kotler y armstrong (cap9)
DESCRIPTION
METODOLOGIATRANSCRIPT
-
Copyright 1999 Prentice Hall
9-19-1
Captulo 9Captulo 9
Estrategias de desarrollo denuevos productos y de ciclo
de vida de los productos
MarketingOctava edicin
Philip Kotler y Gary Armstrong
-
Copyright 1999 Prentice Hall
9-29-2Estrategias de desarrollode nuevos productosEstrategias de desarrollode nuevos productos
Productosoriginales
Productosoriginales
Mejoras aproductos
Mejoras aproductos
Modificacionesde productos
Modificacionesde productos
Nuevasmarcas
Nuevasmarcas
Empresas adquiridas
Empresas adquiridas
Patentesadquiridas
Patentesadquiridas
Licenciasadquiridas
Licenciasadquiridas
Estrategias para obtener ideas de productos nuevos
-
Copyright 1999 Prentice Hall
9-39-3Causas del fracaso de productos nuevosCausas del fracaso de productos nuevos
Sobreestimar el tamao del mercado
Problemas en el diseo de productos
Producto con posicionamiento, precio o publicidadincorrectos
Costos de desarrollo de productos
Acciones competitivas
Para crear productos nuevos que tengan xito, la empresa debe:
entender a sus clientes, mercados y competidores
desarrollar productos que proporcionen un valor superior a los clientes.
-
Copyright 1999 Prentice Hall
9-49-4Proceso de desarrollo denuevos productosProceso de desarrollo denuevos productos
Generacinde ideas
Depuracinde ideas
Desarrolloy pruebade ideas
Estrategia demarketing
Anlisis denegocios
Desarrollode productos
Mercadode prueba
Comercializacin
-
Copyright 1999 Prentice Hall
9-59-5
CLIENTES
CLIENTES
COMPETIDORES
COMPETIDORES
DISTRIBUIDORES
DISTRIBUIDORES
PROVEEDORES
PROVEEDORES
Desarrollo de productos nuevosPaso 1. Generacin de ideas
Desarrollo de productos nuevosPaso 1. Generacin de ideas
La generacin de ideas es la bsquedasistemtica de ideas para productosnuevos obtenidas internamente y de:
-
Copyright 1999 Prentice Hall
9-69-6
Determinar qu ideas son buenas y desechar las malas lo antes posible.
Muchas empresas tienen sistemas para calificar y depurar ideas, que estiman:
Tamao del mercado
Precio del producto
Tiempo y costos del desarrollo
Costos de fabricacin
Tasa de rendimiento
Luego, la idea se evala con base en un conjunto de criterios generales de la empresa.
Desarrollo de productos nuevosPaso 2. Depuracin de ideas
Desarrollo de productos nuevosPaso 2. Depuracin de ideas
-
Copyright 1999 Prentice Hall
9-79-7Desarrollo de productos nuevosPaso 3. Desarrollo y prueba de concepto
Desarrollo de productos nuevosPaso 3. Desarrollo y prueba de concepto
1. Desarrollar ideas de productopara convertirlas en conceptos
de producto alternos
1. Desarrollar ideas de productopara convertirlas en conceptos
de producto alternos
2. Prueba de conceptos - Probarlos conceptos de producto con
grupos de clientes meta
2. Prueba de conceptos - Probarlos conceptos de producto con
grupos de clientes meta
3. Escoger el mejor3. Escoger el mejor
-
Copyright 1999 Prentice Hall
9-89-8Desarrollo de productos nuevosPaso 4. Desarrollo de estrategia de marketing
Desarrollo de productos nuevosPaso 4. Desarrollo de estrategia de marketing
Parte 2 Describe a corto plazo:Precio planeado del producto
DistribucinPresupuesto de marketing
Parte 2 Describe a corto plazo:Precio planeado del producto
DistribucinPresupuesto de marketing
Parte 3 Describe a largo plazo:Metas de ventas y utilidades
Estrategia de mezcla de marketing
Parte 3 Describe a largo plazo:Metas de ventas y utilidades
