Transcript Chapter 10

Marketing 10
Developing & Managing Products
Developing and Managing Products
Categories of new products
 Product life cycle
 New product development process
 Failure and success of new products
 Diffusion Process
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10.1
New Products
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Important to sustain growth and replace worn
out products
Categories of New Product
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New to the world/Discontinuous
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New Products/Additions to product lines
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Improvements / Revisions to existing products
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Repositioned
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Lower priced
10.2
Developing new products
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New product strategy
Idea generation
Screening
Business Analysis
Product development
Test marketing
Commercialization
10.3
Why Do New Products
Succeed?
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Early Entrance
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Careful Timing
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Excellent
Teamwork and
Execution
Product Superiority
Customer
Orientation
Market
Attractiveness
10.4
Why Do New Products Fail?
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Improper Targeting
and Positioning
Problems in Product
and Marketing
Planning
Over promising
Satisfaction
No Competitive
Differentiation
10.5
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Not Good Value
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Inadequate
Marketing
Communication
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Poor Channel
Management
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Inadequate Profits
The Spread of New Products
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Diffusion of Innovation
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Role of Marketing Communications
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Role of WOM
10.6
Categories of Adopters
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Innovators
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Early adopters
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Early majority
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Late majority
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Laggards
10.8
Product Characteristics Influence
rate of Adoption
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Complexity
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Compatibility
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Relative Advantage
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Observability
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Trial-ability
10.7
Marketing Decisions Influence
Rate of Adoptions
Price
 Advertising
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Product life cycle
10.9
INTRODUCTION
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Sales
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Costs
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Profits
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Customers
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Competitors
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Marketing objectives
10.10
GROWTH
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Sales
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Costs
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Profits
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Customers
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Competitors
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Marketing objectives
10.11
MATURITY
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Sales
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Costs
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Profits
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Customers
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Competitors
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Marketing objectives
10.12
DECLINE
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Sales
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Costs
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Profits
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Customers
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Competitors
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Marketing objectives
10.13