modifications, and new brands developed from the firms own research and developmentTwo ways to obtain new pr

4、oductsChapter 9- slide 4Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product DevelopmentReasons for new product failureChapter 9- slide 5Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallThe New-Product Development ProcessIdea generation is the systematic sea

5、rch for new-product ideasSources of new-product ideasInternal ExternalIdea GenerationChapter 9- slide 6Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development ProcessInternal sources refer to the companys own formal research and development, management and staff, an

6、d intrapreneurial programsExternal sources refer to sources outside the company such as customers, competitors, distributors, suppliers, and outside design firmsIdea GenerationChapter 9- slide 7Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development Process Identify

7、 good ideas and drop poor ideas R-W-W Screening Framework: Is it real? Can we win? Is it worth doing?Idea ScreeningChapter 9- slide 8Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development Process Product idea is an idea for a possible product that the company can s

8、ee itself offering to the market Product concept is a detailed version of the idea stated in meaningful consumer terms Product image is the way consumers perceive an actual or potential productConcept Development and TestingChapter 9- slide 9Copyright 2010 Pearson Education, Inc. Publishing as Prent

9、ice HallNew-Product Development ProcessIn concept development, several descriptions of the product are generated to find out how attractive each concept is to customers. From these concepts, the best one is chosenConcept testing refers to testing new-product concepts with groups of target consumersC

10、oncept Development and TestingChapter 9- slide 10Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development Process Marketing strategy development refers to the initial marketing strategy for introducing the product to the market Marketing strategy statement includes:

11、Description of the target market Value proposition Sales and profit goalsMarketing Strategy DevelopmentChapter 9- slide 11Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.Marketing Strategy DevelopmentOutline of the products planned price, distribution, and marketing budget for the

12、 first year. Description of the planned long-run sales, profit goals, and marketing mix strategy.Marketing strategy statement includes:Continuation.Chapter 9- slide 12Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development Process Business analysis involves a review

13、 of the sales, costs, and profit projections to find out whether they satisfy the companys objectivesMarketing Strategy DevelopmentChapter 9- slide 13Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development Process Product development involves the creation and testin

14、g of one or more physical versions by the R&D or engineering departments Requires an increase in investmentMarketing Strategy DevelopmentChapter 9- slide 14Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development ProcessTest marketing is the stage at which the pr

15、oduct and marketing program are introduced into more realistic marketing settings Provides the marketer with experience in testing the product and entire marketing program before full introductionMarketing Strategy DevelopmentChapter 9- slide 15Copyright 2010 Pearson Education, Inc. Publishing as Pr

16、entice Hall.New-Product Development ProcessTypes of Test MarketsChapter 9- slide 16Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.Standardized Test MarketsStandardized Test Markets occur when :the company finds a small number of representative test cities, conducts a full marketi

17、ng campaign in these cities, and uses store audits, consumer and distributor surveys, and other measures to gauge product performance. Drawbacks include:CostlyTime consumingCompetitors can monitor resultsCompetitors get early look at your new product.Chapter 9- slide 17Copyright 2010 Pearson Educati

18、on, Inc. Publishing as Prentice Hall.Controlled Test MarketsControlled Test Markets track individual consumer behavior for new products from television set to the checkout counter. These markets are composed of stores that have agreed to carry new products for a fee. Such test markets provide in-dep

19、th purchasing data not possible with retail point-of-sale data alone. Also, the system allows companies to evaluate their specific marketing efforts.Chapter 9- slide 18Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.Controlled Test MarketsDrawbacks include:Competitors can monitor

20、resultsCompetitors get early look at your new productLimited number of markets may not be representative of overall market.Chapter 9- slide 19Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.Simulated Test MarketsSimulated Test Markets are basically simulated shopping environments.

21、 The company shows ads and promotions for a variety of products, including the one being tested, to a sample of consumers. It gives consumers a small amount of money and invites them to a store where they may keep the money or use it to buy items.Chapter 9- slide 20Copyright 2010 Pearson Education,

22、Inc. Publishing as Prentice HallNew-Product Development ProcessAdvantages of simulated test markets Less expensive than other test methods Faster Restricts access by competitorsDisadvantages Not considered as reliable and accurate due to the controlled settingMarketing Strategy DevelopmentChapter 9-

23、 slide 21Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development ProcessMarketing Strategy DevelopmentChapter 9- slide 22Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallNew-Product Development ProcessCommercialization is the introduction of the new

24、 product When to launch Where to launch Planned market rolloutMarketing Strategy DevelopmentChapter 9- slide 23Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallManaging New-Product DevelopmentSuccessful new-product development should be: Customer centered Team centered SystematicCha

25、pter 9- slide 24Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallManaging New-Product DevelopmentCustomer-centered new product development focuses on finding new ways to solve customer problems and create more customer satisfying experiences Begins and ends with solving customer pro

26、blemsNew-Product Development StrategiesChapter 9- slide 25Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallManaging New-Product DevelopmentSequential new-product development is a development approach where company departments work closely together individually to complete each stage

27、 of the process before passing along to the next department or stageIncreased control in risky or complex projectsSlowNew-Product Development StrategiesChapter 9- slide 26Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallManaging New-Product DevelopmentTeam-based new-product developm

28、ent is a development approach where company departments work closely together in cross-functional teams, overlapping in the product-development process to save time and increase effectivenessNew-Product Development StrategiesChapter 9- slide 27Copyright 2010 Pearson Education, Inc. Publishing as Pre

29、ntice HallManaging New-Product DevelopmentSystematic new-product development is an innovative development approach that collects, reviews, evaluates, and manages new-product ideasCreates an innovation-oriented cultureYields a large number of new-product ideasNew-Product Development StrategiesChapter

30、 9- slide 28Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallCan be applied to: A style is a basic and distinctive mode of expression. A fashion is a currently accepted or popular style in a given field. Fads are temporary periods of unusually high sales driven by consumer enthusias

31、m and immediate product or brand popularityProduct Life-Cycle StrategiesChapter 9- slide 29Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.Product Life Cycle (PLC)A typical product life cycle (PLC): the course that a products sales and profits take over its lifetime. The product l

32、ife cycle has five distinct stages:Product development - begins when the company finds and develops a new-product idea. During product development, sales are zero and the companys investment costs mount. Introduction - a period of slow sales growth as the product is introduced in the market. Profits

33、 are nonexistent in this stage because of the heavy expenses of product introductionGrowth is a period of rapid market acceptance and increasing profits. Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or declin

34、e because of increased marketing outlays to defend the product against competition. Decline is the period when sales fall off and profits dropChapter 9- slide 30Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallProduct Life-Cycle Strategies Slow sales growth Little or no profit High

35、distribution and promotion expenseIntroduction StageSTOPChapter 9- slide 31Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallProduct Life-Cycle Strategies Sales increase New competitors enter the market Price stability or decline to increase volume Consumer education Profits increase

36、 Promotion and manufacturing costs gain economies of scaleGrowth StageChapter 9- slide 32Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallProduct Life-Cycle Strategies Slowdown in sales Many suppliers Substitute products Overcapacity leads to competition Increased promotion and R&am

37、p;D to support sales and profitsMaturity StageChapter 9- slide 33Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallProduct Life-Cycle Strategies Market modifying Product modifying Marketing mix modifyingMaturity Stage Modifying StrategiesChapter 9- slide 34Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallProduct Life-Cycle Strategies Maintain the product Harvest the product Drop the product