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1、Marketing: An IntroductionThirteenth EditionChapter 8Developing New Products: and Managing the Product Life CycleMarketing: An IntroductionThirLearning Objectives (1 of 4)8-1. Explain how companies find and develop new product ideas.8-2. List and define the steps in the new product development proce
2、ss and the major considerations in managing this process.Learning Objectives (1 of 4)8-Learning Objectives (2 of 4)8-3. Describe the stages of the product life cycle and how marketing strategies change during a products life cycle.8-4. Discuss two additional product issues: socially responsible prod
3、uct decisions and international product and services marketing.Learning Objectives (2 of 4)8-First Stop Google: The New Product Moonshot FactoryGoogles innovation machine is renowned for producing new product “moonshots.”First Stop Google: The New ProLearning Objective 8-1Explain how companies find
4、and develop new product ideas.Learning Objective 8-1Explain New Product Development StrategyDeveloping new products through the firms own research and development effortsCreating successful new products requiresUnderstanding consumers, markets, and competitorsDeveloping products that deliver superio
5、r value to customersNew Product Development StrateLearning Objective 8-1 SummaryNew product ideas from the firms own research and development effortsExternal sources include competitors offerings, ideas from distributors and suppliers, as well as customers themselvesCrowdsourcing or open-innovation
6、new product idea programsLearning Objective 8-1 SummaryLearning Objective 8-2List and define the steps in the new product development process and the major considerations in managing this process.Learning Objective 8-2List andFigure 8.1 - Major Stages in New Product DevelopmentFigure 8.1 - Major Sta
7、ges in NIdea Generation (1 of 2)Systematic search for new product ideasInternal idea sources:Internal social networksIntrapreneurial programsExternal idea sources:Distributors and suppliersCompetitorsCustomersIdea Generation (1 of 2)SystemIdea Generation (2 of 2)Crowdsourcing:Inviting broad communit
8、ies of people into the new product innovation processIdea Generation (2 of 2)CrowdsIdea ScreeningScreening new product ideas to spot good ones and drop poor ones as soon as possibleWays of screening new ideas:New idea write-up reviewed by a committeeR-W-W frameworkReal, win, worth doingIdea Screenin
9、gScreening new prProduct ConceptA product idea is an idea for a possible product that the company can see itself offering to the market.A product concept is a detailed version of the new product idea stated in meaningful consumer terms.Product image is the way consumers perceive an actual or potenti
10、al product.Product ConceptA product idea Concept Development (1 of 2)This is Teslas initial all-electric roadster. Later, more affordable mass-market models will be developed.Concept Development (1 of 2)ThConcept Development (2 of 2)Developing a new product into alternative product conceptsFind out
11、how attractive each concept is to customersChoose the best oneConcept Development (2 of 2)DeConcept TestingTesting new product concepts with groups of target consumersMethods:Presenting the concepts to consumers symbolically or physicallyAsking customers to respond by answering questions about their
12、 reactions to the conceptsConcept TestingTesting new proMarketing Strategy DevelopmentInitial marketing strategy for a new productThree parts of the marketing strategy statement:Describes the target market, planned value proposition, sales, market-share, and profit goalsDetermines products planned p
13、rice, distribution, and marketing budgetDevelops long-run sales, profit goals, and marketing mix strategyMarketing Strategy DevelopmentBusiness Analysis and Product DevelopmentBusiness analysis: A review of the sales, costs, and profit projections for a new productTo find out whether these factors s
14、atisfy the companys objectivesProduct development: Developing the product concept into a physical productTo ensure that the product idea can be turned into a workable market offeringBusiness Analysis and Product Test Marketing (1 of 3)Introduces the product and its proposed marketing program into re
15、alistic market settingsGives the marketer an experience with marketing a product before full introductionTests the product and its marketing programTesting takes time, and costs can be high.Test Marketing (1 of 3)IntroduTest Marketing (2 of 3)Starbucks quickly introduced a less-than-perfect mobile p
16、ayments app, then worked out the flaws.Test Marketing (2 of 3)StarbucTest Marketing (3 of 3)Alternatives to standard test marketsControlled test marketsSimulated test marketsReasons for using alternative test marketsReducing the costsSpeeding up the processTest Marketing (3 of 3)AlternaCommercializa
