Principles of marketing: Lecture 22

Principles of marketing: Lecture 22 provide students with knowledge about: new product development; product life cycle (PLC); types of new products include; consumer adoption process; product life-cycle strategies; product development stage;... Please refer to this lesson for details!

MGT301 Principles of Marketing Lecture­22 Summary of   Lecture­21 New Product Development  Marketing Strategy Concept Development and Testing Idea Screening Idea Generation Business Analysis Product Development Test Marketing Commercializa tion Today’s Topics  New Product Development (cont )  Product Life Cycle (PLC) Types of New Products Include New-To-The New-To-The World World Repositionings Repositionings New New Category Category Entries Entries Product Product Improvements Improvements Product Product Line Line Additions Additions Consumer Adoption Process Awareness Awareness Strategy Interest Interest Strategy Evaluation Evaluation Strategy Trial Trial Strategy Adoption Adoption Communicate CommunicateAvailability Availability Communicate CommunicateBenefits Benefits Emphasize EmphasizeAdvantages Advantages Motivate MotivateConsumers Consumers Strategy Ensure EnsureSatisfaction Satisfaction Product Life­Cycle  (PLC) Sales and Profits ($) Sales Profits Time Product Development Stage Introduction Growth Maturity Decline Sales and Profits Over the Product’s Life From Inception to Demise The Typical Product Life Cycle (PLC) Has Five Stages – Product Development, Introduction, Growth, Maturity,  Decline – Not all products follow this cycle  The four basic stages through which a successful product  progresses­introduction, growth, maturity, and decline  Some products move rapidly through the product life cycle,  while others pass through those stages over long time periods Product Life­Cycle Strategies Sales and Profits ($) Sales Profits Time Product Development Stage Introduction Growth Maturity Decline Sales and Profits Over the Product’s Life From Inception to Demise PLC Stages  Product development Introduction Growth Maturity  Decline  Declining sales  Low cost per  customer  Declining profits  Laggards are  targeted  Declining  competition Sales Sales Declining Declining sales sales Costs Costs Low Low cost cost per per customer customer Profits Profits Declining Declining profits profits Marketing Marketing Objectives Objectives Reduce Reduce expenditure expenditure and and milk milk the the brand brand Product Product Phase Phase out out weak weak items items Price Price Cut Cut price price Distribution Distribution Advertising Advertising Go Go selective: selective: phase phase out out unprofitable unprofitable outlets outlets Reduce Reduce to to level level needed needed to to retain retain hard-core hard-core loyal loyal customers customers Overlap of Life Cycle for Products A and  B WINDOWS 3.1 1991 1995 WINDOWS 95 1996 1997 Extending the Product Life Cycle Market Modification Increase frequency of use by  present customers Add new users Find new uses Change product quality or  packaging Product Modification To prevent the product going into decline you  modify the product  Adding new features, variations, model varieties  will change the consumer reaction ­ create more  demand therefore you attract more users Enough for today. .  Summary Consumer Adoption Process Awareness Awareness Strategy Communicate CommunicateAvailability Availability Interest Interest Strategy Communicate CommunicateBenefits Benefits Evaluation Evaluation Strategy Emphasize EmphasizeAdvantages Advantages Trial Trial Strategy Motivate MotivateConsumers Consumers Adoption Adoption Strategy Ensure EnsureSatisfaction Satisfaction Product Life­Cycle  (PLC) Sales and Profits ($) Sales Profits Time Product Development Stage Introduction Growth Maturity Decline Sales and Profits Over the Product’s Life From Inception to Demise Extending the Product Life Cycle Next… Review of 1st P of Marketing Mix (4P’s)…Product MGT301 Principles of Marketing Lecture­22 ... to Demise Extending the Product Life Cycle Next… Review? ?of? ?1st P? ?of? ?Marketing Mix (4P’s)…Product MGT301 Principles? ?of? ?Marketing Lecture? ?22 ... customer Profits Profits Rising Rising profits profits Marketing Marketing Objectives Objectives Maximize Maximize market market share share Product Product Offer Offer product product extensions, extensions,... High profits  Middle majority are  targeted  Competition begins to  decline Sales Sales Peak Peak sales sales Costs Costs Low Low cost cost per per customer customer Profits Profits High High profits