2.  Marketers can use innovations and inventions to create new products and make a profit.  Inventors - sell or license their ideas to others who know how to develop products for the marketplace.  Innovators - much more likely to be marketers as well. ◦ Their motivation for improving a product is often profit-based. ◦ Making a product better is a competitive advantagecompetitive advantage ◦ Samsung Galaxy vs Iphone 5. Samsung Galaxy vs Iphone 5.

3.  Market research will reveal that consumers want either a new product or an existing product changed  Marketing teams will brainstorm “How can we make this product better?” Example: An umbrella company discovers that consumers would like to have their hands free when it’s raining.

4.  Not all ideas will be good ones  Companies need to test: (by product testing) ◦ consumer reaction to a new idea ◦ Competitive situation in the market Example: ◦ There might already be a “hands-free” umbrella on the market ◦ The technology to make “hands-free” umbrellas may not exist

5.  The umbrella company will design one or many prototypes ◦ If consumers think a “hands-free” umbrella is a great idea ◦ If there’s been a lot of rain and the market for umbrellas is large and increasing ◦ If there’s little competition in the marketplace  A prototype is a sample of the product ◦ How it might look ◦ How it might operate ◦ And then market-tested (by product testing): Do consumers like it?

6.  Using observation and research, the company will determine the primary and secondary target market ◦ A marketing strategy will be developed to target the primary market and a marketing plan created to implement the strategy Target Market Example for “hands-free” umbrella? Primary market – parents of young children between the ages of 25 and 40 Secondary market – commuting professionals who depend on transit systems and walk to many of their destinations

7.  The product must be one that ◦ the company can make (or buy) and sell ◦ consumers want at a price they will pay ◦ Produces a profit for the company  The required materials and expected costs of producing the product and distributing it to consumers must all be taken into account  Feasibility is often considered during product design and market strategy stages

8.  The preferences of the primary market must be taken into account. Example: The Umbrella Company knows that its primary market likes convenience and practicality. They also like versatility, so the “hands free” umbrella should be easily convertible to function as a “traditional” umbrella.  Product design includes peripherals like a warranty, instruction manual, packaging, and service information.

9.  Testing consumer acceptance of the product Example: The Umbrella Company gives a “hands-free” umbrella to several parents of young children, fitting the profile of the primary target market. The researcher asks them to use the umbrella for at least a month. Afterward, the company has the participants fill out a survey: “Would you buy it?”; “How much would you pay for it?”.  If responses are positive, the product is launched.

10.  The product enters the product life cycle.

11.  Use hybrid car, or 3D TV or any other examples to do the 8 steps.  Work with your groups of 3 and then present it to the class at the end.  Mention all 8 steps in your presentation.