1. Marketing decision & P.L.C.

2. Making Marketing Decisions

4. Price

5. Promotion

6. Place

7. People

8. Process

9. Physical Environment

11. Stages of the New Product Development Process 9 - 11

15. Stages of the New Product Development Process Stage 1:Idea Generation – Internal idea sources: R & D – External idea sources: Customers, competitors, distributors, suppliers 9 - 15

16. Intuit, a marketer of financial software, asks for new product ideas from customers 9 - 16

17. Stages of the New Product Development Process STAGE 2: Idea Screening – Product development costs increase substantially in later stages so poor ideas must be dropped –Ideas are evaluated against criteria; most are eliminated 9 - 17

18. MIT Virtual Research MIT has developed online techniques to gain consumer feedback on new product ideas 9 - 18

19. Stages of the New Product Development Process Stage 3:Concept Development and Testing – Concept development creates a detailed version of the idea stated in meaningful consumer terms. –Concept testing asks target consumers to evaluate product concepts. 9 - 19

20. Stages of the New Product Development Process Stage 4:Marketing Strategy Development The target market, product positioning, and sales, share, and profit goals for the first few years. Product price, distribution, and marketing budget for the first year. Long-run sales and profit goals and the marketing mix strategy. 9 - 20

21. Stages of the New Product Development Process Stage 5: Business Analysis –Sales, cost, and profit projections Stage 6: Product Development –Prototype development and testing 9 - 21

22. Stages of the New Product Development Process Stage 7: Test Marketing –Standard test markets –Controlled test markets –Simulated test markets Stage 8: Commercialization 9 - 22

23. Stages of the PLC 9 - 23

26. Product Life Cycles and the Boston Matrix Sales Time Effects of Extension Strategies

27. Product Life Cycles and the Boston Matrix Sales/Profits Time PLC and Profits Losses Break Even PLC Profits