Estrategia de mezcla de marketing
Formular declaracin de estrategia de marketing
Parte 1 Describe en general:Mercado meta
Posicionamiento del productoMetas de ventas y utilidadesParticipacin en el mercado
Parte 1 Describe en general:Mercado meta
Posicionamiento del productoMetas de ventas y utilidadesParticipacin en el mercado
-
Copyright 1999 Prentice Hall
9-99-9Desarrollo de productos nuevosPaso 5. Anlisis de negociosPaso 6. Desarrollo del producto
Desarrollo de productos nuevosPaso 5. Anlisis de negociosPaso 6. Desarrollo del producto
Anlisis de negocios
Resea de proyecciones de ventas,costos y utilidades para determinar
si satisfacen los objetivos de la empresa
Anlisis de negocios
Resea de proyecciones de ventas,costos y utilidades para determinar
si satisfacen los objetivos de la empresa
Si s, pasar aldesarrollo del producto
Si s, pasar aldesarrollo del producto
Si no, eliminar elconcepto de producto
Si no, eliminar elconcepto de producto
-
Copyright 1999 Prentice Hall
9-109-10Desarrollo de productos nuevosPaso 7. Mercado de prueba
Desarrollo de productos nuevosPaso 7. Mercado de prueba
Mercado deprueba estndar
Campaa cabal demarketing en unascuantas ciudadesrepresentativas
Mercado deprueba estndar
Campaa cabal demarketing en unascuantas ciudadesrepresentativas
Mercado deprueba simulado
Prueba en un entornode compras simulado
con una muestrade consumidores.
Mercado deprueba simulado
Prueba en un entornode compras simulado
con una muestrade consumidores.
Mercadode pruebacontrolado
Unas cuantas tiendasque aceptaron
trabajar nuevosproductos a cambio
de una cuota.
Mercadode pruebacontrolado
Unas cuantas tiendasque aceptaron
trabajar nuevosproductos a cambio
de una cuota.
-
Copyright 1999 Prentice Hall
9-119-11Desarrollo de productos nuevosPaso 8. Comercializacin
Desarrollo de productos nuevosPaso 8. Comercializacin
Cundo?Cundo? Dnde?Dnde? A quin?A quin? Cmo?Cmo?
Comercializacin es laintroduccin del nuevo producto
en el mercado.
-
Copyright 1999 Prentice Hall
9-129-12Aceleracin del desarrolloAceleracin del desarrollo
Paso 1Paso 1
Paso 2Paso 2
Paso 3Paso 3
Paso 4Paso 4P
aso
1
Pas
o2
Paso 3
Paso 4
Secuencial Simultneo
-
Copyright 1999 Prentice Hall
9-139-13Ciclo de vida de los productosCiclo de vida de los productos
Tiempo
Desarrollodel
producto
Introduccin
Utilidades
Ventas
Crecimiento Madurez Decadencia
Prdidas /Inversin ($)
Ventas yutilidades ($)
Ventas y utilidades durante la existencia del producto,desde su introduccin hasta su decadencia
-
Copyright 1999 Prentice Hall
9-149-14Etapa de introduccin del PLCEtapa de introduccin del PLC
Resumen de caractersticas, objetivos y estrategias
VentasVentas
CostosCostos
UtilidadesUtilidades
Objetivos de marketingObjetivos de marketing
ProductoProducto
PrecioPrecio
Ventas bajasVentas bajas
Costo alto por clienteCosto alto por cliente
NegativasNegativas
Crear conciencia del productoy lograr que lo prueben
Crear conciencia del productoy lograr que lo prueben
Ofrecer un producto bsicoOfrecer un producto bsico
Usar costo ms margenUsar costo ms margen
DistribucinDistribucin Establecer distribucin selectivaEstablecer distribucin selectiva
PublicidadPublicidad Crear conciencia entre adoptado-res tempranos y distribuidores
Crear conciencia entre adoptado-res tempranos y distribuidores
-
Copyright 1999 Prentice Hall
9-159-15Etapa de crecimiento del PLCEtapa de crecimiento del PLC
