Module 1 Flashcards
It means the development or gradual advance of the market from an initial position to one that is more critical
MARKET EVOLUTION
Four stages of Market Evolution
Emergence, Growth, Maturity, Decline
The market for such products is termed as latent. “A latent market consists of people who share a similar
need or want for something that does not yet exist.
EMERGENCE STAGE OF MARKET
A market that consists of people who share a similar
need or want for something that does not yet exist.
Latent Market
Marketing Strategies
Single-Niche
Multiple Niche
Mass Market
If the marketer decides to develop the product to satisfy one of the corners of the market, it is termed
as ?
Single-Niche
If the marketer decides to develop and launch more than one new product
aiming at more than one corner or segment of the total market, we call it a ?
multiple-niche strategy
Under this strategy, the marketer aims at the
middle portion of the market where concentration is heavy.
Mass Market Strategy
begins as new firms
enter the market and compete with the pioneer firm. Since this is the era
of extreme competition, new firms will immediately enter the market if they
see the market is profitable to operate
Growth Stage
When most of the corners/parts/segments of a
product’s total market are tapped and served by different competing
firms, the market reaches what stage?
Maturity Stage
When all of the major segments are covered, marketers find it
unprofitable operating in one or a few segments
Maturity Stage of Market
When the demand of the market will start reducing, this stage begins
Decline Stage
Two common reasons for decline of a business/ product
- First, society’s need level for a particular product may decline, which reduces the need for a specific product.
- Second, new technology may emerge capable of producing better products.
means making new
products and offering new services, or adding new value to existing ones
Innovation
is the implementation
and the application of a new idea related to a new product or service, a new marketing method, a new organizational methods in business practices, workplace organization or external relations
Innovation
5 areas in which companies can introduce innovation
(GIDDR)
- Generation of new or improved products.
- Introduction of new production process
- Development of new sales market
- Development of new supply market
- Reorganization and/ or restructing of the company
Types of Innovation (PMO)
Process innovation, Marketing, Organizational
The adoption of new or
significantly improved
production methods. These
methods may involve changes in equipment or production
organization or both
Process information
An innovation that satisfies
customer needs and develops a competitive advantage through
implementation of new marketing method involving significant changes in product design or
packaging, product placement, product promotion or pricing.
Marketing Innovation
The implementation of a new
organizational method in the firm’s business practices, workplace organization or external relations
Organizational innovation
Creating new Market + Improving existing knowledge = ?
Market innovation
Creating new Market + creating new knowledge = ?
Basic Innovation
Retaining Existing Market + improving existing knowledge = ?
Incremental Innovation
Retaining Existing Market + Creating new knowledge = ?
Technological Subsitution
is the set of activities
beginning with the perception of a
market opportunity and ending in the production, sale, and delivery of
a product. It includes also new service development (NSD).
New Product Development (NPD)
What is a new product?
- A product that OPENS an entirely new market
- A product that ADOPTS or REPLACES an existing product
- An OLD PRODUCT introduced in a NEW market
- An old product PACKAGED IN DIFFERENT WAY
- An old product MARKETED in a different way
FUNDAMENTAL ELEMENTS NEW PRODUCT DEVELOPMENT
Variant Generation Process
Selection Process
Transformation Process
Coordination Process
which converts (‘develops’)
opportunities into economic goods and codified knowledge (embodied in a design) – products or services to be offered to
customers
Transformation Process
process which ensures the information flow,
collaboration, and cooperation among multiple parties, involved in the NPD activities
Coordination Process
which identifies new
combinations of technologies, processes, and market opportunities with the potential to create economic value
Variant Generation Process
which chooses the most promising among
the new combinations for further investment according to consistent criteria.
Selection Process
New product can be used to:
- Increase/defend market share by offering more choices or updating older products
- Improve relationship with
distributors - Maintain the firm’s reputation a leading brand
- Make better use of the
organization’s resources
Why develop a new product?
- To maintain/ increase market
share - To fill gap in the market
- To take advantage of new
technology - To replace declining product
- To maintain competitive
advantage
True or false:
A MARKETER CAN RARELY
SATISFY EVERYONE IN
A MARKET
True
Identify and profile distinct
groups of buyers who might
prefer or require varying products
Market segmentation
can be identified by examining demographic, psychographic, and behavioral differences
among buyers
Market segments
For each chosen target market, the firm develops a ?
