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    Kotler New Product Development

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    Ms. Joy
    New-product Development and product life-cycle strategies. Acquisition refers to buying a whole company, a patent, or a license to produce someone else's product. New product development refers to original products, product improvements, product modifications.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Kotler New Product Development

    Uploaded by

    Ms. Joy
    15K views36 pages
    New-product Development and product life-cycle strategies. Acquisition refers to buying a whole company, a patent, or a license to produce someone else's product. New product development refers to original products, product improvements, product modifications.

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    © Attribution Non-Commercial (BY-NC)

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    PPT, PDF, TXT or read online from Scribd

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    New-product Development and product life-cycle strategies. Acquisition refers to buying a whole company, a patent, or a license to produce someone else's product. New product development refers to original products, product improvements, product modifications.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    15K views36 pages

    Kotler New Product Development

    Uploaded by

    Ms. Joy
    New-product Development and product life-cycle strategies. Acquisition refers to buying a whole company, a patent, or a license to produce someone else's product. New product development refers to original products, product improvements, product modifications.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 36
    At a glance
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    The key takeaways are the different stages of new product development including idea generation, screening, concept development and testing, as well as strategies for managing a product throughout its lifecycle including the introduction, growth, maturity and decline stages.

    The major stages in new product development are idea generation, screening, concept development and testing, business analysis, product development, test marketing, commercialization.

    Some reasons for new product failure include overestimation of market size, poor design, incorrect positioning, wrong timing, pricing too high, ineffective promotion, management influence, and high development costs.

    Chapter Nine

    New-Product Development and Product Life-Cycle Strategies


    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 1

    New-Product Development and Product Life-Cycle Strategies


    Topic Outline
    New-Product Development Strategy New-Product Development Process Managing New-Product Development Product Life-Cycle Strategies Additional Product and Service Considerations
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 2

    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 produce someone elses product New product development refers to original products, product improvements, product modifications, and new brands developed from the firms own research and development
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 3

    New-Product Development Reasons for new product failure


    Overestimation of market size Poor design Incorrect positioning Wrong timing

    Priced too high


    Ineffective promotion Management influence High development costs Competition
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 4

    New-Product Development Process


    Major Stages in New-Product Development

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 5

    New-Product Development Process


    Idea Generation

    Idea generation is the systematic search for new-product ideas Sources of new-product ideas Internal External

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 6

    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
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 7

    New-Product Development Process


    Idea Screening

    Identify good ideas and drop poor ideas R-W-W Screening Framework:
    Is it real? Can we win? Is it worth doing?

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 8

    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 perceive an actual or potential product
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 9

    New-Product Development Process


    Concept Development and Testing

    Concept testing refers to testing new-product concepts with groups of target consumers

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 10

    New-Product Development Process


    Marketing Strategy Development

    Marketing strategy development refers to the initial marketing strategy for introducing the product to the market Marketing strategy statement includes:
    Description of the target market Value proposition Sales and profit goals
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 11

    New-Product Development Process


    Marketing Strategy Development

    Business analysis involves a review of the sales, costs, and profit projections to find out whether they satisfy the companys objectives

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 12

    New-Product Development Process


    Marketing Strategy Development

    Product development involves the creation and testing of one or more physical versions by the R&D or engineering departments Requires an increase in investment
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 13

    New-Product Development Process


    Marketing Strategy Development
    Test marketing is the stage at which the product and marketing program are introduced into more realistic marketing settings
    Provides the marketer with experience in testing the product and entire marketing program before full introduction
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 14

    New-Product Development Process


    Types of Test Markets

    Standard test markets


    Controlled test markets Simulated test markets

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 15

    New-Product Development Process


    Marketing Strategy Development

    Advantages of simulated test markets


    Less expensive than other test methods Faster Restricts access by competitors

    Disadvantages
    Not considered as reliable and accurate due to the controlled setting
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 16

    New-Product Development Process


    Marketing Strategy Development
    When firms test market New product with large investment Uncertainty about product or marketing program When firms may not test market Simple line extension Copy of competitor product Low costs Management confidence
    Chapter 9- slide 17

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    New-Product Development Process


    Marketing Strategy Development Commercialization is the introduction of the new product When to launch Where to launch Planned market rollout

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 18

    Managing New-Product Development


    Successful new-product development should be: Customer centered Team centered Systematic

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 19

    Managing New-Product Development


    New-Product Development Strategies
    Customer-centered new product development focuses on finding new ways to solve customer problems and create more customer satisfying experiences Begins and ends with solving customer problems

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 20

    Managing New-Product Development


    New-Product Development Strategies

    Sequential new-product development is a development approach where company departments work closely together individually to complete each stage of the process before passing it along to the next department or stage Increased control in risky or complex projects Slow
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 21

    Managing New-Product Development


    New-Product Development Strategies

    Team-based new-product development is a development approach where company departments work closely together in cross-functional teams, overlapping in the product-development process to save time and increase effectiveness
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 22

    Managing New-Product Development


    New-Product Development Strategies
    Systematic new-product development is an innovative development approach that collects, reviews, evaluates, and manages new-product ideas
    Creates an innovationoriented culture Yields a large number of newproduct ideas
    Chapter 9- slide 23

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Product Life-Cycle Strategies


    Product Life Cycle

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 24

    Product Life-Cycle Strategies


    Product development
    Sales are zero and investment costs mount

    Introduction
    Slow sales growth and profits are nonexistent

    Growth
    Rapid market acceptance and increasing profits.

    Maturity
    Slowdown in sales growth and profits level off or decline

    Decline
    Sales fall off and profits drop
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 25

    Product Life-Cycle Strategies

    Fads are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 26

    Product Life-Cycle Strategies

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 27

    Product Life-Cycle Strategies


    Introduction Stage

    Slow sales growth Little or no profit High distribution and promotion expense

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 28

    Product Life-Cycle Strategies


    Growth Stage

    Sales increase New competitors enter the market Price stability or decline to increase volume Consumer education Profits increase Promotion and manufacturing costs gain economies of scale
    Chapter 9- slide 29

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Product Life-Cycle Strategies


    Maturity Stage

    Slowdown in sales Many suppliers Substitute products Overcapacity leads to competition Increased promotion and R&D to support sales and profits

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 30

    Product Life-Cycle Strategies


    Maturity Stage Modifying Strategies

    Market modifying Product modifying Marketing mix modifying

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 31

    Product Life-Cycle Strategies


    Decline Stage

    Maintain the product Harvest the product Drop the product

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 32

    Product Life-Cycle Strategies


    Summary of Product Life Cycle

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 33

    Additional Product and Service Considerations


    Product Decisions and Social Responsibility Public policy and regulations regarding developing and dropping products, patents, quality, and safety

    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 34

    Additional Product and Service Considerations


    International Product and Service MarketingChallenges

    Determining what products and services to introduce in which countries Standardization versus customization Packaging and labeling Customs, values, laws
    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 35

    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 2010 Pearson Education, Inc. Publishing as Prentice Hall


    Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

    Chapter 9- slide 36

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