Resumen de caractersticas, objetivos y estrategias
VentasVentas
CostosCostos
UtilidadesUtilidades
Objetivos de marketingObjetivos de marketing
ProductoProducto
PrecioPrecio
Aumento rpido en las ventasAumento rpido en las ventas
Costo medio por clienteCosto medio por cliente
Aumento en las utilidadesAumento en las utilidades
Maximizar participacinMaximizar participacin
Ofrecer extensiones de producto,servicio, garanta
Ofrecer extensiones de producto,servicio, garanta
Precio para penetrar el mercadoPrecio para penetrar el mercado
DistribucinDistribucin Lograr distribucin intensivaLograr distribucin intensiva
PublicidadPublicidad Crear conciencia e inters en el mercado de masas
Crear conciencia e inters en el mercado de masas
-
Copyright 1999 Prentice Hall
9-169-16Etapa de madurez del PLCEtapa de madurez del PLC
Resumen de caractersticas, objetivos y estrategias
VentasVentas
CostosCostos
UtilidadesUtilidades
Objetivos de marketingObjetivos de marketing
ProductoProducto
PrecioPrecio
Ventas mximasVentas mximas
Costo bajo por clienteCosto bajo por cliente
Utilidades elevadasUtilidades elevadas
Maximizar utilidades pero defendiendo la participacinMaximizar utilidades pero
defendiendo la participacin
Diversificar marcas y modelosDiversificar marcas y modelos
Precio comparable con el de los mejores competidores
Precio comparable con el de los mejores competidores
DistribucinDistribucin Lograr distribucin ms intensivaLograr distribucin ms intensiva
PublicidadPublicidad Subrayar diferencias y beneficiosde la marca
Subrayar diferencias y beneficiosde la marca
-
Copyright 1999 Prentice Hall
9-179-17Etapa de decadencia del PLCEtapa de decadencia del PLC
Resumen de caractersticas, objetivos y estrategias
VentasVentas
CostosCostos
UtilidadesUtilidades
Objetivos de marketingObjetivos de marketing
ProductoProducto
PrecioPrecio
Baja en las ventasBaja en las ventas
Costo bajo por clienteCosto bajo por cliente
Baja en las utilidadesBaja en las utilidades
Reducir gastos y sacar provecho a la marca
Reducir gastos y sacar provecho a la marca
Descontinuar artculos dbilesDescontinuar artculos dbiles
Recortar precioRecortar precio
DistribucinDistribucin Ser selectivos: descontinuar expendios no rentablesSer selectivos: descontinuar
expendios no rentables
PublicidadPublicidad Reducir al nivel necesario para conservar los clientes ms lealesReducir al nivel necesario para
conservar los clientes ms leales
Copyright 1999 Prentice Hall
9-*
Captulo 9
Estrategias de desarrollo de
nuevos productos y de ciclo
de vida de los productos
Marketing
Octava edicin
Philip Kotler y Gary Armstrong
Copyright 1999 Prentice Hall
9-*
Estrategias de desarrollo
de nuevos productos
Strategies for Obtaining New Product Ideas
Productos
originales
Mejoras a
productos
Modificaciones
de productos
Nuevas
marcas
Empresas
adquiridas
Patentes
adquiridas
Licencias
adquiridas
Estrategias para obtener ideas de productos nuevos
Copyright 1999 Prentice Hall
9-*
Causas del fracaso de productos
nuevos
Sobreestimar el tamao del mercado
Problemas en el diseo de productos
Producto con posicionamiento, precio o publicidad
incorrectos
Costos de desarrollo de productos
Acciones competitivas
Para crear productos nuevos que tengan xito, la empresa debe:
entender a sus clientes, mercados y competidores
desarrollar productos que proporcionen un valor superior a los clientes.
