Transcript Cpt 12

MANAGING EXISTING PRODUCTS
• Line Extension
– Develop product closely related to existing
product.
– Meets different customer needs.
– Original product stays in line.
– Bud Lite, Tide with Bleach, Pepsi One.
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MANAGING EXISTING PRODUCTS
• Product Modification
– Change one or more characteristics of a
product.
– Original product is no longer produced.
– New year of car model, new year of
electronics model, Pentium III replaced
Pentium II.
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PRODUCT MODIFICATION TYPES
• Quality Modification: Change related to
product’s dependability and durability (new
longer lasting components in Zenith TV
model).
• Functional Modification: Change product’s
versatility, effectiveness, convenience, or
safety (wide mouth can).
• Aesthetic Modification: Change to product’s
sensory appeal (how it looks, smells, tastes,
feels, or sounds).
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PRODUCT DELETION
• Phase Out: Allow a product to decline
without a change in marketing strategy.
• Run Out: Exploit strengths left in
product and adjust marketing strategy.
• Immediate Drop: Liquidate
immediately!
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NPD PROCESS
1.
2.
3.
4.
5.
6.
7.
Idea Generation
Screening
Concept Testing
Business Analysis
Product Development
Test Marketing
Commercialization
MARKETING
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CHAPTER 12