Transcript develop a new product

CHAPTER 10
Develop
A New Product
10.1
10.2
10.3
10.4
What Is a Product?
Components of a New Product
Product Market Classifications
Developing Successful New Products
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WHAT IS A PRODUCT?
GOALS for Lesson 10.1
Explain that, for consumers, products
are more than just the tangible objects
that are offered for sale.
Describe the role of marketers in
keeping the focus on consumers during
product development.
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More Than Just
a Tangible Object
More than an item
Consumers know best
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Product Development
as a Marketing Function
The role of marketing
Marketing activities in product
development
 Gathering information
 Designing strategies
 Testing marketing mixes
The product planning function
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Marketing Supports
Product Development
Customers
Companies
Product Development
Gathering
Information
Designing
Effective
Marketing
Strategies
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Testing
Marketing Mixes
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COMPONENTS
OF A NEW PRODUCT
GOALS for Lesson 10.2
Show how even a very simple product
can be a complex mix of a basic item
with assorted features.
Describe the three steps of the product
design process.
Explain the importance of product lines,
packaging, and brand development.
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Parts of the
Product Mix Element
Basic product
Features
Options
Services
Brand name
Packaging
Guarantee
Uses
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Designing a Product
Basic product
Enhanced product
Extended product
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Product Mix Components
 Product line
 Variation in quantity
 Variation in quality
 Assortments
 Packaging





Ease of use
Safety
Attraction
Handling
Environment
 Brand development
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Levels of Brand Recognition
Non-recognition
Rejection
Consumers are unable to identify the brand.
Recognition
Consumers will not purchase the product
because
of the
Consumers
canbrand.
recall the brand name but it
Preference
has
little influence
onbrand
purchases.
Consumers
view the
as valuable and
Insistence
will
chose it value
if it is available.
Consumers
the brand to the extent that
they reject other brands.
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PRODUCT MARKET
CLASSIFICATIONS
GOALS for Lesson 10.3
Define consumer markets and describe
what is meant by direct demand.
Define business markets and explain
the business product classification
system.
Understand the importance of product
classifications for product planning.
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The Product/Service
Classification System
The system is based on two factors:
The importance of the purchase to the
consumer
The willingness of the consumer to shop
and compare products before making
the purchase
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Classifying Products
for the Consumer Markets
Convenience goods
Shopping goods
Unsought goods
Specialty goods
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Business Markets
Capital equipment
Operating equipment
Supplies
Raw materials
Component parts
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Planning Products
for Consumer and
Business Markets
Need to know if the customer is the final
consumer or a business consumer
Some products are sold to both
consumer markets and business
markets
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DEVELOPING SUCCESSFUL
NEW PRODUCTS
GOALS for Lesson 10.4
Understand what businesses mean by
“new” products.
Describe the six steps in new product
development.
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What Is a New Product?
Is it really new?
Federal Trade Commission regulates
the use of the term “new.”
 Entirely new or changed in an important
and noticeable way
 Six-month time limit
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The Steps in
New Product Development
Idea development
Idea screening
Strategy development
Financial analysis
Product development and testing
Product marketing
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