Copyright 1999 Prentice Hall
9-*
Proceso de desarrollo de
nuevos productos
Generacin
de ideas
Depuracin
de ideas
Desarrollo
y prueba
de ideas
Estrategia de
marketing
Anlisis de
negocios
Desarrollo
de productos
Mercado
de prueba
Comercializacin
New Product Development Process
This CTR corresponds to Figure 9-1 on p. 275 and relates to the discussion on pp. 275-286.
Stages in New Product Development
Idea Generation. This stage is the systematic search for new product ideas. Sources for new product ideas include internal sources, customers, competitor's products, distributors & suppliers, and other sources.
Screening. This stage focuses on reducing the number of ideas by dropping poor ideas as soon as possible. This helps reduce costs and focus attention more productively.
Concept Development and Testing. This stage involves translating ideas into product concepts or detailed versions of the ideas stated in meaningful consumer terms. Concepts are then tested on target consumers.
Marketing Strategy. This stage consists of three parts. The first part describes the target market, the second part outlines the product's projected price, distribution, and budget for the first year, the third part describes long-term sales, profit goals, and marketing mix strategy.
Business Analysis. This stage reviews the sales, costs, and profit projections for the product to find out if they satisfy overall company objectives.
Product Development. This stage involves bringing the product concept into existence as a physical product to ensure that the idea is a workable product.
Test Marketing. This is the stage at which the product and marketing program are implemented in one or more realistic market settings.
Commercialization. This stage involves actually introducing the new product into the competitive marketplace. In this stage, the company must make decisions involving when to introduce, where, to whom, and how.
Copyright 1999 Prentice Hall
9-*
C
L
I
E
N
T
E
S
C
O
M
P
E
T
I
D
O
R
E
S
D
I
S
T
R
I
B
U
I
D
O
R
E
S
P
R
O
V
E
E
D
O
R
E
S
Desarrollo de productos nuevos
Paso 1. Generacin de ideas
La generacin de ideas es la bsqueda sistemtica de ideas para productos nuevos obtenidas internamente y de:
Copyright 1999 Prentice Hall
9-*
Determinar qu ideas son buenas y desechar las malas lo antes posible.
Muchas empresas tienen sistemas para calificar y depurar ideas, que estiman:
Tamao del mercado
Precio del producto
Tiempo y costos del desarrollo
Costos de fabricacin
Tasa de rendimiento
Luego, la idea se evala con base en un conjunto de criterios generales de la empresa.
Desarrollo de productos nuevos
Paso 2. Depuracin de ideas
Copyright 1999 Prentice Hall
9-*
Desarrollo de productos nuevos
Paso 3. Desarrollo y prueba de concepto
1. Desarrollar ideas de producto
para convertirlas en conceptos
de producto alternos
2. Prueba de conceptos - Probar
los conceptos de producto con
grupos de clientes meta
3. Escoger el mejor
Copyright 1999 Prentice Hall
9-*
Desarrollo de productos nuevos
Paso 4. Desarrollo de estrategia de marketing
Parte 2 Describe a corto plazo:
Precio planeado del producto
Distribucin
Presupuesto de marketing
Parte 3 Describe a largo plazo:
Metas de ventas y utilidades
Estrategia de mezcla de marketing
Formular declaracin de estrategia de marketing
Parte 1 Describe en general:
Mercado meta
Posicionamiento del producto
Metas de ventas y utilidades
Participacin en el mercado
Copyright 1999 Prentice Hall
9-*
Desarrollo de productos nuevos
Paso 5. Anlisis de negocios
Paso 6. Desarrollo del producto
Anlisis de negocios
Resea de proyecciones de ventas,
costos y utilidades para determinar
si satisfacen los objetivos de la empresa
Si s, pasar al
desarrollo del producto
Si no, eliminar el
concepto de producto
Copyright 1999 Prentice Hall
9-*
Desarrollo de productos nuevos
Paso 7. Mercado de prueba
Mercado de
prueba estndar
Campaa cabal de
marketing en unas
cuantas ciudades
representativas
Mercado de
prueba simulado
Prueba en un entorno
de compras simulado
con una muestra
de consumidores.
