Beruflich Dokumente
Kultur Dokumente
Learning Objectives
After studying this chapter, you should be able to:
Copyright 2005 Pearson Education Inc.
11.2
Explain how companies find and develop new-product ideas List and define the steps in the new-product development process
Describe the stages of the product life cycle Describe how marketing strategies change during the products life cycle
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Internal sources: brainstorming External sources: customers, competitors, distributors and suppliers
Figure 11.1
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Figure 11.1
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Product development:
developing the product concept into a physical product Large investment Building a prototype Testing for safety, durability, and acceptability
Figure 11.1
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Figure 11.1
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Figure 11.1
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Figure 11.2
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given field
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Introduction
Low High cost per customer Negative Innovators Few
Growth
Rapidly rising sales Average cost per customer Rising profits Early adopters Growing number
Maturity
Peak Low cost per customer High profits Middle majority Stable number
Decline
Declining sales Low cost per customer Declining profits Laggards Declining number
Marketing objectives:
Create product awareness and trial Maximize market share Maximize profit & defend market share Reduce expenditure & milk brand
Strategies:
Product Price Distribution Advertising Sales promotion Offer basic product Use cost-plus Build selective distribution Build awareness early adopters/dealers Heavy sales promotion to entice trial Offer product extensions, service Price to penetrate market Build intensive distribution Build awareness & interest mass market Reduce promotion due to heavy demand Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits Increase to encourage brand switching Phase out weak items Cut price
Selective; phase out unprofitable outlets Reduce to level needed to retain hard-core loyal Reduce to minimal level
Source: Philip Kotler and Peggy Cunningham, Marketing Management: Analysis, Planning, Implementation, and Control, Canadian 11th Edition, Pearson Education Canada, Toronto, Ontario, 2004, p. 347
In Conclusion
The learning objectives for this chapter were:
Copyright 2005 Pearson Education Inc.
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Explain how companies find and develop new-product ideas List and define the steps in the new-product development process Describe the stages of the product life cycle Describe how marketing strategies change during the products life cycle