1. MARKETING AN INTRODUCTION Armstrong/Kotler MARKETING AN INTRODUCTION Armstrong/Kotler 8 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Developing New Products and Managing the Product Life-Cycle 8

2. 8 -2 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter Outline New-Product Development Strategy The New-Product Development Process Managing New-Product Development Product Life-Cycle Strategies Product Decisions and Social Responsibility International Product and Services Marketing

3. 8 -3 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall New-product Development Strategy New-product development is the development of original products, product improvements, product modifications, and new brands through the firm’s own product- development efforts.

4. 8 -4 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall The New-product Development Process فكرة توليدفكرة الفرز تطوير المحتوى والاختبار التسويق استراتيجية التطوير تحليل الأعمال تطوير المنتجاتاختبار التسويق منتج جديد التنمية

5. 8 -5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Idea Generation Internal Idea Sources External Idea Sources

6. 8 -6 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Idea screening Screening new- product ideas in order to spot good ideas and drop poor ones as soon as possible.

7. 8 -7 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Discussion Question Proctor and Gamble (P&G) markets many shampoo products including Head and Shoulders, Pantene, and Wella. What criteria might P&G use when screening ideas?

8. 8 -8 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Concept Development and Testing Product concept is a detailed version of the new-product idea stated in meaningful consumer terms.

9. 8 -9 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Concept Development and Testing Concept testing is testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.

10. 8 -10 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Concept Testing Questions Battery-Powered Electric Car

11. 8 -11 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy Development Step 1 Target market Planned value proposition Sales Market share Profit goals Step 2 Price Distribution Marketing budget Step 3 Long-run sales Profit goals Marketing mix strategy Marketing Strategy Statement

12. 8 -12 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Business Analysis Business analysis is a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives.

13. 8 -13 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Product development Product development is developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering.

14. 8 -14 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Test marketing Test marketing is the stage of new-product development in which the product and marketing program are tested in realistic market settings.

15. 8 -15 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Discussion Question Why might some companies decide NOT to test market their products?

16. 8 -16 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Commercialization Commercialization involves introducing a new product into the market.

17. 8 -17 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Customer-Centered New-Product Development New-product development that focuses on finding new ways to solve customer problems and create more satisfying customer experiences.

18. 8 -18 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Team-Based New-Product Development An approach to developing new products in which various company departments work closely together, overlapping the steps In the product development process to save time and increase effectiveness.

19. 8 -19 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Systematic New-Product Development The new-product development process should be holistic and systematic rather than compartmentalized and haphazard.

20. 8 -20 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Product Life-cycle Strategies

21. 8 -21 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Style, Fashion, and Fads

22. 8 -22 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Summary of Product Life-Cycle Characteristics, Objectives, and Strategies

23. 8 -23 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Summary of Product Life-Cycle Characteristics, Objectives, and Strategies

24. 8 -24 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Additional Product and Service Considerations Product Decisions and Social Responsibility International Product and Services Marketing

25. 8 -25 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Discussion Question How might a pharmaceutical company who has had the FDA recall one of their drugs, best respond to their image of NOT acting socially responsible?