Transcript Slide 1

Figure 8-1
Major Stages in New-Product
Development Process
Copyright 2007, Prentice-Hall, Inc.
8-1
Marketing in Action
Generating New Product Ideas
The Industrial Scientific
Corporation uses its
Web site to solicit new
product ideas from
customers or other
visitors. Visit the Web
site to see what
information is solicited.
http://www.indsci.co
m/sup_NewProd.asp
Copyright 2007, Prentice-Hall, Inc.
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Marketing in Action
Concept Testing
The Concept Board is a
consulting firm that
assists clients such as
Mott’s, Citibank, HBO,
IBM, Post, and others
in verbalizing /
visualizing product
concepts for consumer
testing.
http://theconceptboard.
com/index.html
Copyright 2007, Prentice-Hall, Inc.
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Let’s Talk!
Pair up with another
student and assume
that you are in charge
of the concept testing
for the product shown
at right.
What questions would
you ask of consumers
who are evaluating
this product concept?
Copyright 2007, Prentice-Hall, Inc.
8-4
Marketing in Action
Marketing Strategy Statement
for Daimler Fuel-Cell=Powered Car
The target market is younger, well-educated, moderateto-high-income individuals, couples, or small families
seeking practical, environmentally responsible
transportation. The car will be positioned as more
economical to operate, more fun to drive, and less
polluting than today’s internal combustion engine or
hybrid cars. It is also less restricting than batterpowered electric cars, which must be recharged
regularly. The company will aim to sell 100,000 cars in
the first year, at a loss of not more than $15 million. In
the second year, the company will aim for sales of
120,000 cars and a profit of $25 million.
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Test Marketing
After test marketing the “Go Active”
meal (an adult happy meal) in 150
markets in Indiana, McDonald’s
decided to sell it across the U.S.
Copyright 2007, Prentice-Hall, Inc.
• Product / marketing
program introduced
in more realistic
market setting.
• Not for all products.
• Can be expensive
and time
consuming, but
better than making a
major marketing
mistake.
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Figure 8-2
Sales and Profit over the Product’s Life
from Inception to Decline
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8-7
Figure 8-3
Styles, Fashions, Fads
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8-8
Marketing in Action
Modifying the Market
WD-40 invites visitors
to its Web site to join
the fan club. Fan club
members can access
a list of 2,000 uses for
WD-40, and are
invited to share their
own stories.
http://fanclub.wd40.com
/login_home.cfm
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8-9
Marketing in Action
Modifying the Product
Gillette’s Fusion razor
combines a precision
trimmer blade (on back)
with a five blade shaving
surface (on front). The
flexible comfort guard and
Enhanced Indicator
Lubrastrip (containing
vitamin E and aloe)
enhance shaving comfort.
http://www.gillette.com/
homepage.asp
Copyright 2007, Prentice-Hall, Inc.
8-10
Maturity Stage of PLC
• Modifying the
Marketing Mix:
– Improving sales by
changing one or
more marketing mix
elements.
• How?
– One method is to
launch aggressive
sales promotion
programs, such as
rebates.
Copyright 2007, Prentice-Hall, Inc.
8-11