Transcript Product Development - Loudoun County Public Schools

Product Development
Sports and Entertainment Marketing
Think of two sports products
Think of two entertainment products
Are the products you
came up with new or old?
Types of New Products
• New-to-the-World Products
– Brand new innovations (the first of anything)
• New Product Category Entries
– Nike adding sports equipment to there existing apparel
and shoe market
• Product Line Extensions
– Adding an additional flavor of Gatorade
– Disney’s High School Musical III
• Product Improvements
– NEW and IMPROVED!!
ACTIVITY!!
Come up with one sports and one entertainment
example of each
• New-to-the-World Products
• New Product Category Entries
• Product Line Extensions
• Product Improvements
7 Steps in New Product
Development
Step 1: SWOT Analysis
S – company strength
Strengths could be well trained employees or an excellent service
record
W – company weakness
Weaknesses should be the opposite of the above
O – external opportunities
Capitalize on a current trend or if a competitor receives bad
publicity
T – company threats
7 Steps in New Product
Development
Step 2: Idea Generation
Involves generating new product ideas
This comes from many sources such as
employees, consumers, research and
development departments and even
competitors
7 Steps in New Product
Development
Step 3: Screening & Evaluation
Can the company make the product happen?
Should the company seek opinions of
consumers
(i.e. researchers develop a focus group)
7 Steps in New Product
Development
Step 4: Business Analysis
This step involves researchers analyzing
financial position as well as any legal
constraints
Can it be patented or copyrighted?
7 Steps in New Product Development
Step 5: Development (create prototype)
Step 6: Test Marketing
Marketers test all aspects of the marketing mix – 5P’s
Step 7: Commercialization
Produce and market a new product - introduce it to the
public
What Happens Next…..
Product Life Cycle
Four Stages of the Product Life Cycle
Introduction
Growth
Decline
Maturity
Stages of Product Life Cycle
• Stage 1: Introduction (new to the
market)
Companies
• promote consumer awareness
• get customers to try the product
• educate consumers about the product
• Stage 2: Growth
Competitors are entering the marketplace
The product must be improved to stay
competitive
Sold in more locations
Stages of Product Life Cycle
• Stage 3: Maturity Stage
Product has reached its peak
Sales slow down
Repeat customers may stop buying and
it may be hard to attract new
customers
Stages of Product Life Cycle
• Stage 4: Decline
Sales and profit continue to drop
There is no longer a demand for the
product
Product may be dropped by the
company
Good Example: cassette tapes
Think about it!
Think of a product that is
currently in each of the stages
of the product life cycle.
Introduction
Growth
Maturity
Decline
What can be done to extend the
Product Life Cycle
• Develop new uses for the products
• Develop new product features and line
extensions
• Increase the existing market (target market)
• Change Marketing Mix (5P’s)
• Link products to a trend
Activity
• In groups of 4, each group is to create a new
product which can be a variation of an existing
product with a point of difference.
• Then each group is to come up with a plan of
how to market this product in each stage of
the product life cycle.
• Think about - Is the product itself reasonable?
Is the plan appropriate? Does the plan
properly manage each stage of the life cycle?
But before any of this can happen …
companies must conduct …
Market Research
The process of systematically
collecting, recording, analyzing,
and presenting data related to
marketing goods and services
Why is Market Research
important?
Global Market – other countries are different from the
US and companies need to learn and understand
their needs and wants before they enter that market
Competition – companies need an “edge” to compete
in the marketplace, so the need to research what
their competitors are doing
Changing Market – customer needs change daily, it is
important to understand them before a company
enters the marketplace
5 steps in Market Research
1.
2.
3.
4.
5.
Identify the problem
Conduct secondary research
Select and design primary research
Collect data
Report and analyze data
Identify the Problem
Ask questions that research could
answer
Example: A golf ball manufacturer might ask
“What can we do to improve the image of our golf
ball and stand out from the rest of the market?”
Objective: To determine how golfers select
their golf balls
Conduct Secondary Research
Secondary research: published data that
have been collected for some other
purpose
Data that a company DOES NOT
compile themselves
Examples: Government records (census:
demographics, etc), sales figures, trade
organizations
Design Primary Research
Primary Research: Original research
conducted for a specific
marketing situation
Secondary research is done first
because it may answer all the
questions and primary research
may not be needed
Collect Data
Data: records or facts and figures that
are organized and analyzed in some
way
Ways to collect
Experiment – try it out
Observation – watch it happen
Survey – ask about it
Report and Analyze
In order for data to be useful it must
be reported and analyzed
What does the information collected
tell us about the consumer (or
subject)?