Presented By

Kunal Ghosh
Neha Sanghvi
Rachit Agarwal
S.R.Sriram

Objective
Understand the Importance of customer and
supplier involvement in the development of new
offering
Know the role of marketing in the development
process
Recognition of value network as a powerful tool in
creating market ownership

Product Life cycle

All products and offerings have a limited life
All products and service pass through different stages of life

cycle where organisation faces different threats and

opportunities
Products require different strategy at different life cycle
stages
The Use of technology and manufacturing methods might
help in reducing the cost of providing the product or service

Product Life Cycle and Life Stages of Offering

Offering Development Stage

Offering Introduction Stage
Offering Growth Stage
Offering Maturity Stage
Offering Decline Stage

Offering Development Stage

R&D, Prototyping, Field testing, and trail are done in

this phase
Development partners are used to cut development
costs
Customer inclusion into product development
Training and education about product to customer

Offering Introduction Stage

Profits are negative or near positive

Low sales volume
a learning curve is experienced by the supplier as well

as consumer
Market ownership
Pricing strategy is more on positioning than
profitability
Field marketing and sampling should be used

Offering Growth Stage

Product is accepted and recognised for its increased

value
Development of additional attributes is easier for
competition as cost to develop is less
The reputation for innovation becomes a value
more value addition like warranties and services is
required to differentiate
Success depends on ability to supply in large quantities

Offering Maturity Stage

Offerings become standards

Initial offerings get replaced by next generation

products
Profits rise and competitors have economy of scales
Price is an important factor in marketing mix
Focus is more on protecting market share
Sales volume decline unless replaced by new business

Offering Decline Stage

Weak competitors drop out of market

Strong competitors seek acquisition of others

Price becomes major part of marketing mix
Promotion is reduced to minimal level

Basic New product Development Process

Stage 1 : Idea Generation
B2B marketer can more efficiently anticipate the

customer need for new offerings and solution

New product ideas that could satisfy customer needs are
collected and considered
Stage 2 :Product Screening
The nature of opportunity is weighed against
organisational capabilities and cost
A Ballpark estimate of market needs vs. the new idea is
performed

Basic New product Development Process

Stage 3: Business case Analysis :
The Business plan goes through market and

technical assessment
Revenue and cost are analysed to determine the
financial contribution to each project
Projects which meet minimum financial targets
continue
Products with Customer-supplier collaboration has
assured initial market application

Basic New product Development Process

Stage 4:Product Development
The product technology is developed and refined
Product strategy plans are developed
In B2B ,the product of customer-Supplier Collaboration is custom
product of the customer
Supplier performs R&D while Customer provides input to
operational needs which gives a well defined product
specification
Stage 5: Test Market
A trial launch or Beta test of product performed in limited
market or select customers
product, strategy are fine tuned ,market awareness is created &
feedback is received
In case of some B2B Collaborative relationship Proprietary
disclosure agreement is made

Basic New product Development Process

Stage 6: Product Launch
Promotion: Create awareness, interest, trial
Product education prior launch: articles and features in
technical journal
Launch of product of collaborative effort with customer
must be done with customer concurrence
Stage 7: Hand of to customer education team
High learning or custom products require a team to educate
the customer
Low learning products require less education efforts

Role of marketing in product

development process
Understand the technology in depth
Marketers must know the strength, weakness, value of the technology from the

viewpoint of user

Define and redefine current and future customer needs

Motivate other company departments and organizations

Screen and select ideas from all sources

Marketers should know the intricacies and nuances of their customers

Guide NPD with continuous redefinition of current and future customer needs
Reward the efforts of technical and support staff
Catalyze company resources to get the right talent on the job

Reducing Risk Of Project Failures

The Missing marketing plan
Assumptions are made about technology,
manufacturability, but not on market
No Real Need Exists

Market Size is Overestimated or a Me Too Product

fails to penetrate the market

The Offering Fails To Meet Needs Adequately
The Product was rushed to the market before all the

bugs were worked out

Market Will Not Pay

Contrary Perceptions of Innovation

Make or Buy Decision

How much does the component
contribute to our products value
image in our customers view?
Major
Are we good at it?

Minor

No

Is it our kind of Business?

-Financial Justification
-Risk Assessment
-Stability of Technology

No

Yes
Purchase as a
comodity

Yes
Can we own the market for it?
Yes
Can we or do we want to protect
it?
Yes

Is the component unique

to our markets?

No
No

No
Make it!

Develop
Partnership with
qualified
suppliers
Collaborate in
development with
technology
oriented supplier

Thank You