product development and innovation.ppt

7/29/2019 PRODUCT DEVELOPMENT AND INNOVATION.ppt

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PRODUCT DEVELOPMENT

PROCESS

&

PRODUCT LIFE CYCLE


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Product Development

Process

1stStep: IDEA GENERATION

To systematically search for new product ideas.

The process of creating, developing, and

communicating ideas which are abstract, concrete, or

visual. The process includes the process of

constructing through the idea, innovating the concept,

developing the process, and bringing the concept toreality.
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Product Development

Process

2ndStep: IDEA SCREENING

Good ideas are pinpointed while poor ones are

dropped as soon as possible.

A process used to evaluate innovativeproductideas,

strategies and marketingtrends. Idea screening

criteria are used to determine compatibility with

overall businessobjectives and whether the ideawould offer a viablereturn on investment. Whatever

does not meet these criteria is typically discarded.
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Product Development

Process

3rdStep: CONCEPT DEVELOPMENT

AND TESTING

The surviving ideas should next be developed

into product concept.

Product Idea - is an idea for possible product

that the company can see itself offering to the

market.


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Product Concept is a detailedversion of the idea stated inmeaningful consumer terms.

Product Image is the way theconsumers picture an actual orpotential product.

Concept Testing new product aretried with the group of targetconsumers.


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Product Development

Process

4thStep: MARKETING STRATEGY

DEVELOPMENT

Involves designing an initial marketing

Strategy for introducing the product into the

market.


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Product Development

Process

3 Stages in Marketing Strategy Development

1st Stage: Describing the target market, the

planned production, positioning, sales, market

share and profit goals for the first few years.


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2ndStage: Outlining the products planned price,

distribution and marketing budget.

3rd Stage: Describing the plan, the long run sales

and profit.


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Product Development

Process

5thStep: BUSINESS ANALYSIS

Involves a review of sales, cost, and profit

projections to find out whether they satisfy the

companys objective.


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Product Development

Process

6thStep: PRODUCT DEVELOPMENT

The research and development or engineeringdepartment develops the product concept into

physical product.


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Product Development

Process

7thStep: TEST MARKETING

Stage where the product itself and marketingprogram are tested in more realistic and

marketing setting.


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Product Development

Process

8thStep: COMMERCIALIZATION

Introducing and marketing the product.


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Product Life Cycle


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Product Life Cycle

Introduction Stage

The period of slow sales growth asthe product is being introduce in themarket.

Growth Stage

Rapid market acceptance andincreasing profit.


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Product Life Cycle

Maturity Stage

The period of slowdown in salesgrowth because the product hasachieved acceptance by most of thepotential buyers.

Decline Stage

The period when sales fall off quicklyand profit drops.


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Product Innovation

The development of new products, changes in

design of established products, or use of new

materials or components in the manufacture of

established products.

2 Category of Product Innovation

Development of New Product

Improvement of existing product.


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Example of Product Innovation

In Existing Product

PLDT COMPANY


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Scooter Bike (Electronic)


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Jollibee Ice Cream


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Fi i l R t


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65%

Sale

Year/Time

Financial Report


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product development and innovation.ppt

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