Project/Slides/Presentation Transcript
Topic – New Product Development & Product Life-cycle Stages
Slide 1 – New Product Development & Product Life-cycle Stages
Slide 2 – Causes of New Product Failures
Overestimation of Market Size
Product Design Problems
Product Incorrectly Positioned, Priced or Advertised
Costs of Product Development
Competitive Actions
To create successful new products, the company must:
- understand it’s customers, markets and competitors
- develop products that deliver superior value to customers
Slide 3 – New Product Development Process
- Idea Generation and Screening
- Concept Development and Testing
- Marketing Strategy
- Business Analysis
- Product Development
- Test Marketing
- Commercialization
Slide 4 – New Product Development Process
Step 1 – Idea Generation
Systematic Search for New Product Ideas
- Internal sources
- Customers
- Competitors
- Distributors
- Suppliers
Slide 5 – New Product Development Process
Step 2 – Idea Screening
Process to spot good ideas and drop poor ones
Criteria
- Market Size
- Product Price
- Development Time & Costs
- Manufacturing Costs
- Rate of Return
Slide 6 – New Product Development Process
Step 3 – Concept Development & Testing
- Develop Product Ideas into Alternative Product Concepts
- Concept Testing – Test the Product Concepts with Groups of Target Customers
- Choose the Best One
Slide 7 – New Product Development Process
Step 4 – Marketing Strategy Development
Part One – Overall:
- Target Market
- Planned Product Positioning
- Sales & Profit Goals
- Market Share
Part Two – Short-Term:
- Product’s Planned Price
- Distribution
- Marketing Budget
Part Three – Long-Term:
- Sales & Profit Goals
- Marketing Mix Strategy
Slide 8 – New Product Development Process
Step 5 – Business Analysis
Step 6 – Product Development
Business Analysis
Review of Product Sales, Costs, and Profits Projections to See if they Meet Company Objectives
- If No, Eliminate Product Concept
- If Yes, Move to Product Development
Slide 9 – Last stage of Product Development Process
Step 7 – Test Marketing
StandardTest Market
Full marketing campaign in a small number of representative cities.
Controlled Test Market
A few stores that have agreed to carry new products for a fee.
Simulated Test Market
Test in a simulated shopping environment to a sample of consumers.
Slide 10 – Product Life Cycle
Slide 11 – Introduction Stage of the PLC
Slide 12 – Growth Stage of PLC
Slide 13 – Maturity Stage of the PLC
Slide 14 – Decline Stage of the PLC