CHAPTER 10 Develop A New Product 4/26/2017 CHAPTER 10 Develop A New Product 10.1 What Is a Product? 10.2 Components of a New Product 10.3 Product Market Classifications 10.4 Developing Successful New Products MARKETING
WHAT IS A PRODUCT? GOALS for Lesson 10.1 Explain that, for consumers, products are more than just the tangible objects that are offered for sale. Describe the role of marketers in keeping the focus on consumers during product development.
More Than Just a Tangible Object More than an item Consumers know best
Product Development as a Marketing Function The role of marketing Marketing activities in product development Gathering information Designing strategies Testing marketing mixes The product planning function
Marketing Supports Product Development Gathering Information Designing Effective Marketing Strategies Testing Marketing Mixes Customers Companies Product Development
COMPONENTS OF A NEW PRODUCT GOALS for Lesson 10.2 Show how even a very simple product can be a complex mix of a basic item with assorted features. Describe the three steps of the product design process. Explain the importance of product lines, packaging, and brand development.
Parts of the Product Mix Element Basic product Features Options Services Brand name Packaging Guarantee Uses
Designing a Product Basic product Enhanced product Extended product
Product Mix Components Product line Variation in quantity Variation in quality Assortments Packaging Ease of use Safety Attraction Handling Environment Brand development
Levels of Brand Recognition Non-recognition Consumers are unable to identify the brand. Rejection Consumers will not purchase the product because of the brand. Recognition Consumers can recall the brand name but it has little influence on purchases. Preference Consumers view the brand as valuable and will chose it if it is available. Insistence Consumers value the brand to the extent that they reject other brands.
PRODUCT MARKET CLASSIFICATIONS GOALS for Lesson 10.3 Define consumer markets and describe what is meant by direct demand. Define business markets and explain the business product classification system. Understand the importance of product classifications for product planning.
The Product/Service Classification System The system is based on two factors: The importance of the purchase to the consumer The willingness of the consumer to shop and compare products before making the purchase
Classifying Products for the Consumer Markets Convenience goods Shopping goods Unsought goods Specialty goods
Business Markets Capital equipment Operating equipment Supplies Raw materials Component parts
Planning Products for Consumer and Business Markets Need to know if the customer is the final consumer or a business consumer Some products are sold to both consumer markets and business markets
DEVELOPING SUCCESSFUL NEW PRODUCTS GOALS for Lesson 10.4 Understand what businesses mean by “new” products. Describe the six steps in new product development.
What Is a New Product? Is it really new? Federal Trade Commission regulates the use of the term “new.” Entirely new or changed in an important and noticeable way Six-month time limit
The Steps in New Product Development Idea development Idea screening Strategy development Financial analysis Product development and testing Product marketing