Mercado
de prueba
controlado
Unas cuantas tiendas
que aceptaron
trabajar nuevos
productos a cambio
de una cuota.
Test Marketing
This CTR relates to the discussion on pp. 282-284.
Test Marketing
Standard Test Markets. Under this approach, the company finds a small number of representative test cities, conducts a full marketing campaign in those cities, and then measures and evaluates performance. This provides a real world picture of how the product performs. But there are drawbacks. Standard testing is expensive, long, and tips competitors to company strategy.
Controlled Test Markets. This approach uses a research firm that has designated store placement space for their clients. Participating stores receive a fee. Some services like Scantrack (Nielsen) and BehaviorScan (IRI) offer computerized monitoring of individual consumer panels whose television viewing is cross-tabulated with store purchases. Controlled testing is quicker and less expensive than standard testing. Concerns revolve around representativeness of the test markets (small size) and tipping off competitors.
Simulated Test Markets. This approach creates a simulated shopping environment by the company or research firm. Consumers are exposed to promotions and then given money to shop with. Purchase patterns are observed and consumers are interviewed afterward by researchers. Simulated test marketing is inexpensive and quick. Representativeness and demand characteristics are concerns and this approach might be used as a pretest for a go-no go decision on further testing.
Copyright 1999 Prentice Hall
9-*
Desarrollo de productos nuevos
Paso 8. Comercializacin
Cundo?
Dnde?
A quin?
Cmo?
Comercializacin es la introduccin del nuevo producto en el mercado.
Copyright 1999 Prentice Hall
9-*
Aceleracin del desarrollo
Paso 1
Paso 2
Paso 3
Paso 4
Secuencial
Simultneo
Speeding Up Development
This CTR relates to the material on p. 286-287.
Speeding Up New-Product Development
Sequential Product Development. Isolated groups in each stage work on the new product until the stage is completed. This completed stage is then passed to the next group or department to begin its stage in the process. This organization brings control to complex development projects and reduces the risk associated with costly mistakes. But it is also extremely slow and subjects the company to greater competitive risk and potential lost sales while the process is completed.
Simultaneous Product Development. This approach organizes new product development into a more flexible integration of each stage in the process. Simultaneous organization features close communication and coordination of departments and groups working on different stages, more overlap of work on steps to save time and increase effectiveness. Coordination facilitates each stage benefiting from the developmental process of the other stages while still planning what the product should be and will become.
Copyright 1999 Prentice Hall
9-*
Ciclo de vida de los productos
Tiempo
Desarrollo
del
producto
Introduccin
Utilidades
Ventas
Crecimiento
Madurez
Decadencia
Prdidas /
Inversin ($)
Ventas y
utilidades ($)
Ventas y utilidades durante la existencia del producto,
desde su introduccin hasta su decadencia
The Product Life-Cycle
This CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp. 287-293.
Instructors Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs.
Product Life Cycle Stages
Product Development. Development begins when the company finds and develops a new product idea. During development the product has costs but no sales. Development costs must be strategically weighed against the projected length of the product's PLC.
Introduction. During the introduction of new products initial sales growth is slow as the market is just becoming aware of the product. Profits are usually nonexistent at this stage due to heavy promotional spending.
Growth. This stage is characterized by rapid market acceptance of the product and increasing profits.
Maturity. In maturity there is a slowdown in sales growth as the product has achieved acceptance by most potential customers. Profits may level off or decline as marketing costs increase to defend existing market share.
Decline. In this period sales begin to fall off and profits decline dramatically.
Copyright 1999 Prentice Hall
9-*
Etapa de introduccin del PLC
Resumen de caractersticas, objetivos y estrategias
Ventas
Costos
Utilidades
Objetivos de marketing
Producto
Precio
Ventas bajas
Costo alto por cliente
Negativas
Crear conciencia del producto
y lograr que lo prueben
Ofrecer un producto bsico
Usar costo ms margen
Distribucin
Establecer distribucin selectiva
Publicidad
Crear conciencia entre adoptado-res tempranos y distribuidores
Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes.
