1. CHAPTER 10 Develop A New Product
4/26/2017
CHAPTER 10 Develop A New Product
10.1 What Is a Product?
10.2 Components of a New Product
10.3 Product Market Classifications
10.4 Developing Successful New Products
MARKETING

2. WHAT IS A PRODUCT? GOALS for Lesson 10.1
Explain that, for consumers, products are more than just the tangible objects that are offered for sale.
Describe the role of marketers in keeping the focus on consumers during product development.

3. More Than Just a Tangible Object
More than an item
Consumers know best

4. Product Development as a Marketing Function
The role of marketing
Marketing activities in product development
Gathering information
Designing strategies
Testing marketing mixes
The product planning function

5. Marketing Supports Product Development
Gathering Information
Designing Effective Marketing Strategies
Testing Marketing Mixes
Customers
Companies
Product Development

6. COMPONENTS OF A NEW PRODUCT
GOALS for Lesson 10.2
Show how even a very simple product can be a complex mix of a basic item with assorted features.
Describe the three steps of the product design process.
Explain the importance of product lines, packaging, and brand development.

7. Parts of the Product Mix Element
Basic product
Features
Options
Services
Brand name
Packaging
Guarantee
Uses

8. Designing a Product
Basic product
Enhanced product
Extended product

9. Product Mix Components
Product line
Variation in quantity
Variation in quality
Assortments
Packaging
Ease of use
Safety
Attraction
Handling
Environment
Brand development

10. Levels of Brand Recognition
Non-recognition
Consumers are unable to identify the brand.
Rejection
Consumers will not purchase the product because of the brand.
Recognition
Consumers can recall the brand name but it has little influence on purchases.
Preference
Consumers view the brand as valuable and will chose it if it is available.
Insistence
Consumers value the brand to the extent that they reject other brands.

11. PRODUCT MARKET CLASSIFICATIONS
GOALS for Lesson 10.3
Define consumer markets and describe what is meant by direct demand.
Define business markets and explain the business product classification system.
Understand the importance of product classifications for product planning.

12. The Product/Service Classification System
The system is based on two factors:
The importance of the purchase to the consumer
The willingness of the consumer to shop and compare products before making the purchase

13. Classifying Products for the Consumer Markets
Convenience goods
Shopping goods
Unsought goods
Specialty goods

14. Business Markets Capital equipment Operating equipment Supplies
Raw materials
Component parts

15. Planning Products for Consumer and Business Markets
Need to know if the customer is the final consumer or a business consumer
Some products are sold to both consumer markets and business markets

16. DEVELOPING SUCCESSFUL NEW PRODUCTS
GOALS for Lesson 10.4
Understand what businesses mean by “new” products.
Describe the six steps in new product development.

17. What Is a New Product? Is it really new?
Federal Trade Commission regulates the use of the term “new.”
Entirely new or changed in an important and noticeable way
Six-month time limit

18. The Steps in New Product Development
Idea development
Idea screening
Strategy development
Financial analysis
Product development and testing
Product marketing