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DEVELOPING&MANAGING PRODUCTS - Coggle Diagram
DEVELOPING&MANAGING PRODUCTS
NEW PRODUCT
A product new to the world, the market, the producer, the seller, or some combination of these
CATEGORIES
New-to-the-World
New Product Lines
Product Line Additions
Improvements or Revisions
Repositioned Products
Lower-Priced Products
DEVELOPMENT PROCESS
1.New-Product Strategy
2.Idea Generation
3.Idea Screening
4.Business Analysis
5.Development
6.Test Marketing
7.Commercialization
IDEA GENERATION
Customers
Employees
Distributors
Competitors
Vendors
R & D
Consultants
BUSINESS ANALYSIS
Demand
Cost
Sales
Profitability
DEVELOPMENT
Creation of prototype
Marketing strategy
Packaging, branding, labeling
Promotion, price, and distribution strategy
Manufacturing feasibility
Final government approvals if needed
TEST MARKETING ALTERNATIVES
Single-source research using supermarket scanner data
Simulated (laboratory) market testing
Online test marketing
COMMERCIALIZE
Production
Inventory Build-up
Distribution Shipments
Sales Training
Trade Announcements
Customer Advertising
WHY NEW PRODUCT FAILS
Incorrect positioning
Price too high or too low
Inadequate distribution
Poor promotion
Inferior product
SUCCESS PRODUCT FACTORS
Match between product and market needs
Different from substitute products
Benefit to large number of people
SUCCESS FACTORS
Listening to customers
Strong leadership
Vision of future market
INTRODUCTORY STAGE
High failure rates
Little competition
Frequent product modification
Limited distribution
GROWTH STAGE
Increasing rate of sales
Entrance of competitors
Market consolidation
Initial healthy profits
Aggressive advertising of the
differences between brands
Wider distribution
MATURITY STAGE
Sales increase at a decreasing rate
Saturated markets
Annual models appear
Lengthened product lines
Service and repair assume important roles
Heavy promotions to consumers and dealers
Marginal competitors drop out
Niche marketers emerge
DECLINE STAGE
Long-run drop in sales
Large inventories of
unsold items
Elimination of all nonessential
marketing expenses
“Organized abandonment