New product developmentIdea generation: Gathering ideas about product from several sources Idea screening: Evaluating the different generated ideas and selecting product which is feasible & workable to develop Concept testing: Idea is tested among the target customers

Marketing strategy development: How the product will be launched in the marketBusiness analysis: Financial feasibility study

Product development: Transforming the idea into a real product

Test marketing: Launching the product for a test in few selected areas.

Commercialisation: National launch

Product life cycle

Examples:Set out below are some suggested examples of products that are currently at different stages of the product life-cycle:

INTRODUCTION GROWTH MATURITY DECLINE

Third generation mobile phones

Portable DVD Players

Personal Computers

Typewriters

E-conferencing Email FaxesHandwritten letters

All-in-one racing skin-suits

Breathable synthetic fabrics

Cotton t-shirts Shell Suits

Iris-based personal identity cards

Smart cards Credit cardsCheque books

In BCG Matrix:

Market growth rate

The annual growth rate of the industry in which each Product line operates(market attractiveness)

Relative market share is shown on the horizontal axis.

Market share relative to the largest competitor(competitive strength).

Cash flow is dependent on the box in which the product falls.

is on the vertical axis.

BCG Matrix

Star position

Industry growth rate: high (business is in a marketwhich is growing rapidly

Market share: high

Have to be focused in building sales or market share

Resources(cash) should be invested to maintain and increase the leadership position.

Problem children/question mark position

Industry growth rate: high

Market share: low

Strategies:

Increase investment and build the market share to turnto a star.

orWithdraw support by harvesting (raising prices while

lowering market expenditure)

or

Divesting(dropping or selling)or

To find a small market segment where dominancecan be achieved.

Cash cows

Industry growth rate: low

Market share: high

Strategies:

Expenditure can be controlled-need not spend on manufacturing facility or reaching out to new customer segments. High profits due to high market share

Objective should be tohold sales &market share

Dogs

Industry growth rate: low

Market share: low

No profits

Strategies:

Find out any strengths -appropriate for investment to be converted to cash cows.

Closure

Ansoff Product/ Market matrixBusiness attempts to grow-depends on whether it

markets new or existing products in new of existing markets

Market Penetration StrategySelling existing products in existing markets

Objectives:

o Maintain or increase market share of current product

o Secure dominance of growth markets

o Restructure a mature market by driving out competitors

o Increase usage by existing customers

Market development strategy

Selling existing products in new markets

Strategy has different approaches:

o New geographical markets

o New product dimensions

o New distribution channels

o Creating attractive pricing policies.

product development strategy

Introducing new products in existing markets

Require competencies to develop modified product that can appeal existing market

Diversification strategy

Sell new products in new markets

Risky strategy

Marketer must have a clear idea about the gain and the market risks involved.