Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 12: Developing and Managing Products - Coggle Diagram
Chapter 12: Developing and Managing Products
Strategies for New Product Development
Market penetration strategy
Seeks to increase sales of existing products
in existing
Product development
The introduction of new products into established
markets
Market development strategy
Concentrates on finding new markets for
existing products
Product diversification strategy
Focuses on developing entirely new
products for new markets
The Product Mix
Product Mix
An assortment of product lines and individual product
offerings
Product mix breadth
The number of different product lines a firm offers
Product line
A group of related products sold under the same brand
Product line depth
The number of variations in each product line
New Product Adoption
Adoption process
A series of stages from first learning about the
new product to trying it and deciding whether to purchase
Factors Affecting Rates of Adoption
Compatibility
Complexity
Possibility of trial use
Relative advantage
Observability
Diffusion process
The process by which new products are accepted
into the marketplace
Innovators: people who are first to make trial purchases
Early adopters: people who are quick to purchase the latest product once it is somewhat established
The New Product Development Process
Screening
Separates ideas that have commercial potential from those that cannot meet
company objectives
Idea Generation
New product development begins with ideas from many sources
Business Analysis
This stage consists of assessing the new product’s: Potential market, growth rate, competitive strengths
Development
The conversion of a new product idea into a visible product.
Test Marketing
The company may decide to test market the product to determine consumer reactions and verify that the product will perform well in real life
Commercialization
The product is ready for full-scale manufacturing and marketing
Marketing Across the
Product Lifecycle
Growth
Need to encourage trial
purchases
Maturity
Need to counter intense
competition
Introduction
Need to stimulate initial
demand
Decline
Maximize remaining
profits
The Product Lifecycle
The progression of a product through four basic stages
Stage
Growth stage
Second stage of the product lifecycle that begins when a
firm starts to realize substantial profits from its investment
Maturity stage
Third stage of product lifecycle, in which industry sales
reach a plateau
Decline stage
Final stage of the product lifecycle, in which innovations or
shifts in consumer preferences bring about a steady decline in industry
sales
Introductory stage
First stage of the product lifecycle, in which a firm
works to stimulate sales of a new product
Quality as a Product Strategy
Benchmarking
A method of measuring quality by comparing performance
against industry standards
Lean and Six Sigma
Six Sigma targets defects and unnecessary variations.
Quality of Services
Service encounter
The point at which the customer and service provider
interact
Service quality
The perceived level of service a customer receives
Variables
Responsiveness
Assurances
Empathy
Reliability
Tangibles