Product Development SERM #50
ProductS Tangible Intangible Consumer good Business good Good Service Baseball Intangible Service Watching a professional baseball game Consumer good Purchased and used by consumer for personal use Business good Purchased by organization for their use
Product Line & Item Product line Product item All Nike shoes Specific model Size of a product
Core v. Ancillary Core Product: Ancillary Product: Main product i.e. Sports event, Movie, Stage Show, Book Ancillary Product: A product related to or created from the core product i.e. Movie-based Roller Coaster, Movie on DVD
Primary Functions of Marketing Sports Products Entertainment Products
Sports Products the goods and services designed to provide benefits to a sports spectator, participant or sponsor
The Sports Product Licensed merchandise Participation Entertainment Equipment and apparel Promotional items Sports facilities Marketing research Management services
The Sports Product
Entertainment Product The entertainment industry’s top revenue producing products and services
The Entertainment Product Film & Cinema Television Music & Concerts Radio Video Games Theme Parks Publications Newspapers Books Magazines
Product Development Step 1: SWOT Analysis Step 2: Idea Generation Strength, Weaknesses, Opportunities, Threats Helps develop a product to match company objectives Step 2: Idea Generation Generating new product ideas Consumers, employees, research and development submit ideas Study the competition i.e. Nike studies New Balance youth baseball cleats and creates their own Nike version of the cleat Step 3: Screening and Evaluation Product idea is evaluated: Is the necessary technology is available? Does it meet the objectives of the company? Focus Group – group of 6-10 consumers who discuss the product
Product Development Step 4: Business Analysis Step 5: Development Financial aspects are reviewed What is needed to take this product to the market? What legal factors need to be analyzed? Copyright, patented products Step 5: Development Prototype – first model of product Test product capabilities to determine production cost Technical problems, quality, and safety addressed
Product Development Step 6: Test Marketing Step 7: Commercialization Product tested in marketplace Offer product for sale in small geographic area Test all aspects of Marketing Mix Product, Place, Price, Promotion Not all products go through this step because of cost Step 7: Commercialization Commercialization – process that involves producing and marketing a new product Offered for sale in marketplace to final consumer Full-scale production launches Product Life Cycle begins
Conclusion Tangible vs. Intangible Product line vs. Product item Core Product vs. Ancillary Product 7 steps of Product Development: SWOT Analysis Idea Generation Screening & Evaluation Business Analysis Development Test Marketing Commercialization
VIDEO EXAMPLE http://blog.ted.com/2013/11/21/a-littlebit-rock-n-roll-reggie-watts-rocks-the-newly-launched-synthkit-and-electronic-music-goes-mini-modular/ http://www.ted.com/talks/ayah_bdeir_building_blocks_that_blink_beep_and_teach#t-305134
CLASS Activity With a partner, design a new product for a SER industry: Take the product through EACH stage of product development. 7 steps of Product Development: SWOT Analysis Idea Generation Screening & Evaluation Business Analysis Development Test Marketing Commercialization Explain why the company would want to introduce your new product. Be specific in your explanation. You must include a prototype of your product.