1、Chapter Nine,New-Product Development and Product Life-Cycle Strategies,New-Product Development and Product Life-Cycle Strategies,New-Product Development Strategy New-Product Development Process Managing New-Product Development Product Life-Cycle Strategies Additional Product and Service Consideratio

2、ns,Topic Outline,New-Product Development Strategy,Acquisition refers to the buying of a whole company, a patent, or a license to produce someone elses product New product development refers to original products, product improvements, product modifications, and new brands developed from the firms own

3、 research and development,Two ways to obtain new products,New-Product DevelopmentReasons for new product failure,New-Product Development Process,Major Stages in New-Product Development,New-Product Development Process,Idea generation is the systematic search for new-product ideas Sources of new-produ

4、ct ideas Internal External,Idea Generation,New-Product Development Process,Internal sources refer to the companys own formal research and development, management and staff, and intrapreneurial programs External sources refer to sources outside the company such as customers, competitors, distributors

5、, suppliers, and outside design firms,Idea Generation,New-Product Development Process,Identify good ideas and drop poor ideas R-W-W Screening Framework: Is it real? Can we win? Is it worth doing?,Idea Screening,New-Product Development Process,Product idea is an idea for a possible product that the c

6、ompany can see itself offering to the market Product concept is a detailed version of the idea stated in meaningful consumer terms Product image is the way consumers perceive an actual or potential product,Concept Development and Testing,New-Product Development Process,Concept testing refers to test

7、ing new-product concepts with groups of target consumers,Concept Development and Testing,New-Product Development Process,Marketing strategy development refers to the initial marketing strategy for introducing the product to the market Marketing strategy statement includes: Description of the target

8、market Value proposition Sales and profit goals,Marketing Strategy Development,New-Product Development Process,Business analysis involves a review of the sales, costs, and profit projections to find out whether they satisfy the companys objectives,Marketing Strategy Development,New-Product Developme

9、nt Process,Product development involves the creation and testing of one or more physical versions by the R&D or engineering departments Requires an increase in investment,Marketing Strategy Development,New-Product Development Process,Test marketing is the stage at which the product and marketing pro

10、gram are introduced into more realistic marketing settings Provides the marketer with experience in testing the product and entire marketing program before full introduction,Marketing Strategy Development,New-Product Development Process,Types of Test Markets,New-Product Development Process,Advantage

11、s of simulated test markets Less expensive than other test methods Faster Restricts access by competitors Disadvantages Not considered as reliable and accurate due to the controlled setting,Marketing Strategy Development,New-Product Development Process,Marketing Strategy Development,New-Product Deve

12、lopment Process,Commercialization is the introduction of the new product When to launch Where to launch Planned market rollout,Marketing Strategy Development,Managing New-Product Development,Successful new-product development should be: Customer centered Team centered Systematic,Product Life-Cycle S

13、trategies,Product Life Cycle,Product development Sales are zero and investment costs mount Introduction Slow sales growth and profits are nonexistent Growth Rapid market acceptance and increasing profits. Maturity Slowdown in sales growth and profits level off or decline Decline Sales fall off and p

14、rofits drop,Product Life-Cycle Strategies,Product Life-Cycle Strategies,Product Life-Cycle Strategies,Slow sales growth Little or no profit High distribution and promotion expense,Introduction Stage,Product Life-Cycle Strategies,Sales increase New competitors enter the market Price stability or decl

15、ine to increase volume Consumer education Profits increase Promotion and manufacturing costs gain economies of scale,Growth Stage,Product Life-Cycle Strategies,Slowdown in sales Many suppliers Substitute products Overcapacity leads to competition Increased promotion and R&D to support sales and profits,Maturity Stage,Product Life-Cycle Strategies,Market modifying