kotler pom13e instructor 09

7/23/2019 Kotler POM13e Instructor 09

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Chapter 9- slide 1Copyright 2009 Pearson Education, Inc.

Publishing as Prentice Hall

Chapter e!en

New-Product Developmentand Product Life-Cycle

Strategies


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"e#-Product $e!elop%ent andProduct &i'e-Cycle trategies

New-Product Development

Strategy

New-Product DevelopmentProcess

Managing New-ProductDevelopment

Product Life-Cycle Strategies

Additional Product and Service

Considerations

Topic Outline


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Chapter 9- slide (Copyright 2010 Pearson Education, Inc.


"e#-Product $e!elop%ent trategy

Acquisitionrefers to the uying of a whole

company! a patent! or a license toproduce someone else"s product

New product developmentrefers to

original products! product improvements!product modi#cations! and new randsdeveloped from the #rm"s own researchand development

Two ways to otain new products


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Chapter 9- slide )Copyright 2010 Pearson Education, Inc.


"e#-Product $e!elop%ent

*easons 'or ne# product 'ailure


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Chapter 9- slide +Copyright 2010 Pearson Education, Inc.


"e#-Product $e!elop%ent Process

aor tages in "e#-Product $e!elop%ent


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Chapter 9- slide Copyright 2010 Pearson Education, Inc.



!dea generationis the systematicsearch for new-product ideas

Sources of new-product ideas $nternal

%&ternal

Idea /eneration


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Copyright 2010 Pearson Education, Inc.



!nternal sourcesrefer to thecompany"s own formalresearch and development!

management and sta'! andintrapreneurial programs

"#ternal sourcesrefer tosources outside the

company such ascustomers! competitors!distriutors! suppliers! andoutside design #rms

Idea /eneration


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$dentify good ideas and drop poor

ideas Screening (ramewor)*

+ $s it real,

+ Can we win,+ $s it worth doing,

!dea Screening


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Product ideais an idea for a possileproduct that the company can seeitself o'ering to the mar)et

Product conceptis a detailedversion of the idea stated in

meaningful consumer termsProduct imageis the way consumers

perceive an actual or potentialproduct

Concept $e!elop%ent and esting


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Concept testing refers to testing

new-product concepts with groupsof target consumers

Concept Development and Testing
http://www.questionpro.com/akira/showSurveyLibrary.do?surveyID=109&mode=1


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Mar)eting strategy development refersto the initial mar)eting strategy for

introducing the product to the mar)et Mar)eting strategy statement includes*

+ Description of the target mar)et

+ alue proposition

+ Sales and pro#t goals

$ar%eting Strategy Development


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&usiness analysisinvolves a

review of the sales! costs! andpro#t pro.ections to #nd outwhether they satisfy the

company"s o.ectives

ar3eting trategy $e!elop%ent


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Chapter 9- slide 1(Copyright 2010 Pearson Education, Inc.



Product development

involves the creationand testing of one ormore physicalversions y the /0Dor engineeringdepartments

/e1uires an increase

in investment



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Chapter 9- slide 1)Copyright 2010 Pearson Education, Inc.



Test mar%eting is thestage at which theproduct andmar)eting program

are introduced intomore realisticmar)eting settings

Provides the mar)eterwith e&perience in

testing the productand entire mar)etingprogram efore fullintroduction



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Chapter 9- slide 1+Copyright 2010 Pearson Education, Inc.



Types of Test $ar%ets


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"e#-Product $e!elop%entProcess

Advantages of simulated testmar)ets

+ Less e&pensive than other test methods

+ (aster

+ /estricts access y competitors

Disadvantages+ Not considered as reliale and accurate

due to the controlled setting



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http://www.decisioninsight.com/


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Commerciali2ation is the introduction

of the new product 3hen to launch

3here to launch

Planned mar)etrollout



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Chapter 9- slide 19Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall

anaging "e#-Product $e!elop%ent

Successful new-productdevelopment should e*

Customer centered 4eam centered

Systematic


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Customer-centered newproduct developmentfocuses on #nding newways to solve customerprolems and createmore customer

satisfying e&periences 5egins and ends with

solving customerprolems

"e#-Product $e!elop%ent trategies


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Sequential new-product developmentis a development approach wherecompany departments wor) closelytogether individually to complete eachstage of the process efore passing italong to the ne&t department or stage

$ncreased control in ris)y or comple&

pro.ects Slow



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Team-ased new-product

developmentis a developmentapproach where companydepartments wor) closely together incross-functional teams! overlapping in

the product-development process tosave time and increase e'ectiveness



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Chapter 9- slide 2(Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall


Systematic new-productdevelopmentis aninnovative

development approachthat collects! reviews!evaluates! and

manages new-productideas

Creates an innovation-

oriented culture

6ields a large numer ofnew-product ideas



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Chapter 9- slide 2)Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall

Product &i'e-Cycle trategies

Product Life Cycle


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Chapter 9- slide 2+Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall

Product development+ Sales are 2ero and investment costs mount

$ntroduction

+ Slow sales growth and pro#ts are none&istent

7rowth+ /apid mar)et acceptance and increasing pro#ts8

Maturity

+ Slowdown in sales growth and pro#ts level o' ordecline

Decline

+ Sales fall o' and pro#ts drop



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'ads are temporaryperiods of

unusually highsales driven yconsumerenthusiasm and

immediate productor rand popularity


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Slow sales growth

Little or no pro#t

9igh distriution and promotione&pense

!ntroduction Stage


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Sales increase

New competitors enter the mar)et

Price staility or decline to increasevolume

Consumer education

Pro#ts increase Promotion and manufacturing costs

gain economies of scale

(rowt) Stage


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Chapter 9- slide (0Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall


Slowdown in sales

Many suppliers

Sustitute products

:vercapacity leads to competition

$ncreased promotion and /0D tosupport sales and pro#ts

$aturity Stage
http://www.youtube.com/watch?v=pcj7QT0Abk8&feature=related


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Mar)et

modifying

Productmodifying

Mar)eting mi&modifying

$aturity Stage $odifying Strategies
http://www.1000uses.com/


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Maintain the product

9arvest the product

Drop the product

Decline Stage


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Chapter 9- slide ((Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall


Summary of Product Life Cycle


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Chapter 9- slide ()Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall

4dditional Product and er!iceConsiderations

Pulic policy and regulations regarding

developing and dropping products!patents! 1uality! and safety

Product $ecisions and ocial *esponsibility


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Chapter 9- slide (+Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall

4dditional Product and er!iceConsiderations

Determining what producand services to introducein which countries

Standardi2ation versus

customi2ation Pac)aging and laeling

Customs! values! laws

!nternational Product andService $ar%eting*C)allenges


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Ch t 9 lid (Copyright 2010 Pearson Education Inc

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

Copyright !"! Pearson #ducation, $nc.Copyright !"! Pearson #ducation, $nc.

Publishing as Prentice %allPublishing as Prentice %all

kotler pom13e instructor 09

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