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Product idea can be turned into several concepts with the help of some questions. Who will use the product-infants, children, teenagers, young or middle-aged adults or senior citizens. What primary benefit should this product provide-taste, nutrition, refreshment, energy. When will people consume this drinkbreakfast, midmorning, lunch, midafternoon, dinner, late evening.
Product idea can be turned into several concepts with the help of some questions. Who will use the product-infants, children, teenagers, young or middle-aged adults or senior citizens. What primary benefit should this product provide-taste, nutrition, refreshment, energy. When will people consume this drinkbreakfast, midmorning, lunch, midafternoon, dinner, late evening.
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Product idea can be turned into several concepts with the help of some questions. Who will use the product-infants, children, teenagers, young or middle-aged adults or senior citizens. What primary benefit should this product provide-taste, nutrition, refreshment, energy. When will people consume this drinkbreakfast, midmorning, lunch, midafternoon, dinner, late evening.
Copyright:
Attribution Non-Commercial (BY-NC)
Verfügbare Formate
Als PPT, PDF, TXT herunterladen oder online auf Scribd lesen
*a. Concept Development- • Product idea can be turned into several concepts with the help of some questions. 1. Who will use the product-infants, children, teenagers, young or middle-aged adults or senior citizens. 2. What primary benefit should this product provide-taste, nutrition, refreshment, energy. 3. When will people consume this drink- breakfast, midmorning, lunch, midafternoon, dinner, late evening. a. Concept Development contd. • Concept 1- An instant breakfast drink for adults who want a quick nutritious breakfast without preparation. • Concept 2-A tasty snack drink for children to drink as a midday refreshment. • Concept 3- A health supplement for older adults to drink in the late evening before they go to bed. b. Concept Testing- • It involves presenting the product concept to appropriate target consumers & getting their reactions. • It can be tested symbolically or physically through Rapid Photo typing ( small appliances/toys ) &/or Virtual Reality ( computers & sensory devices ). • It calls for presenting consumers with an elaborated version of the concept. b. Concept Testing contd.- • Consumer responses to the following questions are got- i. Communicability & Believability- are the benefits clear to you & believable. ii. Need Level- do you see this product solving a problem or filling a need for you? -stronger the need, higher the expected consumer interest. iii. Gap Level-do other products currently meet this need & satisfy you ? - greater the gap, higher the expected consumer interest b. Concept Testing contd.- • The need level can be multiplied by the gap level to produce a need-gap score.
• A high need- gap score means that the
consumer sees the product as filling a strong need that is not being satisfied by available alternatives. b. Concept Testing contd.- iv. Perceived Values- is the price reasonable in relation to the value ?- the higher the perceived value, the higher the expected consumer interest. v. Purchase Intention-would you ( definitely, probably, probably not, definitely not ) buy the product. vi. User Targets, Purchase occasions & Purchasing Frequency- who would use this product, when & how often will it be used ? vii. Non acceptance- what can be done to make the product more acceptable. b. Concept Testing contd.- The respondents answers indicate- • Whether the concept has a broad & strong consumer appeal. • What products this new product competes against. • Which consumers are the best targets. • The need –gap levels & purchase- intention levels can be checked against norms for product category to see whether the concept appears to be a winner, a long shot or a loser. 04. Marketing Strategy- • Following a successful concept test, the new-product manager will develop a preliminary marketing strategy plan for introducing the new product into the market.
• This plan consists of three stages.
