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Chapter 9 New-Product Development and Product Life Cycle Strategies -…

- - - - Step 1. Idea Generation
        
        (The systematics search for new-product ideas)
        majors sources of new-product idea include internal &external sources...
        
        1.Company>
        2.Customers>
        3.Competitors>
        4.Distributors>
        5.Suppliers
        
        Internal sources refer to the company's own formal research and development, management and staff, and entrepreneurial programs.
        
        External sources refer to sources outside the company such as customer, competitor, and outside design firms
        
        Crowdsourcing refers to the inviting broad communities of people- customers, employees, independent scientists and researchers, and even the public at large-into the new-product innovation process.
      - Step 2. Idea Screening
        
        Process to spot good ideas and drop poor ones.
        -Develop system to estimate: market size, product price, and rate of return.
        -Evaluate these findings against set of company criteria for new products.
      - Step 3. Concept Development and Testing
        
        Product idea -idea for a possible product
        
        Product concept -detailed version of the idea
        
        Product image -way consumer perceive an actual
        
        Concept development -developing new product
        
        Concept testing -testing new-product concepts
      - Step 4. Marketing Strategy Development
        
        Designing an initial marketing strategy for new product based on the product concept.
        
        Part 1 Describes:
        -The target market,
        -Planned value proposition
        -Sales, market share, and profit goals
        
        Part 2 Outline the first year's:. --Product's planned price
        -Distribution
        -Marketing budget
        
        Part 3 Describes long-run:
        -Sales & profit goals
        -Marketing Mix Strategy
      - Step 5. Business Analysis
        
        Review of Product Sales, Costs, and Profits Projection to see if they satisfy company objectives
        
        If No, Eliminate Product Concept
        
        If Yes, Move to Product Development
      - Step 6. Product Development
        
        Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering
        
        -involves the creation and testing of one or more physical version by the R&D or engineering departments
        -Requires an increase in investment
        -Show whether the product idea can be turned into a workable product.
      - Step 7.Testing Marketing
        
        -Product and marketing program introduced in more realistic Market setting.
        -Not needed for all customer.
        -Can be expensive and time consuming, but better than making major marketing mistake.
        
        When firms test market
        
        -New product with large investment.
        -Uncertainty about product or marketing program
        
        when firms may not test market
        
        -Simple line extension.
        -Copy of competitor product.
        -Low costs
        -Management confidence
      - Step 8. Commercialization
        
        Commercialization is the introduction of the new product 1.Must decide on timing 2.Must decide on where to introduce the product 3.Must develop a market rollout plan.
- - - - Styles, Fashions, Fads
        
        Style
        -is a basic and distinctive mode of expression (e.g., formal clothing, Balinese furniture)
        -It may last for generations, passing in and out of vogue
        
        Fashions
        -is a popular style in a given field (e.g., business casual)
        -It tends to go slowly, remain popular for a while, and then decline slowly.
        
        Feds
        -is a fashion that enters quickly, is adopted quickly, and declines fast
    - - 4.1 Modify the Market: Increase the consumption of the current product.
        By 1) Look for new users and market segments
        2) Reposition the brand to appeal to large or faster-Growing segment
        3) Look for ways to increase usage among present customers
      - 4.2 Modifying the Product: changing characteristic such as quality, features, of style to attract new users and to inspire more usage.
        By 1) Improve durability, reliability , speed, taste
        2) Improve styling and attractiveness
        3) Add new features
        4) Expand usefulness, safety , convenience
      - 4.3 Modifying the Marketing Mix: Improving sales by changing one or more marketing mix elements.
        By 1) Cut prices
        2) Launch a better ad campaign
        3) Move into larger market channels
        4) Offer new or improved services to buyers