Product Life Cycle Strategies
Product Life-Cycle Strategies
This CTR relates to the material on pp. 289 and 293.
Copyright 1999 Prentice Hall
9-*
Etapa de crecimiento del PLC
Resumen de caractersticas, objetivos y estrategias
Ventas
Costos
Utilidades
Objetivos de marketing
Producto
Precio
Aumento rpido en las ventas
Costo medio por cliente
Aumento en las utilidades
Maximizar participacin
Ofrecer extensiones de producto, servicio, garanta
Precio para penetrar el mercado
Distribucin
Lograr distribucin intensiva
Publicidad
Crear conciencia e inters en el mercado de masas
Product Life-Cycle Strategies
This CTR relates to the material on pp. 289-290 and 293.
Product Life-Cycle Strategies
Growth. In this stage the company experiences both increasing sales and competition. Promotion costs are spread over larger volume and strategic decisions focus on growth strategies. Strategies include adding new features, improving quality, increasing distribution, and entering new market segments.
Copyright 1999 Prentice Hall
9-*
Etapa de madurez del PLC
Resumen de caractersticas, objetivos y estrategias
Ventas
Costos
Utilidades
Objetivos de marketing
Producto
Precio
Ventas mximas
Costo bajo por cliente
Utilidades elevadas
Maximizar utilidades pero defendiendo la participacin
Diversificar marcas y modelos
Precio comparable con el de los mejores competidores
Distribucin
Lograr distribucin ms intensiva
Publicidad
Subrayar diferencias y beneficios de la marca
Product Life Cycle Strategies
Maturity. In this stage the company must manage slower growth over a longer period of time. Strategic decisions made in the growth stage may limit choices now. Marketing managers must proactively seek advantage by either market modification to increase consumption, product modification to attract new users (quality, feature, and style improvements), or marketing mix modification in an attempt to improve competitive position.
Product Life-Cycle Strategies
This CTR relates to the material on pp. 290-292 and 293.
Copyright 1999 Prentice Hall
9-*
Etapa de decadencia del PLC
Resumen de caractersticas, objetivos y estrategias
Ventas
Costos
Utilidades
Objetivos de marketing
Producto
Precio
Baja en las ventas
Costo bajo por cliente
Baja en las utilidades
Reducir gastos y sacar provecho a la marca
Descontinuar artculos dbiles
Recortar precio
Distribucin
Ser selectivos: descontinuar expendios no rentables
Publicidad
Reducir al nivel necesario para conservar los clientes ms leales
Product Life-Cycle Strategies
This CTR relates to the material on pp. 292-293.
Product Life Cycle Strategies
Decline. In this stage the costs of managing the product may eventually exceed profits. Rate of decline is a major factor in setting strategy. Management may maintain the brand as competitors drop out, harvest the brand by reducing costs of support for short term profit increases, or drop the product (divest) altogether.
New Product Development Process
This CTR corresponds to Figure 9-1 on p. 275 and relates to the discussion on pp. 275-286.
Stages in New Product Development
Idea Generation. This stage is the systematic search for new product ideas. Sources for new product ideas include internal sources, customers, competitor's products, distributors & suppliers, and other sources.
Screening. This stage focuses on reducing the number of ideas by dropping poor ideas as soon as possible. This helps reduce costs and focus attention more productively.
Concept Development and Testing. This stage involves translating ideas into product concepts or detailed versions of the ideas stated in meaningful consumer terms. Concepts are then tested on target consumers.
Marketing Strategy. This stage consists of three parts. The first part describes the target market, the second part outlines the product's projected price, distribution, and budget for the first year, the third part describes long-term sales, profit goals, and marketing mix strategy.
Business Analysis. This stage reviews the sales, costs, and profit projections for the product to find out if they satisfy overall company objectives.
Product Development. This stage involves bringing the product concept into existence as a physical product to ensure that the idea is a workable product.
Test Marketing. This is the stage at which the product and marketing program are implemented in one or more realistic market settings.
