Transcript Product Development PowerPoint

Product Development
BMI3C
Mr. Whiler
Company
LOGO
The Marketing Mix is ...
 “… The combination of product, price,
placement and promotion used to
encourage a consumer to buy a product”
 (pg21)
Also known as: The 4 Ps
 We will now look at each of these
elements in greater detail
5.1 Marketing & Product Development
 Marketing research determines what
customers want and indicates whether
viable business opportunities exist
 However, before a product is developed
two questions need to be asked:
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Can it be produced?
Can it be sold?
VIDEO Race for the Electric Car – from 60
Minutes cbsnews.com
5.1 Marketing & Product Development
 Can it be produced:
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Is it possible to produce it with available
facilities and technology?
Is it possible to produce it with new facilities
and technology?
What are the costs involved?
5.1 Marketing & Product Development
 Can it be sold?
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Can it be priced so consumers will buy it?
Can it be distributed?
What are the promotion costs?
What are the geographic, demographic and
psychographic issues?
5.1 Marketing & Product Development
 Marketing and Production Cooperation
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These two groups need to work very closely
together
Marketers need to know whether products are
possible
The production team needs to know what
products are desired
A feasibility study is done to determine whether
it is possible, practical and viable
Prototypes can be made, test marketing done
5.2 Invention or Innovation?
 Businesses can address consumers’
problems with existing solutions or new ones
 There are two broad types of new solutions:
invention and innovation
 Invention
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new devices, methods, or processes developed
from study or experimentation
What are some Canadian inventions Top
Canadian Inventions
5.2 Invention or Innovation?
 Innovation

a product or service that uses new
technology, items or processes to:
 Change existing products
 Change the methods used to produce products
 Change the ways used to distribute products

Example: computerized tax returns
5.3 Product Development
 There are 8 stages a marketer must go
through to bring a new product to market
5.3 Product Development
1. Idea Generation
1.
2.
Marketing Research reveals a need
New product created or existing one modified with
new features / packaging / design
2. Idea Screening
1.
Test consumer reaction and competitive situation
3. Concept Development
1.
2.
3.
Develop ideas
Prototypes (a sample of what a product might look
like and how it might operate)
Test Marketing -> finding out if customers like it
5.3 Product Development
4. Market Strategy
1.
2.
Determine primary & secondary markets
Develop marketing plan to reach these markets
5. Feasibility Study
1.
Can the product be made and sold
profitably?
6. Product Design
1.
2.
Product’s look and features must fit with
primary market
Peripherals too: packaging, warranties,
manuals, service info
5.3 Product Development
7. Test Marketing
1.
2.
Gather primary data from target market
If positive results, product may be launched
8. Market Entry
1.
2.
Product enters the market and is “for sale”
Consumers than determine how long it will
last on the market
Assignment
Scenario
 You are on the marketing team for the
Kid Control Company
 Your company has created the first remote
control that controls children. (These remote controls
are effective only on the buyers’ children, not other children.)
 The management team thinks that this product
will appeal to parents with children between the
ages of 1 and 18.
Assignment
Task
 The management team wants to offer two remote
control models.
 Your responsibility is to develop one remote control that
offers standard features and one that offers optional
features.
 Working with a partner, develop the features of both
models. (keep your target market in mind!)
 On the computer, draw a picture of your product (one
with the standard features and one with the optional
ones)
 Each pair will ‘introduce’ their product to the class