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Developing and Managing Products : 

1 Developing and Managing Products Course Instructor: Kanwal Gurleen Lecturer, LSB

Learning Objectives : 

2 Learning Objectives 1. Explain the importance of developing new products and describe the six categories of new products. 2. Explain the steps in the new-product development process.

Learning Objectives (continued) : 

3 Learning Objectives (continued) 3. Explain the diffusion process through which new products are adopted. 4. Explain the concept of product life cycles.

Learning Objective : 

4 Learning Objective Explain the importance of developing new products and describe the six categories of new products.

New Product : 

5 New Product A product new to the world, the market, the producer, the seller, or some combination of these. 1

Categories of New Products : 

6 Categories of New Products

Learning Objective : 

7 Learning Objective Explain the steps in the new-product development process.

Successful New-Product Development Process : 

8 Successful New-Product Development Process

New-Product Development Process : 

9 New-Product Development Process

Idea Generation : 

10 Idea Generation 2

Brainstorming : 

11 Brainstorming The process of getting a group to think of unlimited ways to vary a product or solve a problem.

Idea Screening : 

12 Idea Screening The first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are inappropriate for some other reason.

Concept Test : 

13 Concept Test A test to evaluate a new-product idea, usually before any prototype has been created.

Business Analysis : 

14 Business Analysis

Development : 

15 Development Creation of prototype Marketing strategy Technical production feasibility Final government approvals if needed

Simultaneous Product Development : 

16 Simultaneous Product Development A new team-oriented approach to new-product development. 2

Test Marketing : 

17 Test Marketing The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

Choosing a Test Market : 

18 Choosing a Test Market Similar to planned distribution Relative isolation and free of influences Advertising availability; multiple media Diversified cross section No atypical purchase habits Representative population/income Not overly used or easily “jammed” Year-round sales stability Available research/audit and retailers

Alternatives to Test Marketing : 

19 Alternatives to Test Marketing Single-source research using supermarket scanner data Simulated (laboratory) market testing

Commercialization : 

20 Commercialization

Learning Objective : 

21 Learning Objective Explain the diffusion process through which new products are adopted.

Diffusion : 

22 Diffusion The process by which the adoption of an innovation spreads.

Categories of Adopters : 

23 Categories of Adopters

Categories of Adopters : 

24 Categories of Adopters

Learning Objective : 

25 Learning Objective Explain the concept of product life cycles.

Product Life Cycle : 

26 Product Life Cycle A concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death). PLC

Product Life Cycle : 

27 Product Life Cycle

Extending the PLC : 

28 Extending the PLC Change product Change product use Change product image Change product positioning

Introductory Stage : 

29 Introductory Stage High failure rates Little competition Frequent product modification Limited distribution High marketing and production costs Negative profits Promotion focuses on awareness and information Intensive personal selling to channels Full-Scale Launch of New Products

Growth Stage : 

30 Growth Stage Increasing rate of sales Entrance of competitors Market consolidation Initial healthy profits Promotion emphasizes brand ads Goal is wider distribution Prices normally fall Development costs are recovered Offered in more sizes, flavors, options

Maturity Stage : 

31 Maturity Stage Declining sales growth Saturated markets Extending product line Stylistic product changes Heavy promotions to dealers and consumers Marginal competitors drop out Prices and profits fall Niche marketers emerge Many consumer products are in Maturity

Decline Stage : 

32 Decline Stage Long-run drop in sales Large inventories of unsold items Elimination of all nonessential marketing expenses Rate of decline depends on change in tastes or adoption of substitute products

Marketing Strategies for PLC : 

33 Marketing Strategies for PLC

Diffusion Process and PLC Curve : 

34 Diffusion Process and PLC Curve