Transcript CH10
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. Product A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value. 10-2 LO1 THE VARIATION OF PRODUCTS PRODUCT, PRODUCT LINE, AND PRODUCT MIX Product Line • Product Item • Stock Keeping Unit (SKU) Product Mix 10-3 LO1 THE VARIATION OF PRODUCTS CLASSIFYING PRODUCTS Type of User • Consumer Goods • Business Goods 10-4 LO1 THE VARIATION OF PRODUCTS CLASSIFYING PRODUCTS Degree of Tangibility • Nondurable Goods • Durable Goods • Services 10-5 LO2 CLASSIFYING CONSUMER AND BUSINESS GOODS CLASSIFYING CONSUMER GOODS Convenience Goods Shopping Goods Specialty Goods Unsought Goods 10-6 FIGURE 10-1 How a consumer good is classified affects what products consumers buy and the marketing strategies used 10-7 LO2 CLASSIFYING CONSUMER AND BUSINESS GOODS CLASSIFYING BUSINESS GOODS Derived Demand Production Goods Support Goods • Installations • Supplies • Accessory Equipment • Industrial Services 10-8 LO3 NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHAT IS A NEW PRODUCT? Newness Compared with Existing Products Newness in Legal Terms 10-9 LO3 NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHAT IS A NEW PRODUCT? Newness From the Organization’s Perspective • Product Line Extension • Significant Jump in Innovation • True Innovation 10-10 LO3 NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHAT IS A NEW PRODUCT? Newness From the Consumer’s Perspective • Continuous Innovation • Dynamically Continuous Innovation • Discontinuous Innovation 10-11 FIGURE 10-2 The degree of “newness” in a new product affects the amount of learning effort consumers exert to use the product 10-12 LO4 NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHY PRODUCTS SUCCEED OR FAIL Marketing Reasons for New-Product Failures • Insignificant Points of Difference • Incomplete Market and Product Definition Before Product Development Starts Protocol • Too Little Market Attractiveness 10-13 LO4 NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL WHY PRODUCTS SUCCEED OR FAIL Marketing Reasons for New-Product Failures • Poor Execution of the Marketing Mix • Poor Product Quality or Sensitivity to Customer Needs on Critical Factors • Bad Timing • No Access to Buyers 10-14 FIGURE 10-4 Stages in the new-product process 10-15 FIGURE 10-B Strategic roles of most successful new products 10-16 LO5 THE NEW-PRODUCT PROCESS NEW-PRODUCT STRATEGY DEVELOPMENT New-Product Process New-Product Strategy Development Objectives: Identify Markets and Strategic Roles • SWOT Analysis • Environmental Scanning Improve Innovation: Use Cross-Functional Teams 10-17 THE NEW-PRODUCT PROCESS LO5 IDEA GENERATION Idea Generation Customer and Supplier Suggestions Employee and Co-Worker Suggestions R&D Breakthroughs Competitive Products Universities, Inventors, and Small Tech Firms 10-18 LO5 THE NEW-PRODUCT PROCESS SCREENING AND EVALUATION Screening and Evaluation Internal Approach External Approach 10-19 LO5 THE NEW-PRODUCT PROCESS BUSINESS ANALYSIS AND DEVELOPMENT Business Analysis Development 10-20 LO5 THE NEW-PRODUCT PROCESS MARKET TESTING Market Testing Test Marketing Simulated Test Markets (STMs) 10-21 LO5 THE NEW-PRODUCT PROCESS COMMERCIALIZATION Commercialization Regional Rollouts 10-22 FIGURE 10-6 Marketing information and methods used in each stage of the newproduct process 10-23 LO5 THE NEW-PRODUCT PROCESS COMMERCIALIZATION The Risks and Uncertainties • Slotting Fee • Failure Fee 10-24