1. New Product Development and Product Life-Cycle Strategies

2. New Product Development Development of new products through the firm’s own research and development efforts New product - Original products, product improvement and modifications, and new brands Creating successful new products requires: Understanding consumers, markets, and competitors Developing products that deliver superior value to customers

3. New Movies

4. AVATAR Coming to Disney Parks

5. New-Product Failures Overestimation of market size Design problems Incorrect pricing or positioning High development costs Competitor reaction Each product failure represents squandered dollars and hopes

7. Major Stages in New Product Development

8. Idea Generation Systematic search for new product ideas Internal idea sources: Intrapreneurial programs Internal social networks External idea sources: Competitors Customers Distributors and suppliers

9. Idea Generation Crowdsourcing: Inviting broad communities of people into the new product innovation process

10. Idea Screening Screening new product ideas to spot good ones and drop poor ones as soon as possible Ways of screening new ideas: New idea write-up reviewed by a committee R-W-W framework–Real, win, worth doing

11. Product Concept A product concept is a detailed version of the new product idea stated in meaningful consumer terms. A product idea is an idea for a possible product that the company can see itself offering to the market. A product image is the way a product is perceived by consumers.

12. Concept Development Developing a new product into alternative product concepts Find out how attractive each concept is to customers Choose the best one

13. Concept Testing Testing a group of target consumers to find out the degree of consumer appeal toward the concepts Methods: Presenting the concepts to consumers symbolically or physically or with a word or picture description Asking customers about their reactions to the concepts

14. Marketing Strategy Development Initial marketing strategy for a new product The marketing strategy statement Describes the target market, the planned value proposition, and the sales, market-share, and profit goals for the first few years Outlines the planned product price, distribution, and marketing budget for the first year Describes the planned long-run sales, profit goals, and marketing mix strategy

15. Business Analysis and Product Development Business analysis: Review of the sales, costs, and profit projections for a new product To find out whether the projections satisfy the company’s objectives Product development: Develop the product concept into a physical product To ensure that the product idea can be turned into a workable market offering

16. Test Marketing The product and its proposed marketing program are introduced into realistic market settings. Gives the marketer an experience with marketing a product before the introduction Tests the product and its marketing program Costs can be high Time consuming

17. Test Marketing Alternatives to standard test markets Controlled test markets Simulated test markets Reasons for using alternative test markets Reduce the costs of test marketing Speed up the process

18. Commercialization Introducing a new product into the market Considerations for launching a new product Time Place Single location, region, national market, or international market

19. Managing New Product Development Requires a holistic approach Customer-centered new product development Team-based new product development Systematic new product development

20. Customer-Centered New Product Development Focuses on finding new ways to solve customer problems and create more customer- satisfying experiences

21. Team-Based and Systematic New Product Development Various company departments work together, overlapping the steps in the product development process. Saves time and increases effectiveness May create more organizational tension and confusion than a sequential approach Team-based new product development Innovation management systems collect, review, evaluate, and manage new product ideas. Avoids the surfacing and sputtering of ideas Helps create an innovation-oriented company culture Yields a larger number of new product ideas Systematic new product development

22. Sales and Profits over the Product’s Life from Inception to Decline

23. Styles, Fashions, and Fads

25. Summary of Product Life-Cycle Characteristics and Objectives

26. Summary of Product Life-Cycle Strategies

27. Product Decisions and Social Responsibility Considerations for companies Public policy issues Regulations regarding acquiring or dropping products Patent protection Product quality and safety Product warranties

28. International Product and Services Marketing Challenges To find what products and services to introduce and in which countries To decide on how much to standardize or adapt the products and services for world markets