copyright 2007, prentice-hall, inc. 8-1 figure 8-1 major stages in new-product development process
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Copyright 2007, Prentice-Hall, Inc. 8-1
Figure 8-1Major Stages in New-Product
Development Process
Copyright 2007, Prentice-Hall, Inc. 8-2
Generating New Product Ideas
The Industrial Scientific Corporation uses its Web site to solicit new product ideas from customers or other visitors. Visit the Web site to see what information is solicited.
Marketing in Action
http://www.indsci.com/sup_NewProd.asp
Copyright 2007, Prentice-Hall, Inc. 8-3
Concept TestingThe Concept Board is a consulting firm that assists clients such as Mott’s, Citibank, HBO, IBM, Post, and others in verbalizing / visualizing product concepts for consumer testing.
Marketing in Action
http://theconceptboard.com/index.html
Copyright 2007, Prentice-Hall, Inc. 8-4
Pair up with another student and assume that you are in charge of the concept testing for the product shown at right.
What questions would you ask of consumers who are evaluating this product concept?
Let’s Talk!
Copyright 2007, Prentice-Hall, Inc. 8-5
Marketing Strategy Statementfor Daimler Fuel-Cell=Powered Car
The target market is younger, well-educated, moderate-to-high-income individuals, couples, or small families seeking practical, environmentally responsible transportation. The car will be positioned as more economical to operate, more fun to drive, and less polluting than today’s internal combustion engine or hybrid cars. It is also less restricting than batter-powered electric cars, which must be recharged regularly. The company will aim to sell 100,000 cars in the first year, at a loss of not more than $15 million. In the second year, the company will aim for sales of 120,000 cars and a profit of $25 million.
Marketing in Action
Copyright 2007, Prentice-Hall, Inc. 8-6
Test Marketing• Product / marketing
program introduced in more realistic market setting.
• Not for all products.• Can be expensive
and time consuming, but better than making a major marketing mistake.
After test marketing the “Go Active” meal (an adult happy meal) in 150 markets in Indiana, McDonald’s decided to sell it across the U.S.
Copyright 2007, Prentice-Hall, Inc. 8-7
Figure 8-2Sales and Profit over the Product’s Life
from Inception to Decline
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Figure 8-3Styles, Fashions, Fads
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Modifying the Market
WD-40 invites visitors to its Web site to join the fan club. Fan club members can access a list of 2,000 uses for WD-40, and are invited to share their own stories.
Marketing in Action
http://fanclub.wd40.com/login_home.cfm
Copyright 2007, Prentice-Hall, Inc. 8-10
Modifying the Product
Gillette’s Fusion razor combines a precision trimmer blade (on back) with a five blade shaving surface (on front). The flexible comfort guard and Enhanced Indicator Lubrastrip (containing vitamin E and aloe) enhance shaving comfort.
Marketing in Action
http://www.gillette.com/homepage.asp
Copyright 2007, Prentice-Hall, Inc. 8-11
Maturity Stage of PLC
• Modifying the Marketing Mix: – Improving sales by
changing one or more marketing mix elements.
• How? – One method is to
launch aggressive sales promotion programs, such as rebates.