New Product Strategy Product Management GLOBAL MARKETING New Product Strategy Product Management
Understanding the Product Augmented product Generic product Core benefit Expected product Potential product
Product Classifications Durability & tangibility classification Nondurable goods Durable goods Consumer goods classification Convenience goods Shopping goods Specialty goods Industrial goods classification Material and parts Capital items Supplies and business services Distribution classification Local/regional products National products International/global products
Product Mix (Product Assortment) The set of all products and items that a particular marketer offers for sale. Width—number of different product lines Length—total number of items in the mix Depth—how many variants of each product are offered Consistency—how closely related the product lines are with respect to end use, production requirements, distribution channels, etc.
Product Line Management Product line analysis Product line length Line modernization Line featuring Line pruning
New Product Development There are thousands of new product launches every year: ≈ 25,000 Expensive to launch new product High failure rate: only about 56% of new products will still be around five years after introduction Recent studies put the failure rate of US consumer products at 95% and European consumer products at 90% Long-term survival of firm is tied into new product development
What is an innovation? An idea, process, or invention that is new or different. Continuous Innovation Dynamically Continuous Innovation Discontinuous Innovation Product-Oriented Definition of Innovation
Types of New Products New-to-the-world products New product lines Additions to existing product lines Improvements and revisions of existing products Re-positionings Cost reductions
New Product Development Process Lengthy Multidisciplinary Market-oriented
Stages in Development Process Idea generation Idea screening Concept development Concept testing Marketing strategy development Business analysis
Managing New Products Product development Quality function deployment Preferences Cost Laws & regulations Compatibility Labeling & instructions Alpha testing Beta testing Market testing Estimate trial, first repeat purchase, adoption, and purchase frequency Commercialization Product launch
Country-of-origin issues Is the country image favorable or unfavorable to potential customers?