2. Product Management

3. New Products Product Life Cycle New Product Development Process Innovations and Their Diffusion

4. Product Life Cycle

5. Product Life Cycle: Introduction Characteristics –Low Sales, High Costs, Losses, Few Competitors, and Few Customers Marketing Mix –Basic Product –Penetration v. Skimming Price –Build Distribution –Build Awareness

6. Product Life Cycle: Growth Characteristics –rapid growth in sales, growing competitors, profits peak late in this stage Marketing Mix –Some product extensions –Penetration pricing –Build distribution –Build awareness

7. Product Life Cycle: Maturity Characteristics –Sales peak, low cost per customer, high profits, stable competitor and customer base Marketing Mix –Diversify product –Competitive pricing –Build distribution –Selective demand stimulation

8. Product Life Cycle: Decline Characteristics –Declining sales, declining profits, declining competitors, laggard customers Marketing Mix –Trim product line –Cut price –Selective distribution –Reduce advertising: milking/harvest strategy

9. New Product Development Process Idea Generation Idea Screening

10. New Product Development Process Concept Development and Testing

11. New Product Development Process Marketing Strategy Development –Target market, positioning, and short term goals –Price, distribution, and marketing budget –Long-term forecasts for sales, profits, and marketing mix

12. New Product Development Process Product Development –Bench Test Test Marketing Commercialization

13. Innovations Continuous: blue power crystals Dynamically Continuous: Somewhat disruptive (Flash Memory, PDA, Blue Tooth) Discontinuous: television, PC, ?