17、tionIntroducing a new product into the marketConsiderations for launching a new productWhen to launchWhere to launchSingle location, region, national market, or international marketCommercializationIntroducing aManaging New Product DevelopmentRequires a holistic approachCustomer-centered new product
18、 developmentTeam-based new product developmentSystematic new product developmentManaging New Product DevelopmeCustomer-Centered New Product Development (1 of 2)Customer-centered new product development focuses on finding new ways to solve customer problems and create more customer-satisfying experie
19、nces.Customer-Centered New Product Customer-Centered New Product Development (2 of 2)Financial software maker Intuit follows a “Design for Delight” philosophy.Customer-Centered New Product Team-Based and Systematic New Product DevelopmentTeam-based new product developmentVarious company departments
20、work together, overlapping the steps in the product development processSystematic new product developmentInnovation management systems collect, review, evaluate, and manage new product ideasTeam-Based and Systematic New Learning Objective 8-2 SummaryNew product development process includesIdea gener
21、ation, idea screening, product concept development and testing, and marketing strategy developmentBusiness analysis, product development, test marketing, and commercializationNew product development requires a customer-centered, team-based, systematic effort.Learning Objective 8-2 SummaryLearning Ob
22、jective 8-3Describe the stages of the product life cycle and how marketing strategies change during a products life cycle.Learning Objective 8-3DescribeFigure 8.2 - Sales and Profits over the Products Life from Inception to DeclineFigure 8.2 - Sales and ProfitsProduct Life-Cycle StrategiesThanks to
23、the “Quaker Up” campaign, 137-year-old Quaker has a contemporary appeal as a lifestyle brand.Product Life-Cycle StrategiesTFigure 8.3 - Styles, Fashions, and FadsFigure 8.3 - Styles, Fashions,Table 8.2 Summary of Product Life-Cycle Characteristics, Objectives and Strategies (1 of 3)blankIntroduction
24、 Growth Maturity Decline CharacteristicsblankblankblankblankSales Low sales Rapidly rising sales Peak salesDeclining salesCostsHigh cost per customerAverage cost per customerLow cost per customerLow cost per customerProfitsNegativeRising profitsHigh profitsDeclining profitsCustomersInnovatorsEarly a
25、doptersMiddle majority Laggards CompetitorsFew Growing numberStable number beginning to declineDeclining numberMarketing objectivesblankblankblankblankblankCreate product awareness and trialMaximize market shareMaximize profit while defending market shareReduce expenditure and milk the brandTable 8.
26、2 Summary of Product LTable 8.2 Summary of Product Life-Cycle Characteristics, Objectives and Strategies (2 of 3)blankIntroduction Growth Maturity Decline StrategiesblankblankblankblankProduct Offer a basic product Offer product extensions, service, and warrantyDiversify brand and modelsPhase out we
27、ak itemsPriceUse cost-plusPrice to penetrate marketPrice to match or beat competitorsCut priceDistributionBuilt selective distributionBuild intensivedistributionBuild more intensivedistributionGo selective: phase out unprofitable outletsTable 8.2 Summary of Product LTable 8.2 Summary of Product Life
28、-Cycle Characteristics, Objectives and Strategies (3 of 3)blankIntroduction Growth Maturity Decline StrategiesblankblankblankblankAdvertisingBuild product awarenessamong early adoptersand dealersBuild engagement and interest in the mass marketStress brand differencesand benefitsReduce to level neede
29、d to retain hard-core loyalsSales PromotionUse heavy salespromotion to entice trialReduce to takeadvantage of heavyconsumer demandIncrease to encouragebrand switchingReduce to minimal levelSource: Based on Philip Kotler and Kevin Lane Keller, Marketing Management, 15th ed. (Upper Saddle River, NJ: P
30、earson Education, 2016), p. 358. 2016. Printed and Electronically reproduced by permission of Pearson Education, Inc., Upper Saddle River, New JerseyTable 8.2 Summary of Product LLearning Objective 8-3 SummaryStages of the product life cycle:Product developmentIntroduction stageGrowth stageMaturity
31、stageDecline stageLearning Objective 8-3 SummaryLearning Objective 8-4Discuss two additional product issues: socially responsible product decisions and international product and services marketing.Learning Objective 8-4Discuss Product Decisions and Social ResponsibilityConsiderations for companiesPu
32、blic policy issuesRegulations regarding acquiring or dropping productsPatent protectionProduct quality and safetyProduct warrantiesProduct Decisions and Social RInternational Product and Services Marketing (1 of 2)Lays famously funky Chinese chip flavors include cucumber.International Product and ServInternational Product and Services Marketing (2
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