1. Product marketing continued
Product range management
New Product Development

2. Creating a product range
Line extensions
same brand name, same product category, new features ‘lite’ ‘gti’ Levi’s sta-prest, twisted
targeting different segments/needs
Multi-brands
different brand names, same category eg VW/Audi, Thomson/Portland
avoids down/up-market associations
different marketing channels

3. Brand extensions New Brands same brand name, new product categories
eg Virgin , Ministry of Sound CDs
exploiting ‘brand values’
New Brands
new category with no relevant associations
diversification

4. Case Study Parent company Line extensions Brand extension
Parent company
Line extensions
Brand extension
Multi-branding
New brands

5. Product Portfolio management
Used to allocate marketing resources
analyse products by
market share
market growth

6. The Boston matrix Market share Low High Stars Problem children Market
growth
Dogs
Cash cows
Low

7. The Boston matrix Market share Low High Problem children Stars Market
growth
Growth
Polish
Introduction
Feed
Dogs
Cash cows
Maturity
Milk
Decline
Shoot
Low

8. Where do new ideas come from?
Pressures to
cut costs
Changing
customer
needs
New
technologies
Creative
response
Adapting
concepts
from other
sectors/countries
Copying
the competition
‘me too’ products
eg from a PEST analysis

9. The New Product Development Process
Idea generation
Screening
Concept testing
Business Analysis
Development
Market testing
Commercialisation

10. Idea generation Take a fresh look at
Customer Benefits - what do they really want?
Product Attributes - why do they choose?
Delivery systems - can we meet the needs in a better way (technology, service, image)?
There are no new leisure products
only new ways of delivering the same benefits

11. Idea screening
Need?
Market?
Capability?
Compatibility
Profitability?