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New Product Development Process
- 1. Idea generation
- 2. Idea screening
- 3. Concept development
- 4. Marketing strategy development – how are you going to promote this product
- 5. Business analysis – reviewing sales, costs, and other projections for fit of the product to your current product lines
- 6. Product Design
- 7. Test Marketing
- 8. Commercialization – selling the product
- 9. Product life cycle
Keys to successful product development.
- · a superior product
- · Well-defined product concept
- · new product development process
Product Life Cycle Stages
Maslow's Hierarchy of Needs
- 5. Self-Actualization
- 4. Esteem
- 3. Love
- 2. Safety
- 1. Psychological
Marketing Mix (4 P's)
The controllable set of activities that the firm uses to respond to the wants of its target markets.
Define Augmented Product.
- adding customer service to a product.
- ex. warranty
- Basedon physical geographic location of your customers.
- Example: sell heavier jackets in colder locations.
- Based on lifestyle of the consumer.
- Examples: golf, tennis, hiking, etc.
Divides customers into groups based on how they use the product or service.
anything that can be controlled.
macro environmental factors
- the external environment, can't be controlled.
- social issues
- technological advances
- economic situation
- political/regulatory environment
Levels of Market Segmentation
1. Mass marketing – selling one product to everybody (ex. all ages)
2. Segment marketing – isolating a broad segment of the market and adopting to meet those needs
3. Niche marketing – focus on sub-segments or niches and distinctive traits and seek attention (ex. females 19-30)
4. Micro marketing – tailoring products and marketing programs to suite the tastes of specific individuals and locations (ex. wearing clothes made just for you)
Steps in Strategic Planning
- Step 1 Vision and Mission Statement – Develop a
- Vision Statement and translate into a Mission Statement.
- Step 2 Define Company’s Driving Force – know
- which fits your situation.
Step 3 Asses Company’s Strengths and Weaknesses – where are you strong and what areas do you wish to avoid?
Step 4 Scan the Environment Opportunities & Threats – significant opportunities and threats; anticipate threats so you can protect yourself.
- Step 5 Identify Key Factors for Success – what
- makes your company successful?
Step 6 Analyze Competition – know your competition
- Step 7 Create Organization’s Goals & Objectives
- (begin planning at this stage)
- Step 8 Formulate Strategic Options and select
- appropriate strategy:
Step 9 Translate Strategic Plans into Action Plans
- Step 10 Establish Controls – how are you going to
- control it once you’ve done all these things?
What factors influence consumer behavior?
A. Cultural Factors – status, family habits
- B. Social Factors – group of 2 or more people that
- act to accomplish a goal
C. Personal Factors
D. Psychological Factors
Types of Marketing Research and their objective.
- 1. Exploratory Research – define a problem and
- suggest a hypothesis (here’s the problem, here’s a possible solution)
- 2. Descriptive Research – market potential for a
- product, or attitude of customers who buy the product.
3. Causal Research – if you change something, will it change your relationship with customers? Will customers buy more or less?
Identify the 4 Steps of Marketing Research
Step 1 Define the Problem or Research Objective
Step 2 Develop Research Plan
Step 3 Implement Research Plan
Step 4 Interpret Findings & Report (then make suggestions; 2-3 ideas)
- 1. Product Quality
- 2. Product Features
- 3. Product Design
- 4. Branding
- 5. Brand Equity
- 6. Brand Name Selection
- 7. Brand Name Sponsor
- Convenience Products (ex. 7-11)
- Shopping Products (ex. laptop)
- Specialty Products (ex. car)
- Unsought Products (ex. gum, magazines, candy)
- 1. Corporate Image
- 2. Person Marketing – promote celebrity
- 3. Place Marketing – try to change consumer behavior
- 4. Ideas – general and specific idea market
- 1. Raw materials
- 2. Capital equipment
- 3. Supplies & services
- 4. Installation
- 5. Accessories
- 6. Professional Services
Define actual product.
a product built around core product (ex. quality level, features, design, brand name, and packaging)
ex. apple laptop
Define core product.
basic level of products (ex. computer)
Product Positioning Strategies
- 1. Product Attributes – price (lowest, ex. Costco), technology (best, ex. apple)
- 2. Usage – looking at foot traffic
- 3. Users – position where users are located
- 4. Against Competition – next to competition (ex. generic next to brand name)
- 5. Away from Competition – ex. car brands a block or two away from each other with non-competitors in between.
- 6. Combination – serve multiple purposes (which benefit you the most?)
the proccess of evaluating the attractiveness of various segments and then deciding which to pursue as a market.
Types of Segmentation
I. Market Segmentation
II. Market Targeting
III. Positioning for Competitive Advantage
Product Mix Decisions
1.Width - # of different product lines a company offers (ex. GM – Chevy, Cadillac, Buick, GMC, etc.
2. Length - # of items carried within a product line (ex. Chevy – Caprice, Bel Aire, Corvette, trucks, Impala)
3. Depth - # of versions offered of each product (ex. Corvette – roadster/convertible, or coupe)
- 4. Consistency – how close are each product to the
What are internal factors that influence pricing?
definition – things within the organization that guide your pricing
- 1. marketing objectives – what are you trying to accomplish (*most important factor*)
- 2. marketing mix – different products a company offers, want pricing continuity
- 3. cost – how much does it cost