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Week 09 New Product Development and PLC

1) The document discusses new product development strategies including acquiring new products, developing original products through research and development, and improving existing products. 2) It outlines the major stages of the new product development process including generating ideas, developing the product concept, testing the product, and commercializing the product. 3) Successful new product development should be customer-centered, team-based, and systematic according to the document.

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Kamil
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19 views15 pages

Week 09 New Product Development and PLC

1) The document discusses new product development strategies including acquiring new products, developing original products through research and development, and improving existing products. 2) It outlines the major stages of the new product development process including generating ideas, developing the product concept, testing the product, and commercializing the product. 3) Successful new product development should be customer-centered, team-based, and systematic according to the document.

Uploaded by

Kamil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 15

Fundamentals of Marketing

Week 9
New Product
Development
and Product Life-Cycle Strategies

9-1
New Product Development Strategy

Ways to Obtain New Products


Acquisition refers to the buying of a whole company, a
patent, or a license to produce someone else’s
product.

New product development refers to original products,


product improvements, product modifications, and
new brands developed from the firm’s own research
and development.

9-2
New Product Development Process
Major Stages in New Product Development

Product Ideas

t
Developmen
FIGURE | 9.1

9-3
New-Product Development Process
Types of Test Markets

Standard test markets


Controlled test markets
Simulated test markets
New Product Development Process
Test Marketing
Marketing Strategy Development

When test marketing When test marketing


is likely is unlikely

• New product with • Simple line


large investment extension
• Uncertainty about • Copy of competitor
product or product
marketing program • Low costs
• Management
confidence

9-5
Managing New Product Development

Successful new product development should be:


• Customer centered
• Team based
• Systematic

9-6
Product Life-Cycle Strategies

FIGURE | 9.2

9-7
Product Life-Cycle Strategies
• Product development
• Zero sales and increasing investment costs
• Introduction
• Slow sales and nonexistent profits
• Growth
• Rapid market acceptance and increasing profits
• Maturity
• Slow sales growth and profits level off or decline
• Decline
• Sales fall off and profits drop

9-8
Product Life-Cycle Strategies

FIGURE | 9.3

9-9
Product Life-Cycle Strategies
Introduction Stage

• Slow sales
growth
• Little or no
profit
• High
distribution
and
promotion
expenses 9-10
Product Life-Cycle Strategies
Growth Stage

• Sales increase
• New competitors enter the market
• Profits increase
• Economies of scale
• Consumer education
• Lowering prices to attract more
buyers

9-11
Product Life-Cycle Strategies
Maturity Stage

• Slowdown in sales
• Many suppliers
• Substitute products
• Overcapacity leads to
competition
• Increased promotion and R&D to
support sales and profits

9-12
Product Life-Cycle Strategies
Maturity Stage
Modification Strategies

• Modify the market


• Modify the product
• Modify the marketing mix

9-13
Product Life-Cycle Strategies
Decline Stage

• Maintain the product


• Harvest the product
• Drop the product

9-14
Fundamentals of Marketing
Terms to know

• New Product Development Strategy

• New Product Development Process

• Types of Test Markets

• Managing New Product Development

• Product Life-Cycle Strategies

9-15

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