Beruflich Dokumente
Kultur Dokumente
Why?
Improving New-Product
Success (pp. 336-337, continued)
New product success depends upon having a:
4. Marketing
Strategy
3. Concept Development
& Testing
Alternative versions,
describe in consumer terms
2. Idea
Screening
5. Business
Analysis
6. Product
Development
Physical product, $$$
7. Test
Marketing
Reduce # quickly
1. Idea
Generation
8. Commercialization
New-Product Development
Step 7. Test Marketing
(pp. 346-349)
Budget levels
Packaging
Branding
Pricing
Product
Elements that
may be test
marketed
Positioning
Advertising
Distribution
5
New-Product Development
Step 7. Test Marketing
(pp. 346-349)
Standard
Test Market
Full marketing effort
in a small number of
representative cities
+ most realistic
+ tests entire strategy
- time consuming, costly
- exposes to competition
Controlled
Test Market
Simulated
Test Market
Test in cooperating
stores with
consumer panel
Test in a simulated
shopping environment
(e.g., laboratory store)
(Nielsen, IRI)
Rapid growth,
competition
Sales
Slow growth
+$
-$
Product
Development
Introduction
Profits
Growth
Growth slows,
Longest stage,
Most marketing
management
Not inevitable:
activity
revive?
reposition?
Maturity
Tim
e
Decline
Shapes:
Product class (e.g., gas-powered automobile) longest
Product form (e.g., minivan) most likely to be standard shape
Brand any shape, can change rapidly
Other shapes: fad, style, extended maturity / no decline, revival
CAUTION: Strategy is both an effect and a cause
Low sales
Costs
Profits
Negative or low
Mktg. Objectives
Product
Price
Usually is high
Distribution
Promotion
Costs
Profits
Rising profits
Mktg. Objectives
Product
Price
Distribution
Promotion
Costs
Profits
Mktg. Objectives
Product
Price
Distribution
Promotion
Declining sales
Costs
Profits
Mktg. Objectives
Product
Price
Cut price
Distribution
Promotion
11
Review of Concept
Connections
Explain how companies find and develop
new-product ideas
List and define the steps in the newproduct development process
Describe test markets, and the 3 types
Describe the stages of the product lifecycle
Describe how marketing strategies change
during a products life-cycle
12