1. Generating a Product Mix Generate ideas Screen ideas Develop productProduct testing Introduce product Evaluate acceptance

2. Lesson Objectives How do businesses develop new products? How do businesses develop new products? How do businesses expand existing product lines? How do businesses expand existing product lines? Why do businesses modify existing products? Why do businesses modify existing products? Why do businesses delete products and/or product lines? Why do businesses delete products and/or product lines?

3. I. Developing new products A. Generating Ideas –Creativity –Marketing research B. Screening Ideas –Is it profitable? –Can it be produced efficiently? –Affect existing products? –Affect our image?

4. C. Developing the product –Prototype (model of product) –Marketing strategies (4 P’s) D. Testing the product –Lab tests –Test markets (marketing research)

5. E. Introducing the product –Production rollout –Marketing strategies initiated F. Evaluating customer acceptance –Sales records –MORE Marketing Research

6. Generating a Product Mix Generate ideas Screen ideas Develop productProduct testing Introduce product Evaluate acceptance

7. Lesson Objectives How do businesses expand existing product lines? How do businesses expand existing product lines? Why do businesses modify existing products? Why do businesses modify existing products? Why do businesses delete products and/or product lines? Why do businesses delete products and/or product lines?

8. II. Expanding the product line A. Build on product/company image B. Increase sales and profits C. Appeal to new markets

9. III.Modifying Product Lines A. Make changes to existing products B. Attract specific markets C. Lower risk D. Lower cost

10. IV.Deleting product or product lines A. Obsolete items B. Lost appeal C. Changes in company objectives D. Make room for other products A.Slotting fees retailers E. No longer profitable F. Conflicts with other products

11. Lesson Review What are the steps in new product development? What are the steps in new product development? Why do businesses sometimes choose to expand products and product lines? Why do businesses sometimes choose to expand products and product lines? Why do businesses sometimes choose to modify existing products and product lines? Why do businesses sometimes choose to modify existing products and product lines? Why do businesses sometimes choose to delete products and product lines? Why do businesses sometimes choose to delete products and product lines?