Company LOGO Product Development BMI3CMr. Whiler

The Marketing Mix is... pp pp  “… The combination of product, price, placement and promotion used to encourage a consumer to buy a product”  (pg21) Also known as: The 4 Ps  We will now look at each of these elements in greater detail

5.1 Marketing & Product Development  Marketing research determines what customers want and indicates whether viable business opportunities exist  However, before a product is developed two questions need to be asked:  Can it be produced?  Can it be sold?  VIDEO Race for the Electric Car – from 60 Minutes cbsnews.com VIDEO

 Can it be produced:  Is it possible to produce it with available facilities and technology?  Is it possible to produce it with new facilities and technology?  What are the costs involved? 5.1 Marketing & Product Development

 Can it be sold?  Can it be priced so consumers will buy it?  Can it be distributed?  What are the promotion costs?  What are the geographic, demographic and psychographic issues? 5.1 Marketing & Product Development

 Marketing and Production Cooperation  These two groups need to work very closely together  Marketers need to know whether products are possible  The production team needs to know what products are desired  A feasibility study is done to determine whether it is possible, practical and viable  Prototypes can be made, test marketing done

5.2 Invention or Innovation?  Businesses can address consumers’ problems with existing solutions or new ones  There are two broad types of new solutions: invention and innovation  Invention  new devices, methods, or processes developed from study or experimentation  What are some Canadian inventions Top Canadian InventionsTop Canadian Inventions

5.2 Invention or Innovation?  Innovation  a product or service that uses new technology, items or processes to:  Change existing products  Change the methods used to produce products  Change the ways used to distribute products  Example: computerized tax returns

5.3 Product Development  There are 8 stages a marketer must go through to bring a new product to market

5.3 Product Development 1.Idea Generation 1. Marketing Research reveals a need 2. New product created or existing one modified with new features / packaging / design 2.Idea Screening 1. Test consumer reaction and competitive situation 3.Concept Development 1. Develop ideas 2. Prototypes (a sample of what a product might look like and how it might operate) 3. Test Marketing -> finding out if customers like it

5.3 Product Development 4.Market Strategy 1. Determine primary & secondary markets 2. Develop marketing plan to reach these markets 5.Feasibility Study 1. Can the product be made and sold profitably? 6.Product Design 1. Product’s look and features must fit with primary market 2. Peripherals too: packaging, warranties, manuals, service info

7.Test Marketing 1. Gather primary data from target market 2. If positive results, product may be launched 8.Market Entry 1. Product enters the market and is “for sale” 2. Consumers than determine how long it will last on the market 5.3 Product Development

Assignment Scenario  You are on the marketing team for the Kid Control Company  Your company has created the first remote control that controls children. (These remote controls are effective only on the buyers’ children, not other children.)  The management team thinks that this product will appeal to parents with children between the ages of 1 and 18.

Task  The management team wants to offer two remote control models.  Your responsibility is to develop one remote control that offers standard features and one that offers optional features.  Working with a partner, develop the features of both models. (keep your target market in mind!)  On the computer, draw a picture of your product (one with the standard features and one with the optional ones)  Each pair will ‘introduce’ their product to the class Assignment