© 2009 south-western, cengage learningmarketing 1 chapter 10 developing successful products...
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© 2009 South-Western, Cengage LearningMARKETINGMARKETING
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Chapter 10
DEVELOPINGDEVELOPINGSUCCESSFUL PRODUCTSSUCCESSFUL PRODUCTS
10-1 Starting with a Product
10-2 Components of Product Mix Elements
10-3 Products for Consumers and Businesses
10-4 New Products Development
CHAPTER
10
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Focus Questions:What is your initial impression
when first seeing this ad?Why do you believe NTT Do
Co Mo chose to use the image of the Roman aqueducts to introduce its new cell phone technologies?
After studying the ad, do you understand the product being advertised?
What additional information would you need to determine if you are interested in the company’s products?©
NT
T D
O C
O M
O U
SA
, IN
C.
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 10
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STARTING WITHA PRODUCT
GOALSGOALSExplain how customers view products.Describe how marketers keep a
consumer focus during product development.
10-1
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A Product Is More It Appears
More than a physical productConsumers know best
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 10
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Product Development as a Marketing Function
The role of marketing Marketing activities in product
developmentGather informationDesign strategiesConduct marketing test
The product planning function
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COMPONENTS OFTHE PRODUCT MIX ELEMENT
GOALSGOALSDescribe the parts of the product mix
element.Outline the three steps of the product
design process.Explain the importance of product lines,
packaging, and brand development.
10-2
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Parts of the Product Mix Element
Basic productFeaturesOptionsServices
Brand namePackagingGuaranteeUses
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The Levels of Product Design
Basic productEnhanced productExtended product
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Product Mix Components
Product lineVariation in quantityVariation in quality
Product assortments
PackagingEase of useSafetyAttractionHandlingEnvironment
Brand development
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Levels of Brand Recognition
Non-recognition Consumers are unable to identify the brand.
Rejection Consumers will not purchase the product because of the brand
Recognition Consumers can recall the brand name but it has little influence on purchases.
Preference Consumers view the brand as valuable and will chose it if it is available.
Insistence Consumers value the brand to the extent that they reject other brands.
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PRODUCTS FORCONSUMERS AND BUSINESSES
GOALSGOALSDefine consumer markets and describe what
is meant by direct demand.Explain the the importance of the business
product classification system.Provide examples of how product
classifications are used in product planning.
10-3
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The Consumer Purchase Classification System
The system is based on two factors:The importance of the purchase to the
consumerThe willingness of the consumer to shop
and compare products before making the purchase
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Classifying Products for the Consumer Markets
Convenience goods Staple ImpulseEmergency
Shopping goodsSpecialty goods
Attribute-based Price-based
Unsought goods
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Business Markets
Capital equipmentOperating equipmentSuppliesRaw materialsComponent parts
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Planning Products for Consumer and Business Markets
Need to know if the customer is the final consumer or a business consumer
Some products are sold to both consumer markets and business markets
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NEW PRODUCTSDEVELOPMENT
GOALSGOALSUnderstand what businesses mean by
“new” products.Describe the six steps in new product
development.
10-4
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What Is a New Product?
Is it really new?Federal Trade Commission regulates
the use of the term “new.”Entirely new or changed in an important
and noticeable waySix-month time limit
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The Steps in New Product Development
Idea developmentIdea screeningStrategy developmentFinancial analysisProduct development and testingProduct marketing