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1、New-Product Development and Product Life-Cycle Strategies,Chapter 10,10 - 1,Objectives,Understand how companies find and develop new-product ideas. Learn the steps in the new-product development process. Know the stages of the product life cycle. Understand how marketing strategies change during the
2、 products life cycle.,10 - 2,$50 billion in profits over 27 years Early new-product development relied heavily on copying the competition $4.2 billion annually invested in R most are eliminated.,New Product Development Strategy,10 - 7,New Product Development Process: Stage 3: Concept Development and
3、 Testing Product concepts provide detailed versions of new product ideas. Concept tests ask target consumers to evaluate product concepts.,New Product Development Strategy,10 - 8,New Product Development Process: Stage 4: Marketing Strategy Development Strategy statements describe: The target market,
4、 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.,New Product Development Strategy,10 - 9,New Product Development Process: Stage 5: Bu
5、siness Analysis Sales, cost, and profit projections Stage 6: Product Development Prototype development and testing,New Product Development Strategy,10 - 10,New Product Development Process: Stage 7: Test Marketing Standard test markets Controlled test markets Simulated test markets Stage 8: Commercia
6、lization,New Product Development Strategy,10 - 11,The Typical Product Life Cycle (PLC) Has Five Stages Product Development, Introduction, Growth, Maturity, Decline Not all products follow this cycle: Fads Styles Fashions,Product Life-Cycle Strategies,10 - 12,The product life cycle concept can be app
7、lied to a: Product class (soft drinks) Product form (diet colas) Brand (Diet Dr. Pepper) Using the PLC to forecast brand performance or to develop marketing strategies is problematic,Product Life-Cycle Strategies,10 - 13,Product Life-Cycle Strategies,Product development Introduction Growth Maturity
8、Decline,Begins when the company develops a new-product idea Sales are zero Investment costs are high Profits are negative,PLC Stages,10 - 14,Product Life-Cycle Strategies,Product development Introduction Growth Maturity Decline,Low sales High cost per customer acquired Negative profits Innovators ar
9、e targeted Little competition,PLC Stages,10 - 15,Product Offer a basic product Price Use cost-plus basis to set Distribution Build selective distribution Advertising Build awareness among early adopters and dealers/resellers Sales Promotion Heavy expenditures to create trial,Marketing Strategies: In
10、troduction Stage,10 - 16,Product Life-Cycle Strategies,Product development Introduction Growth Maturity Decline,Rapidly rising sales Average cost per customer Rising profits Early adopters are targeted Growing competition,PLC Stages,10 - 17,Product Offer product extensions, service, warranty Price P
11、enetration pricing Distribution Build intensive distribution Advertising Build awareness and interest in the mass market Sales Promotion Reduce expenditures to take advantage of consumer demand,Marketing Strategies: Growth Stage,10 - 18,Product Life-Cycle Strategies,Product development Introduction
12、Growth Maturity Decline,Sales peak Low cost per customer High profits Middle majority are targeted Competition begins to decline,PLC Stages,10 - 19,Product Diversify brand and models Price Set to match or beat competition Distribution Build more intensive distribution Advertising Stress brand differ
13、ences and benefits Sales Promotion Increase to encourage brand switching,Marketing Strategies: Maturity Stage,10 - 20,Product Life-Cycle Strategies,Product development Introduction Growth Maturity Decline,Declining sales Low cost per customer Declining profits Laggards are targeted Declining competition,PLC Stages,10 - 21,Product Phase out weak items Price Cut price Dist
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