Commercialization. This stage involves actually introducing the new product into the competitive marketplace. In this stage, the company must make decisions involving when to introduce, where, to whom, and how.
Test Marketing
This CTR relates to the discussion on pp. 282-284.
Test Marketing
Standard Test Markets. Under this approach, the company finds a small number of representative test cities, conducts a full marketing campaign in those cities, and then measures and evaluates performance. This provides a real world picture of how the product performs. But there are drawbacks. Standard testing is expensive, long, and tips competitors to company strategy.
Controlled Test Markets. This approach uses a research firm that has designated store placement space for their clients. Participating stores receive a fee. Some services like Scantrack (Nielsen) and BehaviorScan (IRI) offer computerized monitoring of individual consumer panels whose television viewing is cross-tabulated with store purchases. Controlled testing is quicker and less expensive than standard testing. Concerns revolve around representativeness of the test markets (small size) and tipping off competitors.
Simulated Test Markets. This approach creates a simulated shopping environment by the company or research firm. Consumers are exposed to promotions and then given money to shop with. Purchase patterns are observed and consumers are interviewed afterward by researchers. Simulated test marketing is inexpensive and quick. Representativeness and demand characteristics are concerns and this approach might be used as a pretest for a go-no go decision on further testing.
Speeding Up Development
This CTR relates to the material on p. 286-287.
Speeding Up New-Product Development
Sequential Product Development. Isolated groups in each stage work on the new product until the stage is completed. This completed stage is then passed to the next group or department to begin its stage in the process. This organization brings control to complex development projects and reduces the risk associated with costly mistakes. But it is also extremely slow and subjects the company to greater competitive risk and potential lost sales while the process is completed.
Simultaneous Product Development. This approach organizes new product development into a more flexible integration of each stage in the process. Simultaneous organization features close communication and coordination of departments and groups working on different stages, more overlap of work on steps to save time and increase effectiveness. Coordination facilitates each stage benefiting from the developmental process of the other stages while still planning what the product should be and will become.
The Product Life-Cycle
This CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp. 287-293.
Instructors Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs.
Product Life Cycle Stages
Product Development. Development begins when the company finds and develops a new product idea. During development the product has costs but no sales. Development costs must be strategically weighed against the projected length of the product's PLC.
Introduction. During the introduction of new products initial sales growth is slow as the market is just becoming aware of the product. Profits are usually nonexistent at this stage due to heavy promotional spending.
Growth. This stage is characterized by rapid market acceptance of the product and increasing profits.
Maturity. In maturity there is a slowdown in sales growth as the product has achieved acceptance by most potential customers. Profits may level off or decline as marketing costs increase to defend existing market share.
Decline. In this period sales begin to fall off and profits decline dramatically.
Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes.
Product Life Cycle Strategies
Product Life-Cycle Strategies
This CTR relates to the material on pp. 289 and 293.
Product Life-Cycle Strategies
This CTR relates to the material on pp. 289-290 and 293.
Product Life-Cycle Strategies
Growth. In this stage the company experiences both increasing sales and competition. Promotion costs are spread over larger volume and strategic decisions focus on growth strategies. Strategies include adding new features, improving quality, increasing distribution, and entering new market segments.
Product Life Cycle Strategies
Maturity. In this stage the company must manage slower growth over a longer period of time. Strategic decisions made in the growth stage may limit choices now. Marketing managers must proactively seek advantage by either market modification to increase consumption, product modification to attract new users (quality, feature, and style improvements), or marketing mix modification in an attempt to improve competitive position.
Product Life-Cycle Strategies
This CTR relates to the material on pp. 290-292 and 293.
Product Life-Cycle Strategies
This CTR relates to the material on pp. 292-293.
Product Life Cycle Strategies
Decline. In this stage the costs of managing the product may eventually exceed profits. Rate of decline is a major factor in setting strategy. Management may maintain the brand as competitors drop out, harvest the brand by reducing costs of support for short term profit increases, or drop the product (divest) altogether.