1、Chapter 10,Product Management and NewProduct Development,Understand how product life cycles affect strategy planning. Know what is involved in designing new products and what “new products” really are. Understand the new-product development process. See why product liability must be considered in sc

2、reening new products. Understand the need for product or brand managers. Understand how total quality management can improve goods and services.,At the end of this presentation, you should be able to:,Product Decisions for Marketing Strategy Planning (Exhibit 10-1),Role of Product Management and New

3、-Product Development in Marketing Strategy (Exhibit 10-1),Chapter 9: Elements of Product Planning for Goods & Services,Chapter 10: Product Management & New Product Development,Total industry profit (initially loss),Total industry sales,Managing Products over Their Life Cycles (Exhibit 10-2),Market I

4、ntroduction Investing in the Future,Monopolistic Competition Develops,Innovation Attracts Competition,Profits Peak and Then Decline,Dont Ignore Long-Term Competitive Trends!,Market Growth Stage Profits Go Up and Down,Persuasive, More Costly Promotion,Brands Are More Similar,Greater Price Competition

5、/Price Sensitivity,Maturity May Last a Long Time,Market Maturity Stage Sales Level Off, Profits Continue Down,Sales Decline A Time of Replacement, 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin,Which Stage of PLC?,Kodak announced that it would no longer produce 35 millimeter film cameras, but w

6、ould manufacture digital cameras exclusively. Sales of digital cameras have grown steadily and have far outpaced the sale of 35 mm cameras in recent years, even among professional photographers. Kodaks decision indicates that 35 mm cameras are probably in the _ stage of the product life cycle. Marke

7、t introduction Market growth Sales decline Market maturity,Checking Your Knowledge,AND,Product Life Cycles Should Be Related to Specific Markets,Can Be Tried,Easy to Communicate,Comparative Advantage,Easy to Use,Compatible,Some ProductsMove Fast,Product Life Cycles Vary in Length,Interactive Exercis

8、e: Adoption,The Early Bird Usually Profits,Product Life Cycles Are Getting Shorter,Fashions and Fads,Other Issues in Product Life Cycle Length,Competitors May Help Adoption,Anticipate Speed of Movement,Consider all Four Ps,Allocate Sufficient Money,Be Flexible,Planning for Different Stages of the Pr

9、oduct Life Cycle,MarketIntroduction& Growth,Managing Mature Products,Are Product Modifications Really New Products?,Dont Pull the Plug So Quickly,Phase-out May Be Necessary,Profitability,Product LineCustomer Support,Sales Decline Can Be Profitable,Phasing Out Dying Products,What Is a New Product?,FT

10、C Rule: 6 Months,Ethical Dilemmas Exist,New Product Planning, 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin,New Product,An Organized New-Product Development Process is Critical (Exhibit 10-4),1. Idea generation,Step 1: Idea Generation,1. Idea generation,2. Screening,3. Idea evaluation,4.Develo

11、pment,5. Commercial-ization,Step 2: Screening,1. Idea generation,2. Screening,3. Idea evaluation,4.Development,5. Commercial-ization,Step 2: Screening and Types of New Product Opportunities (Exhibit 10-5),1. Idea generation,2. Screening,3. Idea evaluation,4.Development,5. Commercial-ization,Desirabl

12、e products,Pleasing products,Salutary products,Deficient products,Step 3: Idea evaluation,1. Idea generation,2. Screening,3. Idea evaluation,4.Development,5. Commercial-ization,Step 4: Development,1. Idea generation,2. Screening,3. Idea evaluation,4.Development,5. Commercial-ization,Step 5: Commerci

13、alization,1. Idea generation,2. Screening,3. Idea evaluation,4.Development,5. Commercial-ization, 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin,New Product Development,Top management of a large company recently approached the dean of a major business school about starting a specialized MBA pro

14、gram for the companys employees. After further discussions, the dean decided that the program did not fit well with the objectives and resources of the school, so the program was put on the “back burner” until conditions changed. The proposed MBA program was at what stage of the new-product developm

15、ent process when it was shelved? Idea generation Screening Idea evaluation Development Commercialization,Checking Your Knowledge,New Product Development: A Total Company Effort (Exhibit 10-6),New-product success,New Product Development: A Total Company Effort (Exhibit 10-6),Organized new-product dev

16、elopment process,Which of the following statements about new-product development are true? The process should be informal to encourage innovation. The greatest number of product ideas is in the idea evaluation stage. The best criteria for evaluating new product ideas in the early stages is return on

17、 investment (ROI). The process should have top management support. All of the above statements are true.,Checking Your Knowledge,Common in Large Companies,Product/Brand Managers,Some Are “Product Champions”,Need for Product Managers,Managing Product Quality,Total Quality Management is Easier Said Th

18、an Done (Exhibit 10-7),Why Things Go Wrong (Exhibit 10-8),Training Is Crucial,Server Is Linked To the Service,Empowerment Works,Building Quality into Services,Specify Jobs and Benchmark,Managers Lead the Effort,Get a Return on Quality,Other Issues in Quality Implementation Efforts,Understand how product life cycles affect strategy planning. Know what is involved in designing new products and what “new products” really are. Underst