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Topic Of Presentation:

New product Development and its life cycle Presentators:

Shah Junaid ID#9722

Imran ID#9714

Naveed Afzal ID#9713

Qazi Fazli Rabi ID#4110

Iqra University Peshawar Campus

Subject : Principles Of Marketing.MBA Semester Fall-2010

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THE MEANING OF “PRODUCT”

A product is a set of tangible and intangible attributes, which include packaging, color, price, quality, brand name and manufactures and retailers services , all these that buyer accept as a want satisfaction.

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Seller’sservices

Seller’sservices

Productquality

Productquality Physical

characteristicsof goods

Physicalcharacteristics

of goods

PricePrice

BrandBrand

DesignDesign

PackagingPackagingProductwarranty

Productwarranty

Seller’sreputation

Seller’sreputation

ColorColor

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Product Classification

On the basis of purpose for which they are bought.

Consumer product Business Product

Goods or Services which are bought by final consumer for consumption.

Products which purchased for further processing to produce other products

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What is new Product

A new product is a product which is totally new in concept.

Any product which is perceived by the customer as being new.

A new product can be categorize into :

Truly new product.

Innovated product from the existing one.

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Reasons for new product developing

Computation:

To maintain or to gain the competitive image in the market.

Change the consumer needs: To brings the changes in the consumer needs

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Technology:Technology that in the favors to develop or totake the risk of new product development

Good Image:Company good image in the Market ( in

the mind of customer) to take the risk of new product development.

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Methods used for developing new product

A firm can obtain new product through two ways

By R &D Cell:

Developing new product through R&D , either from entirely new product or bringing innovation in

the existing products.

– By Acquisition

By this a firm buy an other firm wholly or get licensee in order to obtain new product

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Process of new product development

New product are develop through a systematic process in which first the product are find out and the it grows.

The whole process can be divide into many stages, some Seven stages are given bellow.

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Product development process

seven steps

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Stage#1 Idea Generation

The starting stage for new product development in which typically an organization develop a number of ideas for new product

Such types of alternatives idea are develop into a meeting called brain storming session

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Sources for idea generation

The organization takes new ideas from two sources

Internal sources:R&D CellEmployees feed backs

External Sources:

Customer Questions & Complaints

Distributor Feed backs Compotators activates

e.g. their Ads as a clue

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Stage#2 Idea Screening

In this step one idea is selected from the alternative ideas of the first stage

The basis for best idea are:

Utilization

How much that product will be able by the Target customer with the sense of that product utilization.

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Recourses

Which type, quality and at which price that resources will be available.

Ethical Aspect

What will be the responses of the sociality to whom that product will launch.

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Stage#3 Product Concept Development

Once the idea is selected in the idea screening stage ,then in this stage the concept of product is developed.

Some time alternative concept of the same product are developed according to customer needs ,wants etc

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Stage#4 Mrkg Strategy Development

Developing strategy that how to introduce the product into market.

Marketing strategy consist 3 statements

Described the target market

Price ,Channel of distribution and Budget

Goal of the organization,

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Stage#5 Business Analysis

Analysis the product with the business point of view. This analysis involve a review of the sales, cost ,profit.

The main aim of business analysis is to find out whether the product satisfies the company objective or not.

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Stage#6 Product Development

In this stage the product concept is came into its physical form, then this product is presented to the market for testing.

Testing Marketing help the organization in creating finial decision about whether to launch that product in the market or not..

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Stage#7 Commercialization

After successful passing the product from the “ testing market” then the firm properly introduce that product into market.

Note After commercialization Stage then that product's life cycle ( PLC) begin.

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Product life Cycle ( PLC)

The commercialization stage of the new development is consider birth stage for its life cycle

The whole PLC can be divided into Four stages

o Stage -1 Introductiono Stage -2 Growtho Stage -3 Maturityo Stage-4 Decline

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PLC 1st Stage Introductions

It is the pioneer stage of PLC in which the new product is first distributed and made available for purchases.

Characteristic of this stage:

Negative Profit due to:

Low sale volume

Distribution Exps

Promotion Expns

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Some product disappear due to: Failed to attract target customer

Quick attack from compotators

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PLC 2nd Stage Growth

The second stage of PLC in which a product's sales starts climbing quickly. Hence this stage is termed as Market Acceptance stage.

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Characteristic Of this stage: Increase in profit due to : Sale Increase Per unit cost

Competitor enter which push the firm: Introduce new feature Improve product quality

Giving Promotion & discounts Introducing new channels of distribution

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PLC 3rdnd Stage Maturity

The third stage of PLC in which Sales growth slow down.

Characteristic Of this stage:

The product growth begins to slow down (but at later stage of the “Maturity Stage”

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This stage can be longest one if the company meet consumers. Needs e.g. Baring extra features in their productivity.

If the firm don't brings extra features in in their product, then it possible to enter into next stage, that is decline stage.

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PLC 4th Stage Decline

The stage of PLC in which the product is became out of business

Characteristic Of this Stage:

Product sales decrease due to: Shifting consumer tats

Technological Associated with product

Organization that failed to anticipate the decline stage in earlier may possible to go out of the business

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Some firm out innovation in their declined product and this the product is again enter into its life cycle

For example P&G has don with its several brands that where at decline stage.

How a P&G has don with its several brands Principles of Marketing Author P .Kottler Page

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Reference for Data Collection

Principles of Marketing Author P. Kotler

Marketing Author W.J. Stanton

Teacher Lecture Points

Google Images. Wikipedia.org