Market Offering
is positioned in the
minds of the target buyers as
delivering some central
benefit(s)
Offering
Benefits of using market segmentation and target market
- Enhance Market campaign
- Improves product development
- Helps Locate New Market
4.Provides Brand Guidance
You can create marketing
campaigns that show how the company’s products and services meet your customer’s specific
needs and encourage customers to choose your product over
competing items.
Enhance Marketing Campaign
Create products they find useful. Opportunities to create new products to meet specific needs.
Improves Product Development
Improve existing products to
make them more useful to the customers
Improves Product Development
Targeted product development
can build brand loyalty and help a company acquire a niche market
Improves product development
Conducting market segmentation research can help a business development team learn about audiences who haven’t received targeted marketing from the company yet.
Helps Locate New Market
Learning who buys a company’s products can help the company’s leadership team adjust its brand to
appeal to its target audience
Provides Brand Guidance
Product Development life cycle
Conceptualization
Planning
Development
Testing and validation
Launch
Growth and improvement
Maturity
Decline or End-of-life
two things you do in Conceptualization
Idea generation
Idea screening
Gathering and generating potential ideas for new products or improvements to existing products.
Idea generation
Encouraging brainstorming sessions, innovation competitions, and cross departmental collaborations.
Idea generation
Evaluating and selecting the s
promising ideas based on various criteria such as feasibility, market potential, and alignment with business goal
Idea Screening
Using criteria like market potential, feasibility, and strategic fit to evaluate
and prioritize ideas
Idea screening
2 things you do in planning
Feasibility analysis
Market research
Assessing the technical, financial, and market feasibility of the selected product concept
Feasibility Analysis
Employing SWOT analysis
(Strengths, Weaknesses,
Opportunities, Threats), cost-benefit analysis, and risk assessment
Feasibility Analysis
Conducting detailed market analysis, identifying target demographics, and
understanding consumer needs and preferences
Market Research
Conducting surveys, focus groups, and competitor analysis to understand market needs and trends
Market research
2 things you do in development
Product design
Prototyping
Creating the detailed specifications and
design of the product based on market research and feasibility analysis.
Product design
Utilizing design thinking methodologies,
rapid prototyping, and agile
development processes to create user centered designs.
Product design
Building prototypes or minimum viable
products (MVPs) to test the product’s functionalities and gather feedback for refinemen
prototyping
Emphasizing rapid iteration and feedback loops to refine product features
and functionalities early in the process
Prototyping
Two things you do in testing and validation
Product testing
Validation
Conducting rigorous testing to ensure the product meets quality standards
and addresses consumer needs.
Product Testing
Employing alpha and beta testing, quality assurance protocols, and
usability testing to ensure product reliability and performance.
Product testing
Verifying the product’s performance, usability, and reliability against predefined criteria.
Validation
Conducting user acceptance testing (UAT), validating against predefined
success criteria, and incorporating
feedback
Validation
2 things you do in Launch
Market Entry
Launch Strategy
Strategically introducing the product to the market through effective marketing
campaigns and distribution channels.
Market Entry
Using penetration pricing, skimming, or other pricing strategies; selecting
appropriate distribution channels; and creating compelling marketing
campaigns.
Market Entry
Executing the go-to-market plan, including pricing, promotion, and
distribution strategies
Launch Strategy
Leveraging social media, influencer marketing, and strategic partnerships
for maximum reach and impact
Launch Strategy
under Growth and development
Market feedback Analysis
Iterative development
Collecting and analyzing feedback from initial users/customers to
identify areas for improvement.
Market Feedback analysis
Utilizing feedback collection tools, customer surveys, and data analytics to gather and analyze user feedback.
Market Feedback Analysis
Implementing changes or updates based
on feedback to enhance the product’s features, performance, or user
experience
Iterative Development
Under Maturity
Product optimization
Market expansion
Optimizing the product based on market trends, technological
advancements, or changing
consumer preferences
Product Optimization
Conducting periodic reviews, feature enhancements, product bundling,
and cross-selling strategies
Product Optimization
Exploring new markets or segments to sustain or expand the product’s
market share.
Market Expansion
Identifying new market segments, geographic expansion, and
diversification of product variants or extensions.
Market expansion
Under Decline
Product Retirement
Disposition
Considering product retirement or discontinuation due to declining market
demand, technological obsolescence, or
the introduction of newer products.
Product Retirement
Implementing phased withdrawal strategies, offering incentives for the
transition to newer products, and responsibly managing inventory or disposal.
Product Retirement
Planning for the withdrawal of the product from the market, including
inventory management and customer transition strategies.
Disposition
Providing customer support during the transition, offering discounts for remaining inventory, and communicating transparently about the product’s discontinuation
Disposition