04. Marketing Strategy contd.- 1. The first part describes the target market’s size, structure & behavior, the planned product positioning; & the sales, market share & profit goals sought in the first few years. 2. The second part outlines the planned price, distribution strategy & marketing budget for the first year. 3. This part describes the long-run sales & profit goals & marketing-mix strategy over time. 05. Business Analysis- • A. Estimating Total Sales
the product is a one-time purchase, an infrequently purchased or a frequently purchased product. 05. Business Analysis contd.- • For one- time purchase products, sales rise at the beginning, peak & later approach decline as the number of potential buyers is exhausted. • Infrequently purchased products exhibit replacement cycles dictated by physical wearing out or by obsolescence. • Frequently purchased products have product life cycle sales. 05. Business Analysis contd.- B. Estimating Costs & Profits- • Costs are estimated by the R & D, Manufacturing & Finance Departments. • One way of doing this analysis is Projected Five-Year Cash-Flow Statement. • Companies also use other financial measures such as Break Even Analysis to evaluate the merit of a new product proposal. • The most complex method of estimating profits is Risk Analysis. • Here 3 estimates-optimistic, pessimistic, & most likely are obtained for each uncertain variable affecting profitability. Cash-flow statement Yr 0 Yr 1 Yr 2 Yr. 3 1.Sales revenue. 000 11,889 15,381 19,654 2. Cost of Goods Sold. 000 3,981 5,150 6,581 3. Gross Margin. 000 7,908 10,231 13,073 4.Development Costs. -3,500 00 00 00 5. Marketing Costs. 00 8,000 6,460 8,255
10.DiscountContr.15% -3,500 -1,113 1,691 1,877 06.Product Development & Testing • At this stage the Co. will determine whether product idea can be translated into a technically & commercially feasible product. • The job of translating target customer requirements into working prototype is helped by a set of methods know as quality function deployment( QFD ) 06. Prod. Devl. & Test. Contd. • QFD takes list of desired customer attributes ( CAs) generated by market research & turns them into list of engineering attributes (EAs) that the engineers can use. • Major contribution of QFD is that it improves communication between marketers, engineers & the manufacturing people. 06. Product Development & Testing • Testing- • After management is satisfied with the functional & psychological performance, the product is ready to be dressed up with a brand name & packaging & put into the market. • New product is introduced into an authentic setting to learn how large market is & how consumers & dealers react to handling, using & repurchasing the product. 6. Product Development & Testing • Testing contd.- • Amount of market testing is influenced by the investment cost & risk on one hand& the time pressure & research cost on the other. • High investment-high risk products, where the chance of failure is high, must be market tested. 06.Testing contd.- • High-risk products-those that create new-product categories or have novel features-warrant more market testing than modified. • Amount of market testing may be severely reduced if Co. is under great time pressure because season is starting or competitors are about to launch their brands. 07. Commercialization- a. When (timing)- ii. First Entry-first mover advantage. iii. Parallel Entry-market may pay more attention when 2 co.s advertising. iv. Late Entry- after the competitor have borne the cost of educating market, faults are revealed & size is learned. 07 Commercialization contd.- • b. Where ( geographic strategy )-
• Co. must decide whether to launch new product in a single locality. A
region, several regions, national or international markets. • Develop Planned Market Rollout over time. • Co. size is important-small cos. Will select an attractive city & they will enter other cities one at a time. Large cos. Will introduce their product into a whole region & then move to the other region. Co’s with national distribution networks will launch in the national markets. • Most cos. Design new products to sell primarily in domestic markets. If it does well, then they consider other markets. • In choosing rollout markets, major criteria are market potential, co’s local reputation, cost of communication media, influence of area on other areas & competition. 07 Commercialization contd.- c. To Whom ( target market prospects ).- • Target initial distribution & promotion to the best prospect groups. • They would be innovators, early adopters, heavy users * opinion leaders & these could be reached at low cost. • Aim being to generate strong sales as soon as possible & to attract further prospect. 07 Commercialization- d. How ( introductory market strategy )- • Co. must develop an action plan for introducing new product into the rollout markets. • To coordinate the many activities involved in launching new product, mgt. can use network-planning techniques such as Critical Path Scheduling which calls for developing master chart showing simultaneous & sequential activities that must take place to launch the product. • By estimating how much time each activity takes, completion time of the entire project can be estimated. • If launch must be completed earlier then reduce time along the critical path.