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Marketing Mix (Traditional elements (Product (Reasons for Failure…

- - - - convenience – frequently purchased, low investment and involvement
        (e.g. milk, tissues)
      - shopping – less frequently purchased, selected on price, quality and
        style (e.g. furniture, computers)
      - speciality – special purchase, expensive, strong brand preferences
        (e.g. luxury items)
      - unsought – little knowledge (e.g. new invention) or little interest
        (e.g. insurance).
    - - Crawford Process
        
        Phase 1: Opportunity identification and selection
        
        Phase 2: Concept generation
        
        Phase 3: Concept/project evaluation
        
        Phase 4: Development (includes both technical and marketing tasks)
        
        Phase 5: Launch.
      - Drawing on Kotler and Armstrong (2016) and Dibb Process
        
        1 New product planning – reviewing current product performance and
        identifying threats and new product opportunities.
        
        Analysis of the micro and macro environment,competitive positions of the organisation and competitors, differential advantage and marketing information.include the SWOT
        analysis and Ansoff’s matrix
        
        2 Idea generation – generating product ideas in line with organisational
        objectives
        
        Origin of ideas
        
        research laboratories with teams dedicated to developing new product
        ideas and prototypes (this is more likely in high-technology industries)
        
        periodic reviews of products and product portfolios
        
        open calls for product suggestions internally or externally
        
        serendipitous suggestions from staff members, suppliers, distributors or
        customer feedback
        
        competitors or other organisations (innovations that can be copied
        often are, sometimes even when protected by patents or trademarks)
        
        collaboration – for example, Walkers and Heinz teamed up to launch a
        range of limited-edition sandwich-flavoured crisps (Hinde, 2016).
        
        3 Idea screening – assessing how well product ideas match organisational
        objectives and resources. selecting the most promising ideas for further
        development and screening out less promising ones, using a set of criteria
        
        4 Concept testing – testing the new product concept on a small sample of
        potential buyers to assess their reactions to it.
        
        5 Market/business analysis – evaluating the new product’s potential sales,
        costs and profits for the organisation. marketing strategy consist in target market,the planned value proposition – the planned price, distribution and
        marketing budget for the first year, the sales, market share and profit goals for the first few years.
        
        6 Product development – determining if the new product can be produced
        both technically and cost-effectively
        
        7 Test marketing – introducing the new product in limited geographic areas or a representative marketing channel to determine the reactions of potential buyers (sample launching of the entire marketing mix).
        
        8 Commercialisation – refining and settling plans for full-scale production
        and marketing.
    - - overestimation of the market size (for example, the Millennium Dome – the exhibition space in London which subsequently became the O2 performance venue)
      - disregarding marketing research (for example, Kellogg’s Breakfast
        Mates – packaged cereal and milk in kit form
      - higher than expected product development costs (for example, the
        DeLorean DMC 12 car made famous in the ‘Back to the Future’ films)
      - poor product design (for example, Clairol Touch of Yoghurt shampoo)
      - incorrect positioning (for example, Colgate’s Kitchen Entrees – a line
        of frozen food products from the toothpaste brand)
      - unsuitable launch timing (for example, Sony Betamax video recorders
        which lost out to VHS video recorders)
      - inappropriate pricing (for example Microsoft Web TV)
      - poor promotion (for example, Virgin Vodka)
      - aggressive competition from competitors (for example, as experienced
        by the former UK high street retailer Woolworths)
    - - A unique superior product – a differentiated product that delivers unique benefits and a compelling value proposition to the customer or user is the number one driver of new product profitability.
      - Building in the voice of the customer – a market-driven and
        customer-focused new product process is critical to success.
      - Doing the homework and front-end loading the project – is key to success. Due diligence done before product development gets underway pays off!
      - Getting sharp and early product and project definition – and avoiding scope creep and unstable specifications – means higher success rates and faster to market.
      - Spiral development – build, test, obtain feedback and revise: putting something in front of the customer early and often gets the product right.
      - The world product – a global or glocal product (global concept, locally tailored) targeted at international markets is far more profitable than the product designed to meet one-country needs.
      - A well-conceived, properly executed launch – this is central to new product success. And a solid marketing plan is at the heart of the launch.