1. Chapter 13 Marketing in Today’s World
Market Research and Product Development

2. Market Research
Market Research: the gathering and analysis of information on the size, location, and makeup of a market
This helps businesses discover consumers’ wants and needs
Marketing Concept: involves determining the wants and needs of customers and providing them more efficiently and effectively than competitors
Demographics: Facts about the population.
Include age, gender, location, and income
This information comes from surveys, sales figures for current products, databases, and the census.
Target Marketing: helps companies focus on the people most likely to buy their goods or services
Market Segmentation: the division of a market for a product into groups of customers who have the same needs and traits

3. The Seven Steps of Product Development
Step 1: Generate Ideas
Step 2: Screen Ideas
Step 3: Develop a Business Plan
Step 4: Develop the Product
Step 5: Test-Market the Product
Step 6: Introduce the Product
Step 7: Evaluate Customer Acceptance

4. Step 1: Generate Ideas
Brainstorming: getting together with others to come up with new ideas for products
People from Development dept., market research staff, and even outside researchers may be involved

5. Step 2: Screen Ideas Evaluation of each idea
Do they fit the company’s mission and strategy?
Does it compete with an existing product the company already has?
Likes and Dislikes from consumer surveys
Responses to surveys determine if a company goes through with the proposed product

6. Step 3: Develop a Business Plan
Once it passes the screening, it can be developed into a business plan.
This written proposal takes a look at the market, estimated sales, costs, profit potential, market trends, and competing products

7. Step 4: Develop the Product
Develop a prototype
Prototype: a model of the actual product.
Used to see what the actual product will look like
Tests how it can be made
Changes can be made

8. Step 5: Test-Market the Product
Test-market: to offer it in a limited market for a limited time
The goal is to collect customers’ responses to see if the product is likely to be a success.
Must be done in limited time to prevent competitors from developing the same type of product.

9. Step 6: Introduce the Product
Ready for the marketplace
Publicity campaign to introduce the product
Short time in the market before competitors enter with similar products
Especially true after a product becomes successful

10. Step 7: Evaluate Customer Acceptance
Marketers track customers and their responses to the product
Information is used in company reports and research/development plans
If customers like the new product the company will continue to produce it, if not, then the product may not be on the market long

11. Homework Review the questions on pg. 227, 1-3
Complete the Ch Reading Activity
Homework due Friday
Quiz Friday