1. Copyright 2007, Prentice-Hall, Inc. 8-1 Figure 8-1 Major Stages in New-Product Development Process

2. Copyright 2007, Prentice-Hall, Inc. 8-2 Generating New Product Ideas The Industrial Scientific Corporation uses its Web site to solicit new product ideas from customers or other visitors. Visit the Web site to see what information is solicited. Marketing in Action http://www.indsci.co m/sup_NewProd.asp

3. Copyright 2007, Prentice-Hall, Inc. 8-3 Concept Testing The Concept Board is a consulting firm that assists clients such as Mott’s, Citibank, HBO, IBM, Post, and others in verbalizing / visualizing product concepts for consumer testing. Marketing in Action http://theconceptboard. com/index.html

4. Copyright 2007, Prentice-Hall, Inc. 8-4 Pair up with another student and assume that you are in charge of the concept testing for the product shown at right. What questions would you ask of consumers who are evaluating this product concept? Let’s Talk!

5. Copyright 2007, Prentice-Hall, Inc. 8-5 Marketing Strategy Statement for Daimler Fuel-Cell=Powered Car The target market is younger, well-educated, moderate- to-high-income individuals, couples, or small families seeking practical, environmentally responsible transportation. The car will be positioned as more economical to operate, more fun to drive, and less polluting than today’s internal combustion engine or hybrid cars. It is also less restricting than batter- powered electric cars, which must be recharged regularly. The company will aim to sell 100,000 cars in the first year, at a loss of not more than $15 million. In the second year, the company will aim for sales of 120,000 cars and a profit of $25 million. Marketing in Action

6. Copyright 2007, Prentice-Hall, Inc. 8-6 Test Marketing Product / marketing program introduced in more realistic market setting. Not for all products. Can be expensive and time consuming, but better than making a major marketing mistake. After test marketing the “Go Active” meal (an adult happy meal) in 150 markets in Indiana, McDonald’s decided to sell it across the U.S.

7. Copyright 2007, Prentice-Hall, Inc. 8-7 Figure 8-2 Sales and Profit over the Product’s Life from Inception to Decline

8. Copyright 2007, Prentice-Hall, Inc. 8-8 Figure 8-3 Styles, Fashions, Fads

9. Copyright 2007, Prentice-Hall, Inc. 8-9 Modifying the Market WD-40 invites visitors to its Web site to join the fan club. Fan club members can access a list of 2,000 uses for WD-40, and are invited to share their own stories. Marketing in Action http://fanclub.wd40.com /login_home.cfm

10. Copyright 2007, Prentice-Hall, Inc. 8-10 Modifying the Product Gillette’s Fusion razor combines a precision trimmer blade (on back) with a five blade shaving surface (on front). The flexible comfort guard and Enhanced Indicator Lubrastrip (containing vitamin E and aloe) enhance shaving comfort. Marketing in Action http://www.gillette.com/ homepage.asp

11. Copyright 2007, Prentice-Hall, Inc. 8-11 Maturity Stage of PLC Modifying the Marketing Mix: –Improving sales by changing one or more marketing mix elements. How? –One method is to launch aggressive sales promotion programs, such as rebates.