Chapter 8 Flashcards
Way to create new product
Acquisition - by buying the whole company, license
New product development effort
New product development (stage 1)
Idea generation (new idea)
Internal way - r&d, from employee
External way - customers, competitors , suppliers
New product development (stage 2)
Idea screening ( go through all the idea and select the perfect one)
New product development (stage 3)
Concept development and testing
- product idea
- product concept (details)
Product image ( how consumer think our product)
New product development (stage 4)
Marketing strategy and development (design the perfect marketing strategy for introducing new products)
New product development (stage 5)
Business analysis (see deeply of sales, cost and profit)
New product development (stage 6)
Create physical product
New product development (stage 7)
Test marketing ( introduced into real market)
New product development (stage 8)
Commercialisation (the final step to introduce to market the consideration is the timing and the place)
Product life cycle stage
Introduction
Growth
Maturity
Decline
Introduction (plc)
Less competitors
Slow growth in sales
Cost high
Profit low
To create awareness
Have advertising and sales promotion
Growth (plc)
Competitor is growthing
Sales start to rise
Cost average
Profit rising
To maximise market share
Have advertisements but reduce in sales promotion
Maturity (plc)
More competitor
High sales
Cost low
Profit high
To maximise profit &defend market share
Have advertising to stress out the brand benefits and increase sales promotion
Decline (plc)
Less competitors
Low sales
Low cost
To reduce expenses
Reduce advertising and sales promotion
Maturity stage strategies
- Modifying the market (upgrading the market)
- Modifying the product (upgrading the product)
- Modifying the Mix (upgrading the 4P)
Decline stage strategies
- Maintain the brand
- Reduce the cost
- Drop the product
