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APPLE: THE WORLD-CLASS NEW-PRODUCT MACHINE Apple’s Innovation Machine

Product Services Ideas WHAT ARE PRODUCTS AND SERVICES? GOODS, SERVICES, AND IDEAS Product Services Ideas 10-3

WORLD IS CHANGING VIRTUAL REALITY

How a consumer product is classified affects which products consumers buy and the marketing strategies used 10-5

How a consumer product is classified affects which products consumers buy and the marketing strategies used 10-6

Business Products WHAT ARE PRODUCTS AND SERVICES? CLASSIFYING PRODUCTS Raw Materials Manufactured Materials Component Parts Capital Equipment Accessories MRO supplies

Thousands of Brands and SKUs PRODUCT PORTFOLIOS Thousands of Brands and SKUs

The degree of “newness” in a new product affects the amount of learning effort consumers exert to use the product Incremental Radical 10-9

FIGURE 10-3 Seven stages in the new-product process leading to success 10-10

NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL Marketing Reasons for New-Product Failures Insignificant Points of Difference Not satisfying Customer Needs on Critical Factors Bad Timing Too Little Market Attractiveness Poor Product Quality Poor Execution of the Marketing Mix No Economical Access to Buyers Incomplete Market and Product Protocol 10-11

NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL What Were They Thinking? Organizational Problems in New-Product Failure Not Listening to the “Voice” of the Consumer Skipping Steps in the New-Product Process Marketing a Poorly Conceived Product Too Quickly “Groupthink” in Task Force & Committee Meetings Not Learning Lessons From Past Failures 10-12

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FIGURE 11-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions Examples? 11-15

FIGURE 11-3 Alternative product life cycle curves based on product types 11-16

ROLE OF A PRODUCT MANAGER Product Modification Product Bundling New Characteristics Market Modification Finding New Customers Increasing a Product’s Use 11-17

ROLE OF A PRODUCT MANAGER Product Modification Product Bundling New Characteristics Market Modification Finding New Customers Increasing a Product’s Use 11-18

BRANDING AND BRAND MANAGEMENT BRAND EQUITY

BRANDING AND BRAND MANAGEMENT BRAND PERSONALITY - ASSOCIATIONS

BRANDING AND BRAND MANAGEMENT BRAND AWARENESS Remind students what they have learned about consumer behavior. When consumers recognize a need, they begin with an internal search, during which they consider any brand they already know. If consumers are not aware of the brand, they simply will not purchase it. © 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

BRANDING AND BRAND MANAGEMENT PERCEIVED VALUE Discussion question How do organic brands create value for customers? Consumers report looking for and purchasing more organic products for a variety of reasons, such as concerns about health, the environment, and safety. Organic products often cost more but are perceived as more valuable by some because they mitigate these concerns. © 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

BRANDING AND BRAND MANAGEMENT BRAND LOYALTY Consumers report looking for and purchasing more organic products for a variety of reasons, such as concerns about health, the environment, and safety. Organic products often cost more but are perceived as more valuable by some because they mitigate these concerns. © 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Valuing Brand Equity BRANDING AND BRAND MANAGEMENT Provides a Financial Advantage Brand Licensing 11-24

FIGURE 11-7 Alternative branding strategies 11-25

Brand Growth Strategies New Product Flanker Brand Franchise Extension Line Extension

Using Packaging to Create Value How can firms use packaging to create value for customers and the firm? © 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin