1. New-Product Development Strategy
1.1. The development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts
2. Product Life-Cycle Strategies
2.1. Product life-cycle (PLC) = sales and profits
2.1.1. Product classes - Long life cycle - High sales in adulthood - Additional features
2.1.2. Product forms - The standard PLC shape
2.1.3. Brands - Changing PLCs due to competitive threats
2.1.4. Style is a basic and distinctive mode of expression.
2.1.5. Fashion is a currently accepted popular style in a given field.
2.1.6. Fad are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
2.2. Introduction Stage
2.2.1. when the new product is first launched.
2.2.2. - Takes time - Slow sales growth - Little or no profit - High distribution and promotion expense
2.3. Growth stage
2.3.1. when the new product satisfies the market.
2.4. Maturity stage
2.4.1. a long-lasting stage of a product that has gained consumer acceptance.
2.5. Decline stage
2.5.1. •Maintain the product •Harvest the product •Drop the product
3. Additional Product and Service Considerations
3.1. Product Decisions and Social Responsibility
3.1.1. Public policy and regulations regarding developing and dropping products, patents, quality and safety.
3.2. International Product and Service Marketing
3.2.1. - Challenges - Determining what products and services to introduce in which countries - Standardization versus customization - Packaging and labeling - Customs, values, laws
4. The New-Product Development Process
4.1. Idea Generation
4.1.1. Internal Idea Sources
4.1.2. External Idea Source
4.1.3. Crowdsourcing
4.2. Idea Screening refers to reviewing new-product ideas in order to drop poor ones as soon as possible.
4.3. Concept Development and Testing
4.3.1. Product idea is an idea for a possible product that the company can see itself offering to the market.
4.3.2. Product concept is a detailed version of the idea stated in meaningful consumer terms
4.3.3. Product image is the way consumers perceive an actual or potential product
4.3.4. Concept testing refers to new-product concepts with groups of target consumers.
4.4. Marketing Strategy Development
4.5. Business analysis
4.5.1. review reports, costs, profits --> meet company goals
4.6. Product development
4.6.1. Modifications from existing products + Create new products = Tested by R&D
4.6.2. R&D: 1.Product R&D 2.Technology R&D 3.Packaging R&D 4.Process R&D
4.7. Test Marketing
4.7.1. the stage at which the product and marketing program are introduced into more realistic marketing settings
4.7.2. Approaches to test marketing 1.Standard test markets 2. Controlled test markets 3. Simulated test markets
4.7.3. Advantages of simulated test markets - Less expensive than other test methods - Faster - Restricts access by competitors
4.7.4. Disadvantages of simulated test markets - Not considered as reliable and accurate due to the controlled setting
4.8. Commercialization is the introduction of the new product
4.8.1. Commercialization is the introduction of the new product
4.9. New-Product Development Process
4.9.1. Customer-center new-product development = solve customer problems + customer satisfying experiences
4.9.2. Sequential new-product development: departments work closely together individually to complete each stage of the process before passing along
4.9.3. Team-based new-product development : departments work closely together in cross-functional teams, overlapping in the product-development process
4.9.4. Systematic new-product development: an innovative development approach that collects, reviews, evaluates, and manages new-product ideas.