1. SERM #50 PRODUCT DEVELOPMENT

2. PRODUCTS Tangible Good Baseball Intangible Service Watching a professional baseball game Consumer good Purchased and used by consumer for personal use Business good Purchased by organization for their use

3. PRODUCT LINE & ITEM Product line All Nike shoes Product item Specific model Size of a product

4. CORE V. ANCILLARY Core Product: Main product i.e. Sports event, Movie, Stage Show, Book Ancillary Product: A product related to or created from the core product i.e. Movie-based Roller Coaster, Movie on DVD

5. PRIMARY FUNCTIONS OF MARKETING Sports Products Entertainment Products

6. SPORTS PRODUCTS the goods and services designed to provide benefits to a sports spectator, participant or sponsor

7. THE SPORTS PRODUCT Licensed merchandise Participation Entertainment Equipment and apparel Promotional items Sports facilities Marketing research Management services

8. THE SPORTS PRODUCT

9. ENTERTAINMENT PRODUCT The entertainment industry’s top revenue producing products and services

10. THE ENTERTAINMENT PRODUCT Film & Cinema Television Music & Concerts Radio Video Games Theme Parks Publications Newspapers Books Magazines

11. PRODUCT DEVELOPMENT Step 1: SWOT Analysis Strength, Weaknesses, Opportunities, Threats Helps develop a product to match company objectives Step 2: Idea Generation Generating new product ideas Consumers, employees, research and development submit ideas Study the competition i.e. Nike studies New Balance youth baseball cleats and creates their own Nike version of the cleat Step 3: Screening and Evaluation Product idea is evaluated: Is the necessary technology is available? Does it meet the objectives of the company? Focus Group – group of 6-10 consumers who discuss the product

12. PRODUCT DEVELOPMENT Step 4: Business Analysis Financial aspects are reviewed What is needed to take this product to the market? What legal factors need to be analyzed? Copyright, patented products Step 5: Development Prototype – first model of product Test product capabilities to determine production cost Technical problems, quality, and safety addressed

13. PRODUCT DEVELOPMENT Step 6: Test Marketing Product tested in marketplace Offer product for sale in small geographic area Test all aspects of Marketing Mix Product, Place, Price, Promotion Not all products go through this step because of cost Step 7: Commercialization Commercialization – process that involves producing and marketing a new product Offered for sale in marketplace to final consumer Full-scale production launches Product Life Cycle begins

14. CONCLUSION Tangible vs. Intangible Product line vs. Product item Core Product vs. Ancillary Product 7 steps of Product Development: SWOT Analysis Idea Generation Screening & Evaluation Business Analysis Development Test Marketing Commercialization

15. VIDEO EXAMPLE http://blog.ted.com/2013/11/21/a-littlebit-rock-n- roll-reggie-watts-rocks-the-newly-launched-synthkit- and-electronic-music-goes-mini-modular/ http://blog.ted.com/2013/11/21/a-littlebit-rock-n- roll-reggie-watts-rocks-the-newly-launched-synthkit- and-electronic-music-goes-mini-modular/ http://www.ted.com/talks/ayah_bdeir_building_blo cks_that_blink_beep_and_teach#t-305134 http://www.ted.com/talks/ayah_bdeir_building_blo cks_that_blink_beep_and_teach#t-305134

16. CLASS ACTIVITY With a partner, design a new product for a SER industry: Take the product through EACH stage of product development. 7 steps of Product Development: SWOT Analysis Idea Generation Screening & Evaluation Business Analysis Development Test Marketing Commercialization Explain why the company would want to introduce your new product. Be specific in your explanation. You must include a prototype of your product.