ppt new prod dev and pricing mktg
TRANSCRIPT
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8/8/2019 Ppt New Prod Dev and Pricing Mktg
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NEW PRODUCT DEVELOPMENT
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New-Product Development Strategy
Two ways to obtain new products
Acquisition refers to the buying of a whole
company, a patent, or a license to producesomeone elses product
New product development refers to original
products, product improvements, productmodifications, and new brands developed fromthe firms own research and development
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New-Product Development Process
Major Stages in New-Product Development
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New-Product Development Process
Idea Generation
Internal sources refer to the companys own
formal research and development,
management and staff, and intrapreneurial
programs
External sources refer to sources outside the
company such as customers, competitors,distributors, suppliers, and outside design
firms
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New-Product Development Process
Idea Screening Identify good ideas and drop poor ideas
R-W-W Screening Framework:y Is it real?
y Can we win?
y Is it worth doing?
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New-Product Development Process
Concept Development and Testing
Product idea is an idea for a possible product
that the company can see 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 perceivean actual or potential product
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New-Product Development Process
Concept Development and Testing
Concept testing refers to testing new-product
concepts with groups of target consumers
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New-Product Development Process
Marketing Strategy Development
Marketing strategy development refers to the
initial marketing strategy for introducing the
product to the marketThis consists of three parts:
Part 1: target market, planned product positioning, sales and
profit goals
Part 2: price, distribution and marketing budget
Part 3: planned long run sales (timetable), marketing mix
strategy, contingency plans
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New-Product Development Process
Business Analysis
- this will be the analysis and
evaluation of costs, sales, and
profits. If the product will satisfy the
companys objectives in terms of
saleability, and viability
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8/8/2019 Ppt New Prod Dev and Pricing Mktg
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New-Product Development Process
Product development
if the product passes the Business
Test, the company will then move to
developing more than one physical
versions of the product concept
(prototype)
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8/8/2019 Ppt New Prod Dev and Pricing Mktg
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New-Product Development Process
Test marketing
Test marketing is the stageat which the productand marketing
program areintroduced into morerealistic marketingsettings
Provides the marketerwith experience intesting the productand entire marketingprogram before fullintroduction
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New-Product Development Process
Commercialization
Commercialization is the introduction
of the new product
When to launch
Where to launch
Planned market
rollout
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8/8/2019 Ppt New Prod Dev and Pricing Mktg
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2nd P: PRICING
PRICE
the amount of money charged for a good or
service; more broadly, price is the sum of values
consumers exchanged for the benefits of having or
using a product or service.
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2nd P: PRICING
Rate- for rooms in hotelsFare for transportation services
Tips for extra services renderedToll price for using a special highway
Price may go by many names,
depending on the company or
product:
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8/8/2019 Ppt New Prod Dev and Pricing Mktg
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2nd P: PRICING
FACTORS TO CONSIDER WHEN SETTING PRICE
1. Internal Factors
a. Marketing Objectivesb. Marketing Mix strategy
c. Costs2. External Factors
a. Nature of market and demand
b. consumer perception of price and valuec. analyzing the price-demand relationshipd. price elasticity of demand buyers are less price
sensitive if products are unique, hard to find, a prestige or
luxury brand, or when substitute products are non-existent
e. competitors price
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8/8/2019 Ppt New Prod Dev and Pricing Mktg
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2nd P: PRICING
PRICING STRATEGIES1. Prestige pricing hotels and restaurants seeking to
position themselves as luxurious and elegant will enter
the market with a huge price that will support this position2. Market skimming pricing setting a high price when
the market is price insensitive3. Marketing-penetration pricing setting a low initial
price to penetrate the market quickly4. Product-bundle pricing combining products and
offering the bundled products at reduced price
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8/8/2019 Ppt New Prod Dev and Pricing Mktg
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2nd P: PRICING
PRICING STRATEGIES5. volume discounts special rates or prices for large quantity
purchases
6. discounts based on time of purchase lower prices when the
demand is low (hotel rates during off-peak season) special discounted
rates on advance bookings (example: airline rates)
7. psychological pricing aspects like prestige, round figures and
ignoring end figures (ex.: quoting prices in US dollars give a sense ofprestige; pricing of 1.99 instead of 2.00)
8. Promotional pricing temporary pricing at lower figures for special
occasions (sale prices, festivity-based, etc)
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2nd P: PRICING
Special Pricing Consideration in the Hospitality
Industry:
The restaurant industry historically employ arule of thumb that the highest-priced entre
should be no more than 2.5 times as expensiveas the lowest-priced entre.
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8/8/2019 Ppt New Prod Dev and Pricing Mktg
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