Chapter Ten Product Management and New-Product Development 組別：第七組 組員： 黃彥傑 葉人瑋

Managing Products over Their Life Cycles Product life cycle has four major stages

Market introduction investing in the future Market growth — profits go up and down Market maturity — sales level off, profits continue down Sales decline — a time of replacement Managing Products over Their Life Cycles

Product Life Cycles Should Be Related to Specific Markets Individual brands may not follow the pattern Each market should be carefully defined

Product Life Cycles Vary in Length Some products move fast Product life cycles are getting shorter The early bird usually makes the profits The short happy life of fashions and fads

Planning for Different Stages of the Product Life Cycle

Length of cycle afects strategy planning Introducing new products Pioneer may need help from competitors New product sales may not take off Planning for Different Stages of the Product Life Cycle

Managing maturing products Improve the product or develop a new one Develop new strategies for different markets Phasing out dying products Planning for Different Stages of the Product Life Cycle

Managing maturing products

New-Product Planning ＊ What is a new product ？ A new product is one that is new in any way for the company concerned. ＊ Ethical issues in new product planning New product decisions-and decisions to abandon old products-often involve ethical considerations.

An Organized New-Product Development Process Is Critical

＊ Process tries to kill new ideas- economically An important element in this new-product development process is continued evaluation of a new idea ’ s likely profitability and return on investment.

＊ Step 1 ： Idea generation New idea can come from a company ’ s own sales or production staff, middlemen, competitors, consumer surveys, or other sources such as trade associations, advertising agencies, or government agencies.

＊ Step 2 ： Screening Screening should consider how the strategy for a new product will hold up over the whole product life cycle. Consumer welfare Safety Product liability ROI

＊ Step 3 ： Idea evaluation Concept testing-getting reaction from customers about how well a new product idea fits their needs.

＊ Step 4 ： Development Product New service Test-marketing

Step 5 ： Commercialization Decide product form or line Complete marketing mix Approve an ROI estimate

New-Product Development ： A Total Company Effort ＊ Top-level support is vital ＊ Put someone in charge A new – product development department or team （ committee ） from different departments may help ensure the ideas quickly brought to market.

＊ Market needs guide R&D effort New-product ideas come from scientific discoveries and new technologies. ＊ A complicated integrated effort is needed

Need for Product Managers ＊ Product variety leads to product managers Someone should be put in charge of new- product planning to be sure it is not neglected when many new products are being developed.